“We’re living in a world right now where what’s scientifically necessary, and what is politically expedient don’t match. It feels like we’re heading towards a much slower and more disorderly climate transition in reality.
“Solving climate change is the ultimate team sport. It isn’t just coming from one sector. It has to be governments, it has to be business, it has to be the finance sector to work together to really address these complex and systemic issues.”
John Scott - Zurich Insurance Group’s Head of Sustainability Risk
Davos 2023
Azi Feifel
COO PROSPECT RESOURCES
Trends in the Energy Market
NYMEX futures have been bearish, with very significant downward pressure. For the first time since March 2021, prompt month futures have fallen below $3.00 per MMBtu.
The first week of February is going below normal in the Midwest and Northeast. A series of storms are forecast for next week from Texas to New England. There is cold air building in Canada that can move into the lower 48. Though this cold Canadian air is not as intense as the December blast, it will provide a major boost to heating demand in key market regions. The west is largely dry after the recent storms.
Natural gas production continues to output at better than expected level. Current output remains at or near 100 Bcf/day.
Natural gas inventories in storage are rising. Recent withdrawals are less than the same period in 2022. Storage now stands at 4.1% more than the same period last year and 4.9% more than the 5-year average.
Global crude oil demand is mostly neutral. China's will remain the main driver for crude oil pricing. Approximately 70% of Russia's oil from the Urals is now headed to India. Prompt-month futures were trading steadily in the $80 /bbl range.
The economy seems to be giving off mixed signals. Retail sales have continued to fall, and the labor market is cooling. On the flip side, inflation seems to be easing but remains higher than desirable with China's economy reopening. Eurozone business rose in January, a sign that the outlook for the global economy may be improving.
Forward electricity prices were down in virtually all regions. California prices fell 10-12%. PJM prices fell 1.0-2.3% with MISO falling 1.2-2.1%. Debate around the PJM mid-term auction schedule continues.
Global LNG demand is forecast to reach 401 million tons this year, a 2% uptick from 2022, while global LNG supply is set to grow 3%
to an estimated 415 million tons. The jump in supply is driven by Venture Global’s Calcasieu Pass reaching full capacity post-commissioning, and Freeport LNG resuming operations in the first quarter of this year. Read More on BloombergNEF
Natural gas and oil investments are strong.
North America natural gas and oil customers are likely to increase their overall capital spending by at least 15% year/year, with well completions equipment already fully contracted, Halliburton Co. CEO Jeff Miller said Tuesday. Read more Natural Gas Intelligence.
EIA Commercial Buildings Energy Consumption Survey (CBECS) Results are in.
In 2018, nearly one-third (32%) of the energy consumed by commercial buildings in the United States was used for space heating, the largest end-use category tracked in the Commercial Buildings Energy Consumption Survey (CBECS) released in December 2022
A strategic strategy to mitigate risk in your ENERGY BUDGET
Layered Hedging refers to the strategy of:
Fully evaluating viable purchasing options including multiple layers
Crafting a detailed, flexible, and long-term purchasing strategy
Continuously tracking the markets and taking advantage of price opportunities
Strategic Layered Hedging is predicated on the belief that in an unpredictable market, the best approach is to make purchases of small amounts of energy over time (Dollar-cost averaging), which limits exposure to the highs and capitalizes on the lows, mitigates risks, reduces volatility, and increases budget certainty.
PRI is Changing the Game and Saved Illinois Clients $3,000,000
Northern Illinois suffered an unusually brutal cold spell during February 2021. Our clients were largely insulated from these extreme and painful price hikes. Read more about our unique procurement strategies in which the generated savings during those two weeks in Northern Illinois, as compared to many of our competitors who employ the standard fixed-rate contracts, was nearly $3,000,000.
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In 2018, nearly one-third (32%) of the energy consumed by commercial buildings in the United States was used for space heating, the largest end-use category tracked in the 
