MARKET INTELLIGENCE & INDUSTRY NEWS

The U.S. Department of Energy (DOE) has released three wind energy market reports stating that as wind installations continue across the country and offshore wind projects move beyond the planning process, technology costs and wind energy prices continue to fall. Over the past year, the industry has seen the U.S. distributed wind capacity exceed one gigawatt (GW). The 2017 Wind Technologies Market Report, prepared by DOE’s Lawrence Berkeley National Laboratory, found that the

Natural gas rigs On September 2, 2016, the natural gas (UNG) (FCG) (BOIL) (GASL) (GASX) (UGAZ) (DGAZ) rig count was 88—seven more than the previous week. The number of active natural gas rigs has fallen by 104 over the past year. One year ago, there were 202 natural gas rigs. Notably, the natural gas rig count for the week ending September 2, 2016, was 94.5% lower than its peak in 2008. The rig count reached a historic high of 1,606 in 2008. The natural gas rig count for the

REPORT SUMMARY: WTI crude today is higher by 1.5% to $45.53. The average price of WTI crude this year is now seen at $41.92 per barrel vs. $41.16 previously. EIA expects 2016 U.S. oil production of 8.77M barrels per day, up 0.4% from the previous projection and 2017 estimated production of 8.51M barrels per day is up 2.5% from earlier. REPORT: Benchmark North Sea Brent crude oil spot prices averaged $46/barrel (b) in August, a $1/b increase from July. This was the fourth cons

In the past four trading sessions, natural gas (UNG) (FCG) (BOIL) (GASL) (GASX) (UGAZ) (DGAZ) October futures have fallen by 7.3%. They closed at ~$2.7 per MMBtu (million British thermal units) on September 7, 2016, which is ~1.5% lower than the previous session. The loss coincides with concerns that the current supply glut will persist. Previously, the market had hoped that natural gas demand could match supply by the end of summer. Weather forecasts also indicate moderate w

The District of Columbia (DC) increased and extended its renewable portfolio standard (RPS) target from 20% by 2020 to 50% by 2032. The target includes a separate solar-specific target of 5% by 2032, an increase and extension from 2.5% by 2023. Technologies eligible to meet DC's RPS overall target include geothermal, solar (both thermal and electric), wind, biomass, landfill gas, marine/hydrokinetic technologies, fuel cells using renewable fuels, and, to a limited extent, con

OVERVIEW: (For the Week Ending Wednesday, August 24, 2016) Natural gas spot prices rose at most locations this report week (Wednesday, August 17, to Wednesday, August 24). The Henry Hub spot price rose from $2.71 per million British thermal units (MMBtu) last Wednesday to $2.77/MMBtu yesterday. At the New York Mercantile Exchange (Nymex), the September 2016 contract rose 18¢, from $2.619/MMBtu last Wednesday to $2.796/MMBtu yesterday. Net injections to working gas totaled 11

Natural Gas Weekly Update OVERVIEW: (For the Week Ending Wednesday, August 17, 2016) Natural gas spot prices were mixed this report week (Wednesday, August 10, to Wednesday, August 17), but overall price changes were small at most locations. The Henry Hub spot price fell from $2.73 per million British thermal units (MMBtu) last Wednesday to $2.71/MMBtu yesterday. At the New York Mercantile Exchange (Nymex), the September 2016 contract rose nearly 6¢, from $2.561/MMBtu last We

The number of countries receiving exported U.S. crude oil has risen since the removal of restrictions on exporting U.S. crude oil in December 2015. U.S. crude oil exports have occurred despite relatively small price spreads between international crude oils and domestic crude oils, as well as other factors that should reduce crude oil exports such as falling U.S. crude oil production and added cargo export costs. Based on the latest available data, U.S. crude oil exports avera

In the U.S. Energy Information Administration's International Energy Outlook 2016 (IEO2016) and Annual Energy Outlook 2016 (AEO2016), natural gas production worldwide is projected to increase from 342 billion cubic feet per day (Bcf/d) in 2015 to 554 Bcf/d by 2040. The largest component of this growth is natural gas production from shale resources, which grows from 42 Bcf/d in 2015 to 168 Bcf/d by 2040. Shale gas is expected to account for 30% of world natural gas production

NATURAL GAS Working natural gas inventories were 3,288 billion cubic feet (Bcf) as of Friday, July 29 ( Full Report ), 6 Bcf lower than the previous week, marking the first draw during the June-August period since 2006. Injections during the refill season have fallen short of five-year average levels in most weeks because of the high use of natural gas for electricity generation and because of slight declines in production. However, warm weather last winter left inventories a

Working natural gas storage inventories posted a rare summer net withdrawal of 6 billion cubic feet (Bcf) for the week ending July 29, 2016 (seen here), according to EIA's Weekly Natural Gas Storage Report. Record-high consumption of natural gas for electric power generation drove this withdrawal. Although withdrawals in the summer are not unprecedented, and happen regularly in the South Central storage region, the last time a net withdrawal in July occurred on a national bas

In the electric power sector, load shapes refer to the varying amounts of electricity required over time. Daily load shapes vary by region, climate, and time (daily, monthly, seasonally). Each day, balancing authorities—the entities charged with balancing electric supply and demand—forecast hourly electricity demand on their system for the next day. Using these load forecasts, they can develop resource schedules, or plans for the use of available power plants to generate the

Primary energy consumption fell slightly in 2015 as a decline in coal use exceeded increases in natural gas, petroleum, and renewables use. In most cases, changes between 2014 and 2015 reflect longer-term trends in energy use. In 2015, natural gas consumption increased more than any other energy source, accounting for 29% of total primary energy consumption. As domestic natural gas production continues to reach record levels, natural gas prices have remained low. Low natural

Electricity generated at power plants moves through a complex network of electricity substations, power lines, and distribution transformers before it reaches customers. In the United States, the power system consists of more than 7,300 power plants, nearly 160,000 miles of high-voltage power lines, and millions of low-voltage power lines and distribution transformers, which connect 145 million customers. Local electricity grids are interconnected to form larger networks for

Natural gas-fired electricity generation in the United States is expected to reach a record level this year, providing an average of 3.8 million megawatthours per day in 2016, or 4% higher than in 2015. Based on EIA's latest Short-Term Energy Outlook (STEO), monthly natural gas-fired generation is expected to reach record highs in July and August, when weather-related demand for air conditioning increases electricity demand. Natural gas had long been the second-most prevalent

Worldwide energy intensity, measured as energy consumption per unit of gross domestic product (GDP), decreased by nearly one-third between 1990 and 2015. Energy intensity has decreased in nearly all regions of the world, with reductions in energy intensity occurring both in the more developed economies of the Organization for Economic Cooperation and Development (OECD) and in the emerging nations of the non-OECD. Differences in energy intensity across countries and regions co

Three fossil fuels—petroleum, natural gas, and coal—have provided more than 80% of total U.S. energy consumption for more than 100 years. In 2015, fossil fuels made up 81.5% of total U.S. energy consumption, the lowest fossil fuel share in the past century. In EIA's Annual Energy Outlook 2016 Reference case projections, which reflect current laws and policies, that percentage declines to 76.6% by 2040. Policy changes or technology breakthroughs that go beyond the trend improv

Coal production in the first three months of 2016 was 173 million short tons (MMst), the lowest quarterly level in the United States since a major coal strike in the second quarter of 1981. Among the supply regions, coal production from the Powder River Basin in Montana and Wyoming declined the most in tonnage and percentage since the previous quarter. Coal production has declined because of increasingly challenging market conditions for coal producers. Electricity generation