Claim

Hardly any area can claim to be as much as “warm” any more, but generally seasonable temperatures dominating the near- to intermediate-term weather outlook early in the fledgling heating season resulted in dropping prices across the board Friday. The weekend decline of industrial demand and the bearish nature of the previous day’s storage report were additional market depressants.

The Interior Department was mum last week on Republican senators’ claim that revenue from bonus bids associated with offshore oil and natural gas leasing has nosedived to zero from $10 billion over the past three years.

The Interior Department remains mum on Republican senators’ claim that revenue from bonus bids associated with offshore oil and natural gas leasing has nosedived to zero from $10 billion over the past three years.

In a move that could be seen as retribution for state Senate Republicans’ negotiating tactics and opposition to a proposed natural gas severance tax, Pennsylvania Gov. Ed Rendell Tuesday signed an executive order placing an immediate ban on leases for oil and gas development on any land owned and managed by the state’s Department of Conservation and Natural Resources (DCNR).

Sparked by eastern cold and the expectation of significant natural gas storage draws in the near future, March natural gas futures on Thursday rebounded to claim a 10.4-cent gain and closed the regular session at $5.396.

Sparked by eastern cold and the expectation of significant natural gas storage draws in the near future, March natural gas futures on Thursday rebounded to claim a 10.4-cent gain and closed the regular session at $5.396.

The United States Natural Gas Fund (UNG) shot back on Friday at those who claim the fund has contributed to dramatic swings in U.S. natural gas prices since September 2007. In the process it may have fired a preemptive strike before the Commodities and Futures Trading Commission (CFTC) convenes next week to discuss possible limits on futures positions (see related story; see NGI, July 13a). The fund also took a preventive measure in case the CFTC comes down hard on noncommercial traders. The fund purchased its first ever bilateral, nonexchange traded natural gas swap contract on Friday.

The United States Natural Gas Fund (UNG) shot back on Friday at those who claim the fund has contributed to dramatic swings in U.S. natural gas prices since September 2007. In the process it may have fired a preemptive strike before the Commodities and Futures Trading Commission (CFTC) convenes next week to discuss possible limits on futures positions (see Daily GPI, July 22a). The fund also took a preventive measure in case the CFTC comes down hard on noncommercial traders. The fund purchased its first ever bilateral, nonexchange traded natural gas swap contract on Friday.

BG Group plc, better known for its liquefied natural gas (LNG) business, is the latest European energy company to stake a claim in North American gas shale in a $1.3 billion deal that gives it a half-stake in EXCO Resources Inc.’s holdings in Louisiana’s Haynesville Shale and the Deep Bossier Sands of East Texas.