U.S. oil and gas permitting across the board showed solid growth in the first three months of the year, with the Denver-Julesburg (DJ)/Niobrara and Powder River Basin together surpassing the mighty Permian Basin, according to data compiled by Evercore ISI.
Articles from March
Natural gas futures were trading higher early Tuesday, bolstered by an outlook for colder-than-average temperatures to open the month of March. Heading into expiry, the March Nymex contract was up 5.1 cents to $2.887/MMBtu just after 8:30 a.m. ET.
The Interior Department’s Bureau of Ocean Energy Management next month plans to offer 78 million acres for oil and natural gas prospecting in the Gulf of Mexico (GOM), basically all available unleased areas in federal waters.
Natural gas forward prices for April averaged 2 cents higher from Feb. 23 to March 1 as March comes roaring in like a lion, with several cold snaps following a mostly mild February, which could perhaps lead to heftier storage withdrawals in the coming weeks, according to NGI’s Forward Look.
March natural gas was set to open Thursday about 3 cents lower at around $2.556 as overnight weather data dropped some heating demand versus previous expectations.
Natural gas forward prices for March fell an average 13 cents between Feb. 2 and 8 as only brief periods of cold weather in the forecast were no match for record production, according to NGI’s Forward Look.
March natural gas was set to open Wednesday about 13 cents lower at around $3.066 as overnight weather models backed off of recent cold trends toward the middle of February.
March natural gas was set to open Tuesday about 7 cents higher at around $3.239, with forecasters still pointing to cold risks looking ahead to the middle of February.
U.S. dry natural gas production was down for a 13th consecutive month in March, reaching 2.22 Tcf (71.6 Bcf/d), a 2.4% decline from 2.28 Tcf (73.4 Bcf/d) in March 2016, according to the Energy Information Administration (EIA).
Ongoing drilling activity across the country along with well permitting in Texas and an improving employment outlook in Houston continue to point to a recovery for the oil and natural gas industry.