Post by
kavern23 on Sep 24, 2023 6:06pm
Power Prices in Alberta
One nice thing for some these companies with mature pumpjack properties is power prices in Alberta have crashed very low since A/C demand is gone and weather isnt plus 30 or hotter type stuff.
Alberta is such a small market that it doesnt take much demand to move prices by 200-400%...its nuts.
High power prices were makings alot higher on operating costs...this should decrease for at least Sept on, Oct and Nov.
Whenever Alberta renewables are 25% or more of demand, power prices sink. Fall Weather is windy and sunny more common than during summer.
The power companies were trying to lock in consumers at 12.5 cents kwh in 3 and 5 year contracts in this summer campaign.
Yes power was stupid expensive in summer but today it is 3 cents kwh. Last week was been low.
3 cents is so cheap lol.
NG is 2.25 in alberta and potential to go lower so enjoy cheap power for next few month Alberta. Especially in high renewable days.
Q4 alot of companies got 5.35-5.60 for NG in 2023, it wil counter some of the oil price gain as NG has a chance of spot hitting closer to 2 for OCt and Nov. Forecast is warm for Alberta next two weeks. Large injections and little furnace demand in near future.
Be interesting to see if YGR, BNE, PEtrus and IPO release 2024 captial budgets forecasted 2024 NG price assumption.