Resilient

U.S. natural gas supply growth is much more resilient than the market now believes, and producers “likely” will have to shut in more than 1 Tcf of natural gas sometime this year, energy analysts at Raymond James & Associates Inc. said last week. To return balances to 2011 averages, Barclays Capital said U.S. gas output needs to curtailed by an average of 3.2 Bcf/d for the year, or just under 5% of flowing U.S. gas supply.

U.S. natural gas supply growth is much more resilient than the market now believes, and producers “likely” will have to shut in more than 1 Tcf of natural gas sometime this year, energy analysts at Raymond James & Associates Inc. said Monday.

Drilling activity during the past month was “resilient” despite lower natural gas spot and futures prices, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook for September.

Drilling activity during the past month was “resilient” despite lower natural gas spot and futures prices, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook for September.

July natural gas rose Tuesday as traders cited a resilient market and expected forecasts of warmer-than-normal temperatures. At the close July had risen 7.1 cents to $4.388 and August had gained 7.1 cents as well to $4.423. July crude oil added 14 cents to $93.40.

The cash market proved to be more resilient than expected Friday. Despite cool to merely warm forecasts dominating in most areas, the expiration-day drop of 5.3 cents by June futures a day earlier and the extra loss of industrial demand over a long holiday weekend, prices remained near flat in most cases and rose at several locations.

Despite negative guidance from the prior-day screen, cash points for the most part Wednesday remained resilient with most spots picking up from a couple of pennies to just less than a dime.

With a record amount of natural gas in storage and “resilient” domestic gas production, the Energy Information Administration (EIA) expects spot prices to hover in the $5/Mcf range during the winter season, “even as space-heating demand increases and economic conditions improve.” The agency also anticipates that gas consumption by power generators will drop next year due to potentially higher gas prices and the addition of new coal-fired generation capacity.

With a record amount of natural gas in storage and “resilient” domestic gas production, the Energy Information Administration (EIA) expects spot prices to be in the $5/Mcf range during the winter season, “even as space-heating demand increases and economic conditions improve.”