| Petroleum The oil markets continued its hypersensitivity to geopolitical events in February as hostilities intensified in both the Red Sea and Russia increasing concerns over supply disruptions. Meanwhile, OPEC+ is expected to extend and/or deepen their production cuts into the 2nd Quarter, while non-OPEC production growth is expected to continue. Heating Oil: The average price for a gallon of heating oil on the East Coast was $4.124 per gallon for February, an increase of $0.101 from January and down $0.133 from a year ago. Gasoline: The average price for a gallon of gasoline on the East Coast was $3.283 in February, an $0.112 increase from January’s average and a $0.040 decrease from a year ago. Diesel: The average price for a gallon of diesel on the East Coast was $4.167 in February, a $0.172 increase from January’s average and a $0.792 decrease from this time last year. Propane: The average price for propane on the East Coast was $3.458 per gallon in February, an increase of $0.093 from January and an increase of $0.076 from a year ago. Natural Gas The March 2024 NYMEX Natural Gas contract closed at $1.615/dth, $0.875 below the February close and $0.83 below last year’s March settlement price. This was the lowest March close in over 15 years and the lowest overall close since July 2020.  February’s fundamentals continued to unimpressed the market with mild temperatures, strong production and storage levels at a surplus, leaving not much to impact prices. The last week in February, however, saw its first weekly increase in six (6) weeks as Chesapeake Energy announced forthcoming production declines in the face of persistent low prices. Chesapeake’s announcement was even more aggressive than other producers such as Comstock Resources, Seneca Resources, Coterra and CNX Resources who have signaled either smaller declines or slower growth rates this year. With April now the front month, and the likelihood of continued bearish pressure with the storage surplus growing and warmer than normal March forecasts, it will be interesting to see if we hit the 10-year low of $1.495. As the post-winter shoulder season will be arriving soon, we will continue to look for comments from producers regarding their 2024 production plans as this “winter” is mostly behind us. Sustainability Navigating Local Law 97 requires the management and coordination of an expert. If you have a building 25,000 square feet or greater, you likely received a notice from the Department of Buildings to take action in order to comply with Local Law 97. Energo can help. We’ve been helping buildings in NYC comply for years.What sets us apart is our ability to provide guidance and complete the necessary work to ensure compliance. We’ve combined our compliance and energy experts with our in-house mechanical engineers, licensed master plumbers, and fully trained technicians to serve as your building’s one-stop-shop for energy compliance. Mechanical Services For our NYC customers, Energo provides a full slate of mechanical services including boiler and burner tune-ups, air conditioning service, repairs, installations, as well as local law/compliance services. NYC Local Law 152 NYC LL152 requires gas piping systems in all NYC buildings (except buildings classified in occupancy group R-3) to be inspected by a Licensed Master Plumber (LMP) or a qualified individual working under the direct supervision of an LMP, once every four years. If your building does not contain a gas piping system, you are still required to file a certification from a registered design professional that the building contains no gas piping system. Buildings in Community Districts 1, 3, and 10 have a compliance due date of December 31, 2024. Failure to comply may result in a civil penalty of $10,000. No. 4 Oil Phase Out: Is Your Building Prepared for the Switch? In February 2023, the New York City Council passed a bill requiring building owners across the city to end the use of No. 4 oil by July 1, 2027. For customers interested in converting to No. 2 oil, it’s important to determine when your Triennial expires as the DEP will not issue a triennial renewal for a Certificate of Operation (CO) for a boiler burning No. 4 oil on or after June 30, 2024. If your triennial is expiring on or after June 30, 2024, you must convert to No. 2 oil prior to renewing. |