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Cash prices were mixed Tuesday in every region of the country as mild weather remained the trend. Market direction was mainly down again in the Rockies, where some points, including Northwest Pipeline and CIG, continued to collapse because of weak demand, full storage and transportation constraints. In contrast, most points in the Midcontinent/Midwest posted increases of 1-30 cents.

Henry Hub gas prices should average about $6.43/MMBtu this year, down about $2.37 from 2005 prices, mainly because storage is likely to end the heating season April 1 about 320 Bcf above 2005 levels, making for an easy injection season, according to consulting firm Energy and Environmental Analysis Inc.

Forest Oil Corp. said it will pay about $255 million for producing assets, including about 26,000 acres, mainly in the Cotton Valley play of East Texas. The 110 Bcfe of estimated proved reserves (43% proved developed, 90% natural gas) produced about 13 MMcfe/d in January, and the Denver-based company said it expects to double production by the end of 2007.

Forest Oil Corp. said it will pay about $255 million for producing assets, including about 26,000 acres, mainly in the Cotton Valley play of East Texas. The 110 Bcfe of estimated proved reserves (43% proved developed, 90% natural gas) produced about 13 MMcfe/d in January, and the Denver-based company said it expects to double production by the end of 2007.

Dominion said Monday that about 570 MMcfe/d of its offshore Gulf of Mexico gas production is still shut in due mainly to hurricane damage to downstream facilities that are not owned by Dominion. Its facilities were not significantly damaged by the hurricanes, the company said.

A report by the Pennsylvania Public Utility Commission (PUC) released Thursday said competition in the residential and commercial natural gas market has failed due mainly to “substantial barriers” that favor distribution companies and effectively lock others out of the market.

Despite gas prices hovering near $11 currently and averaging $7.17/MMBtu so far this year (Henry Hub cash bidweek) mainly on fears of a supply shortage, the Potential Gas Committee’s latest report on the nation’s gas resources shows a total available gas resource of 1,308.3 Tcf, or nearly 70 years of gas supply produced near the current annual rate. The problem, according to the American Gas Association (AGA), is accessing that supply.

Improvements in gathering and processing, mainly in the Williston Basin, should help offset the impact of having a significant amount of firm transportation capacity on Northern Border Pipeline uncontracted this year, Northern Border Partners reported on Wednesday. The company said it expects the market conditions that led to the 600 MMcf/d of uncontracted capacity, or one-quarter of its total pipeline capacity, in April to continue through the second quarter, possibly longer. As a result, it lowered its 2005 earnings guidance by about 4%.

Improvements in gathering and processing, mainly in the Williston Basin, should help offset the impact of having a significant amount of firm transportation capacity on Northern Border Pipeline uncontracted this year, Northern Border Partners reported on Wednesday.