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Strategic Objectives!

September 2023

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Prospect Resources is committed to working unwaveringly for the benefit of the client — and to the successful execution of the client’s customized strategic energy purchase plan. Energy-efficient buildings use less energy to heat, cool, and run appliances and electronics.

“In a race for limited resources, it is the energy efficient that will win the race.”

David Cameron – former UK PM

Azi Feifel

COO PROSPECT RESOURCES

Trends in the Energy Market

Current Market News

NYMEX futures have stabilized. Lower storage injections are balanced by a cooler outlook. Prompt month is October 2023.
It’s still officially summer and some areas of the country have seen new record high temperatures established. A cold front pressing into the East will bring storms across the region. A stronger cold front will bring a cooler pattern into the eastern two-thirds of the nation next week.

Texas continues to see extreme heat. ERCOT is struggling with the load and is contemplating rolling blackouts.
Year-over-year natural gas production has narrowed to 1.7 Bcf/d. Overall year-over-year demand for LNG export and pipeline gas to Mexico has risen 4.1 Bcf/d.
Natural gas inventories in storage have moderated. Inventories are now 7.6% greater than the five-year average and 17.2% greater than the same time last year. There are 9 weeks left in the injection season

And yet more...

Crude oil prompt-month futures are holding in the $85-$90/bbl range. Expect gas prices to stay relatively high at the pump through this quarter.
Economy - Inflation rate is down considerably but continues to be a concern for the Fed. Mortgage rates drop for a second week, but remain above 7%. Payrolls are up and unemployment remains below 4%, but overall demand for workers has fallen.
Forward electricity prices have trended up the last month, though they are still range-bound.

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Economic Perspective

Winter weather strongly influences residential and commercial demand

During cold months, natural gas demand for heating by residential and commercial consumers generally increases overall natural gas demand and can put upward pressure on prices. If unexpected and cold or severe weather occurs, the effect on prices can intensify because supply is often unable to react quickly to short-term increases in demand.

The effect of weather on natural gas prices may be greater if the natural gas transmission (pipeline) system is already operating at or near full capacity. Natural gas supplies in storage can help to cushion the impact of high demand during cold weather. (EIA)

Using Prospect Resources' layered hedging model locks prices for your facility to help meet your budget expectations.

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Energy Sector in the News

Manchin backs FERC energy analyst for commission seat: The Federal Energy Regulatory Commission has a vacancy that the West Virginia senator and other Democrats are hoping to fill. FERC approved a Transco’s expansion project in January, finding that its benefits outweigh potential environmental harms.

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Why Hurricane Idalia Could Push Down Gas Prices: Hurricanes often damage oil refineries, causing prices of fuels like gasoline to soar. Hurricane Idalia, which made landfall in Florida, looks like it will be an exception.

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Europe's renewables push undermines Russian weaponization of energy: Europe is making itself stronger against Russian attempts to weaponize energy by switching to clean sources faster, U.S. Special Presidential Envoy for Climate John Kerry said.

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Higher Oil Prices Could Spark A Fresh Wave Of Inflation: Saudi Arabia and Russia moved with determination to support oil prices, extending their respective ongoing production and export cuts through the end of the year. In an initial response to Tuesday's news, oil prices jumped and hit the highest level so far this year, with Brent Crude prices exceeding the $90 per barrel mark.

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Natural Gas Forecast & Price Predictions for Today, 2023 and Beyond: Rebound Could Extend: The recent Natural Gas price action raises the odds that base building may have started after hitting seven-month highs. Will the Natural Gas price decrease in the coming days and weeks or break above $3MMBtu? What is the Natural Gas price prediction for the next 5 years? This is a must read market analysis!

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