Natural Gas – Energy content, statistics and pricing

Quantities of natural gas are measured in normal cubic meters (corresponding to 0°C at 101.325 kPa) or in standard cubic feet (corresponding to 60 °F (16 °C) and 14.73 PSIA). The gross heat of combustion of one normal cubic meter of commercial quality natural gas is around 39 megajoules (?10.8 kWh), but this can vary by several percent.

The price of natural gas varies greatly depending on location and type of consumer. In 2007, a price of $7 per 1,000 cubic feet (28 m3) was typical in the United States. The typical caloric value of natural gas is roughly 1,000 BTU per cubic foot, depending on gas composition. This corresponds to around $7 per million BTU, or around $7 per gigajoule. In April 2008, the wholesale price was $10 per 1,000 cubic feet (28 m3) ($10/MMBTU). The residential price varies from 50% to 300% more than the wholesale price. At the end of 2007, this was $12-$16 per 1,000 cu ft (28 m3). Natural gas in the United States is traded as a futures contract on the New York Mercantile Exchange. Each contract is for 10,000 MMBTU (gigajoules), or 10 billion BTU. Thus, if the price of gas is $10 per million BTU’s on the NYMEX, the contract is worth $100,000.

United Kingdom

Natural gas is also traded as a commodity in Europe, principally at the United Kingdom NBP and related European hubs, such as the TTF in the Netherlands.

Rest of the world

In the rest of the world, LNG (liquified natural gas) and LPG (liquified petroleum gas) is traded in metric tons or mmBTU as spot deliveries. Long term contracts are signed in metric tons. The LNG and LPG is transported by specialized transport ships, as the gas is liquified at cryogenic temperatures. The specification of each LNG/LPG cargo will usually contain the energy content, but this information is in general not available to the public.

United States

In US units, one standard cubic foot of natural gas produces around 1,028 British Thermal Units (BTU). The actual heating value when the water formed does not condense is the net heat of combustion and can be as much as 10% less.

In the United States, retail sales are often in units of therms (th); 1 therm = 100,000 BTU. Gas meters measure the volume of gas used, and this is converted to therms by multiplying the volume by the energy content of the gas used during that period, which varies slightly over time. Wholesale transactions are generally done in decatherms (Dth), or in thousand decatherms (MDth), or in million decatherms (MMDth). A million decatherms is roughly a billion cubic feet of natural gas.

In 2008, natural gas was $22.25 per 1 million BTUs.

Source: http://NatunaIslands.com, Natural Gas Information Center

Oil prices drop below $129 in Asia

BANGKOK, Thailand (AP) — Oil prices held steady below $129 a barrel Wednesday in Asia after dropping more than $3 in the previous session on a growing sense that soaring prices have cut demand for gasoline and other fuel.

The normally busy summer driving season in the U.S. kicked off with the just-ended Memorial Day weekend, and some analysts are predicting that data will show it had a lackluster start.

“It definitely was lower than (previous) Memorial Day weekends,” said Tom Kloza, publisher and chief oil analyst at the Oil Price Information Service in Wall, N.J.

U.S. Energy Department data covering the weekend won’t be released until next week.

The United States is the world’s largest energy consumer in terms of total use, and fluctuations in demand there can have an outsized impact on international oil prices. Also, since Americans are particularly reliant on their cars dues to a lack of mass transport in all but a few cities and they have to drive longer distances to their jobs, their consumption of gasoline is closely watched.

Midday in Singapore, light, sweet crude for July delivery was up 6 cents at $128.91 a barrel in electronic trade on the New York Mercantile Exchange. The contract fell $3.34 to settle at $128.85 a barrel Tuesday, the first day of trade after the Memorial Day holiday.

Tuesday’s drop was oil’s biggest one-day decline since March 31. The front-month contract is now more than $6 off its all-time peak of $135.09 a barrel reached last Thursday.

The decline came in the face of supply problems in Mexico and Nigeria that could have driven oil prices higher. That’s an indication that demand concerns are weighing on the market and giving investors reason to pull back from the record high oil prices, analysts said.

Michael Lynch, president of Strategic Energy & Economic Research Inc. in Winchester, Mass., said he thinks energy investors are selling on recent data showing that Americans are driving less due to high prices. That includes weekly Energy Department reports that show gasoline demand is falling and Federal Highway Administration data showing Americans drove fewer miles in March.

“If present trends continue, we could be heading for the first annual drop in gasoline consumption in some 17 years,” said Edward Meir, an analyst at MF Global UK Ltd., in a research note.

Oil prices were also pressured Tuesday by the dollar, which gained ground against the euro. Investors who buy commodities such as oil as a hedge against inflation when the dollar falls tend to sell when the greenback strengthens. Also, a rising dollar makes oil more expensive to overseas investors.

