The U.S. Energy Information Administration (EIA) said the nation set new records for natural gas gross withdrawals, onshore production and the number of producing wells, figures that were boosted in part by shale gas development. Records were also set in domestic consumption, exports and dry and marketed production.
Articles from Loss
California’s electricity grid operator last week indicated it was making plans for a long-term loss of the 2,200 MW San Onofre Nuclear Generating Station (Songs), which is now in its eighth month out of service with no prospects for a resumption of operations.
Debt- and dry gas-laden Quicksilver Resources Inc. posted a hefty loss for the second quarter, largely due to a nearly $1 billion asset impairment reflecting low commodity prices. Last week management talked up plans to right the balance sheet and weather the low-price period with spending cuts and other measures.
Encana Corp. on Wednesday reported a net loss of $1.5 billion in 2Q2012 after recording one-time impairments on declining 12-month average natural gas prices. The Calgary-based producer earned $383 million in the year-ago period.
The cash market Wednesday fell overall on average by about 9 cents and elected to coat-tail on a futures double-digit loss on Tuesday. Gulf and California points were notably weak as were eastern points. Northeast locations managed to hold steady or record modest gains. At the close of futures trading August had gained 11.6 cents to $2.853 and September had risen 10.9 cents to $2.837. August crude oil tacked on $1.90 to settle at $83.91/bbl.
Energy Transfer Partners LP’s (ETP) $5.3 billion purchase of Sunoco Inc. isn’t expected to close until the second half of this year, but integration of the two companies “is well under way,” according to ETP CFO Martin Salinas.
On balance the cash market averaged out to the loss side of the trading ledger Monday, but double-digit strength was noted at northeastern points, and deliveries into southern California points also registered gains. Futures markets headed south as revised weather forecasts called for an extended period of warmth throughout the eastern two-thirds of the country. At the end of futures trading April had fallen 12.9 cents to $2.355 and May had slid 12.8 cents to $2.472. April crude oil added two cents to $106.72/bbl.
Futures and the cash market parted ways Wednesday with the cash market holding on to gains of a few cents at most points and the futures stumbling to a double-digit loss as traders attempt to factor in what looks like another surplus-building inventory report Thursday and a revised weather outlook. At the close March had fallen 10.7 cents to $2.425 and April retreated 8.4 cents to $2.616. March crude oil added $1.06 to $101.80/bbl.