What was characterized as a “profound impact” from the shale gas boom on current and future natural gas prices was cited as one of five key factors contributing to uncertainty in planning for new electric generation in the United States, according to a report released in mid-July by the Electric Power Research Institute (EPRI).
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What was characterized as a “profound impact” from the shale gas boom on current and future natural gas prices was cited as one of five key factors contributing to uncertainty in planning for new electric generation in the United States, according to a report released Monday by the Electric Power Research Institute (EPRI).
Although it lifted a meter-specific Balancing Alert OFO, Tennessee cited high temperatures across much of its system in saying a systemwide Imbalance Warning would become effective Wednesday. The action requires “all delivery and receipt point operators to match physical flow to scheduled volumes regardless of cumulative imbalance.” Later the pipeline also said that due to anticipated hot weather, it was issuing an OFO Action Alert for market-area Zones 5 and 6 that would take effect Thursday.
The natural gas industry and energy insiders quickly reacted to a New York Times (NYT) stories last Sunday and Monday which cited unnamed industry and government sources describing the shale gas industry as a “Ponzi” scheme with a future similar to Enron Corp. and the bursting of the dot.com bubble.
Two of Edison International’s Edison Mission Group (EMG) generation units had their ratings and outlook downgraded by Moody’s Investors Service, which cited the prospects for continuing cash flow problems exacerbated by “low energy and capacity prices.” EMG’s Edison Mission Energy (EME) and subsidiary Midwest Generation Co. were downgraded — for EME from “B3” to “Caa1” for its senior unsecured notes; from “B2” to “B3” for it corporate family rating; and the outlook was set at negative for both of EMG’s independent generators. “The downgrade recognizes the continuing multi-year challenge that EME faces in satisfying state and federal environmental requirements across its generation fleet,” Moody’s said.
Enterprise Products Partners LP cited robust growth in Eagle Ford Shale liquids-rich gas production in South Texas as the rationale behind its plans to add yet more fractionation capacity at the Mont Belvieu, TX, natural gas liquids (NGL) complex.
July natural gas rose Tuesday as traders cited a resilient market and expected forecasts of warmer-than-normal temperatures. At the close July had risen 7.1 cents to $4.388 and August had gained 7.1 cents as well to $4.423. July crude oil added 14 cents to $93.40.
July natural gas eased slightly Monday as traders cited weak technicals, and near term weather forecasts are unsupportive. At the close July had fallen eight-tenths of a penny to $4.317 and August was down eight-tenths of a penny to $4.352. July crude oil rose 25 cents to $93.26/bbl.
July natural gas continued to trudge lower Tuesday as traders adjusted to moderation in near-term weather forecasts and cited aggressive selling attempting to trigger standing sell orders. At the close July had fallen 6.5 cents to $4.581 and August dropped 6.5 cents as well to $4.613. July crude oil rebounded $2.07 to $99.37/bbl.
April natural gas futures managed an end-of-week rise Friday although short-term traders cited no change in market fundamentals and hinted that they were simply playing well defined trading ranges. Longer-term bulls point to a storage deficit, and bears contend that a decline in horizontal drilling will be necessary for the market to post a bottom.