Difference

By a quirk of political fate, made possible by a national difference in resource ownership, consumers in Alberta, the chief Canadian producing province, will pay less for natural gas in January than they did in December — and pocket the savings because wholesale prices went up across North America.

What a difference a year makes. Over the last 12 months, the pure energy merchants have been dethroned as gas market leaders by the producers — big time. Third quarter gas sales volumes show that producers are responsible for 72% of gas sales from the top 10 gas sellers in North America. Not one pure energy merchant remains in the top 10, compared to last year’s third quarter when marketers represented nearly 40% of the gas sales of the top 10 and producers represented only 18%.

What a difference a year makes. Over the last 12 months, the pure energy merchants have been dethroned as gas market leaders by the producers — big time. Third quarter gas sales volumes show that producers are responsible for 72% of gas sales from the top 10 gas sellers in North America. Not one pure energy merchant remains in the top 10, compared to last year’s third quarter when marketers represented nearly 40% of the gas sales of the top 10 and producers represented only 18%.

What a difference a month has made in terms of easing the fears about a natural gas supply shortage and escalating prices, according to the Energy Information Administration’s (EIA) short-term energy outlook for August.

What a difference a month has made in terms of easing the fears about a natural gas supply shortage and escalating prices, according to the Energy Information Administration’s (EIA) short-term energy outlook for August.

With the current difference between the injection season (May-October) futures strip and the futures strip for next winter (December-March) at only about 11 cents, something clearly has to give, Energy and Environmental Analysis Inc. (EEA) said in its Monthly Gas Update. Injection season-withdrawal season spreads are only about 3 cents currently, not even close to the amount needed to cover the cost of interruptible storage.

What a difference a week can make. Weighed down by forecasts for moderating temperatures and technical selling, the futures market ended the month of January on a negative note, with many traders sensing that the seasonal top was already in place. Cut to Friday, however, and the trading landscape had completely changed. Weather forecasts were calling for another wave of below normal temperatures, crude oil and its related products were testing new highs and natural gas was looking back over its shoulder at the $6.00 mark, believed unobtainable just a week before.

What a difference a week can make. Just seven days after spiking to new 17-month highs, the natural gas futures market fell back down to match recent lows Thursday following news that a greater-than-expected 33 Bcf was injected into storage last week. The November contract closed at $4.133, down 12.7 cents for the session.

What a difference a year makes. As if anyone wanted to be reminded, it was Oct. 16, 2001 when Enron Corp. released its third-quarter earnings, boasting of continued growth, despite a billion-dollar write-off. Within weeks, that incidental write-off that was barely discussed during a conference call with analysts by then-CEO Ken Lay, eventually would erase the entire company (see NGI, Oct. 22, 2001). Fast forward to one year later, and despite its disappearance, Enron’s once mighty shadow continues to darken the marketplace.