Concerns

Responding to a mass of concerns by opponents and critics, FERC last Thursday attached 109 safety conditions and mitigation measures to its order approving the first liquefied natural gas (LNG) import terminal and associated sendout pipeline to serve rising natural gas demand in the Pacific Northwest. However, FERC Commissioners said a number of hurdles still would have to be overcome, raising doubts about whether the facilities will ever be built.

Responding to a mass of concerns by opponents and critics, FERC Thursday attached 109 safety conditions and mitigation measures to its order approving the first liquefied natural gas (LNG) import terminal and associated sendout pipeline to serve rising natural gas demand in the Pacific Northwest. However, even FERC Commissioners raised doubts about whether the facilities will ever be built.

Reports of the Lehman Brothers implosion, the purchase of Merrill Lynch, the freefall of the Dow Index and petroleum contract values and concerns over Hurricane Ike damage and shut-ins all added up wide swings for natural gas futures on Monday. After pressing support at $7 in early trade, the prompt-month shot violently higher to a high of $7.840 just after noon EDT before evening out in the end at $7.374, up less than a penny from Friday’s close.

Concerns related to Hurricane Ike’s path combined with fairly strong support to push natural gas futures higher to end the week. October natural gas on Friday closed at $7.449, up 12.7 cents from Thursday but 49.4 cents lower than the previous week’s close.

Any concerns that recent changes to the Energy Information Administration’s (EIA) natural gas storage reporting sampling process might affect energy markets appear unfounded as the government agency reported that the old and new samples were not much different, but that the new sampling procedure produced more accurate estimates.

Any concerns that recent changes to the Energy Information Administration’s (EIA) natural gas storage reporting sampling process might affect energy markets appear unfounded as the government agency reported that the old and new samples were not much different, but that the new sampling procedure produced more accurate estimates.

Despite wildlife concerns voiced by the Wyoming Game and Fish Department, the state’s Office of State Lands and Investments has recommended approval of a special lease to Cimarex Energy Co. to build a natural gas processing and carbon sequestration plant.

After a fairly lazy Monday in the markets, energy traders on Tuesday witnessed a shake-up as economic concerns in the United States spurred a significant liquidation in the liquids and natural gas futures. Despite storm uncertainty swirling in the Atlantic, August natural gas put in a low of $11.376 before closing at $11.477, down 48.2 cents from Monday’s finish.

In light of growing concerns about the impact of speculation in energy markets, senators have offered a flurry of measures that would extend the regulatory arm of the Commodity Futures Trading Commission (CFTC), as well as immediately increase its funding.