A NOTE ABOUT RECENT WEATHER-RELATED MARKET CONDITIONS
The impact from last weekend’s cold weather event has resulted in a breakdown in the U.S. energy infrastructure from electricity to natural gas. Listed below are certain facts that we have right now and some thoughts on how this weather event will impact the industry for years to come.
A blast of Arctic air covered much of the United States, with nearly 800 record low temperatures set across cities throughout most of the country. These record low temperatures sent demand for electricity and natural gas skyrocketing as people tried to keep their homes warm and their businesses going. This sudden spike in demand, combined with supply shortages from natural gas wells freezing over and other weather related events, sent the energy markets to nearly unprecedented prices, hitting as high as $600 per million British thermal units (MMBtu) in Oklahoma. To put this in perspective, the Cheyenne hub, which has traded at a little more than $2 per MMBtu over the past few years, hit a high of $350 per MMBtu or a 17,400% increase.
HOW WILL THIS IMPACT YOUR BUDGET?
There’s no way around it; the entire energy sector, from electricity to natural gas, has been hit hard and there will be impacts on everyone’s energy costs for years to come. This event highlights the importance of a protection-based plan like our Price Protection Program. This program safeguards you from market volatility during weather-related price spikes while taking advantage of lower prices in low-demand months.
If you have questions about your natural gas, please contact us at 1-888-510-9315 or firstname.lastname@example.org.