For the First Time, Researchers Produce More Energy from Fusion Than Was Used to Drive It, Promising Further Discovery in Clean Power and Nuclear Weapons Stewardship
“The pursuit of fusion ignition in the laboratory is one of the most significant scientific challenges ever tackled by humanity, and achieving it is a triumph of science, engineering, and most of all, people,” LLNL Director Dr. Kim Budil said about the major scientific breakthrough, decades in the making, that will pave the way for advancements in national defense and the future of clean power.
Lawrence Livermore National Laboratory (LLNL) Director Dr. Kim Budil December 13, 2022
Azi Feifel
COO PROSPECT RESOURCES
Trends in the Energy Market
With winter intensifying, NYMEX futures have been volatile, trending downward. As December and 2022 come to a close, Winter futures are hovering below $5.30 per MMBtu. January 2023 remains the prompt month.
While most of the country is heavily impacted by winter storms and frigid air as of this writing, there is a warm-up in the projected 11-15 day outlook, causing a sell-off and falling prices. News that the Freeport LNG terminal may still be months away from operation has also held natural gas prices down.
The near-term 11-20 day forecast shows a strong shot of cold air through the heart of the country into the Northeast building into the middle of December. The west is mild and the Pacific Northwest is mild as well after a period of colder-than-normal.
Natural gas production continues to output at better than expected level. Current output remains at or near 100 Bcf/day.
Global crude oil demand is trending up slightly, especially with China's zero Covid policies being eased. Prompt-month futures were trading steadily in the $75 - $80 /bbl range moving toward the end of the year.
The economy seems to be giving off mixed signals. Retail sales have continued to fall, and manufacturing output had its first drop since June. On the flip side, inflation is easing but remains high and is placing strains on American households. Unemployment filings declined to the lowest level since September; the labor market remains somewhat tight.
Forward electricity prices were up in most regions week over week. California prices fell after a huge jump the prior week. ISONE and NYISO saw large double-digit percentage increases of 16.4% and 16% respectively. PJM prices increased between 7.5%-7.6% and MISO prices were up 6.4%-7.3%.
Energy in the News
Permian Injection Wells in West Texas Inspected After Second Quake in Month
A powerful earthquake in the Permian Basin of West Texas – the second in a month – shook the region last Friday, and regulators were inspecting injection well sites for clues. The 5.4 magnitude seismic event struck an area about 12 miles north of Midland in Martin County. Hear the story on Natural Gas Intel
Europe, a key destination for Russia’s exports of Energy, agrees to a natural-gas price cap amid the war with Ukraine.
The European energy ministers agree to a natural-gas price cap as an emergency measure for Russia’s invasion of Ukraine which has sent prices for the fuel soaring across the continent. Read more on Wall Street Journal
In 2021, Russia was the largest natural gas-exporting country in the world, the second-largest crude oil and condensates-exporting
country after Saudi Arabia, and the third-largest coal-exporting country behind Indonesia and Australia. Read more on EIA
EIA’s short term forecast sees benefits in rising US natural gas production in January
“We expect natural gas prices to increase from November levels as a result of both higher winter natural gas demand and rising LNG exports.
Our forecast for the Henry Hub spot price averages more than $6.00 per million British thermal units (MMBtu) in 1Q23,
up from November’s monthly average of about $5.50/MMBtu. We expect natural gas prices will begin declining after January as U.S. storage levels move closer to the previous five-year average, largely as a result of rising U.S. natural gas production. However, the possibility of price volatility remains high.” Read the full story here.
As we enter a time of rapid inflation, we recognize that you’re scrutinizing every line item in your budget - and in many buildings energy represents 19% of expenditures. Add to that the recent price volatility in the energy markets and you could get hit with a devastatingly high energy bill. Now is the time to ask yourself - is my energy budget ready for the turbulent years ahead?
FROM 2014 TO 2020, PROSPECT RESOURCES SAVED A RENTAL PROPERTY GROUP $1,289,454. THE CLIENT SAVED 19.53% ON THEIR TOTAL ENERGY EXPENDITURE AND 7.5% ON THEIR ELECTRICITY COSTS.
The case study demonstrates how active energy procurement helped PRI achieve this instead of relying on long-term energy contracts that can leave lots of market risk for property managers.
Help friends, colleagues, & other property owners save on energy!
When you introduce us to a friend, we’ll give them a free analysis and recommendation for how to optimize their energy usage. You’ll get a Visa gift card if they become a paying client. To refer your friend, simply email an introduction to your friend and to Azi Feifel.
Did you know?
Renewable energy comes from perpetual sources like wind, solar or geothermal. Most electricity is produced from nonrenewable sources like fossil fuels.
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