October

Natural gas prices for October fell an average 12 cents from Sept. 1 to 6 as a trifecta of factors created the only logical path for forward markets during the short holiday week, according to NGI’s Forward Look. NGI was closed Sept. 4 in observance of Labor Day.

October natural gas is set to open 2 cents lower Wednesday morning as overnight data suggested continued cooling in eastern and Midwest energy markets. Overnight oil markets were mixed.

Domestic dry natural gas production fell 3% year/year in November to 2,155 Bcf, or 71.8 Bcf/d from 74.1 Bcf/d, the ninth consecutive monthly decline, as residential deliveries declined sharply, the Energy Information Administration (EIA) said Tuesday.

Domestic dry natural gas production in October was down compared to October 2015, the eighth consecutive month of declines compared to the previous year period, according to the Energy Information Administration (EIA).

The Texas Petro Index (TPI) was down again in October — its 23rd consecutive month of decline — however, the drop was only 0.1 point as higher prices at the wellhead sparked drilling and permitting activity, according to the economist who compiles the monthly barometer of industry health in the Lone Star State.

The U.S. active rig count rose by five from a week earlier in the short holiday week ending Wednesday, with three rigs raised for oil and two for natural gas — all horizontals — bringing the domestic count to 593, Baker Hughes Inc. said. Canada lost 10 rigs for the week, and its total count stood at 174.

U.S. natural gas operators hoisted two rigs ahead of the Thanksgiving holiday, while oil operators raised three for the week, Baker Hughes Inc. said Wednesday.

U.S. drilling rigs mostly stayed put during the week ending Friday, according to Baker Hughes Inc. (BHI). The land-based count was even with the previous week; one rig left the inland waters. And that was it. Canada was a different story.

U.S. drilling rig movement was modest during the week ending Friday, according to Baker Hughes Inc. (BHI). Even the Permian Basin was steady at 218 rigs running, the same as last week.