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A cold wave had almost completed its domination of the national weather picture, leaving only a sliver of the South from North Carolina through South Texas — along with parts of the desert Southwest — still experiencing highs in the 70s. The widespread heating load, augmented by residual support from Wednesday’s energy futures spikes, kept cash prices on the rise Thursday.

U.S. Gulf of Mexico (GOM) production data from the Minerals Management Service lags Texas and Louisiana’s state data by 15 months, but even though it appears that offshore natural gas production is on the upswing, it’s still too early to say, according to a new report by Stephen Smith Energy Associates.

U.S. Gulf of Mexico (GOM) production data from the Minerals Management Service lags Texas and Louisiana’s state data by 15 months, but even though it appears that offshore natural gas production is on the upswing, it’s still too early to say, according to a new report by Stephen Smith Energy Associates.

Appropriately for the first full day of spring, moderate springtime weather dominated both Friday’s weather picture and the weekend outlook. That was reflected in cash prices ranging from flat to down nearly 30 cents. Declines in the middle (a dime to 20 cents) were in the majority.

Industrial demand, particularly for those industries where fuel is an important cost component, is the “wild card” in the natural gas demand picture, according to Energy and Environmental Analysis (EEA), which points out that given the variety of industries using natural gas for different purposes, their reaction to high prices is difficult to summarize. Especially now, when high natural gas prices could prevail for several years, industrial strategy during short-term price spikes in the past may not apply.

Industrial demand, particularly for those industries where fuel is an important cost component, is the “wild card” in the natural gas demand picture, according to Energy and Environmental Analysis (EEA), which points out that given the variety of industries using natural gas for different purposes, their reaction to high prices is difficult to summarize. Especially now, when high natural gas prices could prevail for several years, industrial strategy during short-term price spikes in the past may not apply.

Constant revisions to the weekly natural gas storage surveys contribute to undue market volatility, according to commenters on the Energy Information Administration’s (EIA) proposed survey changes (see Daily GPI, July 12). The comments ranged from warnings that changes to the storage revisions policy could lead to market manipulation, to recommendations that companies frequently reporting revisions be penalized.

Rising oil prices, a relatively cooler March and April, an improving economic picture and a production decrease all contributed to higher than expected natural gas prices over the past few months, the Energy Information Administration (EIA) said in its monthly Short-Term Energy Outlook released last Monday.

The picture for generation demand may have turned fuzzy in recent months, but over the long haul generators should not experience any major problems in being able to get access to the capital they need to finance their projects, a financial analyst told a FERC-sponsored energy infrastructure conference last Thursday in New York City.