Rd Energy Newsletters & Blogs

RD Energy’s Stay Current Special Edition: ERCOT power outages; Will it happen in Ohio

Power outages on the ERCOT electric grid in Texas are currently widespread and life threatening.  Millions are without power not because of downed lines, but because their electric grid wasn’t able to add extra power when it was needed.  Why is this happening in Texas and can it happen behind our Ohio power grid PJM?  How close are we to experiencing the same thing?   First we need to understand the difference between the two grids

Read More »

RD Energy’s Stay Current: February 2021 – The Polar Vortex Is All Bent Out Of Shape

Key Wholesale Drivers Very large natural gas storage withdrawals are coming up in the next few weeks hitting U.S. natural gas storage hard The Greenland Ridge and Alaskan Ridge are combing with a split Polar Vortex in sending extreme cold into the U.S. for possibly weeks December and January showed a bump up in U.S natural gas supply, but was it a false indicator?  Yes. Will the U.S. exit winter with a storage deficit compared

Read More »

RD Energy Stay Current Newsletter: January 2021. We Thought 2020 Was Bad

Key Wholesale Drivers Shrinking year over year U.S. natural gas storage surplus Higher year over year Canadian natural gas imports Record breaking LNG exports Extreme cold in Asia and Europe   Commentary  As excited as we all were about leaving the year 2020,  natural gas and electric prices in 2021 could easily turn into one to remember and one to try and forget.  While wholesale price volatility has increased the past few months prices have

Read More »

RD Energy’s Stay Current: December 2020

  Key Drivers  The falling of the year-over-year natural gas storage surplus Third warmest November in the past 70 years LNG exports hitting new record high level U.S natural gas supply production dropping back to 2018 levels What oil and natural gas price will stimulate investment in new drilling? Natural gas prices is the key driver of electric prices Commentary Was the very warm November the calm before the storm?  As we enter December there’s

Read More »

RD Energy’s Stay Current: November 2020

Key Drivers The natural gas storage surplus has dropped by about 50% since August Current U.S natural gas production levels have dropped to 2018 levels Flat oil prices expected through 2021 will keep new oil and gas drilling minimal LNG exports have increased nearly every week matching or beating all time export numbers Recent earnings calls from Gulf and Appalachian producers place importance on paying down debt and dividends and not new exploration NYMEX has

Read More »

RD Energy’s Stay Current: October 2020

Key Drivers U.S. Natural gas storage is still running ahead of this time last year (up 14%) as well as ahead of the past 5 year average (up 12%) Multiple LNG terminals still off-line from Hurricane Laura weakening short term daily spot prices Rising global demand for LNG with winter nearing and more than a dozen empty cargo ships waiting in the Gulf for the U.S. LNG terminals to come back on-line $40 oil keeping

Read More »

RD Energy’s Stay Current: September 2020

Key Drivers Natural gas NYMEX closed in late August for September delivery at $2.579/MMBTU up $.725/MMBTU from the month before Traders are pricing into their trading models either a major natural gas supply shortage this winter or a surge in natural gas demand or both. LNG Export terminals suffered very little to no damage from Hurricane Laura.  Many LNG cargo ships are sitting in the Gulf waiting to be loaded with new LNG supply. Oil

Read More »

Stay Current With RD Energy: August 2020

  Key Drivers On 8/3/2020 Natural gas NYMEX jumped around $.32/MMBTU 2021 NYMEX 12 month strip trading at about $1.00/MMBTU higher than 2019 settlements so far January 2020 NG NYMEX closed at $2.158/MMBTU.  January 2021 is trading at $3.023/MMBTU Weather temperature forecasts revised up warmer than normal for next few weeks Natural gas production in the U.S dips LNG activity shows an increase as global demand starts to slowly recover and September LNG shipment cancellations

Read More »

Stay Current with RD Energy: How close are we to an energy price crisis?

Key Drivers Short-term (1-2 months) natural gas supply versus demand: Oversupply 2-6 months: stronger natural gas demand vs lower NG production LNG: short-term demand weakness vs increases in the coming months with Asian and European demand growth Warmer than normal July forecasted: high natural gas consumption in electric generation Natural gas storage: Current levels above 5 year average – likely to drop U.S. economy energy demand: How fast or how long will it take to

Read More »

Stay Current With RD Energy: June 2020

Key Drivers   Natural gas storage levels LNG shipment cancellations Natural gas production cuts Oil price increases that could lead to the increase in natural gas production The arrival of the AC season in the Midwest and northeast COVID 19 Bull & Bear speculator traders: fighting for price trend supremacy   Commentary  It’s worth repeating; we’re in uncharted waters in regards to the global and domestic forces pushing and pulling natural gas and electric prices. 

