Inability

Over the next 12-18 months natural gas liquids (NGL) prices will come under pressure from growing supply and the inability of the petrochemical industry to crack all the output from gas industry fractionators, according to analysts at Raymond James. However, longer term ethane and other NGLs are well positioned to compete with heavier feedstocks derived from crude oil, they said in a note last week.

Over the next 12-18 months natural gas liquids (NGL) prices will come under pressure from growing supply and the inability of the petrochemical industry to crack all the output from gas industry fractionators, according to analysts at Raymond James. However, longer term ethane and other NGLs are well positioned to compete with heavier feedstocks derived from crude oil, they said in a note Monday.

While acknowledging the country’s growing frustration with BP plc’s inability to stop the oil gushing in the Gulf of Mexico (GOM), a major producer group last Thursday called on President Obama to reconsider his decision to halt or suspend drilling or planned drilling in the GOM and offshore Alaska and Virginia in response to the explosion on the Deepwater Horizon rig and mammoth oil spill.

Weather, the weakening U.S. dollar, stronger demand and North America’s inability to attract cargoes of liquefied natural gas (LNG) in a competitive world market are all expected to exert upward pressure on natural gas prices, according to this month’s “Short-Term Energy Outlook” from the U.S. Energy Information Administration (EIA).

Weather, the weakening U.S. dollar, stronger demand and North America’s inability to attract cargoes of liquefied natural gas (LNG) in a competitive world market are all expected to exert upward pressure on natural gas prices, according to this month’s “Short-Term Energy Outlook” from the U.S. Energy Information Administration (EIA).

Given Aquila’s inability to achieve an investment-grade credit rating, the staff of the Kansas Corporation Commission (KCC) is recommending that the commission order the company to either divest its Kansas gas utility or establish a corporate structure with ring fencing that protects the utility and its ratepayers in the event of an adverse regulatory action in another state. Aquila has requested that it be allowed to file a response to the staff report by May 1.

Canadian producers, prodded by strong demand and their inability to catch up by sticking to prevailing methods, show signs of at last adding dimensions in exploration and unconventional development to their natural gas supply strategies.

Canadian producers, prodded by strong demand and their inability to catch up by sticking to prevailing methods, show signs of at last adding dimensions in exploration and unconventional development to their natural gas supply strategies.

Some traders were surprised by the market’s inability to add to Wednesday’s losses Thursday after breaking below key support at $2.50 on another bearish storage report. According to the AGA, 19 Bcf was withdrawn from the Consuming Region West and 3 Bcf was injected in the Producing Region, resulting in a net 16 Bcf withdrawal for the nation for the week ending Nov. 30 (There was no change in the Consuming Region East). The net withdrawal was well within the range of expectations, which were centered on a draw-down of 10-20 Bcf. However the net takeaway was undeniably bearish as it fell short of comparisons with last year (73 Bcf withdrawal) and the five-year average (55 Bcf withdrawal). Storage is now 30%, or 699 Bcf, above year-ago levels.