August

The Interior Department Friday said it will move forward with a lease sale scheduled in the Gulf of Mexico (GOM) in August while it awaits word from an appellate court on the legality of the existing five-year leasing plan for 2007-2012.

Despite predictions of moderate declines of cooling loads in parts of the South, Midwest and Midcontinent, the previous day’s rally of 16.6 cents by August futures combined with remaining heat-related gas demand to lift cash prices at all points Wednesday.

Keeping the week’s streak of lower closes intact, August natural gas futures — still faced with abysmal fundamentals — pushed lower on Wednesday to close at $3.795, down 4 cents on the day and 31 cents on the week.

As of about noon CDT Friday 44.6% of the Gulf of Mexico (GOM) natural gas production was shut in out of normal production of 7.4 Bcf/d, and 48.2% of oil production was shut in out of normal production of 1.3 million b/d, following the ravages of hurricanes Gustav and Ike in late August and mid-September, the Minerals Management Service (MMS) said.

Following up on its August sale, the Bureau of Land Management (BLM) last week issued oil and natural gas leases for the Roan Plateau, noting that issuance of the leases does not automatically authorize drilling. “Additional environmental analysis and public planning will occur prior to any drilling on the Roan Plateau,” an Interior Department official said.

Following up on its August sale, the Bureau of Land Management (BLM) Monday issued oil and natural gas leases for the Roan Plateau, noting that issuance of the leases does not automatically authorize drilling. “Additional environmental analysis and public planning will occur prior to any drilling on the Roan Plateau,” an Interior Department official said.

The review of Avista Utilities natural gas and electric rate increase settlement begins later in August, and public hearings are expected to be completed in September, the Idaho Public Utilities Commission (PUC) announced Wednesday. Customers may testify at a series of public hearings and the PUC will take written comments through Sept. 5.

Friday’s start of a buildup to a near-nationwide heat wave during the weekend led to a strong launch of the August aftermarket. Prices advanced at nearly all points Thursday. The firmness was enhanced by the previous day’s 11.8-cent futures gain.

After dropping $4.493, or 33%, over the last three weeks of trading, August natural gas futures took a little bit of a break Monday as traders assessed the current sub-$10 price level and the market’s likely next move. Starting out the week, the front-month contract gained 7.9 cents to close at $9.163 one day ahead of expiration.