Canadians will see lower energy prices this summer

subscribe

Canadian consumers will enjoy lower energy prices this summer according to Canada's national energy regulator. The National Energy Board (NEB) released its Summer Outlook in which it forecasted a significantly different energy picture from the one released last May.

This time last year energy prices were on the rise, with crude oil hitting a record high of US $147 per barrel, while natural gas peaked at US $13/MMBtu in July. However the global economic downturn led to a dramatic drop in prices over the fall and winter.

The current economic situation, combined with the high inventories of both oil and natural gas, will continue to put downward pressure on energy prices heading into summer. The NEB is predicting crude oil to trade in the US $50 to $60 per barrel range, with natural gas prices to average between US $3.20 and $4.20/MMBtu over the summer.

"Canadians will find that the price of gas will not go as high as it did last summer," said NEB Chair Gaétan Caron. "At the same time, however, companies may respond to the low prices by further cutting production, which would mean a tighter energy market in the medium to long term."

On the electricity side, new power generation came on-line in several jurisdictions and transmission capacity was expanded between Ontario and Quebec and between New Brunswick and the U.S. in 2008. As a result, electricity supply is projected to be adequate to meet summer demand.

Canadian-American electricity trade volumes reached record levels in the summer of 2008, and are expected to remain strong this summer. Weaker economic conditions, however, may mean less demand from the industrial sector in the U.S. and Canada.

Related News

PG&E

US judge orders PG&E to use dividends to pay for efforts to reduce wildfire risks

LOS ANGELES - A U.S. judge said on Tuesday that PG&E may not resume paying dividends and must use the money to fund its plan for cutting down trees to reduce the risk of wildfires in California, stopping short of more costly measures he proposed earlier this year.

The new criminal probation terms for PG&E are modest compared with ones the judge had in mind in January and that PG&E said could have cost upwards of $150 billion.

The terms will, however, keep PG&E under the supervision of Judge William Alsup of the U.S. District Court for the Northern District of California…

READ MORE

A resilient Germany is weathering the energy crunch

READ MORE

Hydro One CEO's $4.5M salary Point of Controversy

Hydro One CEO's $4.5M salary won't be reduced to help cut electricity costs

READ MORE

enmax

Electricity bills on the rise in Calgary after

READ MORE

German Chancellor Olaf Scholz

Germany extends nuclear power amid energy crisis

READ MORE