State regulators and consumer advocates expressed deep concernover high gas prices last week at the winter committee meetings ofthe National Association of Regulatory Utility Commissioners inWashington, D.C. But industry officials said record drillingefforts will eventually solve the problem and already may be havingan impact.
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Industry Tries to Cool Regulators’ Concerns
State regulators and consumer advocates expressed deep concernover gas prices yesterday at the winter committee meetings of theNational Association of Regulatory Utility Commissioners inWashington, D.C. But industry officials expressed guarded optimismabout supply and pointed to recent price decreases and drillingefforts as evidence the situation is improving.
Gas Suppliers Cool Toward Serving PG&E
Pacific Gas and Electric Co., the giant San Francisco, CA-basedutility branch of PG&E Corp., acknowledged Tuesday that it isin danger of running short of gas supplies later this winter due tothe venerable utility’s electricity-induced credit woes spillingover to its natural gas operations. “Most” of the company’s 30 to40 interstate gas suppliers are refusing to sell to the giantutility beyond existing contract terms, some of which expire withina few weeks, according to a PG&E utility spokesperson.
Warm Weather Forecasts Prompt Bulls to Cool Their Heels
Capping a 12-day, 45% price increase, natural gas futures reversed lower yesterday as traders locked in profits amid technical and fundamental price uncertainty. The December contract took the sell-off squarely on the chin, dropping 46.7 cents or 7.5% to close at $5.798. The out months also felt the sting as the winter strip (Dec.-Mar.) tumbled 37.8 cents to $5.537 and the 12-month strip retraced 29.9 cents to $4.821.
Power and Storage Demand, Cool Weather Boost Prices
The cash market remained bullish Tuesday despite flaggingsupport from energy futures. That was being replaced by moderateheating load starting to surface in northern market areas alongwith strong power generation demand and storage concerns in theWest.
Texans Bake as Electricity Usage Hits Record
By today, a “cool” spell was expected to grip Texas, plungingtemperatures down to around 100. A nice respite from the 105-plustemperatures that stilled the state and sent electricity peak loadsto new records last week for the third time this year.
Legislature Sets Hearing; PG&E Shelves Plant
California’s weather turned milder Monday, but that didn’t coolthe political and regulatory heat centered on its electricityrestructuring and supply/price woes this summer. The latest turnwas San Francisco-based PG&E Corp. throwing in the towel lastFriday in its plans to bring a 95-MW peak-shaving generating plantinto the San Francisco Bay on a barge.
Bulls Cool Their Heels After 44-Cent Run
Following on the heels of a two-day, 44-cent price rally,natural gas futures continued higher as bullish technical andfundamental clues put traders in the buying mode early yesterday.However, after peaking at $4.29 shortly after 11:00 p.m (EST), theSeptember contract chopped lower throughout the afternoon to settleat $4.25.
After Ten Straight Sessions, Bulls Cool Their Heels
Led by follow-through buying, record-setting heat out West, anda constructive over-the-counter market, natural gas futures eruptedhigher at the open yesterday as buyers propelled the market to newthree and a half year highs. The rally was short-lived, however,and after posting a $3.985 high during the first hour of trading,the June contract tumbled lower under a wave of selling pressure tofinish at $3.747, down 7.8 cents on the day. Estimated volume wasextremely heavy, with 134,429 contracts changing hands.
Cash, Technicals Pave Way for Futures Gains
Buoyed by cool weather in the Northeast, bullish techincals andsupportive cash market prices, natural gas futures rumbled higheryesterday as traders bid up prices in an opening bell buyingfrenzy. After gapping higher at the open, the May contract spikedto a new life-of-contract high during the first hour of trading.From that point the buying waned and prices were left to chopsideways for the remainder of the session. May finished up 8 centsat $3.158.