Volume 18, Issue 10 | April 26, 2021

Editor's Note

New Promises for Earth Day

Week in review for April 18 24, 2021

On Thursday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday April 16, 2021 was 1,883 BCF.  This was an increase of 38 BCF from the previous week, lower than market expectations. Inventories are now 251 BCF lower than last year at this time, but 12 BCF above the 5-year average.

This Thursday was Earth Day, and the Biden Administration committed to reduce greenhouse by at least 50% from 2005 levels by 2030 as part of the re-entry into the global Paris Agreement.  Previously under President Obama, the U.S. had pledged to cut emissions by 28% by 2025 and then had pulled out of the agreement under President Trump.  Electricity Generation has already reduced emissions significantly from 2005 levels due to coal-to-gas switching and increased renewables.  Further reduction of coal electricity generation, and reduced petroleum use in the transportation sector are the most obvious sources for near term reductions in greenhouse gases. 

 

Forward energy markets were up this week for the prompt year, but down further out. The NYMEX natural gas 12-month strip (May21-Apr22) ended up 3.0% and the PJM Western Hub ATC (7X24) 12-month strip was up 0.4%.


Weather

Washington, D.C. Area Cooling/Heating Degree Days

  

 

Oct-20 

**Nov-20 

**Dec-20 

**Jan-20 

**Feb-21 

**Mar-21 

Normal 

 56

 467

669

 848

677

546

 Actual

 32

 321

731

 819

763

516

Departure from Normal 

43%,
Colder 

31%,
Warmer 

9%,
Colder 

3%,
Warmer 

13%,
Colder 

5%,
Warmer 

Cooling degree day (CDD) data is for the Washington, D.C. area and is calculated by comparing the day’s average temperature to a 65-degree baseline. If the day’s average temperature is below 65, there are no cooling degree days that day. If the day’s average temperature is greater than 65 degrees, then subtract 65 from the average temperature to find the number of cooling degree days.

**Heating degree day (HDD) data is for the Washington, D.C. area and is calculated by comparing the day’s average temperature to a 65 degree baseline. If the day’s average temperature is above 65, there are no heating degree days that day. If the day’s average temperature is less than 65 degrees, then subtract that average temperature from 65 to find the number of heating degree days.