Energy choice for business
It seems for a variety of reasons younger adults (18-34) are eating out less and some in the restaurant industry are concerned. Read more here www.usatoday.com/story/money/business/2012/11/04/millennials-eating-habits-npd-group/1665923/. On the flip side it seems that those over 50 are eating out more often. If you have a moment tell us about your dining habits. How often do you dine out on an average week and who is with you at the table? Or do you eat at the bar, sushi or otherwise.
| Week in Review for March 1-7, 2013 |
| For the second week in a row, energy prices inched upward. The average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX) rose 1.8% and the 12-month average price for peak power on the PJM rose by 1.2 %.
The variable receiving most of the blame for the recent price increases was storage. For the second consecutive week, the U.S. Energy Information Administration (EIA) reported a larger-than-expected gas withdrawal from storage. This seemed to spook the market. These larger-than-expected withdrawals have added fuel to the theory that energy demand was growing and natural gas production was leveling off. A recent EIA report showed that natural gas demand was up 8.9% from last year at this time, while another report showed that production was flat during the same 12 months. On the demand side, this winter was a little colder than last year and thus accounted for some of the demand increases. However, analysts noted that other demand components are now entering the equation. More power plants, chemical plants and various industrial users are looking to switch to low priced, clean natural gas. Although this potential tightening of supply and demand has applied some upward pressure to energy prices over the last two weeks, we are hopeful that the shale gas phenomenon will keep the bulls in check for the next few years. |
Employment in the restaurant industry seems to be continuing its growth pattern.
For the third week in a row energy prices barely budged. For this seven-day report period the average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX) dropped by 1% and the 12-month average price for peak power on the PJM rose by 1%.
Even though the National Oceanic and Atmospheric Administration (NOAA) revised their mid-February forecast and announced that most of the country would be colder-than-normal, energy prices were unable to spike upward this week. Apparently the marketplace ignored the weather report and focused on the fact that the peak heating month of January was behind us. Plus, energy prices were held in check because the natural gas storage report showed that the natural gas inventories were now 15% above the five-year average.
Without colder-than-normal temperatures, energy prices have been unable to sustain any major price spikes. Unless temperatures in February and March take a sustained dip below historical averages, energy prices may have a tough time staging a winter rally.
Stay tuned. The 14-day extended forecast from AccuWeather for the Washington, D.C. region (view details) calls for normal temperatures, but most of the country is expecting colder-than-normal temperatures.
Some marketing professionals suggest that I not ask readers to leave my website with a redirect to another story published by who ever. While I understand that mindset, I don’t necessarily buy it. The more who read about the great things happening in America, the better off we will be in days, months, and years ahead. Here is a story talking about our dramatic cut in carbon emissions. Let me emphasis again, dramatic cut in US carbon emissions. This should be headlined with every global warming story that is published.
Encouraging the energy conservation measures in our buildings and our homes, as well as encouraging the technology innovations that have brought us to this point regarding our reduced carbon output will get us to continue our county’s push to a more sustainable future. I believe that the United States of America will continue to lead the world in innovation, prosperity, personal freedoms, and our example will continue to be the envy of the world.
Please click through and read how the United States is reducing its carbon footprint Carbon Emissions Drop to 20 Year Low.
For the Week Ending 1-25-2013
We are experiencing the coldest temperatures of the winter season, but the current cold snap has so far failed to significantly budge the energy markets. For this seven-day report period, the average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX) dropped by less than 1% and the 12-month average price for peak power on the PJM rose by less than 1%.
Despite this week’s colder-than-normal temperatures, the month of January overall has still been 10% warmer than historical averages. Additionally, as we’ve mentioned before, December 2012 was 23% warmer than normal. The current winter temperatures have not been cold enough to cause a serious degradation of the natural gas storage bubble. In fact, the natural gas storage report shows that storage levels were 12% above the five-year average.
Next week, all eyes will be focused on the new storage report because those natural gas withdrawal numbers will take into account the cold weather currently affecting much of the country.
Stay tuned. Despite the fact that several days next week are predicted to be warm, the extended forecast from AccuWeather for the Washington, D.C. region (view details) calls for colder-than-average temperatures during the week of January 31 – February 3, 2013.
The Bulls were the winners this past week as prices spiked upward. For this seven-day report period the average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX) rose 6.8% and the 12-month average price for peak power on the PJM rose by 2%.
There are two likely reasons for this week’s price spike. The first reason is obvious. The second reason is less obvious, but is becoming a larger factor each passing week.
First, of course, is the weather. Weather is the big variable that impacts energy prices. As you may recall, December 2012 ranked as the 10th warmest December on record. So, it is no surprise that the arrival of the colder temperatures is now placing upward pressure on prices.
The second reason behind the price spike may be linked to fuel switching by power plants. More power plants are switching from coal to natural gas. According to Bentek Energy, the estimated daily natural gas used to produce electric power during the first six months of 2012 increased 24% compared to the same period for 2011.
According to the Energy Information Administration (EIA), power plants are using more gas because we are experiencing “a structural shift toward generating more electricity from natural gas-fired plants.” The natural gas-fired power plants are getting more use because they are cleaner and more efficient than the older coal-fired plants. As the demand for natural gas increases, so does the upward pressure on natural gas prices.
Stay tuned. The updated weather forecast from the National Oceanic and Atmospheric Administration (view forecast map) is now calling for the return of warmer-than-normal temperatures during the last week of January. Warm weather tends to place downward pressure on energy prices.
We are starting the New Year with good news. From December 21, 2012 to January 3, 2013 natural gas and electricity prices fell. For this 14-day report period the average 12-month price for natural gas on the New York Mercantile Exchange (NYMEX) fell 5.6% and the 12-month average price for peak power on the PJM fell 4.4%.
Almost everyone attributes this price drop to the new weather forecast released by the National Oceanic and Atmospheric Administration (NOAH). The forecast for the next 6-14 days calls for warmer-than-normal temperatures east of the Mississippi.
This warm weather forecast, along with the fact that December 2012 was 23% warmer than normal, placed downward pressure on energy prices last month.
For the near term all eyes are focused on the weather. The traditional heating season runs from November 1 to March 31. However, the two coldest months of the year are on the way. For now it looks like January will be warmer than normal, which will be beneficial to your energy budgets. Stay tuned.
Small business electricity users in Washington, DC are increasingly becoming penny wise when it comes to their electric bills. The number of commercial electricity meters in Pepco DC’s territory that are shopping for third party energy suppliers continues to climb. In 2008 just about 23% of the commercial meters in Pepco DC’s market had shopped for third party electricity suppliers. In 2012 the % of meters that have benefited from third party suppliers has climbed to just a hair over 34%. For most small to mid size commercial meters in DC, third party pricing is up to 18% lower than comparable Pepco pricing.
That could be as much as a penny and half lower that Pepco’s current supply charge. Do the math, those penny’s add up to some serious savings.
