11/30/2012

How to Combat Changes in Fuel Price

Natural gas prices continue to creep upward

 

Frustrated by fluctuating natural gas prices? You’re not alone. Six months ago, gas prices hit their lowest in 10 years, but weekly data gathered by the Energy Information Administration (EIA) shows costs creeping up again.

The price utilities pay (the monthly settlement price determined by the New York Mercantile Exchange, or NYMEX) ranged around $1.90 per million BTUs (MMBTU) at their low point, notes Rich Costello, president of Acela Energy Group.

But what brought the market here? Costello says the historic low price was a result of three coinciding factors:

  1. Shale gas supply. “It’s so economically feasible to get shale gas out of the ground and there are many places to do that,” says Costello. “We have more supply in the market than usual, which drives the price down.”
  2. The recession. The extra supply is partially due to recession-driven spending cuts, Costello notes – users are consuming less to save money.
  3. Winter temperatures. Last winter was unusually warm, Costello notes, further enabling consumers to cut gas use.

Continued economic improvement could drive the utility price up to $3-4 per MMBTU, which translates to a consumer cost around $6.50 after transportation costs are factored in, Costello predicts.

However, you may be able to partially stabilize your gas costs with a fixed-price contract that locks in current prices, protecting your budget as the economy recovers.

For the long term, consider continuing education to gain the upper hand in negotiating fuel prices, Costello recommends. The Association of Energy Engineers credentials Certified Energy Procurement Professionals with a course on competitively bidding fuel prices.

 

 


Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.


Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.


When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

Yaskawa drives offer quality performance for air handlers and cooling towers on the roof to secondary chilled water pumps in the basement

Bluebeam® Revu® simplifies digital facilities document management from design review to leveraging as-builts, maintenance manuals and O&Ms submittals.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.


Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.


Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.


When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

Yaskawa drives offer quality performance for air handlers and cooling towers on the roof to secondary chilled water pumps in the basement

Bluebeam® Revu® simplifies digital facilities document management from design review to leveraging as-builts, maintenance manuals and O&Ms submittals.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.


 
comments powered by Disqus

Related Products

Janitorial
Tools, Services and Software

Sponsored Links