Fair

A citizens group has reversed its call for a moratorium on hydraulic fracturing (fracking) in New Brunswick after the provincial government unveiled tougher regulations for the emerging Frederick Brook Shale.

The rally that started the week in most of the cash market proved to be short-lived Tuesday. Although there was still a fair amount of heating load in some northern market areas, modest warming trends and the previous day’s small futures decline caused prices to fall everywhere except for a flat Florida Gas Zone 2.

Changes to Louisiana law that would tax the lateral portions of horizontal wells have the state’s producer community ready to fight, but parish tax assessors say laterals should have been taxable all along.

A number of cash points on Friday made it three in a row as a fair amount of market averages declined. Traders cited the weak screen and lack of bullish fundamentals for the week’s dip.

A bit of heating load may be creeping into cash market dynamics as overnight lows in the Rockies dip into the mid to upper 30s, and a few parts of the South may see a fair amount of power generation demand Thursday as highs around 90 are due in parts of Florida and the New Orleans area. Overall weather fundamentals remain on the light side for gas prices, but the market recorded increases at nearly all points Wednesday.

After coming within spitting distance on Monday of the $3.155 low for the move recorded on April 27, August natural gas futures rallied a bit on Tuesday as a fair amount of short-covering came into the market. The prompt-month contract gained 16.6 cents Tuesday to close at $3.429.

President Bush handed the incoming Obama administration a political conundrum Friday as the U.S. Minerals Management Service (MMS) issued a draft five-year plan to allow oil and natural gas leasing in long-banned areas offshore. Obama, who previously voiced support for “responsible drilling” now has to decide whether to allow the draft plan to move forward, or explain how reinstating a decades-old moratorium would help the United States gain its independence from foreign energy supplies.

The Energy Information Administration (EIA) is seeking comments on process and technological changes to ensure “fair access” to the agency’s weekly reports on petroleum and natural gas inventories.

The Energy Information Administration (EIA) is seeking comments on process and technological changes to ensure “fair access” to the agency’s weekly reports on petroleum and natural gas inventories.