Natural gas futures sifted lower Monday following news ofwarming East Coast temperatures and amid a weakening technicalpicture. After a disappointing sub-$3.00 opening, the Novembercontract chopped sideways Monday to settle at $3.016, off 5.6-centsfor the session. Volume was somewhat thin as only 63,328 contractschanged hands.
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Ex-NGSA Official Gets 41 Months
U.S. District Court Judge Emmet G. Sullivan yesterday sentencedNicholas Bush, former president of the Natural Gas SupplyAssociation (NGSA), to 41 months in prison for embezzling nearly $3million from the producer trade group.
Aquila Forms Midstream Development Group
UtiliCorp United subsidiary Aquila Energy has formed Natural GasPartners Development to develop midstream gas assets. David Hookeris the general manager of the new group. “It is our goal to expandAquila’s midstream assets book in a manner complementary to itssuccessful trading operation, supporting the company’s commitmentto always remain on that leading edge providing the best customersservice in the industry,” Hooker said.
Court Questions NEB Process on Eastern Projects
Another round of discussions — and potentially hearings oreven court cases — is on the horizon for the new branch of thenatural gas industry in Atlantic Canada, after regional natives wona legal ruling that they need to be consulted more.
Merchant Power Plants Find Hard Times in CA
Although there are still proposals crowding the queue for newnatural gas-fired merchant power plants in California, the statehas lost a lot of its luster because of time-consuming sitingapprovals, environmental set-asides and a flawed pricing systemthrough the state power exchange (PX), according to a panel ofregulators and power plant developers.
Gas-Directed Drilling Continues To Hold 80% of the Total
The industry’s hunt for natural gas has gone way beyond thesearch for oil and shows no signs of letting up. Gas directeddrilling has held a solid 80% of all U.S. drilling by rotary rigssince mid-July. And last week the number of rotary rigs drillingfor gas leaped to 609 from 579 the week prior, while total rigsrose to 750 from 721, the largest weekly gain since Nov. 28, 1997,according to Baker Hughes. Oil-directed drilling declined duringthe week by one rig to 139.
Sharp Increase in Deep-Water GOM Production
Natural gas production from the deep water Gulf of Mexico hasincreased 252% over the last five years, from 159 Bcf in 1994 to560 Bcf in 1998, according to the Department of Interior’s MineralsManagement Service.
Merchant Power Developers Find Hard Times in CA
Although there are still proposals crowding the queue for newnatural gas-fired merchant power plants in California, the statehas lost a lot of its luster because of time-consuming sitingapprovals, environmental set-asides and a flawed pricing systemthrough the state power exchange (PX), according to a panel ofregulators and power plant developers.
November ‘Struggles’ to Second Straight Gain
Riding a wave of bullish emotion, natural gas futures continuedhigher Friday despite forecasts of warming weather expected thisweek. After checking lower at $3.03, the November contract receiveda steady boost of buying pressure from commercials and speculatorsthat enabled prices to push above $3.10 in the early afternoon. Butjust when it looked as if the prompt month would finish the weeknear its high, a late round of pre-weekend profit-taking droveprices down to settle at $3.072, a net-0.8 cent advance on the day.
Gas-Directed Drilling Continues to Hold 80% of the Total
The industry’s hunt for natural gas has gone way beyond thesearch for oil and shows no signs of letting up. Gas directeddrilling has held a solid 80% of all U.S. drilling by rotary rigssince mid-July. And last week the number of rotary rigs drillingfor gas leaped to 609 from 579 the week prior, while total rigsrose to 750 from 721, the largest weekly gain since Nov. 28, 1997,according to Baker Hughes. Oil-directed drilling declined duringthe week by one rig to 139.