Since last contacting all of you on March 30th there is virtually no change in natural gas futures pricing, in fact, no change in pricing since December 7, 2017.
There is no change in our forward recommendation: lock in your electricity and natural gas rates through 2022. Excellent long term fixed rates are available, do not lose out on this opportunity. As good as we’ve seen it in at least ten years. This opportunity will not last forever.
Crude oil and gasoline is on the rise, crude @ 3 1/2 year high, price of gasoline at the pump highest in some time. Some believe natural gas will follow suit, to what extent is unknown.
Current inventory of natural gas in storage for winter consumption is 35% lower than year ago, 25% below five-year average. Yes, there is robust production of natural gas however, substantial amount of natural gas is being exported. Significant storage deficit exists.
Finally, and you know this, Indian Point nuclear power plant “will close by 2021.” This plant currently produces 25% of electricity needs for Westchester county and New York City. Removal of such a tremendous amount of power generation from New York state will cause price volatility prior to 2021 and beyond.
Contact us to find out more.