The Market And Energy Page, T+210 -- August 18, 2017

Deere: buying opportunity?

Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, or relationship decisions based on anything you read here or think you may have read here.

Energy costs across the US: the best and worse places in the US to buy energy. States with highest total energy costs (full list here):

1. Connecticut ($380 average monthly energy bill)
2. Alaska ($332)
3. Rhode Island ($329)
4. Massachusetts ($327)
5. Wyoming ($320) -- winter heating bills, but still -- with all that coal?

States with the lowest total energy costs:

51. DC ($219) -- standard of living?
50. Washington ($226) -- hydroelectricity; some wind
49. Colorado ($228)
48. Oregon ($246)
47. Illinois ($247)

What to watch today? The 10-year Treasury. Could drop to 2.10%

Henry Hub: emerges as the global natural gas benchmark -- from The WSJ.  Henry Hub is helping to set prices around the world as wave of US natural gas reaches Europe, South America, Asia. Pretty amazing. Just a few years ago, it was forecast that US would be a net importer of natural gas; now, the US is not only a net exporter of natural gas, but will eventually become #1 in natural gas exports. Location of Henry Hub? Erath, Louisiana -- an unassuming confluence of pipelines in the heart of Cajun Country.

In the first half of the year, there was a 31% increase in the volume of Henry Hub natural gas futures traded outside of typical U.S. trading hours, compared with the same period last year, according to CME Group, which owns the New York Mercantile Exchange. That is a sign that traders abroad are increasingly dabbling in the U.S. gas benchmark.

Boo-hoo. Also from The WSJ today -- wrong-way natural gas bet fueled Goldman's second quarter swoon. A $100 million loss from gas-price water contributes to worst-ever quarter for commodities unit. I wonder if Rick Weiss was their lead analyst?

Goldman wagered that gas prices in the Marcellus Shale in Ohio and Pennsylvania would rise with the construction of new pipelines to carry gas out of the region, said people familiar with the matter. Instead, prices there fell sharply in May and June as a key pipeline ran into problems.

Goldman said in July that the quarter ended June 30 was the worst ever for its commodities unit, which has been one of the firm’s most consistent profit centers and a training ground for many of its top executives, including Chief Executive Lloyd Blankfein. 

Reminder: speaking of pipelines, MDU (WBI Energy) expanding natural gas transportation infrastructure in northwest North Dakota. This is not new; it may have been posted previously. I forget. From MDU Resources in June, 2017:

MDU Resources Group, Inc. (NYSE: MDU) announced today that subsidiary WBI Energy, Inc. plans to expand its Line Section 27 natural gas transportation system in the Bakken producing area in northwestern North Dakota.

The $27 million to $30 million expansion project will involve construction of approximately 13 miles of 24-inch diameter pipeline and associated facilities. When the expansion is complete, the transportation capacity on WBI Energy’s Line Section 27 will be over 600,000 dekatherms per day. The targeted in-service date for the project is fall 2018, which is the same timeframe for completion as WBI Energy’s $55 million to $60 million Valley Expansion project near Fargo, North Dakota.