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House Republicans are offering an alternative to the Obama administration’s plan for drilling in the Outer Continental Shelf (OCS), which would nearly double the number of lease sales now proposed over the 2012-2017 period and open up new areas — the Mid-Atlantic and Southern California — to exploration.

The cash market Wednesday fell overall on average by about 9 cents and elected to coat-tail on a futures double-digit loss on Tuesday. Gulf and California points were notably weak as were eastern points. Northeast locations managed to hold steady or record modest gains. At the close of futures trading August had gained 11.6 cents to $2.853 and September had risen 10.9 cents to $2.837. August crude oil tacked on $1.90 to settle at $83.91/bbl.

House Republicans are offering an alternative to the Obama administration’s plan for drilling in the Outer Continental Shelf (OCS), which would nearly double the number of lease sales now proposed over the 2012-2017 period and open up new areas — the Mid-Atlantic and Southern California — to exploration.

Nearly all points scored double-digit gains, but Tennessee reported limited capacity available out of the Marcellus Basin and prices there plunged. Overall, physical prices for weekend and Monday delivery gained about 17 cents with Rockies and Midcontinent prices showing strong gains and Northeast and Southern California price rises somewhat more subdued.

Over the next five years China will more than double its natural gas consumption, while low gas prices continue to support the U.S. economy and the United States becomes a net exporter of liquefied natural gas (LNG), according to the International Energy Agency (IEA). However, a weak economy, growing reliance on renewables and relatively high natural gas prices will limit demand in Europe, IEA said.

Over the next five years China will more than double its natural gas consumption, while low gas prices continue to support the U.S. economy and the United States becomes a net exporter of liquefied natural gas (LNG), according to the International Energy Agency (IEA). However, a weak economy, growing reliance on renewables and relatively high natural gas prices will limit demand in Europe, IEA said.

A majority of points registered double-digit gains Monday with Northeast locations leading the advance. Expected late spring New England heating loads prompted higher quotes, but a strong screen placed a bullish tone to nearly all delivery points. Futures took much of their cue from longer term weather forecasts showing an axis of warm temperatures engulfing the Midwest and East.

Aggregate U.S. pressure pumping supply exceeded demand late last year and in the first three months of 2012 capacity utilization averaged 93.4%, a big turnaround in a market that had been undersupplied for two years, according to a new analysis. The shift is challenging oilfield service operators, which already were noting the squeeze in quarterly conference calls.

The physical market answered Tuesday futures double-digit decline with an overall tumble on average of 9 cents Wednesday as the screen continued to drop and weather forecasts moderated. Northeast points were particularly hard hit as spot power prices plunged. At the close of futures trading July had shed 6.7 cents to $2.418 and August was down by 6.9 cents to $2.471. July crude oil suffered a $2.94 loss to $87.82/bbl.