Choice Energy Services firmly believes in Harry Truman’s quote “Not all readers are leaders, but all leaders are readers.” Choice’s energy analysts are always staying on top of the market by reading the latest industry news articles. If Choice finds an interesting one, it makes sure to post here to share with its clients.
The Gas Market Is in Serious But Stable Condition
The natural gas market is in a coma. I don’t mean gas prices are low, per se; a market can be in the pits but still jump around like a frog in a sock from day to day. Rather, gas prices appear utterly unresponsive even to defibrillator-like stimuli.
2021/2022 RPM Base Residual Auction Results
The 2021/2022 Reliability Pricing Model (RPM) Base Residual Auction (BRA) cleared 163,627.3 MW of unforced capacity in the RTO representing a 22.0% reserve margin. Accounting for load and resource commitments under the Fixed Resource Requirement (FRR), the reserve margin for the entire RTO for the 2021/2022 Delivery Year as procured in the BRA is 21.5%, or 5.7% […]
Texas Heat Could Increase Natural Gas Prices This Summer
Once again, it’s supposed to be a scorching hot summer in Texas, with record breaking electricity demand. And why not? Texas has 29 million people, regularly sees temperatures rise into the 90s and 100s on sweltering summer days, and is easily our largest power consumer, using 50% more electricity than California. Nearly 100% of homes in Texas use air […]
Closing FirstEnergy’s reactors will not destabilize grid, says PJM, but launches probe into future fuel security
PJM Interconnection today said it has determined that FirstEnergy’s power plant subsidiary can shut down its three nuclear power plants within three years without destabilizing the 13-state power grid that PJM manages. At the same time, PJM announced its intention to look at “fuel security” in the face of the utility industry’s growing fleet of […]
The Permian Oil And Natural Gas “Growth Wall” Is Short-Sighted
We know that pipeline help is surely coming to West Texas. The resource potential there is just too massive for it not to be. “At least 2.4 million b/d of potential new Permian oil pipeline capacity has been proposed by a half-dozen operators, and those who have progressed to open season have reported strong customer interest.” […]
CenterPoint Energy to buy Vectren in $6B deal
CenterPoint Energy Inc. wants to purchase Vectren Corp. for $72/share or about $6 billion, with the resulting gas and electric utility company serving more than 7 million customers in eight states. The companies say the combined entity will have electric and natural gas delivery operations in eight states with assets totaling $29 billion and an enterprise value of $27 billion.
Energy Transfer Says ‘Cyber Attack’ Shut Pipeline Data System
A cyber attack that hobbled the electronic communication system used by a major U.S. pipeline network has been overcome. Energy Transfer Partners LP was confident that, after 6 p.m. New York time on Monday, files could safely be exchanged through the EDI platform provided by third-party Energy Services Group LLC, the pipeline company said in a […]
Pipeline shortage means West Texas gas has no place to go
America’s most prolific oil field is now its worst market for natural gas. A pipeline shortage that’s leaving gas trapped in West Texas’ Permian Basin means prices for the fuel there are the lowest of any major U.S. hub, wresting that distinction from Appalachia’s Marcellus Shale. Prices for Permian gas, produced alongside oil in the […]
Gas Is The New Oil
Summary Natural gas will increasingly replace coal and oil. Prices are impossible to predict and will remain volatile for now. Excellent investment opportunities exist among service companies in the “new oil” world. The US has a chronic trade deficit; gas and gas product exports will help alleviate that.
3 Natural Gas Charts To End Winter 2018
Burdened by a historically low-price environment for oil since 2014 and gas since 2008, it’s amazing how quickly the efficiency of our industry has evolved. U.S. oil and gas drillers have upgraded their operations and technologies far faster than anybody could have predicted and are now producing at record highs. As it turns out, the long perception […]