Again

In his long-awaited $3.77 trillion budget for fiscal year (FY) 2014 unveiled last Wednesday and forwarded to Congress, President Obama again sought to repeal tax breaks for oil and natural gas producers. He also proposed tacking on new fees and increasing oil and gas royalties to fund renewable fuel development, as well as elevating spending for the Commodity Futures Trading Commission (CFTC).

In his long-awaited $3.77 trillion budget for fiscal year (FY) 2014 unveiled on Wednesday and forwarded to Congress, President Obama again sought to repeal tax breaks for oil and natural gas producers. He also proposed tacking on new fees and increasing oil and gas royalties to fund renewable fuel development.

Physical gas markets were led lower again by the super-sized declines posted at eastern and northeast locations. Overall, the market averaged a 33-cent decline, but if the multi-dollar losses on New England and eastern pipes are factored out, the average loss was just a nickel.

Cash price moves in the Northeast and East Thursday once again separated from the rest of the market, with the overall average market gain a stout 33 cents, but the remainder of market points showed a rise of just over a nickel. Many eastern points posted multi-dollar gains, recording yet more price records (see Daily GPI, Jan. 24), but higher prices were posted at nearly all locations, with just a handful of points losing a few pennies or less.

U.S. natural gas prices for 2013 will be lower than predicted in late October because winter weather so far has been missing in action, Raymond James & Associates’ energy team said this week. Analysts with Goldman Sachs also have reduced their price forecast but said they remain bullish on the market.

An Encana Corp. official on Thursday once again urged the U.S. Environmental Protection Agency (EPA) to withdraw a year-old draft report of groundwater samples near natural gas drilling sites in Pavillion, WY, saying the report was “sloppy” and had led to a “misguided response.”

In two separate but related cases, the U.S. District Court or the Northern District of New York again has ruled that energy operators may not use the state’s de facto moratorium against high-volume hydraulic fracturing (HVHF) as an excuse to invoke force majeure to extend expiring oil and natural gas leases.

An official with Range Resources Corp. said he believes the federal government will eventually allow the export of liquefied natural gas (LNG) but cautioned that the industry shouldn’t be complacent and just assume exports will be approved.

The dry gas Haynesville Shale will have its day again — when gas prices have a $5 handle — and Comstock Resources Inc. will be ready, management of the Frisco, TX-based producer told financial analysts last week.