Match

In a state that historically has liked its electricity supplies coal-based to match one of its most abundant native resources, Utah’s energy picture is increasingly becoming a stew complete with increased natural gas, oil, geothermal, solar and some visions of even a first-in-the-state nuclear generation plant. The state Divison of Oil, Gas and Mining earlier this summer confirmed that record natural gas and oil production is showing up in Utah.

The days of $3/MMBtu natural gas may be gone, but with unconventional U.S. production economic at $6-7/MMBtu, medium-term domestic prices aren’t likely to match the $18-20 highs fetched by liquefied natural gas (LNG) cargoes overseas — which in turn could deter some LNG imports for as long as five years, according to energy analysts.

The days of $3/MMBtu natural gas may be gone, but with unconventional U.S. gas production becoming economic at $6-7/MMBtu, medium-term domestic prices aren’t likely to match the $18-20 highs fetched by liquefied natural gas (LNG) cargoes overseas — which in turn could deter some LNG imports for as long as five years, according to energy analysts.

Chevron Corp. has shelved plans to sell its natural gas storage operations in British Columbia because the offered bids didn’t match the asset’s worth, the oil major said.

Even though the 259 Bcf storage withdrawal last week failed to match the all-time record weekly withdrawal by a mere 1 Bcf, March natural gas futures failed to rally Thursday after the EIA storage report. Instead, the prompt-month traded in a $7.050 to $7.300 range before settling at $7.292, up 5.1 cents from Wednesday.

The weather was due to turn a bit colder Friday but not match the super-frigid conditions of the Presidents Day holiday weekend until Saturday and Sunday. So with the previous day’s screen plunge of 44.8 cents for guidance, cash prices fell at all points Thursday. Nearly all losses were in double digits.

El Paso said Tuesday its linepack “has stabilized at a manageable level through a combination of takes that more closely match receipts and injections into storage. The threat of Strained Operating Conditions (SOC) has been significantly reduced.” On Sunday it had reported that in a combination of receipt quantities in excess of nominations and takes that were significantly below nominations, system linepack was “rising at rates that are not sustainable.” Since Friday linepack had increased nearly 500 MMcf/d and the Washington Ranch Storage facility was at maximum injection capacity, El Paso said Sunday.

For the relatively small price of a slight procedural delay, the Mackenzie Gas Project won the opening round of a regulatory fencing match with conservationists that had potential to cut the ground out from under the northern pipeline project.

For the relatively small price of a slight procedural delay, the Mackenzie Gas Project won the opening round of a regulatory fencing match with conservationists that had potential to cut the ground out from under the northern pipeline project.