Investors shrugged off a number of events that could have sent oil prices higher, including news that crude oil production in Mexico fell 13 percent in April compared to the previous year, the temporary shutdown of a North Sea oil platform and the latest in a spate of oil-pipeline bombings in Nigeria.

Investors also ignored continued strength in heating oil futures, which have over the last month helped send crude oil smashing through a string of new record highs. Distillate supplies worldwide are seen as strained due to strong demand for diesel from Europe and Asia.

In other Nymex trading, June heating oil futures fell 0.11 cent to $3.7981 a gallon while gasoline futures fell 0.53 cent to $3.3777 a gallon. Natural gas futures fell 1.9 cents to $11.782 per 1,000 cubic feet.

July Brent crude was flat at $128.31 a barrel on the ICE Futures exchange in London.

News Source: http://edition.cnn.com/2008/BUSINESS/05/28/oil.prices.ap/index.html#cnnSTCText

provided by:

http://www.BrentNorthSeaoil.com, Oil and Gas Information Center

http://NatunaIslands.com, Natural Gas Information Center

Crude Oil prices drop below $129 per barrel

Crude oil prices were lower Tuesday, falling below $129 even though there was news of supply disruptions from several regions of the world.

In Nigeria, more bombings of pipelines disrupted supply while there was an unexpected shutdown of a drilling platform in the North Sea and reports from Mexico said that crude production was down by 13 percent there in April.

The declines came on demand concerns; last week the US Energy Department said that fuel consumption was down 1.3 percent in the week ending 16 May, from the same period last year.

At-the-pump prices for gasoline in the United States was still up overnight, but only slightly.

Unleaded regular gasoline was up 0.1 percent to a record $3.937 per gallon on average nationwide, while diesel also hit a new record at $4.768 per gallon according to AAA and the Oil Price Information Service, but the gains were smaller than recent overnight price rises.

At right around the close of floor trade on the New York Mercantile Exchange, West Texas Intermediate crude for July delivery had dropped $3.34 to $128.85 per barrel, while Brent crude was recently down $4.20 to $128.17 per barrel.

Nymex June gasoline was down a cent to $3.38 per gallon while July heating oil dropped 2 cents to $3.84 per gallon and July natural gas was 6 cents lower to $11.92 per million British thermal units.

Article source: http://www.oilmarketer.co.uk/2008/05/27/crude-prices-drop-below-129-per-barrel/

provided by: http://www.lightsweetoil.com, Oil and Gas Information Center

Light Sweet Crude Oil

Crude oil began futures trading on the NYMEX in 1983 and is the most heavily traded commodity.

Trading unit: Crude Oil Futures trade in units of 1,000 U.S. barrels (42,000 gallons). Options: One NYMEX Division light, sweet crude oil futures contract.

Trading Months: Crude Oil Futures trade 30 consecutive months plus long-dated futures initially listed 36, 48, 60, 72, and 84 months prior to delivery. Additionally, trading can be executed at an average differential to the previous day’s settlement prices for periods of two to 30 consecutive months in a single transaction. These calendar strips are executed during open outcry trading hours. Options: 12 consecutive months, plus three long-dated options at 18, 24, and 36 months out on a June/December cycle.

Price Quotation
Crude Oil Futures are quoted in dollars and cents per barrel.

Minimum Price Fluctuation: $0.01 (1¢) per barrel ($10 per contract).

Maximum Daily Price Fluctuation
Futures: Initial limits of $3.00 per barrel are in place in all but the first two months and rise to $6.00 per barrel if the previous day’s settlement price in any back month is at the $3.00 limit. In the event of a $7.50 per barrel move in either of the first two contract months, limits on all months become $7.50 per barrel from the limit in place in the direction of the move following a one-hour trading halt.

Options: No price limits.

Last Trading Day
Crude Oil Futures: Trading terminates at the close of business on the third business day prior to the 25th calendar day of the month preceding the delivery month. If the 25th calendar day of the month is a non-business day, trading shall cease on the third business day prior to the last business day preceding the 25th calendar day.
Options: Trading ends three business days before the underlying futures contract.

Delivery
F.O.B. seller’s facility, Cushing, Oklahoma, at any pipeline or storage facility with pipeline access to TEPPCO, Cushing storage, or Equilon Pipeline Co., by in-tank transfer, in-line transfer, book-out, or inter-facility transfer (pumpover).

Delivery Period
All deliveries are rateable over the course of the month and must be initiated on or after the first calendar day and completed by the last calendar day of the delivery month.

Alternate Delivery Procedure (ADP)
An Alternate Delivery Procedure is available to buyers and sellers who have been matched by the Exchange subsequent to the termination of trading in the spot month contract. If buyer and seller agree to consummate delivery under terms different from those prescribed in the contract specifications, they may proceed on that basis after submitting a notice of their intention to the Exchange.

