we hit the proverbial offerless market where any natgas that was available would be purchased at virtually any price, which is why midcontinent prices such as the Oneok OGT nat gas spot exploded from $3.46 one week ago, to $9 on Wednesday, $60.28 on Thursday and an insane $377.13 on Friday, up 32,000% in a few days
This is catastrophic news not only for the continued freeze in nat gas distribution, but for the explosion in electricity prices which could see many customers see a February electricity bill in the thousands, if not tens of thousands. This is what a power trader at a Houston energy company advised us on Friday:
Prices in response to the persistent cold have pushed load expectations to all time winter highs, and on par with the hottest summer days the ISO has experienced. Actual shortages could persist if units aren’t weatherized and fail at any point. Monday peak is currently bid 4000, and balweek inclusive of Tuesday through Friday is 1000@2000. Off peak (nights) have traded insane levels as well, with the balance of the month trading 650$. For reference, summer of 2018 never came close to touching these levels. The highest trade on a balday was around 2000$, if i’m not mistaken.
The PUC is meeting today to discuss coordination and potential conservation efforts, but this event will likely crush several firms who are not collateralized enough to weather (no pun intended) the storm IMO. And all those folks on griddy could literally be looking at paying 4$+ per KWh across the state (as opposed to 12 cents or whatever rate you got at your house), pushing power bills to the moon.