​Most every descriptor recently used to paint the global energy supply picture—crunch, challenge, problem, oh crap—have now been promoted to just one word: Crisis. The same can be applied on the demand front, where those grappling for every kind of energy are paying skyrocketing prices to meet consumer needs ahead of what many fear to be another brutal winter. Reese Energy Consulting today is following the latest news in the media-verse that would have us believe most parts of the world are in a state of panic to build up storage and nail down long-term contracts for crude oil, natural gas, and LNG. Up until Tuesday, China watched its coal prices rise a staggering 107% since September. Rumors of a government intervention have since dipped futures prices by 8% to $254.44 per ton, but power interruptions and blackouts from its predominantly coal-fired plants are still expected. Russia has “chosen” not to send additional gas supplies to Europe via its Yamal-Europe route, booking only 1.59 BCFD for November vs 3.5 BCFD. Here at home, the EIA predicts our natural gas and electricity costs will rise between 30-50%, and while demand will be high at least supply won’t be an issue.

What do you think? Learn more about REC and our natural gas services at www.ReeseEnergyConsulting.com.

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