Natural Gas Procurement: Timing is Everything
Although natural gas prices are more stable now than they have been in a decade, energy managers can still save their companies big money by creating a procurement strategy and timing their purchases.
‚ÄúWe‚Äôre looking at $3-$4 per dekatherm (Dth) versus a spike to $15 in 2008,‚ÄĚ said Joe Bores, manager commodity services desk, natural gas with Hess Energy Marketing. ‚ÄúBut the market traded down to $3.12 ¬†from $3.80 recently. At 70 cents per Dth, that‚Äôs meaningful dollars for large energy purchases,‚ÄĚ said Bores. ‚ÄúIt depends how intense of usage we‚Äôre talking about. There‚Äôs urgency to pay attention to those details.‚ÄĚ
Bores shared his insights with other speakers for the Energy Manager Today webinar ‚ÄúWhat Energy Managers Need to know about Procuring Natural Gas: Guidance for 2014 Natural Gas Contracts‚ÄĚ (available on demand).
Read more at Energy Manager Today.
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