Canada

Freeze-offs were becoming a very real threat to production Thursday as nearly all of the United States and Canada was experiencing lows in the 30s or below — often much below — that are expected to last into early next week in most cases. Abetted by a 37.2-cent futures gain a day earlier, most of the cash market responded to the onslaught of frigid weather with price spikes that exceeded a dollar in several cases, particularly in the Gulf Coast and Midcontinent.

Cash points across the United States and Canada continued to surge higher Tuesday backed by a significant cold-front surge that began in the West and is making its way across the Midwest and Upper Great Lakes.

A trio of supportive influences — heating load expected to remain ample for a while longer across Canada and much of the U.S.; the previous Friday’s gain of 12.7 cents by January futures; and the return of industrial load from its typical weekend recess — pushed cash prices to double-digit increases across the board Monday.

Apache Canada Ltd. on Monday agreed to appraise and potentially develop natural gas and oil resources in southern New Brunswick under a farmout and option contract with junior explorer Corridor Resources Inc.

A modest majority of points recorded price increases in triple digits Monday as frigid weather continued spreading into Canada and most of the northern half of the U.S. All of the cash market racked up big gains, getting extra support from the 39.7-cent pre-Thanksgiving spike by January futures.

One Western Canada point managed to be the exception to overall double-digit price declines continuing Friday. Forecasts of unseasonably moderate late-November temperatures in many areas again were the primary drag on spot quotes, abetted by the usual drop of industrial load during a weekend. As a producer had predicted, Thursday’s rally of 8.8 cents by December futures was unable to induce a similar response in the cash market.

With people in Canada and the northern half of the U.S. waking up Tuesday morning to temperatures in the vicinity of freezing or lower, and such conditions expected to continue through Wednesday for the most part, it was hardly surprising to see prices rising again Tuesday at a large majority of locations. However, a significant decline by November futures appears likely to nip this week’s cash rally in the bud.

Calgary-based Niska Gas Storage Canada ULC recently completed a 10.5 Bcf expansion of storage capacity at its AECO Hub (comprised of the Suffield and Countess facilities). Niska said the Alberta Energy Resources Conservation Board has approved modifications that will allow a further increase of 10 Bcf in its Countess facility in Alberta. At the conclusion of this expansion, the capacity of the Countess facility will be 60 Bcf (for a total of nearly 140 Bcf at the Niska AECO Hub facilities).

Chief Oil & Gas LLC, which was the No. 2 natural gas producer in the Barnett Shale until it sold its leasehold three years ago, is taking on Canada’s Enerplus Resources Fund to help develop half a million acres in the Marcellus Shale.