Return

Natural gas prices are not going to return to the $8-12 range anytime soon, but there will still be a lot of interest in the fuel, according to Texas Lt. Gov. David Dewhurst, who spoke Thursday at NRG Energy Inc.’s financial analysts conference in Houston.

Due in part to some late book-squaring and a return to the reality of current fundamentals, November natural gas futures went off the board with a bang and not a whimper on Wednesday as the contract dropped 26.8 cents to terminate at $4.289. December futures declined by 21.6 cents to close at $5.066.

Northern Natural Gas, operator of the Matagorda Offshore Pipeline System (MOPS), said Friday it was nearing the return of service on MOPS dehydration equipment at the onshore Tivoli, TX, facility (see Daily GPI, Oct. 22) and expected it to be fully operational for Monday’s gas day.

Production growth from shale plays and the return of production that had been lost in last year’s hurricanes have been masking a decline in North American conventional natural gas production, but they may not be able to continue to cover those declines in the short term, according to ARC Financial Corp. chief energy economist Peter Tertzakian.

Production growth from shale plays and the return of production that had been lost in last year’s hurricanes have been masking a decline in North American conventional natural gas production, but they may not be able to continue to cover those declines in the short term, according to ARC Financial Corp. chief energy economist Peter Tertzakian.

Prices rebounded at all points Monday based largely on the previous Friday’s 32-cent climb by futures and the return of industrial load from its normal weekend drop. Weather-based demand continued to be relatively light.

There’s good news and less-good news in a report released Friday by Bentek LLC: Industrial demand is recovering, but a return to pre-recession levels is not expected until the end of the third quarter in 2011.

There’s good news and less-good news in a report released Friday by Bentek LLC: Industrial demand is recovering, but a return to pre-recession levels is not expected until the end of the third quarter in 2011.

Sen. Mel Martinez (R-FL), an opponent of drilling near the Florida coastline, said Friday he will not return to the Senate following the August recess. Martinez previously said he planned to leave the Senate at the end of 2010, but he moved up the date for personal reasons. Martinez often joined Sen. Bill Nelson (D-FL) in blocking measures that attempted to open the Florida offshore to oil and natural gas drilling. Florida Gov. Charlie Crist, who has his own eyes set on the U.S. Senate in 2010, will appoint a successor to serve out Martinez’s term.