News / Business
Natural Gas Prices Ignoring Preliminary 2010 Hurricane Forecast
The first 2010 hurricane forecast calls for higher-than-average tropical storm activity, but Mother Nature is going to dominate where natural gas prices move over the next month.
In December, the renowned Colorado State University (CSU) hurricane forecasting team released their preliminary outlook for the 2010 Atlantic-basin hurricane season. The CSU team expects the current El Niño conditions, which suppressed hurricane activity in 2009, to dramatically weaken or dissipate by the time the 2010 Atlantic-basin hurricane season gets into full swing.
The CSU team projects 11-16 named Atlantic-basin storms, with the potential of 6-8 storms becoming hurricanes, and 3-5 of those will become “major” hurricanes of Category 3-5 strength. “At this point, there have been some comparisons to El Niño conditions during the winter of 1997-1998,” says Valerie Wood, President of Energy Solutions, Inc. “There were 10 hurricanes in 1998, and 3 of those grew to major intensity. While the first storm in 1998 didn’t occur until the end of July, the months of August and September were extremely active with five storms making their way into the Gulf of Mexico.”
“While natural gas prices will likely respond to hurricane threats in the Gulf of Mexico, there is now more natural gas production onshore as a result of prolific shale finds. This should help keep hurricane-related price spikes in check,” says Wood.
Learn more about where natural gas prices may move in 2010 in the February edition The Advisor, a newsletter specifically written for businesses as an educational tool and guide about the natural gas industry and price trends. Receive the February edition, as well as a full month of valuable natural gas pricing insight, by taking a free no-strings attached trial to The Advisor for 30 days. Or simply request a complimentary copy of the most recent monthly edition by sending an e-mail to request-pr@energysolutionsinc.com or call (608) 848-9589.
# # #
About Energy Solutions, Inc.
Formed in 1996, Energy Solutions, Inc. is independently owned. With more than 25 years of experience in the natural gas industry, our team focuses on natural gas prices and in helping businesses improve their internal processes for the purchase of natural gas.
