U.S. Energy Information Administration Short-Term Energy Outlook Report

The U.S. Energy Information Administration published their “Short-Term Energy Outlook” on December 12th, 2017. In the report they outline the current market conditions and what can be expected in the near future. Discussed in the report are the conditions that most effect electricity pricing and where prices look like they are heading.

When looking at the electricity market, one must also look at natural gas since this is where a good portion of electricity is generated from. This year production of natural gas is estimated to be about 73.5 billion cubic feet per day (Bcf/d), which is a slight increase from the previous year and projected to be 6.1 Bcf/d lower than the 2018 levels. The U.S. benchmark Henry Hub natural gas spot price is expected to increase due to growth in exports and domestic consumption. This increase in price has resulted in electricity generation from natural gas to drop and generation from renewable energy source to increase.

 

Another important source of electricity is coal. It is estimated that coal generated electricity will be about the same as last year at 31%. Due to lower exports and no growth in coal consumption, production of coal is set to fall 771 million short tons in 2018. EIA projects exports of coal will total 74 MMst in 2018 compared to 89 MMst in 2017. In 2018 generation shares for natural gas and coal will be relatively the same as this year, but renewable energy sources should see an increase to 10% from about 8% in 2016.

 

 

At Better Cost Control, we stay up to date on the latest market trends and we can obtain prices from numerous suppliers. Our long-term fixed price contracts allow for peace of mind in a market full of ambiguity. We work hard so commercial businesses don’t have to. Contact us today to see how much we can save your business and lock in a low fixed rate contract.

 

Click Here for the full report.