Buck

Spending to create new natural gas liquefaction capacity in the United States may get Qatar Petroleum International (QPI) more bang for the buck than developing additional liquefaction projects at home, according to Wood Mackenzie.

Two transactions announced last week suggest that the midstream sector is not suffering from a shortage of capital — or of those who see an opportunity to make a buck gathering, processing and marketing gas production.

Two transactions announced Tuesday suggest that the midstream sector is not suffering from a shortage of capital — or of those who see an opportunity to make a buck gathering, processing and marketing gas production.

While the U.S. oil and gas sector makes extensive use of derivatives to manage commodity price risk, and in some cases make a speculative buck, Standard & Poor’s Ratings Services (S&P) said producer hedging practices have little impact on corporate credit ratings. This is mainly due to the fact that most companies hedge production only as far out as two years or so, and the ratings agency takes a longer-term view when assessing credit.

While the U.S. oil and gas sector makes extensive use of derivatives to manage commodity price risk, and in some cases make a speculative buck, Standard & Poor’s Ratings Services (S&P) said producer hedging practices have little impact on corporate credit ratings. This is mainly due to the fact that most companies hedge production only as far out as two years or so, and the ratings agency takes a longer-term view when assessing credit.

Plagued by an array of bearish fundamental and technical factors, the natural gas futures market continued a slow, methodical grind lower Tuesday as calculated scale-down, end-user buying matched up with commercial and speculative selling activity. After an early rally failed to attract much support, the September contract shuffled lower throughout the session to finish at $5.373, down a half-cent for the day.

Without mega-marketers eager to make a quick buck, gas storage developers have faced more of a challenge in recent months. But this winter’s strong Northeast demand, record high gas prices in New England, growing supply shortage and soaring volatility make a stronger case than ever for high-deliverability storage, according to two project planners.

Without mega-marketers eager to make a quick buck, gas storage developers have faced more of a challenge in recent months. But this winter’s strong Northeast demand, record high gas prices in New England, growing supply shortage and soaring volatility make a stronger case than ever for high-deliverability storage, according to two project planners.

Natural gas futures ended higher for the second session in a row Wednesday as buyers continued to take advantage of the lowest prices thus far this year. The October contract received the biggest boost, gaining 7.1 cents to close at $4.788. The prompt September contract followed suit, advancing 6.8 cents to finish at $4.745. At 40,761 estimated volume was light, an indication that traders are waiting on the sidelines ahead of Thursday’s storage report.