With sincere apologies to Ozzy, looks like gas prices have just gone off the rails on a crazy train. Reese Energy Consulting is following the latest natural gas news that saw Wednesday’s SoCal citygate price perform a Simone Biles-like aerial feat, jumping $8.50/ MMBTU to a breath-taking $20.1/MMBTU. SoCal prices today have retreated somewhat to $18.66—still a 95.39% increase over last week. According to Natural Gas Intelligence, sweltering heat and limited capacity on the El Paso Pipeline are to blame for the nose-bleeding leap. But wait, there’s more. The price of electricity in Calif., is up a staggering 76.63% at $231.30/MWh with spot power thisclose to hitting the state’s $1,000 price cap. After shooting past $5/MMBTU yesterday for a few blinks, the Henry Hub October contract finally settled at $4.914/MMBTU. Meanwhile in Europe, which imports 60% of its gas, the pain is visceral after rising demand and depleted storage levels usually seen in winter now have sky-lifted prices from an average $4/MMBTU to $18/MMBTU, drawing protests by utility customers. Whew.

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

1 Comment

  1. Shayne Holland

    This is what keeps us going. Biden has destroyed so much so fast with bad policies. They haven’t figured out that this readily available fuel is the lifeblood of the world, and especially texas!

    Reply

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