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.
onehandle
(51,122 posts)kristopher
(29,798 posts)Every building in the country should have an energy use rating that gives a financial incentive for investing in energy efficiency.
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)$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)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.
Fearless
(18,421 posts)Which is exactly why Big Energy doesn't want it.
cstanleytech
(26,080 posts)would have a hard time getting the money it would take to setup a decent sized system.
Orrex
(63,083 posts)For a mere $40,000 I can save $500 per year.
Admirable, but not exactly feasible on a standard American budget.
Purveyor
(29,876 posts)Fearless
(18,421 posts)cstanleytech
(26,080 posts)times of the year so you would probably need another source like some wind turbines for example.
BadgerKid
(4,541 posts)you'll be credited at the wholesale rate rather than at the going rate.
Politicalboi
(15,189 posts)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