Time to Lock In: The Beacon, 06/08/2020

Last week, the energy markets took Tropical Storm Cristobal and warmer temps in stride, with forward prices down slightly through 2025.   The annual strips are all at bargain levels – clustered between $2.409 and $2.477. 

There is some concern about the future, however, as North American drilling rigs in the field are still being pulled out of the field.   Rigs are down for an 11th straight week -- down another 16 rigs this week, with the US rig count down 17 and the Canadian count up 1.   That marks a 662 rig decrease in the last 11 weeks - a 68.5% decrease from the pre-pandemic/oil price collapse numbers.  

Storage levels are good, after a storage injection of 102 bcf -- below industry expectations of 110 bcf and last year's build of 118 bcf, but on a level with the 5-year average injection of 103 bcf.    

This week's weather map is showing warmer than normal temps for the eastern 2/3 of the country and the CA coast, with the Northeast coast and bulk of the west forecasted to see cooler than normal temps.     

THE BOTTOM LINE:    Current price levels are cheap, especially for 2022-2025, and opportunities to lower your bills for the next several years are available.  Keep working to lock in prices for as much term as possible, and actively seek on-site efficiency and generation projects to lower energy spend.

Click HERE for your free copy of the Beacon, and contact us at (937) 709-0098 x701 or Chris.Smith@LighthousePowerPartners.com to talk about how we can help you save money on your electricity and natural gas bills!