Continuation

A continuation of the drought that began this summer in the nation’s midsection could help keep temperatures in the region low this winter, and has the potential to trigger a repeat of 2010-2011’s wellhead freeze-offs, according to a 2012-13 Winter Outlook released by Earth Networks-WeatherBug.

A continuation of the drought that began this summer in the nation’s midsection could help keep temperatures in the region low this winter, and has the potential to trigger a repeat of 2010-2011’s wellhead freeze-offs, according to a 2012-13 Winter Outlook released Wednesday by Earth Networks-WeatherBug.

Natural gas forward market prices are signaling a continuation of low natural gas prices through 2012, the Energy Information Administration (EIA) said in an analysis released Thursday.

Milder weather trends continue in the South, while temperature changes are mixed in various parts of the Midwest. Nevertheless, the continuation of winter-like conditions in much of the North American market assured that this week’s overall price advance extended into its third day Wednesday.

The U.S. Circuit Court for the Tenth Circuit Friday reversed a lower court’s decision permanently enjoining enforcement of the Clinton administration’s “roadless rule,” which places restrictions on energy exploration and production, logging and other commercial activities on more than 58 million acres of forest lands.

The New Jersey Board of Public Utilities (BPU) has approved the continuation through next year of an Elizabethtown Gas utility infrastructure upgrade program, which has already replaced nearly 47 miles of cast iron pipe and constructed two major interconnect projects totaling about 24 miles of new pipeline in Sussex, Warren and Hunterdon counties.

Although some had expected a prior-day futures rise along with a cold North and a hot South to yield a continuation of rising prices Thursday, it was not to be. Declines were small in most cases and there were quite a few instances of flat to slightly higher numbers, but the cash market overall was softer going into the Good Friday/Easter holiday weekend.

April natural gas futures posted a solid advance Tuesday, leaving some calling for a new price regime while others still see a continuation of a rangebound market. At the close April had risen 9.3 cents to $4.254, the highest settlement since early February, and May gained 9.0 cents to $4.331. The expired April crude oil contract rose $1.67 to $104.00/bbl.

For 2011 it will be more of the same where low natural gas prices and the gas-crude oil price relationship are concerned, according to analysts at Fitch Ratings.