Energy Solutions, Inc. – Natural Gas: Is Now the Time to Buy?

The message seems to be consistent:  natural gas prices are good right now.  But, as a buyer, how do you know if “good” could get even better?  The answer is you don’t.  All you can do is really weigh the upside risk and the downside potential of taking no action versus taking some action.

According to Valerie Wood, President of Energy Solutions, Inc. in Verona, Wisconsin, “It is important to realize that there isn’t a one-size-fits-all plan for buyers.  In the end, a buyer needs to evaluate its needs, its budget, and its corporate objectives and make decisions accordingly.

Currently, fundamental data surrounding supply and demand are overwhelmingly bearish, so it is difficult to understand why Energy Solutions, Inc. is touting this urgency to make some natural gas purchases.  The answer could lie in the fact that prices rallies don’t necessarily have to be premised on fundamentals, and they don’t have to make sense.  Natural gas prices move up and down based on the number of buyers and sellers in the marketplace.  These buyers and sellers may or may not care about the underlying fundamentals, as some will enter or exit the market simply on price level only.

Wood explains, “For most buyers who have a budget to contend with, it’s particularly difficult to accept a rally that occurs when fundamentals haven’t really changed, and that rally is exactly what we are expecting at some point in the near future.  While there is no way to guarantee if “good” could get even better, Energy Solutions, Inc. offers a few recommendations to natural gas buyers who are struggling with whether or not to make some longer-term purchases.”

Look at the bigger picture.  The bigger picture involves not just looking at the per unit cost of the price rally, but a larger evaluation of what the rally means to your expenditures.

Recognize that, periodically, plans need adjustment.  Market data are continually changing and failing to recognize the need to make adjustments represents an unwillingness to look at data from an unbiased viewpoint.

Keep others informed.  With natural gas prices now at very low levels, if you’re the one that is accountable for the buying decisions, communicating with others is extremely important, and it also will allow others to provide their input.

Still confused about whether now is the time to buy?  Energy Solutions, Inc. is a natural gas consulting firm that works directly with companies seeking to gain better control of their natural gas expenditures.  They work directly with companies to identify the risks and rewards of future natural gas purchases, help them develop a risk management purchasing strategy that meets their needs and budgetary guidelines, watch the market on their clients’ behalf so they can concentrate on other important job responsibilities, monitor pipeline basis buying opportunities, review invoices, and more.

If you would like to learn more about the benefits Energy Solutions, Inc. can bring to your company, visit them online at www.energysolutionsinc.com or call for a free consultation (608) 848-9589.

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About Energy Solutions, Inc. 

Formed in 1996, Energy Solutions, Inc. is independently owned. With more than 50 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.