As soon as you learn something, it stops working

Thursday, January 29th, 2009

Last month, we learned how end-of-month selloffs tend to give NYMEX prices a bit of a bump in the last week of the month. Needless to say, there was precious little sign of it this month.

We never said this was going to be easy. At this point, I’d usually say something along the lines of “which is why you need Cost Containment Intl.”…but I figure you already know that by now.

The bitterly cold weather across the country finally trumped the economy, as natural gas storage levels fell more than expected for the first time this year. We’re talking 2% above predictions, but bucking a trend is bucking a trend.

We’ve had a number of people ask us why the NYMEX price is so much lower than their current rates, and how they can get the NYMEX price. In the interest of full disclosure, we’ll reveal how to get the NYMEX natural gas price next week. Stay tuned.

Check the NYMEX

Kat-egorically Speaking 01/29/09

Thursday, January 29th, 2009

You know those annoying TV ads where some fast-talking pitchman is selling you some amazing product, but you have to PICK UP THE PHONE!!! and ACT NOW!!!!….don’t you just hate them?

Well…PICK UP THE PHONE!!! ACT NOW!!!

Sorry, but for the first time, I understand how those pitch guys feel. Planet NYMEX has given us a little gift, and I’d sure like to help you enjoy it.

I just got done saving a customer 22% in 2009 over their 2008 bill. Yesterday, February went off the board at $.4476/therm. In the weeks to come I’ll explain exactly how to understand the economic ramifications of this outcome. Right now, what it means is: we haven’t seen prices this low in many years. Right now, what it means is we’re positioned to give you the budget stability that energy savings of 20-25% in 2009 can bring you.

So…ACT NOW!!! phone calls, e-mails, text messages, faxes, smoke signals, passenger pigeons and paper airplanes are all acceptable forms of contact.

Okay, I’m going back to your regularly scheduled Kathie now. And for you folks who have already called me, boy, did you time it right!

You have all heard me refer to the NYMEX (New York Mercantile Exchange). This week we will begin discussions on “Life on the Planet NYMEX”.

Why do we call the NYMEX a Planet? A planet has it’s own identity. It spins and changes direction often, creating it’s own eco-system/atmosphere. It relies on the universe but appears to be completely independent. We have seen the NYMEX react to changes in oil supply, the economy, the weather and apparently alien forces, which create volatility as well as surprises…unpleasant and otherwise.

Last year at this time we had the same amount of gas in national storage as we do now. Supply is strong. Not even sustained cold weather has been able to produce a rally, so prices should stay in this narrow range for while longer…maybe. Most of the people in the natural gas industry aren’t like you; they want prices to go up, and they’re working to make that happen. Production in the gulf has been cut because demand is down, and wellers are shutting down their marginal or unprofitable wells. Checked your local gas station lately? Prices WILL rise again. I really want you all to be sitting back and watching the show when that happens.

Check the NYMEX