• It’s a new year, with new beginnings for lots of things. 2011 is going to be a politically contentious year in Washington. Among other matters, regulations are slated to take effect regarding greenhouse gases and energy (and financial) trading markets. Watch for fireworks.
  • Crude oil prices have been on a roar, fueled by growing global demand.  Demand grew at 2.9% in 2010 and is projected to grow at 1.5% for 2011 as the economy recovers. Prices are clawing their way about $91 per barrel, their highest in over 2 years. Diesel and gasoline prices will likely continue their steady climb.  
  • Natural gas prices have spiked recently, spurred both by extended cold weather and by carryover from the over-enthusiastic oil markets. The US Department of Energy is projecting that Henry Hub spot market gas prices will average 4.31 for the 2011 heating season. The trendline on the graph on the lower right shows that gas prices had a slow and steady decline through 2010.
  • By now, most electric utilities have announced their supply costs for all or part of 2011. (This may be called the “default price” or “basic service”.) If you’re getting electricity supply pricing, be sure to check these figures to insure that you’re saving money. In New York, unfortunately, utility default pricing is done on a market basis, so there is no fixed comparison point.
  • New Jersey is voting on legislation that could reduce bills for business that implement energy efficiency projects.  Under the bill before the State Senate, business customers would be would be eligible for a credit against the Societal Benefits Charge (SBC). The SBC is a mandatory charge that funds renewable energy and energy efficiency projects. Businesses argue that they pay two-thirds of the collected funds without getting proportional benefits.

 

US Average Energy Costs – January 3, 2011
  This Week Last Week Last Year
Retail Diesel $3.33 /gal $3.29 /gal $2.80 /gal
Retail Gasoline $3.07 /gal $3.05 /gal $2.67 /gal
Crude Oil $91.38 /bbl $91.25 /bbl $79.36 /bbl
Natural Gas $0.460 /thm $0.419 /thm $.571 /thm
Sources:  US Dept. of Energy, EIA;
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