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Purveyor

(29,876 posts)
Wed Jan 29, 2014, 08:41 PM Jan 2014

Natural Gas Soars to Four-Year High as February Contract Expires

Source: Bloomberg

By Christine Buurma - Jan 29, 2014

Natural gas surged to a four-year high in New York as forecasts for tumbling stockpiles during a frigid winter prompted the strongest rally in 19 months.

Gas jumped 10 percent, the biggest percentage gain since June 14, 2012, on the last day of trading for February futures. WSI Corp., an Andover, Massachusetts-based forecaster, said the weather may be colder than usual in most of the contiguous U.S. from Feb. 3 through Feb. 7. A government report tomorrow may show that stockpiles slid 231 billion cubic feet last week, compared with a five-year average drop of 162 billion, according to the median of 15 analyst estimates compiled by Bloomberg.

“It looks like a short squeeze,” said Aaron Calder, an analyst at Gelber & Associates in Houston. “We usually see a flurry of activity toward the end of expiration day, but this is kind of crazy. Traders are pricing in a very cold February, stronger storage withdrawals and concerns about low inventory levels at the end of the winter.”

Natural gas for February delivery jumped 52.4 cents to $5.557 per million British thermal units on the New York Mercantile Exchange, the highest settlement since Jan. 25, 2010. Trading volume was 46 percent above the 100-day average at 2:50 p.m. Prices are up 31 percent this month, heading for a fourth consecutive monthly gain.

Read more: http://www.bloomberg.com/news/2014-01-29/natural-gas-drops-second-day-this-week-amid-colder-u-s-weather.html



Locally we are dealing with propane shortages around mid-michigan. Besides the extreme cold, we had a wet harvest season that required much more drying of corn before storage and we are shipping quite a bit of propane to China.

Normal propane costs had been around 1.99g but now is going for around $5 with one distributor asking $7.99g with a minimum 200g delivery.

We use a combo of wood, heating oil and electric to stay thawed but are working our way through the woodpile in a hurry.
13 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Natural Gas Soars to Four-Year High as February Contract Expires (Original Post) Purveyor Jan 2014 OP
Nationalize energy. nt onehandle Jan 2014 #1
Better yet, insulate and improve efficiency for zero net energy homes. kristopher Jan 2014 #13
Today I bought heating oil thatgemguy Jan 2014 #2
My god. You can diesel around here for 3.89 and that includes road tax that heating oil doesn't. Purveyor Jan 2014 #7
Solar is day-to-day free. Fearless Jan 2014 #3
Hmmm true enough but even if they were not against it most people like myself probably cstanleytech Jan 2014 #4
I've thought the same thing, alas Orrex Jan 2014 #6
Wonder how that solar works with a foot of snow piled on it? eom Purveyor Jan 2014 #8
Clear off the damn panel. Fearless Jan 2014 #9
Its not just that though as in some areas they get very limited amount of light at certain cstanleytech Jan 2014 #12
And when the excess goes to the grid, BadgerKid Jan 2014 #10
Yup. Fearless Jan 2014 #11
I've never built one myself Politicalboi Jan 2014 #5

kristopher

(29,798 posts)
13. Better yet, insulate and improve efficiency for zero net energy homes.
Fri Jan 31, 2014, 08:33 PM
Jan 2014

Every building in the country should have an energy use rating that gives a financial incentive for investing in energy efficiency.

Zero Net Energy Buildings (ZNEB)

Commercial and residential buildings are major contributors to greenhouse gas emissions. Buildings consume 40 percent of primary energy used annually in the United States and 54 percent of energy used annually in Massachusetts. Our state is working to transform energy use in old and new buildings, moving toward super-efficiency and zero net energy renovation and construction, efforts critical to slowing the harmful progress of climate change.

What is a Zero Net Energy Building?
A zero net energy building (ZNEB) is one that is optimally efficient, and over the course of a year, generates energy onsite, using clean renewable resources, in a quantity equal to or greater than the total amount of energy consumed onsite. Zero net energy buildings are already being designed and constructed in Massachusetts, particularly in the residential sector. In addition to saving energy and reducing greenhouse gas emissions, zero net energy buildings can provide significant cost savings for residents and businesses, and stimulate clean energy technology development and job growth in the Commonwealth.

http://www.mass.gov/eea/energy-utilities-clean-tech/energy-efficiency/zero-net-energy-bldgs/

thatgemguy

(506 posts)
2. Today I bought heating oil
Wed Jan 29, 2014, 09:11 PM
Jan 2014

$4.19 a gallon, 150 gallon minimum delivery. Paid $3.49 in October... I used 5 gallons yesterday with the furnace running almost 8 hours of the day, it cost about $20 just to stay somewhat warm yesterday.

 

Purveyor

(29,876 posts)
7. My god. You can diesel around here for 3.89 and that includes road tax that heating oil doesn't.
Wed Jan 29, 2014, 10:43 PM
Jan 2014

That is what I've been doing this season. I have 2 5g diesel fuel cans and I haul it home myself.

Granted, I don't use that much heating oil so it is feasible in my situation.

cstanleytech

(26,080 posts)
4. Hmmm true enough but even if they were not against it most people like myself probably
Wed Jan 29, 2014, 10:25 PM
Jan 2014

would have a hard time getting the money it would take to setup a decent sized system.

Orrex

(63,083 posts)
6. I've thought the same thing, alas
Wed Jan 29, 2014, 10:43 PM
Jan 2014

For a mere $40,000 I can save $500 per year.

Admirable, but not exactly feasible on a standard American budget.

cstanleytech

(26,080 posts)
12. Its not just that though as in some areas they get very limited amount of light at certain
Fri Jan 31, 2014, 08:03 PM
Jan 2014

times of the year so you would probably need another source like some wind turbines for example.

BadgerKid

(4,541 posts)
10. And when the excess goes to the grid,
Wed Jan 29, 2014, 10:49 PM
Jan 2014

you'll be credited at the wholesale rate rather than at the going rate.

 

Politicalboi

(15,189 posts)
5. I've never built one myself
Wed Jan 29, 2014, 10:38 PM
Jan 2014

But for those who have the tools and time, I hope one of these DIY solar heaters can help. A lot of interesting ideas.


http://www.youtube.com/results?search_query=solar%20heaters&sm=3

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