Exchange of Futures for, or in Connection with, Physicals (EFP)
The commercial buyer or seller may exchange a futures position for a physical position of equal quantity by submitting a notice to the Exchange. EFPs may be used to either initiate or liquidate a futures position.

Deliverable Grades
Specific domestic crudes with 0.42% sulfur by weight or less, not less than 37° API gravity nor more than 42° API gravity. The following domestic crude streams are deliverable: West Texas Intermediate, Low Sweet Mix, New Mexican Sweet, North Texas Sweet, Oklahoma Sweet, South Texas Sweet.

Specific foreign crudes of not less than 34° API nor more than 42° API. The following foreign streams are deliverable: U.K. Brent and Forties, and Norwegian Oseberg Blend, for which the seller shall receive a 30¢-per-barrel discount below the final settlement price; Nigerian Bonny Light and Colombian Cusiana are delivered at 15¢ premiums; and Nigerian Qua Iboe is delivered at a 5¢ premium.

Inspection
Inspection shall be conducted in accordance with pipeline practices. A buyer or seller may appoint an inspector to inspect the quality of oil delivered. However, the buyer or seller who requests the inspection will bear its costs and will notify the other party of the transaction that the inspection will occur.

Position Limits
Any one month/all months: 20,000 net futures, but not to exceed 1,000 in the last three days of trading in the spot month.

Margin Requirements
Margins are required for open futures or short options positions. The margin requirement for an options purchaser will never exceed the premium.

Trading Symbol
Futures: CL
Options: LO

Article Source: http://www.wtrg.com/daily/crudeoilprice.html

Provided by: http://lightsweetoil.com, Oil and Gas Information Center

Crude Oil Prices Update on lightsweetoil.com

Crude oil prices behave just like any other commodity with wide price swings of shortage and oversupply. The crude oil price cycle can extend over a long period of time depending on the non-stop change in demand for oil as well as oil supply produced by Organization of Petroleum Exporting Countries (OPEC) and non-OPEC oil supply companies. Oil price history shows that the petroleum industry especially in the United States has been heavily regulated in terms of production and price controls throughout the duration of the 20th century.

Crude oil is a substance that is needed for all of the industrial and residential purposes. To make sure that there is enough crude oil for our needs we must pay a certain amount of money to the countries that we import the oil from. These companies have a set crude oil price.

The price of oil in the world market continues to increase much to the dismay of the general public. It recently made a run towards the $130 per barrel. In New York, the price of crude oil reached $133 per barrel at the end of the day. But even with that development, experts are expecting that crude oil price per barrel will hit the 130 dollar mark in the very near future.

Light sweet oil is short and well-known name of Light sweet crude oil which is the most sought-after version of crude oil as it contains a disproportionately large amount of these fractions that are used to process gasoline, kerosene, and high-quality diesel. Crude oil is the world’s most actively traded commodity. crude oil trading is the world’s largest-volume futures contract trading on a physical commodity. the NYMEX Division light sweet crude oil futures contract is the world’s most liquid form for crude oil trading.

Get Crude Oil Price Update on http://lightsweetoil.com , Oil and Gas Information Center

Article Source: Free Classified Ads, www.1center.net

The price of crude oil struck a record high of 133 dollars

NEW YORK (AFP) – The price of crude oil struck a record high of 133 dollars a barrel Tuesday in New York despite new predictions of slower demand growth for energy, traders said.

Crude Oil traded in New York briefly broke through its prior peak of 133 dollars, which was reached on Monday. The latest spike came after prices had fallen earlier Tuesday after the International Energy Agency (IEA) cut its forecast for growth in global oil demand.

After scaling new heights, New York’s main oil futures contract, light sweet crude Oil for June delivery, closed at 133 dollars.

Light sweet oil is short and well-known name of Light sweet crude oil. Crude oil trading is the world’s largest-volume futures contract trading on a physical commodity. the NYMEX Division light sweet crude oil futures contract is the world’s most liquid form for crude oil trading.

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- Brent & Crude Oil Prices
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Which Of The Mortgage Rates Is Right For You?

By: Rony Walker

Finally, you have found the house of your dreams! You can now decide on the amount that you want to borrow and also your downpayment for it. Shopping for lenders will be easier as you now have an idea on the term of your mortgage and the interest rates that are ideal for you to afford it. What you should think about next is which of the mortgage rates you want to sign up for.

As you know, there are two types: the fixed rate mortgage and the adjustable rate mortgage. Each of the mortgage rates has it’s pros and cons. There are many factors and circumstances surrounding you now that would lead you to choose one over the other. You can choose to find this out by yourself, or you can go to your lenders and let them help you choose. What you should remember is that you have to pick the one that will suit you best.

