Natural Gas Widowmaker

With an increasing dependence on natural gas for electricity generation, one has to ask what this will mean to future consumer prices.

Simon Casey of Bloomberg posted a story and chart yesterday, ‘Widowmaker’ Natural Gas Spread Doubles as Traders Eye Winter“Natural gas traders see tight winter supplies. Widowmaker spread hits record high.”

“The spread between March and April futures — essentially a bet on how tight supplies of the fuel will be at end of North American winter — jumped to a new high, rising 18% at 2:57 p.m. in New York. In other words, buying drove March futures way above gas for delivery the following month.”

Simon Casey, Bloomberg

Meantime, PJM Interconnect shows that natural gas most recently provided over 44% of our region’s electricity Generation Fuel Mix (Renewables only makeup a little over 5% of that mix).

Since natural gas is a commodity with a fluctuating price, as well as being a finite resource, we should be investing more into renewable energy, since it provides much cleaner energy with far more stable pricing.

Hydraulic fracturing, to obtain tightly-held Marcellus Shale gas, continues to pollute our air, as well as our land and water with radioactive radium waste that will have a sixteen hundred year environmental legacy. Watching THE RADIUM GIRLS movie on Netflix this week, was yet another reminder of what exposure to radium can mean to one’s health.

We really need to get our priorities straight!

Bob

MORE: Natural gas prices are rising and could be the most expensive in 13 years this winter

One Comment on “Natural Gas Widowmaker

  1. We have to confront all enemies of the United States , both foreign and domestic . Freedom is not free, it only comes with responsibilities . Those responsibilities have been handed to all of us living today . They are the duty that provides FREEDOM ..Life is not a spectator sport . We have to play the hand dealt to us . Fossil fuels have to be put to rest where they belong . A huge step in eliminating Cancer , lung & heart disease , and destruction of a living earth .

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