Response

“Storm hype” obviously was not a factor in Thursday’s cash market as all but one point fell in response to the return of mild weather — either impending or already accomplished — in nearly all regions and the previous day’s fall of 19.7 cents by December futures.

Houston-based Newfield Exploration Co. late Monday said it plans to voluntarily curtail about 2.5 Bcfe of its 3Q2009 production in response to low natural gas prices.

Sen. Lamar Alexander of Tennessee, chairman of the Senate Republican Conference, last Monday outlined a Republican response to what he calls the Democrats’ “job-killing” and expensive cap-and-trade system for controlling greenhouse gas (GHG) emissions. The Democrats’ cap-and-trade system was also critisized by Alaska Gov. Sarah Palin, who called it a “dead end” and “an enormous threat to our economy.”

Sen. Lamar Alexander of Tennessee, chairman of the Senate Republican Conference, Monday outlined a Republican response to what he calls the Democrats’ “job-killing” and expensive cap-and-trade system for controlling greenhouse gas (GHG) emissions.

California’s natural gas producers stepped up drilling in recent years in response to high commodity prices; however, output has generally remained flat. And holding production at even flat levels will be a challenge, according to a California Energy Commission (CEC) natural gas analyst, given today’s lower commodity prices.

Unity in price direction returned to the cash market Monday as all points rose in response to somewhat colder-than-expected weather forecasts and the previous Wednesday’s 17.3-cent advance by January futures. Last Wednesday’s report of a 147 Bcf storage withdrawal for the week ending Dec. 19, which exceeded consensus expectations, and the restoration of industrial load following a long holiday weekend added to cash bullishness Monday.

President-elect Obama promised that his administration would make a national and international response to climate change a top priority for its role in energy independence, environmental preservation and national security. During a videotaped speech played at the Governors’ Global Climate Summit in California, Obama said addressing climate change can help transform the economy.

In the next few months 200-400 rigs could be “laid down” in response to low natural gas prices, Chesapeake Energy Corp. CEO Aubrey McClendon said last week.

In the next few months 200-400 rigs could be “laid down” in response to low natural gas prices, Chesapeake Energy Corp. CEO Aubrey McClendon said Tuesday.