So, based on the NYMEX figures for this week, what do you expect to see next week?

There are two ways to read this week’s overall rise in NYMEX prices. Either:

Fundamentals are kicking in, and the gradual winter price rise is taking effect. This means you would expect the rise to continue next week.

Market forces are in effect, and this is typical end of the month behavior. Traders who sold short (when you sell short, you effectively sell a block of a commodity, and agree to buy it back within a certain timeframe. You’re waiting for the price to fall, so you can buy it back…cover your short…at a lower price and make a profit. Wait too long, like right up to the end of the month, and you have to buy back at the best price you can get) are doing some last-minute shopping, and that’s driving up the price. This means you would expect the overall downward trend to resume next week.

What this means to you. Following the natural gas market can seem like a game sometimes, and in 2009 too many people treated the markets like a game. But behind this game is a very serious matter: the cost for you electricity, your heat, your hot water, and your power. Cost Containment Intl. knows that there’s more to a successful energy strategy than following the market, and we’re dead serious about saving you money in 2009.

A few words from Robert Burns to end the year

Should auld acquaintance be forgot,
And never brought to mind ?
Should auld acquaintance be forgot,
And days o’ lang syne ?

For auld lang syne, my jo,
For auld lang syne,
We’ll tak a cup o’ kindness yet,
For auld lang syne.

And there’s a hand, my trusty fiere !
And gie’s a hand o’ thine !
And we’ll tak a right gude-willy waught,
For auld lang syne.

For auld lang syne, my jo,
For auld lang syne,
We’ll tak a cup o’ kindness yet,
For auld lang syne.

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As we approach the end of 2008, we take a moment to look back at the past year.

It certainly has been an interesting year, although not necessarily one we would like to repeat. You all know where we started and certainly where we will end up, so I thought you might like to know some interesting facts about Natural Gas and where it came from. Don’t worry, I’m not going back as far as Tyrannosaurus Rex – well not quite as far anyway.

Natural gas is nothing new. In fact, most of the natural gas that is brought out from under the ground is millions of years old. However, it was not until recently that methods for obtaining this gas, bringing it to the surface, and putting it to use were developed.

Before there was an understanding of what natural gas was, it posed somewhat of a mystery to man. Sometimes, such things as lightning strikes would ignite natural gas that was escaping from under the earth’s crust. This would create a fire coming from the earth, burning the natural gas as it seeped out from underground. These fires puzzled most early civilizations, and were the root of much myth and superstition.

One of the most famous of these types of flames was found in ancient Greece, on Mount Parnassus approximately 1,000 B.C. A goat herdsman came across what looked like a ‘burning spring’, a flame rising from a fissure in the rock. The Greeks, believing it to be of divine origin, built a temple on the flame. This temple housed a priestess who was known as the Oracle of Delphi, giving out prophecies she claimed were inspired by the flame.

These types of springs became prominent in the religions of India, Greece, and Persia. Unable to explain where these fires came from, they were often regarded as divine, or supernatural. It wasn’t until about 500 B.C. that the Chinese discovered the potential to use these fires to their advantage. Finding places where gas was seeping to the surface, the Chinese formed crude pipelines out of bamboo shoots to transport the gas, where it was used to boil sea water, separating the salt and making it drinkable.

Britain was the first country to commercialize the use of natural gas. Around 1785, natural gas produced from coal was used to light houses, as well as streetlights. Manufactured natural gas of this type (as opposed to naturally occurring gas) was first brought to the United States in 1816, when it was used to light the streets of Baltimore, Maryland. However, this manufactured gas was much less efficient and environmentally friendly than modern natural gas that comes from underground.

Naturally occurring natural gas was discovered and identified in America as early as 1626, when French explorers discovered natives igniting gases that were seeping into and around Lake Erie. The American natural gas industry got its beginnings in this area. In 1859, Colonel Edwin Drake (a former railroad conductor who adopted the title ‘Colonel’ to impress the townspeople) dug the first well. Drake hit oil and natural gas at 69 feet below the surface of the earth.

The big question seems to be, how much natural gas is still down there. Can you guess?

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You’ll note the one-day percentage gains in today’s NYMEX prices. Day-to-day volatility doesn’t change the fact that prices continue to fall and flirted with the sub-$5.00 range this week.

What this means to you. The natural gas market leaves us with a little gift to mark this holiday season. It appears that Cost Containment Intl. will continue to be finding deals and savings through the winter and into 2009.

And for this week, the best of the Season to everyone, and here’s hoping for a 2009 full of good cheer and good energy savings.

