Ground

December natural gas futures Tuesday broke rank with the oil complex and gained ground. Traders cited near-term supportive weather forecasts as aiding the bullish cause but cautioned against any sustained advance. November futures rose 4.7 cents to settle at $8.021, and December gained 5.5 cents to finish at $8.354. December crude oil swan-dived $3.15 to $90.38/bbl.

The Democratic-controlled House, when it convenes Thursday, is expected to hit the ground running with several measures that have oil and natural gas producers, particularly independents, worried.

Gas producers who’ve traveled around the country poking holes in the ground know that the flavor of what they get varies from basin to basin; some gas is wetter, some has a higher heat content, etc. Over the years since the manufactured gas industry evolved into the natural gas industry, consumers — residential, industrial, process, power generation — and their equipment have grown accustomed to the flavor of gas most prevalent in their particular region. One industry expert described this as an “accident of history.”

Gas producers who’ve traveled around the country poking holes in the ground know that the flavor of what they get varies from basin to basin; some gas is wetter, some has a higher heat content, etc. Over the years since the manufactured gas industry evolved into the natural gas industry, consumers — residential, industrial, process, power generation — and their equipment have grown accustomed to the flavor of gas most prevalent in their particular region. One industry expert described this as an “accident of history.”

Richmond, VA-based Dominion Resources and Norway’s Statoil ASA said last Thursday that they have officially broken ground on an expansion project that will increase capacity and storage at the Dominion Cove Point liquefied natural gas (LNG) facility in southern Maryland.

Richmond, VA-based Dominion Resources and Norway’s Statoil ASA said Thursday that they have officially broken ground on an expansion project that will increase capacity and storage at the Dominion Cove Point liquefied natural gas (LNG) facility in southern Maryland.

Scrambling to make up ground in opinion polls showing his gubernatorial campaign trailing the incumbent, California State Treasurer Phil Angelides Friday stood on a bluff in Malibu overlooking the Pacific Ocean and declared he is opposed to BHP Billiton’s proposal to build an offshore liquefied natural gas (LNG) receiving terminal about a dozen miles out to sea.

After posting a higher high just after the opening bell at $7.100, the September gas futures contract lost significant ground Wednesday, dropping all the way to $6.590 by early afternoon before rebounding slightly toward the end of the session. September ended the day down 9.5 cents to $6.766/MMBtu.

Shrugging off the sluggishness of the last couple of sessions, July natural gas on Wednesday hit the ground running after gapping higher to open. The prompt-month contract put in a high of $6.660 before closing at $6.590, up 42.7 cents on the day. Attention now turns to Thursday’s fresh storage news.