Despite the fact that the market price of natural gas is rising in response to cold fall weather and the rapid depletion of gas in storage across the nation, Chicago-based Peoples Energy said the impact on its utility customers will be “modest” because of the company’s price protection strategy — which was implemented earlier this year — and its strong gas storage inventory.
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Peoples Energy Protects Against Rising Gas Prices
Despite the fact that the market price of natural gas is rising in response to cold fall weather and the rapid depletion of gas in storage across the nation, Chicago-based Peoples Energy said the impact on its utility customers will be “modest” because of the company’s price protection strategy — which was implemented earlier this year — and its strong gas storage inventory.
EEA Says Gas Supply-Demand Balance to Remain Loose Through 2002
Despite the fact that producers are continuing to scale back natural gas drilling activity in response to lower prices while the economy strengthens, Arlington, VA-based Energy and Environmental Analysis Inc. (EEA) said that the balance for gas supply and demand will continue to remain relatively loose throughout most of 2002. The consulting firm cited working gas in storage as the main reason.
EEA Says Gas Supply-Demand Balance to Remain Loose Through 2002
Despite the fact that producers are continuing to scale back natural gas drilling activity in response to lower prices while the economy strengthens, Arlington, VA-based Energy and Environmental Analysis Inc. (EEA) said that the balance for gas supply and demand will continue to remain relatively loose throughout most of 2002. The consulting firm cited working gas in storage as the main reason.
Prices Mostly Flat to Higher, as Some Cold Remains
Last week’s reminder that winter actually can be quite cold at times (a fact that some traders might have forgotten during yet another mild heating season) was starting to fade as scheduled Friday in parts of the East, but severe weather was either tightening or reasserting its grip from the Rockies through the Midcontinent/Midwest. The result was mildly higher weekend pricing in the still-frigid regions, while flatness prevailed in most of the rest of the market. Northeast and Florida citygates sustained the only significant losses as they continued retreating from midweek spikes.
Market Tries But Fails to Rally on Big Storage Withdrawal
Putting aside for awhile the fact that there is 1.1 Tcf more gas in storage than at the same time last year, gas futures traders instead apparently focused on the large 190 Bcf withdrawal from storage last week that the American Gas Association reported on Wednesday. February futures prices were up in the high $2.20s during almost the entire regular trading session on Thursday before taking a sharp dive back into the high teens after 2 p.m. February ended the day down 4.3 cents at $2.185 just above its low of $2.18 and well below its high of $2.30.
AGA Sees Adequate Supply, Lower Demand, Higher Prices
The American Gas Association (AGA) sees nothing but positives in the current gas supply situation despite the fact that inadequate supply in the face of strong demand growth has been behind the recent record increase in prices and expectations of more than $4 gas price averages this year. It’s confidence in the long-term growth of demand has been shaken somewhat, however, and its prior price forecasts appear to have been more than a little on the low side.
AGA Sees Adequate Supply Fundamentals Going Forward
The American Gas Association sees nothing but positives in the current gas supply situation despite the fact that inadequate supply in the face of strong demand growth has been behind the recent record increase in prices and expectations of more than $4 gas price averages this year.
Reaction to Energy Plan (Predictably) Mixed
The reaction was loud, long and predictable — and in fact most was probably written well in advance of yesterday’s unveiling. While the energy industry — from natural gas interests, to coal to nuclear power — hailed the Bush energy plan for its long-overdue focus on developing the nation’s energy resources and infrastructure, environmentalists bashed it as a bunch of dirty words aimed at derailing the movement to reduce pollution and preserve the environment.
Reaction to Energy Plan (Predictably) Mixed
The reaction was loud, long and predictable — and in fact most was probably written well in advance of yesterday’s unveiling. While the energy industry — from natural gas interests, to coal to nuclear power — hailed the Bush energy plan for its long-overdue focus on developing the nation’s energy resources and infrastructure, environmentalists bashed it as a bunch of dirty words aimed at derailing the movement to reduce pollution and preserve the environment.