Demand

Renewable energy capacity in the U.S. supported by voluntary demand rather than regulatory requirements now tops 2,200 MW — up more than 1,000% in just five years, according to a new report from the U.S. Department of Energy (DOE) released last week at the 10th national green power marketing conference in Austin, TX. The report also notes that purchases by large businesses, institutions and governmental entities are driving the growth of the U.S. voluntary green power market.

Riding the support of both cold weather demand and a prior-day futures spike of more than a dollar, natural gas cash prices were up strongly again Wednesday across the board. Gains ranged from a little less than a dime to nearly $1.10. A large majority of the increases were at least 40 cents or more.

The good news for growing U.S. natural gas demand is that declining traditional reserves can be replaced by a combination of Rocky Mountain unconventional supplies and increased imports of liquefied natural gas (LNG), but the bad news is the fact that permitting for new supply projects in these two sectors may be difficult to obtain, a panel of energy lawyers told an industry conference Thursday in Santa Fe, NM. Ultimately, Uncle Sam or neighboring Mexico could hold the keys to unlocking these supplies.

With petroleum futures climbing on expected July 4th holiday demand and the possibility of a significant storm hitting the Gulf of Mexico early this week, natural gas futures traders on Friday weren’t taking any chances. Halting the recent slide in prices, August natural gas futures rebounded higher in shortened trading Friday, crossing back above the $7.00 level to settle at $7.171, up 19 cents on the day, but 24.1 cents lower than August’s previous Friday settle.

As an adjunct to comprehensive planning for future electricity supply/demand in the state, California needs a widespread re-articulation of its policies and programs on natural gas, according to Joseph Desmond, California Energy Commission chairman, speaking Monday at the opening session of the three-day American Public Power Association (APPA) national meeting in Anaheim, CA.

As expected, generally weak weather-related demand, large day-earlier drops in energy futures and the decline of industrial load over a weekend combined to send prices lower by double digits across the board Friday. Some drops were as small as a little over a dime, but they ranged to just above 40 cents.

Finding almost no heating load of any consequence remaining and with nothing resembling summer heat to kick-start power generation demand surfacing yet outside parts of the desert Southwest, prices continued to drop Friday. Thursday’s slightly bearish storage report and the typical weekend slump in industrial load contributed to the cash market’s decline.

NiSource subsidiary Columbia Gas of Virginia said Monday that while natural gas demand continues to increase in the state, the utility continues to be able to meet the needs of its customers.

Citing the ever-growing demand for natural gas in the Southeast and last year’s hurricane-related supply interruptions in the region, Duke Energy Gas Transmission (DEGT) is proposing to build a high-deliverability natural gas storage facility and pipeline supply header system to provide hub services in the Florida, Alabama and Mississippi market area.