WEATHER DEGREE DAYS
This summer’s weather outlook appears to be a bit milder than in the recent past. Four of the five most Weather Degree Day summers have been in the last five years with near record demand.
This year may see milder temperatures and wetter weather, and an El Nino will end in late summer, which may lead to warmer, wetter weather in late summer.
WHAT IS A DEGREE DAY?
Degree days are measures of how cold or warm a location is. A degree day compares the mean (the average of the high and low) outdoor temperatures recorded for an area to a standard temperature, usually 65° Fahrenheit (F) in the United States—the more extreme the outside temperature, the higher the degree days. A high number of degree days generally results in higher energy use for space heating or cooling.
Electricity Headlines
- Pricing has begun to rise in the gas and electricity markets. Gas futures next winter are now closing in on $4.00, and for Winter ‘24-’25, pricing on the NYMEX is approaching $5.00.
- Shorter-term agreements are less costly now, but pricing will jump that much more when weather warms.
Natural Gas Headlines
- The Freeport facility has final approval to process liquid natural gas (LNG) for shipment overseas. Expect more LNG facilities to come online in the next 2-5 years, that could come close to doubling our export ability.
- We have seen favorable storage reports the last few weeks with solid injections, even though Injection Season did not officially start until this week.
- This has resulted from milder weather and a drop in LNG demand due to more favorable European weather.
National Weather Forecast
