Indices

No one in the natural gas industry disputes the bounty of shale gas available from Texas or the need for that gas south of the border to fuel Mexico’s expanding power generation and industrial demand. Where that gas ultimately ends up getting priced when the Mexican market is developed remains to be seen.

No one in the natural gas industry disputes the bounty of shale gas available from Texas or the need for that gas south of the border to fuel Mexico’s expanding power generation and industrial demand. Where that gas ultimately ends up getting priced when the Mexican market is developed remains to be seen.

It’s well documented by now that due to low natural gas prices a number of producers and oilfield service companies have been switching drilling efforts and asset buildup from the primarily dry gas Haynesville to “wetter” [that is, richer in crude oil and natural gas liquids (NGL)] plays such as the Eagle Ford and Marcellus. But quite a few in the industry see Haynesville as remaining a strong shale resource and eventually strengthening. It may take a few years, but many expect gas prices to eventually begin making up for ground lost to the soaring crude market.

A dismissed Dynegy Corp. trader was indicted last week on charges that she reported fake natural gas trades on three separate occasions in late 2000 and early 2001 to an energy publication for use in calculating its index price for gas. She was the second trader to be indicted by a federal grand jury in Houston for bogus trades.

Liquidity at the citygates has become a problem for industrial buyers with the disappearance of large trading companies, and the middleman buyer for Ford Motor, General Electric and DaimlerChyrsler, among others, is going back to the field for his supplies.

Liquidity at the citygates has become a problem for industrial buyers with the disappearance of large trading companies, and the middleman buyer for Ford Motor, General Electric and DaimlerChyrsler, among others, is going back to the field for his supplies.

In an attempt to capture the price discovery offered in therapidly expanding electronic exchange market, NGI added a new pricereport to its daily publication, NGI’s Daily Gas Price Index, andto its website. “NGI’s Electronic Platform Trading Index” will becomprised of deals done each morning before 11:30 a.m. (CST) andwill be published on its website at http://intelligencepress.com by1 p.m. (CST) each business day and in NGI’s Daily Gas Price Indexthe following day.