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WEEKLY MARKET UPDATE
August 6, 2020
Natural Gas

September 2020 natural gas futures jumped nearly 40 cents over Monday and Tuesday, more than a 20% move on higher anticipated temperatures.

Today's injection of 33 Bcf was slightly larger than anticipated. Total gas in storage is now up to 3,274 Bcf.
Electricity

The 30 day average price of real time power seems to be plateauing between $32 and $33/MWh after steadily rising for several weeks.

Power futures crept higher this week as well in the wake of natural gas. The 12 month strip is up 44 cents from last week.
 
 
12 & 24 Month NYMEX Strip
12 & 24 Month Zone A Power Strip
 
 
 
This document is intended for indicative purposes only. All information contained within this report is acquired from third party sources and EnergyMark makes no representations or warranties, express or implied, as to the accuracy of the information provided herein. EnergyMark is not liable for any actions or decisions made in reliance on the information provided in the report.
According to data from the U.S. Energy Information Administration (EIA), 121 U.S. coal-fired power plants were repurposed to burn other types of fuels between 2011 and 2019, 103 of which were converted to or replaced by natural gas-fired plants. At the end of 2010, 316.8 gigawatts (GW) of coal-fired capacity existed in the United States, but by the end of 2019, 49.2 GW of that amount was retired, 14.3 GW had the boiler converted to burn natural gas, and 15.3 GW was replaced with natural gas combined cycle. The decision for plants to switch from coal to natural gas was driven by stricter emission standards, low natural gas prices, and more efficient new natural gas turbine technology.
Coal-fired plants in the eastern half of the country have been good candidates for conversion because they tend to be smaller-capacity units and are mostly over 50 years old. Of the 104 coal-fired plants in this age range, 86 have converted their boilers to burn natural gas, representing 14.3 GW of capacity. Although most transitioned entirely to natural gas, a few maintained coal-burning capabilities, allowing them to burn whichever fuel is most economically efficient.

Read the full article here
 
WEATHER WATCH
 
NOAA 8-14 Day Outlook
NOAA 30 Day Outlook
 
 
 
 
 

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