Narrow

After trading in a narrow 10-cent range during Monday’s regular session, August natural gas futures closed the quiet day at $4.388, down 1.4 cents from last Friday’s finish. However, the serenity might not last as some market watchers see indications that the funds might be mobilizing to sell.

Interior Secretary Ken Salazar told two Senate panels last week that he was planning to issue a new order that may narrow the scope of the sweeping moratorium on deepwater drilling in the Gulf of Mexico (GOM), but he did not indicate precisely when.

Talisman Energy Inc., which has been working to narrow its focus in North America on unconventional natural gas, said Wednesday it has five separate agreements in place with some undisclosed buyers to sell assets in Ontario and in Western Canada for a total of C$1.5 billion.

Talisman Energy Inc., which has been working to narrow its focus in North America on unconventional natural gas, said Wednesday it has five separate agreements in place with some undisclosed buyers to sell assets in Ontario and in Western Canada for a total of C$1.5 billion.

January natural gas futures drifted lower Wednesday as traders elected to trade within a narrow range, all the while debating what Thursday’s government inventory report would show. At the end of an uninspired day January futures fell 6.1 cents to $5.462 and February shed 6.5 cents to $5.513. January crude oil rose $1.97 to $72.66/bbl on a supportive petroleum inventory report.

September natural gas futures managed to stage a modest rally, but still stayed within narrow trading parameters Monday. Traders cited tropical activity and forecasts for warm weather as being the bullish culprits, but suggest that this is a “sell rallies” market. September rose 10.1 cents to $8.349 and October gained 9.2 cents to $8.422. September crude oil fell 75 cents to settle at $114.45/bbl.

Oil and gas development scored a strikeout last week as the U.S. House Appropriations Committee knocked out a proposed amendment to narrow the offshore ban on natural gas drilling and development from 50 miles off the U.S. coasts to 25 miles; added language to bill’s accompanying report calling for an additional environmental study of Alaska’s Bristol Bay area before leasing; and recommended that holders of less restrictive 1998-1999 Gulf of Mexico leases renegotiate those leases or be prohibited from bidding on new leases.

Oil and gas development scored a strikeout Thursday as the U.S. House Appropriations Committee knocked out a proposed amendment to narrow the offshore ban on natural gas drilling and development from 50 miles off U.S. coasts to 25 miles; added language to the bill’s accompanying report calling for an additional environmental study of Alaska’s Bristol Bay area before leasing; and recommended that holders of less restrictive 1998-1999 Gulf of Mexico leases renegotiate those leases or be prohibited from bidding on new leases.

The House late Thursday inflicted a blow on the energy industry by rejecting by a narrow margin efforts to open up much of the federal Outer Continental Shelf (OCS) to natural gas exploration and production. Some industry advocates were seeing the gain in support as evidenced by the close vote as progress towards an eventual win.