Rumblings

The rumblings of a nasty gas market reversal can be heard loud and clear, said Lehman Brothers analyst Thomas Driscoll in a research note, predicting the current price collapse would continue into the summer.

The rumblings of a nasty gas market reversal can be heard loud and clear, said Lehman Brothers analyst Thomas Driscoll in a research note, predicting the current price collapse would continue into the summer.

Early rumblings about an El Nino weather pattern developing this summer has energy industries and markets monitoring the situation very closely. Such an event would cause a huge shift in summer weather and tropical storm forecasts, thus impacting natural gas demand and pricing levels significantly.

Early rumblings about an El Nino weather pattern developing this summer have energy markets monitoring the situation very closely. Such an event would cause a huge shift in summer weather and tropical storm forecasts, thus impacting natural gas demand and pricing levels significantly.

With some of the first rumblings of local opposition surfacing with major local news media attention, Mitsubishi Corp.’s U. S. subsidiary, Sound Energy Solutions (SES), Monday filed at FERC seeking an environmental impact report on its proposed liquefied natural gas (LNG) receiving terminal in Long Beach Harbor, 25 miles southeast of downtown Los Angeles.

The industry rumblings of a declining gas supply are not far offbase, said a report by David Pursell, an analyst for theinstitutional securities group Simmons & Co. Intl. Judging fromweekly American Gas Association (AGA) storage data and Departmentof Energy (DOE) LNG production figures, the report forecast the gasdecline rate could surpass 4% in the coming months when compared tolast year, unless a sharp increase in gas-directed drilling takesplace. Using these findings, Pursell said gas prices should stayabove $2/Mcf for the near future.