California

SoCalGas Agrees to $71M Settlement Tied to Aliso Canyon Natural Gas Leak in 2015

SoCalGas Agrees to $71M Settlement Tied to Aliso Canyon Natural Gas Leak in 2015

Regulators and Southern California Gas Co. (SoCalGas) have reached a $71 million settlement over the 2015 Aliso Canyon natural gas leak, the largest in U.S. history. The California Public Utilities Commission (CPUC) said late Thursday the agreement requires Sempra Energy’s SoCalGas to pay the penalty into the Aliso Canyon Recovery Account. The California Legislature created…

August 11, 2023
Amid Lofty Natural Gas Prices, California Regulators Draw Closer to Bolstering Storage at Aliso Canyon

Amid Lofty Natural Gas Prices, California Regulators Draw Closer to Bolstering Storage at Aliso Canyon

First, a brutal winter and exceptional heating needs – at least by California standards – depleted natural gas supplies. Now, a sizzling hot summer galvanized another round of robust demand, pushing regulators in the nation’s most populous state to consider a substantial increase in storage capacity to keep pace with consumption and tame prices. While…

August 9, 2023
Natural Gas Forward Prices Strong in California, but Traders Eye Winter for Widespread Rally

Natural Gas Forward Prices Strong in California, but Traders Eye Winter for Widespread Rally

With dangerous heat leaving California electric grid operators struggling to meet heightened demand, natural gas forward prices in the southern part of the state rallied sharply from July 20-26, according to NGI’s Forward Look. Daytime temperatures have lingered at or above the century mark for most of July in parts of California, driving up cooling…

July 28, 2023
Natural Gas Futures See-Saw as Market Balances Heat Against Robust Supply; Cash Prices Climb

Natural Gas Futures See-Saw as Market Balances Heat Against Robust Supply; Cash Prices Climb

Natural gas futures struggled to find direction Monday, teetering between modest gains and losses as traders weighed robust near-term cooling demand against strong production and stout supplies in storage. At A Glance: Weather outlook loses some heat Production rebounds to 101 Bcf/d NGI sees smaller storage injection The August Nymex gas futures contract ultimately settled…

July 24, 2023
Chevron Says ‘On Track’ to Hit Permian Guidance Following Record 2Q

Chevron Says ‘On Track’ to Hit Permian Guidance Following Record 2Q

Chevron Corp.’s legacy Permian Basin operations recorded an 11% jump in oil and gas output in the second quarter from a year ago, a new quarterly record, the supermajor said. In a preview of second quarter results, which are scheduled to be issued Friday (July 28), the San Ramon, CA-based producer said Permian output rose…

July 24, 2023
Record-Setting Heat Drives Massive Gains for Western Natural Gas Forwards Prices

Record-Setting Heat Drives Massive Gains for Western Natural Gas Forwards Prices

Natural gas forward prices remained largely range bound in mid-July, but blazing heat out West led to huge, double-digit gains in the region for the rest of summer. Still, with a persistently large storage surplus and lackluster cooling demand across most of the rest of the country, August fixed prices averaged a moderate 11.0 cents…

July 20, 2023
California Regulators Budget $7.3B to Retire Some Natural Gas Facilities, Add Renewables

California Regulators Budget $7.3B to Retire Some Natural Gas Facilities, Add Renewables

The California Independent System Operator (CAISO) board has set a $7.3 billion plan in motion to advance the state’s energy transition and prepare the grid.  The plan, developed in coordination with the California Public Utilities Commission (CPUC) and California Energy Commission, expects 45 transmission projects would be needed. Reliability projects could amount to $1.76 billion,…

May 31, 2023
California Resources CEO Says Natural Gas ‘Absolutely Needed’ in State

California Resources CEO Says Natural Gas ‘Absolutely Needed’ in State

Following a strong natural gas price environment in the first quarter, California Resources Corp. (CRC) CEO Francisco Leon said natural gas would “be absolutely needed” in the Golden State.  CRC was able to snag natural gas price realizations “approximately 630%” above the New York Mercantile Exchange (Nymex) index, Leon said during the quarterly conference call…

May 10, 2023
Canadian Natural Gas Giant Tourmaline Touts California, LNG Price Exposure to Offset AECO Weakness

Canadian Natural Gas Giant Tourmaline Touts California, LNG Price Exposure to Offset AECO Weakness

Canada’s largest natural gas producer, Tourmaline Oil Corp., is aiming to maximize its exposure to volatile North American markets, such as California, as well as global LNG pricing, management said last Thursday. CEO Michael Rose hosted a conference call to discuss first quarter results for Calgary-based Tourmaline, which operates throughout the Western Canadian Sedimentary Basin.…

May 8, 2023
Chevron CEO Warns Punitive Penalties for Excess Oil, Gas Profits May Discourage Investment

Chevron CEO Warns Punitive Penalties for Excess Oil, Gas Profits May Discourage Investment

Any attempts by California to penalize oil and natural gas producers for what state leaders may consider to be excess profits will likely backfire, Chevron Corp. CEO Mike Wirth said Friday. During the first quarter conference call, Wirth was asked about a rulemaking process underway in the company’s home state. Spearheaded by Democratic Gov. Gavin…

May 1, 2023