Remained

The horizontal natural gas drilling boom drove a long production growth period, but that boom topped out in September 2011, and overall monthly production has remained basically flat since then, analysts at Stephen Smith Energy Associates said in their most recent Monthly Energy Outlook. And while the number of horizontal gas rigs has fallen about 70% from its peak, several effects have worked to maintain the 18-month production plateau, they said.

Wintry weather boosted natural gas consumption and has lifted prices, but the trajectory of U.S. supplies largely has remained unchanged, and that means gas prices may “hunt” this year for the right level of gas-to-coal displacement to keep the market balanced, according to an analysis by Barclays Capital.

The fate of one of two major nuclear power plants in California remained uncertain at year-end as federal regulators are prodding the operator of the idle 2,200 MW San Onofre Nuclear Generating Station (Songs) for more analysis of the steam generator tubing problems that have kept Songs’ two units shut down for nearly a year.

Interest in building a natural gas vehicle (NGV) market in the United States remained in high gear last week with federal and state grant money dispersed for new projects and one operator using a unique three-day free “ride-and-drive” approach to draw new participants.

The expanded use of horizontal drilling and the advent of hydraulic fracturing helped Pennsylvania more than quadruple its natural gas production between 2009 and 2011, according to the U.S. Energy Information Administration (EIA).

Preliminary data released indicates that North Dakota oil and gas production continued to soar in January and the state now ranks third nationally in average daily oil production, surpassing California and following only Texas and Alaska. With the Bakken formation, North Dakota continues to ride the shale boom.

California regulators on Thursday remained focused on utility infrastructure safety for natural gas and electric transmission systems to lower the risks of pipeline tragedies in recent years.

Nearly all of the cash market remained in a downhill slide Monday as mild to cool weather dominated the overall outlook, and cold conditions returning in a couple of regions proved unable to generate enough heating load at their associated pricing points. The restoration of industrial demand from its normal weekend hiatus had essentially no bullish impact.

Most points remained on the slightly firmer side in ranging from flat to about a nickel higher. Losses of up to nearly a dime were most prevalent at Northeast citygates.