Despite record natural gas production this summer, we began the official winter heating season (November 1st) with gas storage inventories at their lowest level in 15 years. Hot summer weather, liquefied natural gas demand, exports and increased industrial usage have resulted in lower-than-anticipated inventories.
While long term outlook for natural gas pricing remains stable due to record production, we must concentrate on potential impact of extreme cold weather here in the Northeast. Peak daily demand has risen significantly over the last ten years or so and adequate storage gas to meet any long term cold snap is not readily available. Limited infrastructure to deliver additional gas during sustained peak demand is the reason.
Remember the Polar Vortex during the 2013-2014 winter season? Both electricity and natural gas prices skyrocketed. I am pleased to say that nearly all of my customers were under fixed rate contracts and felt no pain. You best be locked or risk getting socked, it’s that simple.
Contact us to find out more.