Natural gas futures bulls continued to lick their wounds Friday as the March contract traded within its well-established recent range before closing at $4.452, down 3.3 cents from Thursday and 32.2 cents lower than the previous week’s finish.
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Analyst: Don’t Be Blindsided by Meteorological ‘Black Swans’
Focusing on weather and global warming trends and ignoring “black swans” — incidents that spike well above or below established trends — could blind investors and the energy industry to opportunities, according to Bethlehem, PA-based long-range forecaster Weather Trends International (WTI).
Analyst: Don’t Be Blindsided by Meteorological ‘Black Swans’
Focusing on weather and global warming trends and ignoring “black swans” — incidents that spike well above or below established trends — could blind investors and the energy industry to opportunities, according to Bethlehem, PA-based long-range forecaster Weather Trends International (WTI).
CFTC Committee Will Examine Role in Energy Markets
The Commodity Futures Trading Commission (CFTC) has established an advisory committee to examine issues related to energy markets and the commission’s role in these markets under the Commodity Exchange Act, the commission said Wednesday.
Northeast Spikes Lead All-Points Price Surge
Triple-digit gains at Northeast citygates led strong advances across the board in the cash market Monday as a siege of cold weather was established in nearly all of the U.S. and Canada and threatened to grow even more severe later in the week.
Industry Briefs
The New York State Public Service Commission (PSC) plans to review the programs and practices initially established to encourage market development of retail electric and natural gas access to determine whether they may have outlived their usefulness and could be allowed to expire or whether the costs of the programs could be shifted from ratepayers to market competitors. PSC Chairwoman Patricia L. Acampora said there currently are more than 100 energy service companies (ESCO), which serve more than 1.3 million customer accounts, with about 40% of the state’s electric usage and 46% of natural gas usage met by ESCOs or through other alternatives to utility supply. The PSC is seeking proposals to modify the existing retail access programs and practices to better align the programs and practices to the current state of market development. Additionally, the PSC said it could consider changes to proposals in future rate proceedings with the understanding that it may be necessary to defer to the generic process in reaching a decision on any particular policy or program. Proposals on Case No. 07-M-0458 may be submitted to the PSC until June 7. Reply comments may be filed until June 27. For information, visit the website at www.dps.state.ny.us.
Industry Briefs
New York-based Hess Corp. has completed sidetracking its Pony discovery in Green Canyon Block 468, which established a record for the deepest conventional core ever recovered in the deepwater Gulf of Mexico. Results to date in its 100%-owned discovery have been consistent with pre-drill expectations, and total hydrocarbon resource on the Hess acreage is estimated to be in the range of 100-600 MMboe. The sidetrack well, drilled approximately 2,700 feet northeast of the discovery well to a depth of 30,634 feet, encountered 280 feet of oil-saturated sandstone in Miocene age reservoirs after penetrating 60% of its geological objective. Hess said the oil bearing section in the sidetrack well is similar in thickness and quality to the equivalent interval in the discovery well, which was drilled to 32,448 feet and encountered 475 feet of oil saturated sandstone. The company will next drill an appraisal well with the Ocean Baroness rig at the Pony No. 2 location, about 7,400 feet northwest of the discovery well.
Industry Briefs
New York-based Hess Corp. has completed sidetracking its Pony discovery in Green Canyon Block 468, which established a record for the deepest conventional core ever recovered in the deepwater Gulf of Mexico. Results to date in its 100%-owned discovery have been consistent with pre-drill expectations, and total hydrocarbon resource on the Hess acreage is estimated to be in the range of 100-600 MMboe. The sidetrack well, drilled approximately 2,700 feet northeast of the discovery well to a depth of 30,634 feet, encountered 280 feet of oil-saturated sandstone in Miocene age reservoirs after penetrating 60% of its geological objective. Drilling of the sidetrack well was stopped for mechanical reasons after successfully recovering 450 feet of conventional core. Casing has been set across the oil bearing interval to allow for future production. Hess said the oil bearing section in the sidetrack well is similar in thickness and quality to the equivalent interval in the discovery well, which was drilled to 32,448 feet and encountered 475 feet of oil saturated sandstone. The company will next drill an appraisal well with the Ocean Baroness rig at the Pony No. 2 location, about 7,400 feet northwest of the discovery well.
Return of Cold Weather Heats Up Cash Prices
With severe cold already well established in much of the interior West and Western Canada, and cold fronts having brought winter-like chills back into the Midwest and poised to do the same Thursday for the Northeast and South, the cash market rang up double-digit gains across the board Wednesday. An 11.8-cent futures advance the day before gave added support.
FERC Temporarily Halts Schedule on Calpine Contracts Issue at Request of CA
Responding to a motion from the California parties, FERC Thursday agreed to temporarily suspend its procedural schedule established in an interim guidance order it released last week. The federal regulatory process will wait for a ruling from a federal district court in New York City that has scheduled a hearing for Jan. 26 on the issue of Calpine Corp.’s bankruptcy court request to set aside eight of its power supply contracts because they are unprofitable for the Chapter 11-protected company.