Record Heat and Potential Blackouts Roll Into Northwestern US
Record-high temperatures and below-average hydro-generation conditions will rock the Pacific Northwest in the coming days, with a record summer load forecast for the wholesale electrical providers in the region. Temperatures are expected to reach or exceed all-time record highs in Seattle and Spokane, Washington; Portland, Oregon; and Boise, Idaho; after a “heat dome,” or large […]
Accurate Power Forecasts Essential to Survive This Summer
It’s going to be a long, hot summer for folks living on the U.S. West and Gulf Coasts. As early as April, the Enverus Power Market Analytics team has advised its customers to prepare for extreme high temperatures this summer. As we noted last week, western power markets from California to Texas came up against […]
Will Fracture Sand Pricing Power Return?
Rigs have jumped nearly 30% YTD in the Lower 48. The average number of actively fracturing fleets jumped 20% month-over-month in January and has remained steady since. Due to both a large backlog of drilled uncompleted wells (DUCs) built during the pandemic-induced activity crash and the higher-than-anticipated crude prices we’re now experiencing, completion activity — […]
ERCOT Power Demand Hits June Record in Extreme Heat
Western power markets from California to Texas are up against extreme heat and low wind production, putting electric grids under duress and prompting ERCOT officials to ask Texans to conserve energy through Friday. A new June record demand level was set in ERCOT Monday. Enverus estimated demand reached near 69,943 MW during hour ending 16:00, […]
Do Renewable Asset M&A Multiples Point to a Bubble?
The M&A market for renewables assets gained momentum over the past decade (Figure 1), demonstrating increased interest that we attribute to cost declines, stricter government policy and growing societal support. Recent high-water mark deal multiples of $8-$10 million/megawatt (MW) observed in the North Sea raise the question of whether renewable asset valuations are floating in […]
ESG in the Energy Industry — Embracing Change
How did we get here and what is the challenge? The evolution of an energy company’s environmental, social and governance (ESG) profile demonstrates the tremendous power of capital markets. In just a few years, ESG moved from a footnote on public disclosure to the forefront of investment decisions and operators’ corporate strategies, a change largely propelled […]
Oil Sands Forecasting — More Accurate Than Your Local Meteorologist
Despite reduced capital spending in the Canadian oil sands since 2015, production grew from 2.4 MMbbl/d in January 2015 to 3.6 MMbbl/d in December 2020 (Figure 1). Our monthly oil sands forecast individually models 48 projects by assessing a company’s near-term guidance, development plan, turnaround schedule, blending patterns and activity data from Prism. The detailed […]
Stacking Up Haynesville Development
Within the Haynesville play in east Texas and Louisiana, energy companies target two stacked intervals — the Haynesville and the slightly shallower Middle Bossier. Historically, operators only target a single zone in a development or add one well testing the other zone. However, we recently identified a few larger-scale developments involving four to six wells […]
A Refreshing Dive Into Deepwater Leasing
After a successful environmental review by the current administration on federal permits and leases, which followed a temporary permitting ban by the Biden administration, operations in the deepwater Gulf of Mexico have returned to normal — almost. While there was little impact on existing offshore well permits, a decision which we believe resulted from the […]
Market Price Indices: Compare Your Prices to Basin Trends For More Cost-Efficient Operations
Click the image to explore Market Price Indices with our interactive experience. Request Info With increased focus on fiscally responsible operations and more efficient teams across the industry, it has become more important than ever to streamline efforts and gain visibility into your spend in different markets. Traditional industry KPIs alone – the movement of […]