Energy & Carbon Management newsletter - March 2012
2
utility management electricity gas water We know energy. Telephone 01293 651218 Email [email protected] Website www.energyandcarbonmanagement.com Energy and Carbon Management Limited Longley House, International Drive, Crawley, West Sussex, RH10 6AQ © 2012 Energy and Carbon Management Limited Energy Newsletter / March 2012 Page 1 of 2 MARKET BRIEF Just over a year on from the Fukishima Nuclear plant disaster and Germany’s subsequent reaction which dramatically increased both electricity and gas prices in the space of a few days, we can now look back and see where prices in the market are today compared to where they were then. After the initial reactions to the above and price availability returning to the levels experienced prior to those occurrences, we are currently seeing prices generally in an upward trend and comparable to where they were directly after this time a year ago. Overall sentiment in the energy markets is that now might be the right time to commit to the longer term contracts with many of the price drivers anticipated to increase energy prices further this year, notably Oil. Despite the global economic woes, 2011 was one of the strongest years for oil and the expected growth rates this year and next in the US, India and China all point to higher prices in 2012. Despite the generally warm winter, all experts have been taken by surprise by the sustained prices since mid-january. Add to this the demand, on the assumption that the UK and Europe will avoid a double-dip recession, growth / recovery elsewhere should lead to an increase in demand and hence bullish influence on wholesale prices for 2012 and beyond. ANNUAL REVIEW The annual review shows electricity positioned nearly 9% below where it was at the same time last year. Gas and Oil in comparison are very marginally above the levels they were last year at 1.76% and 3.21% respectively. MONTHLY REVIEW Month on month since our last report the electricity, gas and oil markets have all continued the overall current up trend despite the recent signs of possible softening on all 3 markets near-term prices. For the second month in succession the monthly prices show Electricity, Gas and Oil all recording increases in comparison to where they were a month ago, with the 3 commodities moving 6.77%, 6.33% and 2.24% respectively. Gas demand in the UK has remained below the seasonal norms due to the warm UK temperatures, with weather forecasts not predicting a cold snap, the strength of supply is anticipated to remain strong until at least the end of the month. PRICES COMPARED TO THIS TIME LAST YEAR. GAS ELECTRICITY ANNUAL REVIEW Electricity (£ MW) £56.725 £51.725 Gas (ppTh) 66.750p 67.925p Oil ($ Brl) $102.33 $105.61 21/03/11 20/03/12 OIL 1.76% –8.81% 3.21% PRICES COMPARED TO THIS TIME LAST MONTH. GAS ELECTRICITY MONTHLY REVIEW Electricity (£ MW) £47.975 £51.225 Gas (ppTh) 63.625p 67.925p Oil ($ Brl) $103.24 $ 105.61 20/02/12 20/03/12 OIL 6.33% 6.77% 2.24% Welcome to Energy & Carbon Management’s Newsletter
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Transcript of Energy & Carbon Management newsletter - March 2012
utility management electricity gas waterWe know energy.
Telephone 01293 651218 Email [email protected] Website www.energyandcarbonmanagement.comEnergy and Carbon Management Limited Longley House, International Drive, Crawley, West Sussex, RH10 6AQ © 2012 Energy and Carbon Management Limited
Energy Newsletter / March 2012Page 1 of 2
MARKET BRIEFJust over a year on from the Fukishima Nuclear plant disaster and Germany’s subsequent reaction which dramatically increased both electricity and gas prices in the space of a few days, we can now look back and see where prices in the market are today compared to where they were then.
After the initial reactions to the above and price availability returning to the levels experienced prior to those occurrences, we are currently seeing prices generally in an upward trend and comparable to where they were directly after this time a year ago.
Overall sentiment in the energy markets is that now might be the right time to commit to the longer term contracts with many of the price drivers anticipated to increase energy prices further this year, notably Oil. Despite the global economic woes, 2011 was one of the strongest years for oil and the expected growth rates this year and next in the US, India and China all point to higher prices in 2012. Despite the generally warm winter, all experts have been taken by surprise by the sustained prices since mid-january. Add to this the demand, on the assumption that the UK and Europe will avoid a double-dip recession, growth / recovery elsewhere should lead to an increase in demand and hence bullish influence on wholesale prices for 2012 and beyond.
