Urgent Energy Update
Howdy, y’all! Edison Thrustwell here, blastin’ in from the Live Energy-verse, with an urgent energy update that explains what’s going on with commercial electricity rates.
If you’re the one buyin’ electricity for your business, then listen up! Or share this with your boss, or manager or whoever the real decision maker is. They’ll be glad you did.
I’m gonna cut through the bull and tell you the important stuff that just might save your hide.
In Texas and much of the US, natural gas sets the price of electricity.
Right now natty gas is cheap. Why? Well, winter never showed in the US, and not in Europe either, where they were closin’ all the factories and burnin’ Ikea furniture to stay warm.
Last year when we were hyperventilating about running out, natty gas ran up to ten dollars per MMBTU. Since then, prices have crashed. BIG TIME! Like Kanye West’s career. Down below three dollars. Now we’re sitting on a massive stockpile that’s 19% above the five year average.
So what’s this mean for wholesale electricity prices? In north Texas, electricity is trading just under four cents per kilowatt-hour for the balance of the year. Twenty twenty-eight peaks at around four point seven cents. Then in twenty twenty nine, we get back down to four point four cents.
Not too shabby considerin’ last year’s dumpster fire, when rates were one to two times higher. But don’t go gettin’ too cozy with these prices. We all know the liquefied natural gas party is just gettin’ started. LNG export capacity is likely to start rampin’ up in twenty twenty-four, and could more than double by twenty twenty-eight.
So, we know we’re gonna be shippin’ a lot more natty gas to Europe and Asia. We also know the bigwigs are determined to send all the coal plants to meet their maker. The way I see it is pretty simple. Less coal plants and more LNG exports is a recipe for a tight gas market.
Said another way, when natty gas is left standing there, like the least ugly dance partner at the hoedown, I reckon prices will increase. Maybe this summer. Maybe this winter. The problem is not knowin’ when.
Could prices go lower? Is a frog’s hind end water tight? You betcha! But I gotta tell ya, It feels to me like we’re skipping off the bottom. A better question is, could prices go higher? And to that, I say, Does a redneck love his truck more than his cousin? Of course!
Look, with all the crazy stuff goin’ on in the world, this energy market’s as unpredictable as a jackrabbit on a pogo stick. This leads to fear, uncertainty, and doubt. Chewin’ at your insides like a hungry beaver in a woodpile. That nasty feelin’ is as justified as a hound dog barkin’ at a full moon. But it sure doesn’t need to be this way.
Picture yourself gettin’ savvy, lockin’ in low rates before they blast higher again, and ridin’ off into the sunset with a grin stretchin’ wider than the Rio Grande. Sounds like a dream, huh? Well, partner, it’s time to stop dreamin’ and start doin’.
Live Energy is like havin’ your own personal sidekick watchin’ the electricity market in real-time, ready to hoot and holler the second you can rope in savings. Consider it free insurance, so you don’t find yourself in a pickle, facin’ sky-high electricity rates, feelin’ as helpless as a one-legged man in a butt kicking contest.
Now giddy up and get on it! Mosey on over to LiveEnergy dot com and tell us how we can help. Let us do the monkey work so you can do more important things. Like sippin’ craft whisky and watchin’ the sun set. Or smokin’ a brisket.
What are you waitin’ for, partner?