Published to LuthINformed, Issue VIII (August 3, 2016)
The Importance of Energy Conversion Calculations…
Energy management takes many different forms. From capital intensive efficient technology to simple maintenance. From “fuel switching” to commodity purchasing. If you’re working with energy on a regular basis, it is important to understand the relationship between various energy sources. Ideally, an energy manager has a clear understanding of the true cost of energy – whether that energy is bought, or saved. A working knowledge of basic energy calculations makes this possible. The tables below present commonly used calculations. Please note that price calculations may not be indicative of current market conditions, and are for illustration purposes only…
Natural Gas Outlook…
The latest inventory report (above) shows a net increase of 17 Bcf vs. the previous week. Stocks were 436 Bcf higher than this time last year and 524 Bcf above the five-year average. Immediately following the release of the report, the futures curve jumped higher due to a lower than anticipated build. Current prices are listed below:
12 month strip = $3.060
24 month strip = $3.062
Cal Year 2017 = $3.132
Cal Year 2018 = $3.005
(all prices NYMEX only; A/O 8/2/16)
For an in-depth discussion on markets, purchasing strategies and other topics, call us here at Luthin Associates. We offer our clients regular market updates and our Energy Procurement Group is staffed with certified experts on energy market conditions.
Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, Luthin Associates, Inc. (Luthin) assumes no responsibility therefore. The user of the information agrees that the information is subject to change without notice. Luthin assumes no responsibility for the consequences of use of such information, nor for any infringement of third party intellectual property rights which may result from its use. In no event shall Luthin be liable for any direct, indirect, special or incidental damage resulting from, arising out of or in connection with the use of the information.