ANNUAL REVIEWThe annual review shows electricity positioned nearly 9% below where it was at the same time last year. Gas and Oil in comparison are very marginally above the levels they were last year at 1.76% and 3.21% respectively.
MONTHLY REVIEWMonth on month since our last report the electricity, gas and oil markets have all continued the overall current up trend despite the recent signs of possible softening on all 3 markets near-term prices.
For the second month in succession the monthly prices show Electricity, Gas and Oil all recording increases in comparison to where they were a month ago, with the 3 commodities moving 6.77%, 6.33% and 2.24% respectively.
Gas demand in the UK has remained below the seasonal norms due to the warm UK temperatures, with weather forecasts not predicting a cold snap, the strength of supply is anticipated to remain strong until at least the end of the month.
PRIcEs cOMPAREd TO THIs TIME LAsT YEAR.
GASELECTRICITY
ANNUAL REVIEW
Electricity (£ MW) £56.725 £51.725
Gas (ppTh) 66.750p 67.925p
Oil ($ Brl) $102.33 $105.61
21/03
/11
20/03
/12
OIL
1.76%–8.81% 3.21%
PRIcEs cOMPAREd TO THIs TIME LAsT MONTH.
GASELECTRICITY
MONTHLY REVIEW
Electricity (£ MW) £47.975 £51.225
Gas (ppTh) 63.625p 67.925p
Oil ($ Brl) $103.24 $ 105.61
20/02
/12
20/03
/12
OIL
6.33%6.77% 2.24%
Welcome to Energy & carbon Management’s Newsletter
utility management electricity gas waterWe know energy.
Telephone 01293 651218 Email [email protected] Website www.energyandcarbonmanagement.comEnergy and Carbon Management Limited Longley House, International Drive, Crawley, West Sussex, RH10 6AQ © 2012 Energy and Carbon Management Limited
Currently adding bullish sentiment to the market energy prices are the on-going outage at the Hinkley Point B-8 nuclear unit, coupled with the unexpected loss of the Karsto Processing Plant in Norway which in turn has led to the volume of gas supply through the Langeled Pipeline decreasing. The only comfort coming from the current low demand meaning disruptions to supply have not been fully appreciated.
OTHER MARKET NEWsPlease read below extracts of the Prime Minister, david cameron’s recent speech on the national infrastructure relating to Energy, he delivered at the Institute of civil Engineering.
“The next area where we are planning bold transformation is energy.
“We need to find diverse, secure sources of energy that can meet demand, keep prices stable and cut the impact of carbon on the planet.
“But this is the problem we inherited.
“We’re powering our country through an out-of-date, inefficient grid and ageing, polluting power stations. We need to replace coal plants, invest in modern gas power and affordable renewable energy.
“Gas power will continue to be absolutely vital for our electricity system – and we will work with industry to develop a new gas generation strategy that draws in investment and secures electricity supply.
“Today, nuclear energy forms the backbone of our low-carbon generation fleet but the nine plants still left in service in Britain are reaching the end of their life. I’m convinced that we need to press ahead with their replacement – but that involves three big challenges.
“One – getting the price right, without state subsidy.
“Two – getting plants built on time.
“Three – making sure we maximise the economic benefits to the UK in terms of skills, jobs and manufacturing.
“So today I can confirm our intention to work with the private sector to deliver the new plants that companies would like to build between now and 2030.
“And we will continue investing in nuclear decommissioning, and assess whether there is a commercially viable proposition for turning nuclear waste into fuel for the next generation of reactors.
“Our electricity market reforms will allow the private sector to invest in Britain with confidence.
“And renewable energy is the final component in a balanced energy mix. Our focus here will be on offshore wind, for hard-headed reasons.
“It is secure, generated at home rather than imported.And it’s one of the world’s fastest growing energy sources, which means substantial economic opportunities.
“I believe we are well-placed to become a world leader in offshore wind power – and this Government is doing all it can to make sure that happens...”
sPOTLIGHT ON ENERGY & cARBON MANAGEMENT LIMITEdWe have further strengthened our Client Management Team with the additions of Rowan Sandford and Rebecca Martin-Mayo. I’m sure they will introduce themselves to their clients imminently if they have not done so already.
QUEsTIONs? cONTAcT Us TOdAY
Telephone01293 651218
Websitewww.energyandcarbonmanagement.com
Energy Newsletter / March 2012Page 2 of 2
Fax01293 512030
