NYMEX Natural Gas Price is Likely to Gyrate Wildly This Year
Please sit down, buckle up, and keep your hands inside the ride at all times. No, these are not instructions before boarding a roller coaster at your favorite theme park. These are instructions for those who buy and sell natural gas in 2023. While the price of natgas has been bumping along at the mid-$2 range since late December, don’t be lulled into the siren song of “lower for longer.” According to the Wall Street Journal, the “buffers that keep America’s natural-gas price fluctuations at bay are eroding,” and you can expect wild gyrations in price to happen in 2023.
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Tuesday of last week, Freeport LNG, which has been out of operation since an explosion and fire in June 2022, asked the Federal Energy Regulatory Commission (FERC) for permission to begin re-introducing feedgas back into one of three liquefaction “trains” (units) at the facility. A day later, FERC agreed, and small amounts of gas began to flow (see 
We spotted an article chronicling a visit to Pennsylvania by the Dept. of Interior Secretary Deb Haaland yesterday. She was there to tout money flowing to the Keystone State from the so-called Infrastructure bill in order to plug old abandoned oil and gas wells. What was interesting about her visit was not that she was there to promote the Bidenista agenda and proclaim how great the doddering old fool (her boss) is. The interesting thing is who was by her side: Rich Negrin. You may recall newly minted liberal Democrat Gov. Josh Shapiro nominated Negrin to be the next Secretary of the Dept. of Environmental Protection (DEP) just about 30 days ago (see 
Last October, the Pennsylvania Senate Environmental Resources and Energy Committee held a hearing in Philadelphia about potentially locating an LNG export facility there. The country’s largest natural gas producer, EQT, showed up to discuss the key role gas has played in reducing emissions here at home and the role it could play in helping other countries reduce their emissions. Labor unions were there to talk about the jobs that would be created by such a facility. Penn LNG, the company that wants to build such a facility (and has lined up $6.4 billion so far to make it happen), was there too. But you didn’t know about it–because the event was ghosted by “mainstream” media.
Attorneys for both the Pennsylvania Dept. of Environmental Protection (DEP) and those representing gas-fired power plants were in PA Commonwealth Court on Wednesday. DEP’s attorneys argued the court should toss a lawsuit brought by the power-generating industry against an obscene carbon tax called the Regional Greenhouse Gas Initiative (RGGI) that DEP is trying to force on the state. Power generators argue in their lawsuit that RGGI will actually lead to MORE carbon pollution rather than less.
Last September, the New York Public Service Commission (PSC), which oversees and regulates public utilities, approved the takeover of the Fortistar gas-fired power plant in North Tonawanda, NY, a town close to Niagara Falls, by Canadian crypto mining company Digihost. In December, the Federal Energy Regulatory Commission (FERC) offered its blessing too. All of which prompted the radicals of Earthjustice, representing two other disgusting radical groups–the Sierra Club and Clean Air Coalition of Western New York–to sue (see 
Please don’t tell us politicians like Massachusetts Gov. Maura Healey and U.S. Senator Elizbeth “Pocahontas” Warren give a fig about global warming and carbon emissions. Their actions, along with the actions of other Democrat politicians, have blocked new natural gas pipelines into New England that would supply low-emission fuel to generate electricity for the region. When it gets brutally cold, as it did Feb 3-5, New England turns to burning oil and (yes) coal in order to keep the lights on for residents. It happened in December, and it happened again in February. So much for caring about Mom Earth. The actions of New England politicians speak so much louder than their many lying words…
Did you happen to catch President Biden’s State of the Union show? We didn’t. We couldn’t hack watching a doddering old fool spout nonsense for more than an hour. But we did catch the highlights from the speech. One highlight, in particular, was really funny. Biden was bashing Big Oil for “record profits” (he’s such a fool), and then, much to the horror of his handlers, Biden went off script and said that “We’re going to need oil for at least another decade.” The entire chamber erupted in laughter at such an asinine statement, which caught the old fool off guard, so he quickly added, “…and beyond that.”
The heads of three major oil and gas groups in the Appalachian region–the Marcellus Shale Coalition (representing Pennsylvania), the Gas and Oil Association of West Virginia, and the Ohio Oil and Gas Association–combined to pen an open letter to President Biden encouraging him to let the Marcellus/Utica “lead the way” in achieving our country’s shared goals for domestic, affordable, and clean energy. It’s a great letter making strong and cogent arguments for why more M-U natgas can reduce emissions and benefit not only the economy but the environment. There’s just one small problem…
We spotted a fascinating story out of Los Angeles about the city’s foolish and reckless action in abandoning its largest natural gas-fired power generation plant in favor of using hydrogen instead. Hydrogen is the Holy Grail for the left. At least, for some on the left. Many on the left (and, it seems, on the right too) want to replace natural gas with 100% hydrogen in gas-fired power plants because natgas produces carbon dioxide when it burns, and hydrogen does not. Except (we learned from this article), hydrogen power generation has one huge, glaring, problem…
Once a month, the analysts at the U.S. Energy Information Administration (EIA) issue the agency’s Short-Term Energy Outlook (STEO), their best guess about where energy prices and production will go in the next 12 months or so. We sometimes poke good-natured fun at the EIA because one month, their predictions go up, the next month, down, etc. What about the latest STEO dart board, published yesterday? EIA slashed the price of natural gas at the Henry Hub another 30% from the previous monthly STEO, saying natgas will average $3.40/MMBut in 2023, down from a forecast of $4.90 the month before. EIA’s new average price, if it holds, would be 50% lower than 2022’s average of $6.42/MMBtu.
Tuesday of last week, Freeport LNG, which has been out of operation since an explosion and fire in June 2022, asked the Federal Energy Regulatory Commission (FERC) for permission to begin re-introducing feedgas back into one of three liquefaction “trains” (units) at the facility. A day later, FERC agreed, and small amounts of gas began to flow (see 
The supposedly non-partisan U.S. Energy Information Administration (EIA), which increasingly appears to be influenced (if not corrupted) by the Bidenistas, published a post yesterday on the agency’s daily Today in Energy website with this headline: “Coal and natural gas plants will account for 98% of U.S. capacity retirements in 2023.” The thrust of the article is that dirty fossil energy is being phased out of electricity production in favor of unreliable, intermittent so-called renewables (like solar and wind). EIA says operators plan to retire 15.6 gigawatts (GW) of electric-generating capacity in the U.S. this year, mostly natural gas-fired (6.2 GW) and coal-fired (8.9 GW) power plants. But as usual with the Biden administration, key facts are left out of the article. We have the rest of the story…