Natural gas storage injection rates have been more bearish than the market understands, and gas prices may need to fall over the next two months to lead consumers to burn more, according to Lehman Brothers’ energy analyst Thomas Driscoll.
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Down Trend Resumes as January Dumps 16 Cents
The apparent short-term correction in this bear market may have come to an end Monday as the January contract busted through and closed below Friday’s low, ending the day down a hefty 16 cents to $2.686/MMBtu. With very little in the way of bullish fundamentals available, other than some slightly chilly weather in northeastern markets, some observers see the potential for more sharp declines as the contract makes its way toward expiration next week.
Source: Mild Upticks Hint Market Seeks `Equilibrium’
Prices went another few cents higher for no apparent reason yesterday. Most of Thursday’s advances ranged from a couple of cents to about a dime, but Malin, intra-Alberta and several Rockies/Pacific Northwest points tended to see larger upticks.
AGA Storage Figures Subject to Significant Misinterpretation
An “evolution” in the uses and managers of gas storage capacity may be leading some industry observers to misinterpret the results of the American Gas Association’s (AGA) weekly storage report and the changes in storage levels over time, according to TXU Chairman David Biegler. However, customers and regulators should rest assured that despite the increasing variety of uses for storage, it remains a secure source of supply for the traditional utility, he said.
FERC Initiates Probe into Leak of ‘Sealed’ Documents
FERC has ordered a formal, non-public investigation into the “apparent disclosure” to The New York Times of documents that were supposed to be sealed and protected as part of the California regulators’ complaint case against El Paso Natural Gas and affiliates.
Gas Resources Continue to Grow, But Challenges Lie Ahead
Despite sharply higher gas prices and an apparent struggle to maintain adequate supply levels, gas producers have more than enough reservoir targets and they are continuing to expand the nation’s gas resource base, according to a biennial report released yesterday by the Potential Gas Committee (PGC). However, committee officials warned that some energy policy changes are needed for the industry to continue expanding the resource and to meet burgeoning demand.
FERC Initiates Probe into Leak of ‘Sealed’ Documents
FERC has ordered a formal, non-public investigation to be conducted into the “apparent disclosure” to The New York Times of documents that were supposed to be sealed and protected as part of the California regulators’ complaint case against El Paso Natural Gas and affiliates.
Measly Storage Withdrawal Triggers Access Correction
The near two-week futures rally from an apparent winter lowcontinued yesterday during the regular trading session helped by amajor winter storm that swept through the Midwest, Mid-Atlantic andNortheast and about a dime rise in cash prices. The April contractbroke through strong resistance and posted a new high of $1.965before backtracking to a low of $1.885 and then rebounding to closethe day up 1.3 cents at $1.941/MMBtu. A less-than-expected storagewithdrawal of 69 Bcf, however, helped push futures down sharplyduring the overnight Access trading session. As of 6:30 p.m. (EST),April was down 4.1 cents from the close to $1.900.
Madison Gas and Electric Extends ANR Contract
Placing another brick in the apparent Chinese wall against Wisconsin pipeline challengers, ANR Pipeline Co. (ANR) executed agreements with the state’s Madison Gas and Electric Co. (MGE) to extend gas transportation and storage services that were to expire over the next four years. The agreements are subject to approval by the Public Service Commission of Wisconsin.
British Columbia Development on the Move
The apparent success of the Alliance Pipeline Project islighting a fire under government and industry plans to build upnatural gas production behind its starting point, in northeasternBritish Columbia, into a mainstay of supplies for markets east ofthe Rocky Mountains.