Contrary

Contrary to perceptions, liquefied natural gas (LNG) proponents are still active in California, and on the eve of a deadline for the state’s governor weighing in on an offshore terminal proposal, activity continues to attempt what some critics consider politically impossible — siting an LNG terminal somewhere along the Southern California coast. The longest-running proposal to site a terminal in Long Beach harbor is still alive as are four separate offshore terminal proposals.

Following a holiday-shortened trading week in which several points ran contrary to overall market direction each day, all points were on the same price movement page Monday — moving higher, that is. Forecasts of cold weather featuring snow showers Tuesday in parts of the West and Midwest and in much of the Northeast were the primary driver of cash firmness, although a small futures gain Friday and the return of industrial load from its typical weekend absence also contributed a bit of support.

Contrary to what some of his colleagues might believe, NRG Energy Inc. CEO David Crane says that carbon — its presence in the environment and what that means for global warming — is of preeminent importance to the power industry.

Contrary to rumors earlier in the year that it was looking for potential buyers for the rest of its U.S.-based assets, ScottishPower’s CEO Wednesday lauded Portland, OR-based PPM Energy for its “excellent” financial results. He also announced new expansions of its wind power and natural gas storage projects in the United States.

Gains of up to about 40 cents at some eastern points Wednesday ran contrary to the general market trend of continued declines. Fresh bursts of colder weather due Thursday in the Northeast, Midwest and to a lesser extent the South, while not expected to be particularly severe, were enough to interrupt the solidity of lower quotes that had marked the launch of the March aftermarket Tuesday.

Despite claims to the contrary, the influence of non-commercial trading in the gas futures market is growing rapidly and the industry will have to adapt, said Tom Lord, president of Volatility Managers LLC. The question of how it will adapt is not easy to answer, but the process is likely to be painful for most, and could include an exodus of industrial customers seeking shelter in countries with regulated markets.

Despite claims to the contrary, the influence of non-commercial trading in the gas futures market is growing rapidly and the industry will have to adapt, said Tom Lord, president of Volatility Managers LLC. The question of how it will adapt is not easy to answer, but the process is likely to be painful for most, and could include an exodus of industrial customers seeking shelter in countries with regulated markets.

Instead of riding the coattails of prior-day spikes in energy futures higher, as some sources had expected, the cash market started paying more attention again to weak fundamentals Wednesday. The result was price declines ranging from about a nickel to nearly 40 cents in the East, with a couple of flat to barely lower points thrown into the mix.

Contrary to the gas supply data and predictions of the federal government, overwhelming evidence supports the view that U.S. natural gas production is falling by more than 2% on a year-over-year basis and is unlikely to reverse itself anytime soon, according to analysts at Raymond James & Associates, who express confidence that gas prices will move back over $5 this winter and remain there into next year.