Skip to main content

NEI's Energy Markets Report - January 21-January 25, 2008

Here's a summary of what went on in the energy markets last week:
Electricity peak prices decreased $3-7/MWh at the ERCOT and Palo Verde hubs. The other four hubs increased $2-12/MWh. Colder temperatures at the NEPOOL and PJM West hubs elevated prices by more than $10/MWh (Platts, see pages 1 and 3).

Gas prices at the Henry Hub decreased $0.13 to $8.14/MMBtu. The holiday week and above average gas supplies contributed to the spot price declines. During the first 76 days of the heating season (began November), a net volume of 964 Bcf of natural gas was withdrawn from underground storage which was significantly higher than for the same period last year. If withdrawals for the remainder of the heating season equal the drawdown for the comparable period of last winter, storage would be about 16 percent below the previous end-of-March stocks (EIA, see pages 1 and 3).

Estimated nuclear plant availability advanced to 95 percent last week. Seabrook automatically shut down due to a turbine trip. Summer manually tripped after failure of a feedwater flow control valve (NRC, see pages 2 and 4).

Crude oil prices fell $3.93 from the previous week to $90.83/barrel. Since November, crude oil prices have averaged almost $35 per barrel higher than the year before (EIA, see pages 1 and 3). The spot price of uranium fell to $78 and $82/lb U3O8 according to UxConsulting and TradeTech. TradeTech stated that political uncertainty is playing a pivotal role in the uranium market. Some market participants view this week’s announced delay in the signing of the proposed amendment to the Russian Suspension Agreement as a bellwether of potential supply uncertainty, while others view the announcement as a natural part of the negotiation process. Some buyers view the current price drop as an anomaly and are considering purchases, although others continue to “bargain hunt” (see pages 1 and 3).
For the report click here. It is also located on NEI's Financial Center webpage.

Comments

Popular posts from this blog

Making Clouds for a Living

Donell Banks works at Southern Nuclear’s Plant Vogtle units 3 and 4 as a shift supervisor in Operations, but is in the process of transitioning to his newly appointed role as the daily work controls manager. He has been in the nuclear energy industry for about 11 years.

I love what I do because I have the unique opportunity to help shape the direction and influence the culture for the future of nuclear power in the United States. Every single day presents a new challenge, but I wouldn't have it any other way. As a shift supervisor, I was primarily responsible for managing the development of procedures and programs to support operation of the first new nuclear units in the United States in more than 30 years. As the daily work controls manager, I will be responsible for oversight of the execution and scheduling of daily work to ensure organizational readiness to operate the new units.

I envision a nuclear energy industry that leverages the technology of today to improve efficiency…

Nuclear: Energy for All Political Seasons

The electoral college will soon confirm a surprise election result, Donald Trump. However, in the electricity world, there are fewer surprises – physics and economics will continue to apply, and Republicans and Democrats are going to find a lot to like about nuclear energy over the next four years.

In a Trump administration, the carbon conversation is going to be less prominent. But the nuclear value proposition is still there. We bring steady jobs to rural areas, including in the Rust Belt, which put Donald Trump in office. Nuclear plants keep the surrounding communities vibrant.

We hold down electricity costs for the whole economy. We provide energy diversity, reducing the risk of disruption. We are a critical part of America’s industrial infrastructure, and the importance of infrastructure is something that President-Elect Trump has stressed.

One of our infrastructure challenges is natural gas pipelines, which have gotten more congested as extremely low gas prices have pulled m…

Nuclear Is a Long-Term Investment for Ohio that Will Pay Big

With 50 different state legislative calendars, more than half of them adjourn by June, and those still in session throughout the year usually take a recess in the summer. So springtime is prime time for state legislative activity. In the next few weeks, legislatures are hosting hearings and calling for votes on bills that have been battered back and forth in the capital halls.

On Tuesday, The Ohio Public Utilities Committee hosted its third round of hearings on the Zero Emissions Nuclear Resources Program, House Bill 178, and NEI’s Maria Korsnick testified before a jam-packed room of legislators.


Washingtonians parachuting into state debates can be a tricky platform, but in this case, Maria’s remarks provided national perspective that put the Ohio conundrum into context. At the heart of this debate is the impact nuclear plants have on local jobs and the local economy, and that nuclear assets should be viewed as “long-term investments” for the state. Of course, clean air and electrons …