Cautioned

A Chesapeake Energy Corp. official last Wednesday cautioned the Commodity Futures Trading Commission (CFTC) against imposing hard federal position limits or removing the swap dealer hedge exemption in the energy commodity markets, saying it would restrict liquidity in the market and short-circuit domestic exploration and production (E&P) efforts.

A Chesapeake Energy Corp. official Wednesday cautioned the Commodity Futures Trading Commission (CFTC) against imposing hard federal position limits or removing the swap dealer hedge exemption in the energy commodity markets, saying it would restrict liquidity in the market and short-circuit domestic exploration and production (E&P) efforts.

ConocoPhillips CEO Jim Mulva cautioned Congress last week about imposing new taxes on oil and natural gas producers, which he said would discourage production in U.S. basins on- and offshore.

ConocoPhillips CEO Jim Mulva Thursday cautioned Congress about imposing new taxes on oil and natural gas producers, which he said would discourage production in U.S. basins on- and offshore.

Northwest cautioned shippers Thursday that its efforts to avoid declaring an OFO through the Kemmerer (WY) Compressor Station by using its limited storage flexibility at the Jackson Prairie and Clay Basin facilities are weakening because its Jackson Prairie inventory has been depleted to less than 1.1 Bcf. “North-flow firm scheduled volumes through Kemmerer continue to be above design capacity and Northwest is starting to see some customer drafting” north of Kemmerer, the pipeline said. To protect its Jackson Prairie account balance, Northwest said it may declare customer-specific or system entitlements for overruns for receiving parties north of Kemmerer. Northwest also asked customers who owe gas to the pipeline on their receiving party contracts to arrange paybacks of the imbalance as soon as possible. “Northwest will continue to cut alternate gas as necessary to preserve primary firm service or to move balancing gas from Clay Basin to Jackson Prairie where appropriate, and encourages customers to secure adequate supplies from Canadian supply sources, particularly Sumas, during cold periods in order to avoid entitlements and OFOs,” it said.

Florida Gas Transmission allowed an Overage Alert Day for market-area customers to expire Tuesday, but cautioned them that with freezing weather being forecasted in northern Florida again by Thursday evening, it may need to reimplement an Overage Alert Day for an upcoming gas day.

FERC nominee Marc Spitzer Wednesday cautioned against the nation’s growing reliance on liquefied natural gas (LNG), saying the United States shouldn’t put all of its “eggs in one basket.”

Saying cold weather was forecasted to move into central Florida over the weekend, Florida Gas Transmission cautioned customers in its market area Friday to be aware of the potential for issuance of an Overage Alert Day on an upcoming gas day.

With a smidgen of flatness mixed in here and there, prices were in rally mode Tuesday at all other points. Traders cautioned against reading too much into the new cash firmness, though, saying it seemed stronger than it was only in comparison to the holiday weekend’s softness. Also, a plunge just shy of 60 cents in natural gas futures Tuesday should turn cash quotes downward again Wednesday, they said.