Mother

Natural gas price bears could be in for a treat over the next few months if Mother Nature goes along with WSI Corp.’s just-released forecast, which calls for the May-July period to be cooler than normal across parts of the northeastern United States, with above-normal temperatures common elsewhere, especially in the western United States.

Even if mother nature plans to be unusually harsh on North America this winter, the North American Electric Reliability Council (NERC) said power customers can rest easy because power generation capacity margins are “adequate.”

With major winter weather forecasts still not in agreement, it appears that the energy industry will be forced to wait and see what Mother Nature actually has in store this year. Sticking to its winter forecast released earlier this month (see Daily GPI, Oct. 11), the National Oceanic and Atmospheric Administration (NOAA) reiterated on Thursday that it expects this winter to be warmer than the 30-year norm (1971-2000) over much of the nation, yet cooler than last year’s very warm winter season.

With mother nature largely in control of the natural gas market, forecasting prices can be a real headache. Winter Henry Hub prices (November-March), for example, could average anywhere from $4 to $11.50, depending on whether temperatures are 13% warmer than normal or 12% colder than normal this winter, Energy and Environmental Analysis Inc. (EEA) said in its latest Monthly Gas Update. EEA’s best guess is an $8.48 winter average at the hub.

With mother nature largely in control of the natural gas market, forecasting prices can be a real headache. Winter Henry Hub prices (November-March), for example, could average anywhere from $4 to $11.50, depending on whether temperatures are 13% warmer than normal or 12% colder than normal this winter, Energy and Environmental Analysis Inc. (EEA) said in its latest Monthly Gas Update. EEA’s best guess is an $8.48 winter average at the hub.

Necessity, as they say, is the mother of invention, prompting many oil and natural gas companies, including El Paso Corp., to come up with new ways of doing business in the aftermath of Hurricane Katrina.

For now, California and other parts of the nation can thank Mother Nature for saving consumers from severe and sustained summer energy price spikes, and perhaps bolstering the political resolve to keep pushing ahead with market-based energy solutions, said a Wall Street analyst with Commerzbank Securities. However, the market fundamentals are still present to sustain higher-than-historic prices and volatility, particularly for natural gas.

For now, California and other parts of the nation can thank Mother Nature for saving consumers from severe and sustained summer energy price spikes, and perhaps bolstering the political resolve to keep pushing ahead with market-based energy solutions, said a Wall Street analyst with Commerzbank Securities. However, the market fundamentals are still present to sustain higher-than-historic prices and volatility, particularly for natural gas.

Like an irate mother ordering her child to come inside while theother children play, the Georgia Public Service Commissionunanimously voted Tuesday to order a full hearing into Atlanta GasLight’s (AGL) rate charging operations. The hearings will beginFeb.3 and a decision is expected by Feb. 9. The vote took placeduring a regular session of the commission.