Articles tagged California

Higher production and lower demand outlooks supported more losses for August Nymex natural gas futures as weather forecasts softened heat for later in July amid storm fears stoked by the formation of the earliest Category 5 hurricane on record.

Impressive heat in the forecast for the second half of June sparked a rally in the natural gas forwards markets from June 6-12, with double-digit gains spread across most of the Lower 48, according to NGI’s Forward Look.

Impressive heat in the forecast for the second half of June sparked a rally in the natural gas forwards markets from June 6-12, with double-digit gains spread across most of the Lower 48, according to NGI’s Forward Look.

Price spikes that plagued natural gas delivered to hubs across California and the Southwest in past summers are unlikely to repeat, even in the face of extreme heat, according to experts. 

Baseload natural gas prices continued to move higher in Texas and Southeast in the second day of June bidweek trading Tuesday, supported by expected summer power demand and ebbing pipeline maintenance.

Following a record-setting outbreak in 2023, a fast start to the wildfire season is already threatening interruptions to Canada’s largest crude oil production region. Blazes in the western reaches of the country, if not contained, could also hamper natural gas output in a potential replay of last summer.

As California utilities prepare their systems for upcoming summer demand, hydro-electric generation and other renewable resources remain important tools in the state’s energy resource toolbox. However, natural gas is crucial to the stabilization of the power grid, particularly during extreme events, according to state regulators.

The U.S. Department of Energy (DOE) has awarded $1.1 billion to Pacific Gas and Electric Co. (PG&E) to extend the life of California’s last remaining nuclear power plant. The decision could further minimize natural gas consumption in the nation’s most populous state.

ExxonMobil is warning that it expects to have a one-time writedown of $2.5 billion in 4Q2023 for the reduced value of some upstream assets in California, similar to a one-time quarterly impairment expected by Chevron Corp.

As policies incentivizing clean energy continue to mount, renewable natural gas (RNG) is poised for more growth, the scale of which could depend on the outcome of state and federal legislation.