U.S. Lower 48 gross natural gas production in June increased to 69.47 Bcf/d, up 0.1% compared with 69.39 Bcf/d in May, despite losses in the federal offshore Gulf of Mexico (GOM), Louisiana, Texas and New Mexico, according to data released by the Energy Information Administration (EIA) last week. Other EIA data released last week indicated that increased drilling in the Marcellus Shale has been a boost for gas production in the northeastern United States and both peak working capacity of underground storage and working design capacity increased about 1% between April 2010 and April 2011.
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U.S. Lower 48 gross natural gas production in June increased to 69.47 Bcf/d, up 01.% compared with 69.39 Bcf/d in May, despite losses in the federal offshore Gulf of Mexico (GOM), Louisiana, Texas and New Mexico, according to data released by the Energy Information Administration (EIA) Tuesday.
Although the cash market showed a few signs of vitality in moving to near-flat numbers Tuesday following the previous day’s losses at nearly all points, there was little in the near-term outlook to suggest any chances of a substantive rally anytime soon.
Encana Corp., Canada’s largest natural gas producer, rebounded in the second quarter from earnings losses in the year-ago period and grew its unconventional natural gas and liquids production by 4%.
Price movement was approximately evenly mixed between small gains and small losses of up to nearly a dime either way. Flat quotes were common, and none of the changes up or down reached double digits. The increases tended to be concentrated in the Midcontinent and Rockies.
Devon Energy Corp., which took the prospective Barnett Shale and turned it into one for the ages, disclosed Wednesday that it has leased 250,000 net acres in the emerging Tuscaloosa Marine Shale of southwestern Mississippi/central Louisiana for a cost of around $180/acre.
Only a couple of points saw losses Tuesday as the cash market continued a broad overall advance. Cold to chilly forecasts for Wednesday — with freezing lows due in some locations — stretched from Western Canada and much of the western U.S. through the Plains and Midwest into the Northeast. Cash got an extra boost from Monday’s May futures increase of 6.7 cents, and there likely was a small amount of run-up in cooling load in the South, where highs from the mid 70s to mid 80s were predicted for much of the region.
Losses constituted a moderate majority in a mixed market Thursday as most points were less than a nickel up or down from unchanged. Several of the Northeast citygates that had spiked so hugely Tuesday continued multi-dollar slides that brought them back to the general vicinity of their pre-holiday price levels.
March natural gas futures suffered double-digit losses Monday as traders noted a change in the weather forecasts to above-normal temperatures for much of the country in the six-to 10-day period, and the short-term price outlook remains soft. At the close March futures fell 20.6 cents to $4.104 and April shed 20.2 cents to $4.140. March crude oil tumbled $1.55 to $87.48/bbl.