From the 125 Bcf weekly storage injection reported by EIA last week, analysts at Raymond James & Associates calculate that there has been a 3-4 Bcf/d decrease in gas demand from fuel switching and a 0.75 Bcf/d increase in gas supply because of gas liquids being left in the gas stream due to low liquids margins. However, those two factors will be impacting the gas market for only a short period, because of low NGL and fuel oil/distillate inventories, the analysts said in their Energy Stat of the Week. The analysts also noted the “equilibrium gas price” now appears to be somewhere between $5-7/MMBtu.
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CERA Says North American Gas Production is Poised for Permanent Decline
Consultants at Cambridge Energy Research Associates (CERA) are convinced that natural gas production in North America is poised to enter a long-term decline and that imports of liquefied natural gas (LNG) will have to make up the supply gap. But Tom Wood, gas production expert at the Energy Information Administration (EIA), isn’t buying it. Wood said the gas resource is still there, but producers simply have chosen to drill overseas in the short-term.
CERA Says North American Gas Production is About to Permanently Decline
Consultants at Cambridge Energy Research Associates (CERA) are convinced that natural gas production in North America is poised to enter a long-term decline and that imports of liquefied natural gas (LNG) will have to make up the supply gap. But Tom Wood, gas production expert at the Energy Information Administration (EIA) isn’t buying it. Wood said the gas resource is still there, but producers simply have chosen to drill overseas in the short-term.
Rudden Surveys LDCs on Loss of Mega Marketers
Consulting firm R.J. Rudden Associates Inc. is conducting a survey of local distribution companies (LDCs) to determine the impact on their business of the demise of large marketing companies since the Enron bankruptcy.
Allegheny Energy Sells KY Assets for $22.3M
Financially troubled Allegheny Energy Inc. announced last Thursday that it sold two affiliates — Fellon-McCord & Associates and Alliance Energy Services LLC — to Constellation Energy Group for an estimated $22.3 million.
Allegheny Energy Sells KY Assets for $22.3M
Financially troubled Allegheny Energy Inc. announced Thursday that it sold two affiliates — Fellon-McCord & Associates and Alliance Energy Services LLC — to Constellation Energy Group for an estimated $22.3 million.
Industry Veteran: Broken Market Can Be Fixed
Reversing the old saying, “if it ain’t broke, don’t fix it,” Ben Schlesinger of Benjamin Schlesinger and Associates said last week that unfortunately the energy market is broken and desperately needs to be fixed soon.
Schlesinger: Broken Market Can Be Fixed
Reversing the old saying, “if it ain’t broke, don’t fix it,” Ben Schlesinger of Benjamin Schlesinger and Associates said that unfortunately the energy market is broken and desperately needs to be fixed soon.
Raymond James Chops $1/MMBtu Off 3Q, 4Q Price Forecasts
Analysts at Raymond James & Associates took a double-blade axe to their natural gas price forecast for the rest of the year, chopping an entire dollar off the prices they are expecting to see in the third and fourth quarters. They based the change on the likelihood that gas prices will crash when the full level of storage is reached well before the end of the injection season.
Raymond James Chops $1/MMBtu Off 3Q, 4Q Price Forecasts
Analysts at Raymond James & Associates took a double-blade axe to their natural gas price forecast for the rest of the year, chopping an entire dollar off the prices they are expecting to see in the third and fourth quarters. They based the change on the likelihood that gas prices will crash when the full level of storage is reached well before the end of the injection season.