Fortis One Step Closer to Common Rates

At the end of June the BCUC agreed to reconsider the Foris application to amalgamate its various rate territoroes into one provincial pool of customers. Thatwould mean that all customers would pay the same rates for delivery and gas supply and would pay very marginally different rates for midstream, aka pipeline and peaking costs. Of […]

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Is weather the difference?

The chart below shows a temperature chart that covers last year compared to this year. In a nutshell it tells us that last year it was much warmer than average almost everywhere, but especially in the East, where  most gas consumption happens.   This year it's been normal in the East and West but cooler […]

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Is the tank dry?

The storage chart shows the aggregate of natural gas in underground storage caverns. The red line is this year and the grey band is that range for the past seven years. We entered the gas year (Nov-Oct) at a level above the previous maximum and, because of a warm November and December, stayed above that […]

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Drilling down or sideways?

Natural gas prices have come up sharply this spring. In part, reduced storage and cooler weather are blamed, while others point to "market bias", but certainly drilling activity has an impact, at least in the minds of the folks trading gas at NYMEX. The graphs below show the picture but close examination reveals slightly deeper […]

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A moment of truth?

Can anyone ever prove a market is "fixed" or biased? It's a tough one. Every once in a while though, we get a glimmer at the background when there is a slip up of some sort. The graphic below shows minute by minute tracking of natural gas trading on NYMEX. Note the sudden drop. What […]

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