Screen

With shale gas the United States has an abundant natural resource that wasn’t on the industrial or economic development radar screen a mere five years ago. In other words, “a competitive edge is coming back to America,” Dow Chemical Co.’s Brian Ames told a Houston audience last week.

The cash market advanced nearly 8 cents on average Wednesday, buoyed by an exuberant screen and a strong finish by the expiring October contract. The gains were widespread with some regions posting a double-digit advance. The Great Lakes, East and California all vaulted higher. At the close of futures trading October had zoomed 9.9 cents to end at $3.023 and November added 11.0 cents to $3.215. November crude oil shed 56 cents to $91.37/bbl.

With shale gas the United States has an abundant natural resource that wasn’t on the industrial or economic development radar screen a mere five years ago. In other words, “a competitive edge is coming back to America,” Dow Chemical Co.’s Brian Ames told a Houston audience Monday.

Natural gas cash values declined nearly across the board as physical gas traders used the screen’s prior-day drop for inspiration. Most points declined by a nickel or less and traders and analysts alike are having trouble pointing to any sort of rebound in the immediate future. Even what appeared to be a bullish storage injection report Thursday wasn’t what it seemed according to one NGI source. September futures traveled an up and down course on Thursday but ultimately closed the day’s regular session at $2.724, down 2.4 cents from Wednesday’s close.

Overall cash prices added a dime Monday as weather forecasts, pipeline maintenance and a strong screen combined forces to send prices sharply higher. Northeast points led the charge higher, but Southern California locations were not far behind. At the close of futures trading July had jumped 16.8 cents to $2.635 and August had risen 15.4 cents to $2.565. July crude oil fell 76 cents to $83.27/bbl.

The physical market answered Tuesday futures double-digit decline with an overall tumble on average of 9 cents Wednesday as the screen continued to drop and weather forecasts moderated. Northeast points were particularly hard hit as spot power prices plunged. At the close of futures trading July had shed 6.7 cents to $2.418 and August was down by 6.9 cents to $2.471. July crude oil suffered a $2.94 loss to $87.82/bbl.

The physical market plunged overall on average by about 14 cents Friday as a combination of a weak screen along with operational problems in places on the East and West Coasts worked to pummel prices lower.

Hollywood is preparing to bring Marcellus Shale oil and natural gas drilling to the big screen next winter and has started filming in Western Pennsylvania.

Physical gas prices continued to slide Thursday at nearly all points, likely helped lower by the screen’s milestone Wednesday of dropping below $2. Moderating weather in the Northeast Thursday pulled the plug on any price gains prior to the release of inventory data, and western locations weakened as well.