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Natural gas drilling fell significantly during the second quarter compared to the same period a year ago, according to a report from Washington, DC-based American Petroleum Institute (API).

Natural gas drilling fell significantly during the second quarter compared to the same period a year ago, according to a report from Washington, DC-based American Petroleum Institute (API).

Putting aside for awhile the fact that there is 1.1 Tcf more gas in storage than at the same time last year, gas futures traders instead apparently focused on the large 190 Bcf withdrawal from storage last week that the American Gas Association reported on Wednesday. February futures prices were up in the high $2.20s during almost the entire regular trading session on Thursday before taking a sharp dive back into the high teens after 2 p.m. February ended the day down 4.3 cents at $2.185 just above its low of $2.18 and well below its high of $2.30.

The natural gas futures market kicked off 2002 on Wednesday in much of the same way it concluded 2001 — by funneling to new lows amid undeniably bearish fundamentals. Traders didn’t need the release of fresh storage data (pushed back until today at 2 p.m. EST) to tell them that supplies are plentiful. Meanwhile, the downtrend remains intact and the current spate of cold weather is showing signs of moderating. The February contract took the news squarely on the chin, tumbling 10.5 cents to close at $2.465.

Boosted by scaled-down buying support, the natural gas futures market rebounded from lows notched Monday morning. However, that buying was muted by a continued negative technical and fundamental outlook, and as a result the market finished in negative territory for the day. The November contract experienced the largest trading range Monday, as the prompt month rebounded to a $2.41 high after dipping down to $2.33 earlier in the session. It closed with a 5.2-cent loss to $2.378. By comparison, the rest of the winter strip was hit harder, led by December, which tumbled 6.5 cents to $2.66.

In the same way your teacher loaded you down with books and assignments on the first day of the school year, new Federal Energy Regulatory Commission Chairman Pat Wood, presiding over his first meeting Wednesday. He put a whole slew of initiatives in motion, setting meetings, rulemakings, and calling for comments.

Kern River Gas Transmission announced last Monday it had completed construction and was flowing gas through emergency expansion facilities on its Kern River natural gas transmission system. The expansion, which consisted mostly of adding compression, increased delivery capacity of the Wyoming to California pipeline by 135,000 Dth/d.

California inked three new power contracts last week at the same time a San Diego state Superior Court was ordering the state to make the full contents of the contracts public. In another arena, the state discontinued talks with AES over 450 MWs of supply it will bring on line in August with the re-powering of two units at its Huntington Beach generating plant.

California announced last week it inked three new power contracts at the same time a San Diego state Superior Court was ordering the state to make the full contents of the contracts public. In another arena, the state discontinued talks with AES over 450 MWs of supply it will bring on line in August with the re-powering of two units at its Huntington Beach, CA, generating plant.