Rising

Natural gas producers can thank the hot summer for helping to burn up a large portion of the country’s growing gas production during the third quarter, according to the latest Energy Information Administration (EIA) Short-Term Energy Outlook, released Wednesday.

Although temperatures are rising in much of the West, they were diminishing in sections of the South, and despite chilly conditions lingering for at least another day or so in the Midwest, the region is due to see a warming trend toward the weekend. The modestly bearish weather influences, which reversed marginal support for Tuesday’s cash market, combined with the 3.1-cent fall by October futures Tuesday to drive quotes lower at a large majority of points Wednesday.

NGI’s Unconventional Rig Count edged up ever so slightly for the week ending July 22, rising to 987 rigs from 984 the previous week. Despite the pedestrian weekly advance, the current unconventional rig count remains a full 3% higher than the 961 rigs that were at work one month ago.

With hints of rising prices on the horizon, 24 leading natural gas marketers had total transactions of 135.07 Bcf/d in 1Q2011, a 2.49 Bcf/d (1.9%) increase from the 132.58 Bcf/d they transacted in the year-ago period, according to NGI’s 1Q2011 Top North American Gas Marketers Ranking.

With hints of rising prices on the horizon, 24 leading natural gas marketers had total transactions of 135.07 Bcf/d in 1Q2011, a 2.49 Bcf/d (1.9%) increase from the 132.58 Bcf/d they transacted in the year-ago period, according to NGI’s 1Q2011 Top North American Gas Marketers Ranking.

Two issues — rising oil prices and regulatory changes — were selected as the biggest threats to the oil and gas industry, according to BDO USA LLP, which referenced U.S. Securities and Exchange Commission (SEC) 10-K filings for the 100 largest exploration and production (E&P) companies in the U.S. for a new report on industry risks.

Two issues — rising oil and gas prices and regulatory changes — were selected as the biggest threats to the oil and gas industry, according to BDO USA LLP, which referenced U.S. Securities and Exchange Commission (SEC) 10-K filings for the 100 largest exploration and production (E&P) companies in the U.S. for a new report on industry risks.

June natural gas futures rose Monday as traders viewed rising floodwaters as a threat to supply, and those holding short positions elected not to fight the trend. At the close June had risen 7.2 cents to $4.318 and July was up 6.8 cents to $4.379. June crude oil skidded $2.28 to $97.37/bbl.

Shale gas production in the Haynesville and Marcellus shales was the bright production star in February, while output in the traditional, maturer regions fell due to cold weather and maintenance/repairs, according to the Energy Information Administration’s (EIA) monthly natural gas report.