As oil and gas companies continue to ponder the best strategy for unlocking natural resources in the Utica Shale — and industry analysts continue to debate the merits of doing so — data from the Ohio Department of Natural Resources (ODNR) indicate that the state has passed an important milestone: 100 horizontal wells online and in production.
Articles from Ponder
Five years from now, Montney Shale gas could have a pathway to the British Columbia (BC) west coast and potentially lucrative Asian gas markets via a C$5 billion pipeline project announced by TransCanada Corp. on Wednesday.
Ending a four-session long liquidation sell-off, the natural gas futures market turned higher Wednesday amid a combination of expiration-session short-covering and end-user strip buying. At $5.15, the March contract was up 7.3 cents for the session, but down a crushing 58 cents from its $5.73 debut as prompt contract. At 97,551, estimated volume was fairly light for an expiration day in the gas pit.
With little in the way of fresh fundamental or technical developments Friday, the natural gas futures market was flat as a pancake as traders elected to play it safe ahead of the weekend. With that the August contract completed a very negative week with a modest 2.5-cent decline and $4.706 settlement. August options expire Monday and August futures closeout on Tuesday.
Trading in an atmosphere of uncertainty about whether Tropical Storm Claudette would have any serious impact on supplies or not, the cash market bowed to more negative influences Friday in registering across-the-board losses that were remarkably consistent in ranging from about a dime to 30 cents in all regions. Declines in the teens were in a slight majority.
After gapping higher at the opening bell and quickly filling in a gap from the daily bar chart, natural gas futures shifted lower Wednesday as traders positioned themselves ahead of what could be another bearish storage report this morning. Although the price direction was down most of the day Wednesday, the absence of strong selling allowed the market to escape the session with a modest gain. February finished at $5.161, up 3.4 cents for the day. Volume was moderate, with an estimated 86,303 contracts changing hands.
Electric restructuring should be left up to the states and besubject to a minimum of federal government involvement, accordingto one survey just completed for the Electric Consumers’ Alliance(ECA). Meanwhile, another survey by RKS Research & Consultantsfinds commercial customers are increasingly demanding of betterservice and lower rates from their electricity suppliers in stateswhere competition already has begun.
The futures market concluded the week on a quiet note Friday asneither bulls nor bears were able to influence a move in theirfavor. After a lower open the November contract quickly filtereddown, filling in the chart gap to $2.35. But the $2.35 level held,and the market was left to trend higher into the closing bell. TheNovember contract settled at $2.432, a 1.8-cent gain on the day.