Migration

While natural gas prices continue to languish, it’s likely that most producers care less than they did a year ago, thanks to the migration/stampede to liquids-rich production. The shift to liquids is expected by Barclays Capital analysts to continue, with a continuing effect on producer revenues.

The Pennsylvania Department of Environmental Protection (DEP) and Cabot Oil & Gas Corp. are trying to determine if Marcellus Shale drilling is responsible for causing possible methane gas migration that impacted three private drinking water wells in Susquehanna County, and to find the source of a combustible gas bubbling from a local pond.

Breakeven shale play economics in a low-gas price environment have driven a migration to liquids-rich and oil plays. “Being in liquids is not only cool; it’s profitable,” an investment banker said in Houston last week. “You can produce gas even if you don’t make money on the gas because the liquids are worth so much more.” But maybe now is the time to be a contrarian, she suggested.

Breakeven shale play economics in a low-gas price environment have driven a migration to liquids-rich and oil plays. “Being in liquids is not only cool; it’s profitable,” an investment banker said in Houston Tuesday. “You can produce gas even if you don’t make money on the gas because the liquids are worth so much more.” But maybe now is the time to be a contrarian, she suggested.

While highlighting plans for improved border security and migration policies, President Obama and Mexican President Felipe Calderon, meeting in Mexico City Thursday, also pledged cooperation across the border on measures to address climate change and energy resources.

While highlighting plans for improved border security and migration policies, President Obama and Mexican President Felipe Calderon meeting in Mexico City Thursday, also pledged cooperation across the border on measures to address climate change and energy resources.

The Office of the Ohio Consumers’ Counsel (OCC) continues to fight the migration of distribution system cost recovery from volumetric to fixed charges. This time it’s a plan by Vectren Energy Delivery of Ohio that the OCC is resisting.

February natural gas futures hit the ground running Monday following a weekend forecast for some extended cold throughout the eastern half of the United States. After gapping higher to open Monday’s trading well above psychological resistance at $7, the prompt month put in a high of $7.340 before settling at $7.319, up 43.3 cents from Friday’s close.