Higher

Physical prices rose for a second consecutive day, while futures climbed higher for a third day.

The United States is on track to become net oil independent by 2020, if production continues on its current path in the Permian and Williston basins, and in the Eagle Ford, Raymond James & Associates Inc. analysts said Monday.

The move to horizontal drilling and longer laterals has made the domestic land rig count not so simple anymore, leading Raymond James & Associates Inc. last week to launch well and footage count forecasts.

New wells in the Marcellus Shale kept natural gas production there on the upswing in May, but declines in several other areas kept total U.S. production to 81.84 Bcf/d, just 0.3% higher than the 81.61 Bcf/d reported in May 2012, according to the Energy Information Administration (EIA).

Hours ahead of EQT Corp.’s second quarter conference call on Thursday, the company tied into sales its first Utica Shale well, the CEO said.

Continuing to fetch higher per-acre prices, the federal Bureau of Land Management (BLM) took in $49.8 million last Wednesday, selling 87 leases totaling 19,015 acres in North and South Dakota, the BLM Billings, MT, office said. South Dakota had the most activity.

A Tulsa, OK-based synfuel technology company has entered a memorandum of understanding (MOU) with an unnamed shale gas exploration and production (E&P) company to study the feasibility of a plant for turning natural gas into diesel.

Crosstex Energy LP has completed two projects aimed at getting shale oil and condensate to higher paying markets.

The International Energy Agency (IEA) said U.S. gas production could reach 797 billion cubic meters (bcm) (28.14 Tcf) by 2018, 17% higher than last year’s total of 681 bcm (24.05 Tcf), which was a 5% increase over 2011. That’s thanks to shale gas. Other countries have it, but they won’t be getting at it for some time, and that fact will keep the United States among the leading natural gas producers.