A short bit of trivia for a short week

We talk about “bull” and “bear” markets. Ever wonder why we call them that? The truth is, the terms have been around for so long (earliest citation of the term “bull market” dates back to 1891) that no one is sure of the origin. But here are some theories:

• In 18th century London, sellers of bearskins, also know as bearskin “jobbers,” would sell bearskins before the bears had actually been caught. They were, in effect, the original short sellers, selling bearskins they did not own in anticipation of falling prices, which would enable them to buy them later for an additional profit. This accounts for the “bear market,” at least.
• This one’s a bit of a stretch: the ancient term “bulla” which means bill, or contract. In a rising market, holders of “bullas” for commodities benefit. However in a falling market, the “bearers” of these commodity to be delivered benefit.
• Bulls and bears were commonly used in a sport (if you can call it that) called bull baiting and bear baiting. So they were considered natural antagonists.
• Again, a bit of a stretch here, but it relates to the way each animal attacks: a bull attacks upwards with its horns, while a bear swipes downwards with its paws.
• It relates to the perception that bears move about sluggishly, while bulls charge quickly. Never mind that a bear, at full speed, can outrun a horse!
• The word “bull” plays off the market’s returns being “full” whereas “bear” alludes to the market’s returns being “bare”.

If you know of a better explanation, give us a call at 800-436-3470.

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“Twas the Night before Christmas and all through the house, not a creature was stirring, not even a mouse.” That is because we have good ole Natural Gas to keep us warm.

What is “Natural Gas”? Natural Gas is a vital component of the world’s supply of energy. It is one of the cleanest, safest, and most useful of all energy sources. The word ‘gas’ itself has a variety of different uses, and meanings.

When we fuel our car, we put ‘gas’ in it. However, the gasoline that goes into your vehicle, while a fossil fuel itself, is very different from natural gas.

The ‘gas’ in the common barbecue is actually propane, which, while closely associated and commonly found in natural gas, is not really natural gas itself.

While commonly grouped in with other fossil fuels and sources of energy, there are many characteristics of natural gas that make it unique. Natural gas, in itself, might be considered a very uninteresting gas – it is colorless, shapeless, and odorless in its pure form. Quite uninteresting – except that natural gas is combustible, and when burned it gives off a great deal of energy. Unlike other fossil fuels, however, natural gas is clean burning and emits lower levels of potentially harmful byproducts into the air.

We require energy constantly, to heat our homes, cook our food, and generate our electricity. It is this need for energy that has elevated natural gas to such a level of importance in our society, and in our lives.

Do you know where Natural Gas came from – besides the Dinosaurs? Where and who first discovered it? More to come on this!

Merry Christmas, and I hope your Natural Gas heat is keeping you and all your mice snug this holiday season.

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If you are reading the NYMEX numbers looking for indicators of your energy future (as we hope you are), you’re seeing something this week that should interest you. Look past the first few months, which have shown the most volatility. Look longer term. Prices for late-2009 into 2010, which have up until now largely resisted the downward trend in short-term natural gas prices, are beginning to bend to the downward pressure.

At the same time, withdrawals from storage continue run lower than expected, despite the fact that the predicted mild winter is not exactly panning out in the midwest or northeast.

This should interest you greatly.

What this means to you. If we’ve learned one thing this year, it is to resist the urge to make predictions. But these indicators lead us to believe that there is simply too much supply, and too much supply means lower prices. Wells are being shut down, production is being curtailed, but too many producers rushed in during the record prices of July and August, and every attempt to reduce supply is being met by plant closings and slowdowns in the industrial sector.

For you, this means continued opportunity through the winter to improve your energy costs beyond the short term and, for those looking to do so, to lock favorable rates. At Cost Containment Intl., we usually use the winter months to catch up on office work and relax a bit. No such luck this year.

Nothing from nothing leaves…

In perhaps the most telling sign of the current financial situation in America, the US government sold $30 Billion in t-bills last week. Zero yield t-bills. Word is that they could have easily sold two to three times as many of them as they did.

In other words, investors lined up around the block to buy an investment with absolutely no earning potential. People are so nervous about investing that they’ll settle for something that is only guaranteed not to lose them money (actually, the t-bill rate dropped slightly into the negative at the height of the buying).

There’s irony here: our current financial meltdown started when foreign investors lost interest in the low yields of US government-backed securities and found a new favorite investment to replace them: mortgage-backed securities.

What this means to you. When there’s nothing left to invest in, where do you put your money? Under the mattress?

At Cost Containment Intl., we have a different idea. Don’t put it UNDER the mattress. Put it INTO the mattress. In other words, if you can’t invest in anyone else, invest in yourself. Money put into the market may disappear into $50 billion Ponzi schemes, but money spent on hardware upgrades and efficiency improvements keeps bringing returns no matter what the markets do.

Are you still lighting with incandescents? CFLs have never been cheaper. Couple them with room-sensing switches for added savings. Are you holding off on replacing out of date boilers or HVAC systems? You should learn about cogeneration/CHP units. Cost Containment Intl. can audit your current energy systems and suggest responsible investment options. Sometimes, the best way to save is to spend where it counts.

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