Digit

Appalachian production for the exploration and production (E&P) arm of National Fuel Gas Co. escalated in the last quarter of 2010 at a triple-digit pace year/year, jumping 184% to 8.1 Bcfe, with most of the gains — 5.9 Bcfe — from the Marcellus Shale, executives said Friday.

Appalachian production for the exploration and production (E&P) arm of National Fuel Gas Co. escalated in the last quarter of 2010 at a triple-digit pace year/year, jumping 184% to 8.1 Bcfe, with most of the gains — 5.9 Bcfe — from the Marcellus Shale, executives said Friday.

Triple-digit plunges in the Northeast and at some locations in the Midcontinent and West led a price downturn across the board Friday. Moderating temperatures in the short-term forecast for several areas, along with some easing of supply shortfalls in the Southwest and the usual weekend decline of industrial load, contributed to arresting the market’s general blizzard-based strength of the preceding four days.

February natural gas futures made it two days in a row of double-digit losses as traders were forced to factor in weather forecasts based on computer model runs showing less agreement than previously seen and concerted technical selling. At the close February tumbled 10.7 cents to $4.473 and March shed 10.8 cents to $4.490. March crude oil also continued its losing ways, dropping $1.68 to $86.19/bbl.

February natural gas futures scored a second straight double-digit advance Thursday as traders reacted to a bullish inventory report and were forced to cover short positions.

February natural gas futures staged a double-digit advance Wednesday as traders factored in incrementally colder forecasts in the 11- to 15-day period shown by popular weather models. At the close February futures rose 13.6 cents to $4.561 and March added 13.0 cents to $4.576. February crude oil fell 52 cents to $90.86/Bbl.

Wednesday’s cash market was quite a bit weaker than Tuesday’s; triple-digit declines continued at several Northeast citygates, but they were joined this time with falling numbers almost everywhere else as end-of-the-year weather forecasts were getting considerably milder.

Triple-digit spikes returned to most Northeast citygates as significantly colder conditions were anticipated for Sunday and Monday, but in the rest of the cash market it was even greater softness Friday than before as the previous day’s 17.4-cent drop by prompt-month futures, the industrial demand loss experienced over a weekend, and cool to merely chilly temperatures being dominant from the western end of the South through much of California contributed to an overall bearish mood.

From all of the large double-digit gains throughout the cash market Tuesday, it would seem like: (a) a major hurricane had sprung up unexpectedly in the middle of the Gulf of Mexico production area, or (b) huge blizzards had begun raging throughout North America.