Fast

Even with an anticipated 70% cut to the U.S. natural gas rig count and an increasing number of uncompleted wells and summer shut-ins, domestic supply won’t fall fast enough to solve the overcapacity problem this year, analysts with Raymond James & Associates Inc. said Monday.

Producers are laying down natural gas rigs in some of the most prolific basins in the United States, but it’s not coming fast enough to eliminate reserves growth, which could lead to an all-time inventory high by this time next year and pressure gas prices for at least another year, energy analysts said last week.

Producers are laying down natural gas rigs in some of the most prolific basins in the United States, but it’s not coming fast enough to eliminate reserves growth, which could lead to an all-time inventory high by this time next year, according to Barclays Capital.

U.S. natural gas production is on track to grow at least 3.6% in 2008 versus a year ago, and producers won’t be able to lay down rigs fast enough to offset the unprecedented growth, thus facing a “high possibility” of forced shut-ins and regional basis blowouts next summer, Raymond James & Associates Inc. reported last week.

With U.S. natural gas production on track to grow at least 3.6% in 2008 versus a year ago, producers won’t be able to lay down rigs fast enough to offset the unprecedented growth and thus face a “high possibility” of forced shut-ins and regional basis blowouts next summer, Raymond James & Associates Inc. reported Monday.

The Senate Energy and Natural Resources Committee plans to fast-track the nomination of sitting FERC Commissioner Jon Wellinghoff to a full five-year term at the agency, which some believe may help to move ahead the stalled nomination to a second term of Chairman Joseph Kelliher.

After enduring a fast and furious first three days of trading for the week that resulted in a $1.432 drop, traders appeared to seize the opportunity on Thursday and Friday to expand one of the last weekends of the summer. Following a slow Thursday, the activity Friday once again was lethargic as the September natural gas futures contract closed at $5.523, down 9.9 cents on the day, and $1.487 lower than the previous Friday’s close.

The latest move by fast-growing electronic trading platform IntercontinentalExchange is an alliance with Canada’s Natural Gas Exchange Inc. (NGX), a 12-year-old physical energy exchange, clearing and settlement facility. TSX Group Inc. (TSX), parent of the Toronto Stock Exchange, and IntercontinentalExchange Inc. (ICE) Wednesday announced an alliance of TSX subsidiary NGX and ICE and its electronic energy and soft commodities exchange.

Natural gas futures were trading fast and furious Wednesday as traders worked to get their respective positions in order ahead of the October contract going off of the board. As a result, October natural gas plummeted to $4.070 — marking a new low for the extended move — before expiring at $4.201, down 32.5 cents on the day.