Energy Volatility Hitting Operators
Natural gas swung into negative territory in parts of Texas even as global energy strains and geopolitical shocks keep fuel prices volatile — squeezes on fuel and utilities are pressuring logistics operator margins. — Operators will increasingly look for energy‑efficient buildings or clear utility pass‑throughs in leases. (fortune.com) ( n-even-when-iran-conflict-ends)
Spot prices at the Waha trading hub in the Permian Basin fell as low as -$9.75 per MMBtu in mid‑March 2026 and the hub closed in negative territory for a record 25th straight day in that period. (aol.com) Permian gas production averaged roughly 23.7 Bcf/d in early 2026, outpacing takeaway capacity and forcing producers to pay to offload or flare gas amid pipeline constraints such as maintenance on El Paso Natural Gas. (oilgasandenergy.com) Concurrent geopolitical shocks — attacks in the Strait of Hormuz and related Iran tensions in March 2026 — pushed crude and diesel prices sharply higher, with AAA and industry trackers showing U.S. diesel spiking above $4.50–$5.00 per gallon on some regional averages by mid‑March. (ainvest.com) Carriers and 3PLs have been passing volatility into rates and surcharges: multiple logistics firms adjusted fuel surcharges in March 2026 (one example moved from 8% to 12% on March 16), while spot and contract freight markets tightened as fuel costs rose. (tgal.us) Landlords and owners are scaling energy offerings: Prologis markets rooftop solar, storage and SolarSmart pay‑for‑energy programs as built‑in tenant options, and industry guides show building controls can cut warehouse energy use by roughly 29% while pass‑throughs can account for 40–60% of a commercial energy bill. (prologis.nl) California adds a regional squeeze: Southern California utilities have active general rate cases and commercial rates that remain among the highest in the U.S., with state reporting showing investor‑owned utility bills rose materially in recent years. (cpuc.ca.gov) Market signals point to two near‑term lease trends: explicit utility pass‑through formulas and landlord‑provided energy services (onsite solar, storage, demand‑management) are becoming standard negotiation items as operators hedge against diesel and electricity volatility; longer term, East Daley and industry analysts expect >10 Bcf/d of Permian takeaway projects through 2030 that could ease local gas dislocations. (bellhaven.org)
