Although there are no unbundling programs for residential and small-volume commercial customers, several communities in Texas have acted to provide their residents with gas cost advantages. Texas is somewhat unique in that the Railroad Commission of Texas (RRC) has jurisdiction over intrastate transportation city gate sales for resale and retail rates outside of city limits, but individual communities and municipalities regulate retail nat. ...more
The proportion of electric generation provided by natural gas grew somewhat in 2006 as a result of higher peak electricity demand during the summer months and comparatively low natural gas prices. This proportion is expected to decline in 2007 in response to lower temperatures and higher natural gas fuel costs. ...more
Natural Gas News in Texas
This paper examines the time series econometric relationship between the Henry Hub
natural gas price and the West Texas Intermediate (WTI) crude oil price. Typically, this
relationship has been approached using simple correlations and deterministic trends. When data
have unit roots as in this case, such analysis is faulty and subject to spurious results. We find a
cointegrating relationship relating Henry Hub prices to the WTI and trend ...more
natural gas price and the West Texas Intermediate (WTI) crude oil price. Typically, this
relationship has been approached using simple correlations and deterministic trends. When data
have unit roots as in this case, such analysis is faulty and subject to spurious results. We find a
cointegrating relationship relating Henry Hub prices to the WTI and trend ...more
Average Natural Gas Price
In 2004, Texas had 3,939,101 residential and 322,295 commercial customers. They consumed 192 and 202 billion cubic feet of natural gas, respectively. The average prices paid for natural gas purchased from local distribution companies by residential and commercial customers were $10.37 and $8.23 per thousand cubic feet, respectively. ...more
Natural Gas Prices
Due to projected colder weather for the first quarter 2007 compared with the same period in 2006, natural gas spot prices are expected to average $8.58 per thousand cubic feet (mcf) in the first quarter of 2007, about $0.65 per mcf higher than in the first quarter of 2006. Henry Hub Natural Gas Spot Prices are projected to average $7.06 per mcf in 2006 and increase to an average of $7.87 per mcf in 2007. ...more
Natual Gas in Texas
In recent years, as natural gas pricing has transitioned from a
volume basis (per thousand cubic feet) to a heat-content basis (per
million Btu), producers have tended, for economic reasons, to
increase the Btu content of the gas delivered into the pipeline grid
while decreasing the amount of natural gas liquids extracted from
the natural gas stream. Consequently, interstate pipeline companies
have had to monitor and enforce their hydrocarbon ....more
volume basis (per thousand cubic feet) to a heat-content basis (per
million Btu), producers have tended, for economic reasons, to
increase the Btu content of the gas delivered into the pipeline grid
while decreasing the amount of natural gas liquids extracted from
the natural gas stream. Consequently, interstate pipeline companies
have had to monitor and enforce their hydrocarbon ....more
Working Gas in underground storage directly affects the daily electric market price rates in Texas. The reason for this is because the Texas Market Clearing Price for Energy has a 90% correlation with the natural gas market rate. Due to supply and demand factors the natural gas storage report has a daily affect on electric rates in Texas. View the graph: Working natural gas in storage comparison with 5 year Range.
437 billion cubic feet of gas was purchased through natural gas distribution systems. This was 12% of all gas consumed in Texas (3,585 billion cubic feet). Gas sales through natural gas distribution systems totaled over $2.23 billion.
Natural Gas Distribution :
Texas natural gas distribution systems include 31 investor owned utilities and 85 municipally owned systems. These natural gas distribution systems serve 3.9 million customers, which comprise domestic households, small commercial, and large industrial customers.
Texas natural gas spot prices are now about half last year’s hurricane-induced historically high prices. For example, as of December, the price at the Henry Hub was 53 percent below last year’s level of $13.79 per MMBtu. Because of these lows locking in a fixed rate in Texas natural gas or electricity would be a smart move. For larger industrial customers, buying a block of natural gas energy would be a good investment.
Texas Natural Gas Rates :
Natural Gas Spot Price :
Natural Gas Prices December 2006
Lower natural gas spot prices at many trading locations in Texas. For the weeks of December, the price for next-day delivery at the Henry Hub decreased 78 cents per MMBtu, or 10.8 percent to $6.43 per MMBtu. The NYMEX futures contract for January delivery at the Henry Hub settled at $6.769 per MMBtu, which was 90 cents less than the previous weeks. Natural gas in storage decreased to 3,167 Bcf in December, leaving inventories at 9.5 percent above the 5-year average. The spot price for West Texas Intermediate (WTI) crude oil moved up $1.74 per barrel or about 2.8 percent since last Week to $63.08 per barrel or $10.88 per MMBtu.
Natural Gas Storage Report:
Working gas in storage was 3,121 Bcf as of the end of December 2006, according to Energy estimates. This is a net decline of 46 Bcf from the previous week. Stocks were 458 Bcf higher in comparison to last year at this same time and 355 Bcf higher then the 5-year average of 2,766 Bcf. In the East Region which includes Texas, stocks were 165 Bcf above the 5-year average following net withdrawals of 28 Bcf. Stocks in the Producing Region were 154 Bcf above the 5-year average of 793 Bcf after a net injection of 6 Bcf. Stocks in the West Region were 36 Bcf above the 5-year average after a net drawdown of 24 Bcf. At 3,121 Bcf, total working gas is above the 5-year historical range. The consensus is that the natural gas storage report for the current week is rated excellent and the expectation is that this rating will not continue for much longer.
City Gates:
Gate stations serve three purposes. First, they reduce the pressure in the line from transmission levels (200 to 1,500 pounds) to distribution levels, which range from ¼ pound to 200 pounds. Then an odorant, the distinctive sour scent associated with natural gas, is added, so that consumers can smell even small quantities of gas. Finally, the gate station measures the flow rate of the gas to determine the amount being received by the utility.
Natural Gas Research :
Natural Gas Prices Research :
Jan 29 2007
Natural Gas Prices