The Unpredictable

An adjustable rate mortgage, from the name itself, means that the rate of your monthly payments will fluctuate, depending on the current interest rates. As we all know, the interest rates aren’t stable. They vary from day to day, and predicting them isn’t an easy feat. If you choose this type, expect that your monthly payments will be unpredictable as well.

There are, however, a lot of borrowers who choose this among the two mortgage rates since it offers a lower interest rate at the beginning of the loan. This would mean that there are lower monthly payments as well – a very tempting lure for borrowers.

You will know that an adjustable rate mortgage is for you when, at the moment, you need a bigger house but can’t qualify for a fixed rate. Since the monthly payments are unpredictable, you should also be expecting an increase of your monthly salary so that you can keep up with the rise of the interest rates. The length of your stay at your home will also determine whether you are good for an adjustable rate mortgage. Living in your home for at least seven years would be good enough for this rate.

Constant to the End

Another one of the mortgage rates is a fixed rate mortgage. This is the very common and very popular type of mortgage. Compared to the adjustable rate mortgages, the monthly payments are stable and do not change, depending on the interest rates. From the start to the end of the loan, you will know what amount you will be expecting on your monthly bills since the principal and the interest rate will remain the same.

You should choose a fixed rate mortgage if you do not want the erratic changes of monthly payments offered by an adjustable rate mortgage. This is also the best choice when the interest rates are low and if you are planning to live in your house for a long time.

Time To Choose

Choosing which of the mortgage rates that’s right for you is a critical decision to make. This will be one of the deciding factors of your monthly payments, so you have to think this through. Figure out which one outweighs the other, and make that choice.

There are two types of mortgage rates and each is different from the other. There are some people who benefit from one, and there are some who benefit from the other. Which one benefits you?

Article Source: http://arsharing.com

 

Get the latest mortgage rates before going for a Colorado mortgage or any refinance mortgage. Visit WhatAboutLoans.com today.

Relevant Link: Home Mortgage

Crude Oil vs. Alternative Energy: Which is Really Better?

If there was a world title fight who would you put your money on? ‘Crude Oil‘ or ‘Alternative energy‘? The heavy weight champion of the world today is without a doubt: ‘Crude Oil’. In a coming championship battle The Champion could have the upper hand in the first few rounds with explosive power and short term outburst of energy. It would even force a knock out by mean and vicious behaviour in the ring. It would also be nasty and filthy to fight. If the champ strikes very well in the first few rounds it could still be the heavy weight champion of the world. But if ‘Alternative energy’ could survive the first rounds then it would have a better chance on winning, because it has got endurance, a clear vision and fights a clean fight. There could be an upset and the new heavy weight champion of the world could be ‘Alternate Energy’.

Of course there is no real fight, but the battle is really on. Today the fossil fuels like crude oil are our main source of energy. The problem with fossil fuels are that they very harmful for our environment. With the combustion of these fuels we pollute the earth and are gradually heating up the planet. This will have a major impact on the climates we currently have. We will see and are seeing dramatic changes in weather which can ruin cities within minutes or hours. All because of these negative side effects.
Also we are running out of fossil fuels and they are more difficult to extract from the depths of the earth. The problem with these old energy sources is that it takes a very long time to form. It took the earth millions of years to form the current supply of old fuels and because we are extracting these from the earth to meet the growing demands we are running out.

Because the demand for energy is growing and the total supply is shrinking prices are increasing. This increase in demand for energy is not only caused by the western countries. New economies are rising and are in need of energy, a lot of energy. The problem is that these demands can not be met and it will not be resolved in the near future. Thus it can be said that the rising trend in crude oil prices will not be stopped.

When we look at alternative energy we can see great potential. These energy sources are available every day. The amount varies but the fact remains that sunshine, wind and running water will always be available. Therefore this source is cheap and available for nearly all.

Another great advantage is that converting these sources into useable electricity does not result in pollution. This is a clean form of energy that has no negative effect on the environment. Taking these advantages into the bigger picture it can be sad that we cannot go wrong with alternate energy. It is the right path.

When we look at the heavy weight championship fight ‘Crude Oil’ vs. ‘Alternative energy’, Oil may be the heavy-hitter, but hasn’t got the stamina to go to full length of the fight. Alternative energy may be getting a few hits in the first few rounds, but those hits only get faster and stronger all the time. The fight will last longer then a few rounds and at the end a knocked out will follow and the next heavy weight champion will be crowned. Be sure to put your money on the next champion.

Source: Free Articles

Bryan Wong is the owner of the solar information website http://www.GetEasyInfo.com/alternatenergy – A great website that shares quality Info, News and TIPS on Alternative energy.

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