Read More »

RD Energy Newsletter: May 2020

KEY DRIVERS Worldwide Pandemic Sudden drop of global oil demand Extremely high levels of global oil in storage & oil well shut-ins Oil well associated natural gas production shut-in too US. natural gas storage levels currently 19.5% higher than the past 5 year average Rigs drilling natural gas only have dropped around 34% so far in 2020 Well completion crews in some areas like the Appalachian area have dropped nearly 80% on wells only producing

Read More »

RD Energy Newsletter: April 2020

Key Drivers Extremely high U.S. natural gas storage levels The Russia-Saudi war over oil production market share COVID-19:  Rapidly plunging global energy demand Rapidly reduced oil & natural gas production budgets   Commentary The winter that wasn’t.  The winter of 2019/2020 will likely end up as one of the warmest on record.  Last Thursday the EIA Natural Gas Storage Report showed U.S. natural gas levels in storage 80% above 1 year ago and 17% above the

Read More »

RD Energy Newsletter: March 2020

Key Drivers U.S. Natural gas storage levels week ending 2/21/2020 reflects levels 41% above one year ago levels It looks like the 2019/2020 season will end as the warmest winter ever recorded worldwide The first 3 weeks of March are forecasted to be well above normal temperatures When will U.S. production drop due to reduced drilling and shut-in wells? How will the coronavirus affect LNG exports to Asia – United States’ largest LNG market? Will

Read More »

Did You know? Opting-out of the EE/PDR Utility Rider can save thousands in 2020

The energy efficiency programs behind the Ohio utilities FirstEnergy and AEP are going away January 1, 2021 due in great part to the passing of House Bill 6,  often referred to as the “First Energy Solutions Nuclear Plant Bailout”. As a result of the State of Ohio Legislature’s passing of HB 6, Ohio’s businesses with kwh usage greater than 700,000 kwh/year can choose to opt out of paying the for the Energy Efficiency and Peak

Read More »

RD Energy Newsletter: February 2020

Key Drivers Warmer than normal December, January and February (forecast) Record high number of speculative short trades on NYMEX natural gas NG storage: 23% surplus vs 2019, 9% surplus vs 5 year average Late winter rally? Commentary Natural gas NYMEX is trading for the next few months at levels not seen since early 2016.  The primary reason is the warm December and January in the Midwest and Northeast.  The first half of February is forecasted

Read More »

RD Energy Newsletter: January 2020

Key Drivers 1. Warm weather in the Midwest and Northeast 2. Over supplied natural gas markets both domestically and globally 3. U.S. LNG exports competing for Europe demand with Russian production Commentary The Midwest and northeast have seen well above normal temperatures since mid-December. Forecasts show these warm temperatures will continue until at least mid-January, which is keeping wholesale prices very soft. Along with low wholesale natural gas prices is wholesale electric prices. If you

Read More »

RD Energy Newsletter: December 2019

Key Wholesale Market Drivers Strong U.S. Natural gas production Full natural gas storage level heading into winter Colder than normal November followed by expected warmer than normal December Colder than normal January – February 2020 expected When will the natural gas supply versus natural gas demand gap start to lessen?   Commentary November 2019 was nearly a repeat of November 2018 in regards to the temperatures being below normal through much of the country.  Similar

Read More »

RD Energy Newsletter: November 2019

Key Wholesale Market Drivers Colder than normal temperatures through at least mid-November NOAA predicts the Midwest and Northeast to end the 2019/2020 winter season slightly warmer & wetter than normal The 2019 natural gas storage injection season showed many weeks of above average injections Current natural gas storage levels has risen to match the past 5 year average Natural gas NYMEX went up from $2.25/MMBTU October 23rd to $2.639/MMBTU in three days.  Trading at $2.71/MMBTU at

Read More »

RD Energy Newsletter: October 2019

October 2019 Energy Update   Key Drivers Natural gas Storage: EIA predicts end of seasons levels slightly higher than 5 year average Natural gas storage: weekly injections coming in at record levels and natural gas demand drops Normal cod winter predicted: no El Nino or La Nino currently in the Pacific ocean Speculative traders not going selling short NYMEX ahead of a predicted normal winter: lowers price drop potential Natural gas drilling rig count has dropped 24%

Read More »

RD Energy Newsletter: September 2019

September 2019 Energy Update   Key Drivers Natural gas storage levels are higher than 1 year ago at this time by 14.6% Natural gas storage injections are on pace to enter winter 3% below the past 5 year average Upcoming major drop in natural gas fired generation expected as we near the end of summer Strong U.S. natural gas production continues as expected New LNG liquefaction plants continue to ramp up increasing natural gas demand   Commentary

Read More »

RD Energy Newsletter: August 2019

August 2019 Energy Update Key Drivers Ever stronger natural gas production Flat natural gas demand Strong storage levels in the U.S. & Europe     Commentary From May 2019 to the end of July 2019 natural gas prices have dropped nearly $.50/MMBTU.  Even in July, when the heatwave broke records over much of the country and natural gas consumed in the creation of electric hit an all-time high, natural gas prices still didn’t rise much.  As soon as

Read More »

RD Energy Newsletter: July 2019

Key Drivers Moving from a very cool June to a much warmer July Weak June demand resulted in very strong June storage injections Warmer temperatures + increasing exports = much higher July natural gas demand How hot will the Midwest get this summer???? Commentary   While June 2018 was very hot, June 2019 in the Midwest was the coolest and wettest in 10 years.  As a result the NYMEX gas prices, and in direct correlation, electric

Read More »

The Shocking Truth About Supplier Electric and Natural Gas Offers to the General Public!

It is SHOCKING.  The more I explored the PUCO Supplier Apples to Apples chart for electric and natural gas rate offers for residents, the more shocked I was.  These offers are being aggressively solicited to homeowners via phone or door to door. Some suppliers show pricing on the Apples to Apples chart artificially low to start for 1-3 months. Once they have the customer snared, they start billing an excessively high fixed rate after the

Read More »

Ready To Save !?

Schedule A Quick Call!

Just Let Us Know A Convenient Time For You And Darrell will call you to discuss how we can save you money today!

We Can't Wait To Save You Money