Natural gas futures settled today at their highest price since December 2008 and is up 70% for the year.  Current natural gas inventory is down 21% from year ago and given today’s world situation, predicting where we’re headed is difficult at best. We now need to take at look at Europe’s inventory as well – down 20% from year ago. Given Europe’s reliance on Russian natural gas and its need to reduce Russian imports, it’s believed by many that the United States needs to step up liquid natural gas (LNG) exports which in turn places upward pricing pressure on our natural gas. 

Coal is also involved in the overall energy picture. The price of coal is at its highest since 2008; coal normally replaces natural gas as alternative fuel for power production when natural gas prices rise. With coal prices high and Russia being a large coal exporter, there may not be a switch (or as much of a switch) to coal which in turn can send natural gas and electricity pricing even higher. 

These are interesting times in which we live.  Please contact me anytime regarding your personal situation. 

Regards,

John Thomas, Upstate Utilities, Inc.
Office: 518-391-2370  Fax: 518-225-8098