Premature

While oversupply and pricing issues continue to be problematic, it is premature to write off natural gas liquids (NGL) with the prospect that increased U.S. natural gas exports would help bolster NGL trade, an equity research team at Wells Fargo Securities LLC said after meeting with two Houston-based NGL companies.

Naturally occurring methane in New York water wells could serve as a baseline to measure the quality of the water supply if and when natural gas drilling is expanded and high-volume hydraulic fracturing (fracking) is allowed, the U.S. Geological Survey (USGS) said in a new report. New York Gov. Andrew Cuomo is expected to announce any day a decision about whether to allow more gas drilling to proceed.

Wyoming’s state oil/gas supervisor found himself Wednesday cross ways with Gov. Matt Mead regarding the continuing multi-governmental scrutiny of the federal Environmental Protection Agency’s (EPA) two test water wells in natural gas fields near Pavillion, WY. EPA initially identified a possible link between hydraulic fracturing (fracking) and local drinking water contamination.

On a day when a premature subtropical storm off the South Atlantic coast got a name three weeks before the official beginning of hurricane season, mostly softer cash prices were close to flat in virtually all cases Wednesday. Summer-like heat remains elusive outside of the desert Southwest, with highs in the 70s and 80s expected to prevail in almost all other areas Thursday.

It’s premature to determine the impact of the Energy Policy Act of 2005 (EPAct) on oil and gas development in the Rocky Mountain region, but experts told a Senate Energy & Natural Resources Committee hearing Tuesday they believe that at least one provision shows the promise of increasing the nation’s supply of gas and oil while also improving environmental oversight. Several panelists, however, had their doubts.

According to the American Gas Association (AGA), predictions of a declining natural gas reserve base are premature. However, the industry is working harder to replace reserves. And most notably, onshore unconventional resources are being relied upon more heavily, and that is having consequences for gas production.

Predictions that Tuesday’s rally confirmed natural gas futures’ near-term bottom at $8.700 appeared to be premature as Wednesday’s trading session trolled even lower. February natural gas carved out a low of $8.505 before settling at $8.694, down 47.4 cents on the day.

Calgary-based Canadian Superior said last week that unusually warm weather in February and March, which resulted in a premature spring breakup, led to a “slight, temporary decline” of 7% in oil and natural gas production during the first quarter.

Calgary-based Canadian Superior said Monday that unusually warm weather in February and March, which resulted in a premature spring breakup, led to a “slight, temporary decline” of 7% in oil and natural gas production during the first quarter.