Winter storm knocks out power for more than a million customers

The severe winter storm that began Friday, January 22, and continued through Saturday, January 23, affected energy infrastructure throughout much of the eastern United States. Heavy snowfall, high winds, and ice knocked out power to more than one million customers in states from Arkansas to Massachusetts. According to the U.S. Department of Energy's "Energy Assurance Daily", power had been restored to all but about 3,000 customers as of midafternoon January 26. More »

New pipeline projects increase Northeast natural gas takeaway capacity

A number of recently completed and upcoming natural gas infrastructure projects are expected to increase the reach of natural gas produced in the Marcellus and Utica regions of the Northeastern United States. These projects are intended to transport natural gas from production centers to consuming markets or export terminals. More »

Spread between Henry Hub, Marcellus natural gas prices narrows as pipeline capacity grows

Natural gas spot prices around the United States are often compared to prices at the Henry Hub in Louisiana. At trading points in and around the Marcellus and Utica plays in Pennsylvania, West Virginia, and Ohio, natural gas prices consistently trade below the Henry Hub national benchmark price. However, the difference between these pricing points and the Henry Hub has narrowed in recent months as new pipeline projects come online. More »

Changing contract expiration dates will affect crude oil futures comparisons

A change to the North Sea Brent crude oil futures contract will alter the way prices for Brent futures are compared to futures prices for WTI crude oil. Beginning January 29, the Brent contract will expire, or rollover to the next month, approximately two to three weeks before expiration of the WTI contract for delivery in the same month. Prior to the change, the Brent contract rollover was only five to seven days ahead of the WTI rollover. More »

Natural gas prices expected to rise over next two years

The average natural gas spot price at the benchmark Henry Hub for December 2015 of $1.93 per MMBtu was the lowest monthly average since March 1999. EIA's latest "Short-Term Energy Outlook" expects natural gas prices to rise, averaging $2.65/MMBtu in 2016 and $3.22/MMBtu in 2017. Expected price increases reflect consumption growth, mainly from the industrial sector, that outpaces near-term production growth. More »

Upcoming winter storm may cause problems for East Coast energy infrastructure

An upcoming winter storm has resulted in blizzard watches in major Mid-Atlantic cities, including Washington, DC, Baltimore, Philadelphia, and New York City. Nearly 75 million people are in regions expected to be affected by the storm. In addition to record levels of snowfall, affected areas could experience high winds as well as coastal storm surges and flooding in susceptible regions. More »

Oman is the largest non-OPEC oil producer in the Middle East

Oman is the largest producer of crude oil (including condensate) in the Middle East that is not a member of the Organization of the Petroleum Exporting Countries (OPEC). Oman's oil production has increased each year since 2007 and ranked 7th among Middle East oil producers and 21st in the world, as of 2014. Production exceeded one million barrels per day in June 2015 for the first time since December 2000. More »

Hydrogen for refineries is increasingly provided by industrial suppliers

Refineries use hydrogen to lower the sulfur content of diesel fuel. Refinery demand for hydrogen has increased as demand for diesel fuel has risen both domestically and internationally, and as sulfur-content regulations have become more stringent. EIA data show that much of the growth in hydrogen use at refineries is being met through hydrogen purchased from merchant suppliers rather than from increased hydrogen production on-site at the refinery. More »

Iran's petroleum production expected to increase as sanctions are lifted

Implementation day for the Joint Comprehensive Plan of Action (JCPOA), an agreement among Iran, the P5+1 (the five permanent members of the United Nations Security Council and Germany), and the European Union (EU), occurred on January 16 when the International Atomic Energy Agency verified that Iran had completed the key physical steps required to trigger sanctions relief. More »

Warmer weather, lower energy prices are reducing home heating expenditures

Warmer temperatures and lower energy prices have contributed to a reduction in EIA's current forecast average heating expenditures this winter compared with the forecast in the October 2015 "Winter Fuels Outlook". More »

Crude oil prices to remain relatively low through 2016 and 2017

The Short-Term Energy Outlook (STEO) released on January 12, which is the first STEO to include projections for 2017, forecasts Brent crude oil prices will average $40 per barrel (b) in 2016 and $50/b in 2017. West Texas Intermediate (WTI) crude oil prices are expected to be $2/b lower than Brent in 2016 and $3/b lower than Brent in 2017. More »

State severance tax revenues decline as fossil fuel prices drop

Several states that collect significant revenue from severance taxes on fossil fuel extraction are re-evaluating current and upcoming operating budgets and taxation structures to address revenue shortfalls. Severance taxes are often imposed on the extraction of nonrenewable resources such as crude oil, natural gas, and coal. Lower fossil fuel prices, and in some cases, lower production, have led to lower severance tax receipts than were expected when revenue estimates were developed. More »

Wholesale power prices decrease across the country in 2015

Wholesale electricity prices at major trading hubs on a monthly average basis for on-peak hours were down 27%-37% across the nation in 2015 compared with 2014, driven largely by lower natural gas prices. Because natural gas-fired generation sets the marginal price in many markets, wholesale electricity prices are sensitive to changes in natural gas prices. More »

Coal production and prices decline in 2015

Since reaching a high point in 2008, coal production in the United States has continued to decline. U.S. coal production in 2015 is expected to be about 900 million short tons, 10% lower than in 2014 and the lowest level since 1986. Regionally, production from the Appalachian Basin has fallen the most. Low natural gas prices, lower international coal demand, and environmental regulations have contributed to declining U.S. coal production. More »

Crude oil prices started 2015 relatively low, ended the year lower

Crude oil prices ended 2015 below $40 per barrel (b), the lowest level since early 2009. Spot prices for the international crude oil benchmark Brent averaged $52/b in 2015, 53% below the level in 2014 and 49% below the average price over 2010-14. Spot prices for West Texas Intermediate (WTI) crude oil were also down 53% in 2015 compared with 2014, averaging $49/b for the year. More »

Average annual natural gas spot price in 2015 was at lowest level since 1999

Natural gas spot prices in 2015 at the Henry Hub in Louisiana, a national benchmark, averaged $2.61 per million British thermal unit (MMBtu), the lowest annual average level since 1999. Daily prices fell below $2/MMBtu this year for the first time since 2012. More »

Prices for most oil and natural gas commodities fell significantly during 2015

The energy component of the widely followed S and P Goldman Sachs Commodity Index (GSCI) fell 41% from the start of 2015, a larger decline than the industrial metals, grains, and precious metals components, which declined 24%, 19%, and 11%, respectively, in 2015. More »