California's rapid energy transition is sneaking under the radar a bit. Fourth largest economy in the world rapidly moving away from cheap natural gas. This tra

California's rapid energy transition is sneaking under the radar a bit. Fourth largest economy in the world rapidly moving away from cheap natural gas. This transition is going to be tricky for gas traders for so many reasons and California is a good example. 1) Weather - The ever increasing warm temps are cutting into heating demand everywhere. Where I'm at today it will be 23 degrees warmer than normal. No need for heat for a few days. 2) Demand destruction - The world is going to move off of gas because it is too expensive and for energy security reasons. Once demand destruction kicks in, it's new territory. See California. "Natural gas generation, meanwhile, hit a high of only 14,500 MW in February, down 18% year/year." 3). War - Tough to game that one out. I'm surprised by how low Henry Hub is at this point but demand destruction is a real thing. And happening very fast in some places. Down 18% in a year likely wasn't in the models.