Downward

The Energy Information Administration (EIA) has revised downward by 21% its projection for natural gas prices this year, citing abundant storage levels and prolific production.

U.S. imports of liquefied natural gas (LNG) last year continued the downward trend that began in 2009, according to data compiled by Pan EurAsian Enterprises Inc. Last year’s imports were well less than half of what they were in 2007, the peak year for imports, and they were slightly less than the level seen in 2008.

Eastern markets used to look like the Promised Land to Rockies producers. But surging production growth from the Marcellus Shale amounts to a “keep out” sign planted along the side of Kinder Morgan Energy Partners LP’s (KMP) Rockies Express Pipeline (REX).

Xcel Energy’s Colorado utility is lowering its gas and electricity retail rates in the first quarter, continuing the downward movement of energy utility bills since the 2010-2011 heating season a year ago. Xcel has asked the Colorado Public Utilities Commission (PUC) to approve a 2-4% reduction in its gas commodity adjustment and a 6.5-7% drop in its residential and small business electric commodity adjustment. Monthly residential and small business gas bills would drop from first quarter 2011 averages of $85 and $347, respectively, to corresponding averages in the 2012 first quarter of $81 and $341. Similarly, electric monthly residential and small business service would go from $67 and $110, respectively, a year ago to $63 and $102 in the first quarter. If the PUC approves the changes, the lower charges would be effective Jan. 1.

Standard & Poor’s Ratings Services (S&P) has revised its natural gas pricing assumptions downward for 2012 and 2013 and added its oil and natural gas price assumptions for 2014.

December natural gas continued its downward spiral Friday as near-term weather appears likely to encourage greater storage additions and technical support has yet to be fully realized. At the close December had fallen 9.4 cents to $3.316 and January had eroded 5.0 cents to $3.496. December crude oil shed $1.41 to $97.41/bbl.

Standard & Poor’s Ratings Services (S&P) has revised its natural gas pricing assumptions downward for 2012 and 2013 and added its oil and natural gas price assumptions for 2014.

Reflecting the downward trends in the latest national statistics, Xcel Energy Inc. on Friday said it will decrease its retail natural gas and power rates in Colorado Oct. 1, assuming state regulators approve the move. A day earlier the U.S. Energy Information Administration (EIA) reported year-over-year declining gas and electricity bills for consumers.

Continuing the downward momentum from the previous week (see Shale Daily, April 11), the number of rigs drilling for oil and gas in U.S. unconventional plays dropped by another 1% for the week ending April 15, according to NGI’s Shale Daily Unconventional Rig Count.