Production in the Lower 48 states recovered in March from the weather-induced decrease seen in the previous month (see Daily GPI, May 4), increasing 3.8% (2.49 Bcf/d) to 68 Bcf/d from 65.51 Bcf/d in February, according to the Energy Information Administration’s (EIA) monthly natural gas report.
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Northeast Cash Prices Continue to Plunge
While most points in the Northeast continued to decline following the recent blizzard-induced run-up, the rest of the country’s cash point averages mostly continued to see small upticks.
Energy Secretary Calls Shale Gas a ‘Big Deal’
The shale-induced brimming natural gas supply is one of three “major themes” — the other two being world oil prices and climate change policy — that will drive U.S. energy policy in the years ahead, said the head of a Washington, DC-based nonprofit energy and environmental research group last Tuesday. Energy Secretary Steven Chu called shale gas a “big deal” because “gas will be [the] transition fuel as [we] go to renewables.”
Futures Retrace Much of Monday’s Move as $6 Remains Elusive
Coming off Monday’s cold-induced 31.2-cent gain, the natural gas futures market reversed course Tuesday as the February contract trimmed 24.7 cents to close at $5.637. Despite the retracement, some traders believe the bulls — with weather on their side — still have their eye on another test of the psychological $6 level.
AGA Sees Likely 10-30% Hike in Home Heating Costs
While domestic natural gas production activity and storage remain at strong levels despite hurricane-induced disruptions and the global financial meltdown, gas consumers could wind up paying 10-30% more in home heating costs this winter, according to the American Gas Association (AGA).
Storm Premium Softens, Yet Expiring September Futures Add 11.6 Cents
Expiring September natural gas futures managed a modest gain Wednesday but were well off the Gustav-induced highs of the session. Traders lamented that the uncertainties of Gustav’s path and the direction of natural gas futures were joined at the hip, but suggested that the near-term trend was higher.
Northeast Dives Lead Retreat as Warm-Up Looms
As expected, a serious warming trend due to start Friday following widespread frigid weather at midweek induced softer prices at most points Thursday. Northeast citygates, which had seen huge spikes on Wednesday, recorded equally spectacular plunges Thursday.
Futures Inch Higher on Short-Covering Ahead of TD 10
Taking the Tropical Depression 10-induced shut-in production into account, October natural gas futures bumped higher on Friday after scouting out support in morning trade. After notching a $5.800 low, the prompt month climbed higher, recording a high of $6.130 before settling at $6.080, up 7.2 cents on the day but 19.9 cents lower than the previous week’s close.
Gas Futures Follow Crude Higher, Maintain Recent Trading Range
Buoyed by geopolitical tension-induced strength in the petroleum markets, natural gas futures had no choice Monday but to go along for the ride. May natural gas put in a low of $6.680 in morning trade, but spent the rest of the afternoon exploring higher territory. The prompt month settled at $6.882, up 13.9 cents on the day.
PECO Braces Customers for Higher Prices this Winter
Citing a tight gas supply that has been exacerbated by hurricane-induced Gulf of Mexico shut-ins, PECO said sharply higher wholesale market prices have led it to impose an “unavoidable” 26% rate increase for its suburban natural gas customers. The utility said the rate hike will take effect Dec. 1.