Texas lawmakers are not yet into the meat of their current legislative session, but as with the last session two years ago, the Barnett Shale seems to be drawing the most attention, at least judging by potential legislation, Texas Independent Producers and Royalty Owners Association (TIPRO) President Justin Furnace told NGI’s Shale Daily.
Severely
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Brrr! Cold Boosts All Points, Led by Northeast Spikes
Big spikes in the Northeast led across-the-board price gains Monday as often severely cold weather settled in across most of the U.S. and Canada for what was looking like a fairly long siege, prompting quite a few pipeline restrictions (see related story). The return of industrial load from a holiday weekend added extra impetus to the market.
Southern Natural Defends Bid Aggregation Approach
Southern Natural Gas disputes claims by an affiliate of a Houston-based natural gas marketer that the pipeline acted improperly by deviating from the usual approach for aggregating bids in awarding capacity during an open season that closed in August. Southern, an El Paso Corp. pipeline, was accused of violating its tariff and FERC policy.
Northeast Spikes Stand Out Amid Overall Softness
Despite forecasts for severely cold weather throughout most of the East by the beginning of this week, and proliferating anticipatory restrictions by pipelines, prices fell at all points Friday except for Northeast citygates. The well-below-expectations storage withdrawal report a day earlier and the accompanying 28.9-cent futures dive, along with the decline of industrial load over a weekend, obviously outweighed the frigid predictions in the minds of most cash traders.
Overall Cash Firmness May Be Last for Some Time
Prices continued to rise at a large majority of points Thursday, bolstered by severely cold weather throughout most of North America. There were few cities in Canada and the Lower 48 states that weren’t anticipating low temperatures around freezing or less Friday.
Analysts Predict Production Curtailments Due to Limited Storage Space, Low Prices
With gas prices plummeting over the last two weeks and storage space severely limited, it may not be long before producers start curtailing production. Analysts at Raymond James & Associates said last week if recent higher-than-average storage injections continue, “then U.S. producers would need to shut in about 10% of their production to rebalance the system over the next two months.”
Analysts Predict Shut-ins Due to Limited Storage Space, Low Prices
With gas prices collapsing Friday to $4.40 at the Henry Hub and to $1.73 on Kern River in the Rockies and storage space severely limited, it may not be long before producers start shutting in wells. Analysts at Raymond James & Associates said Monday if last week’s storage report of a 108 Bcf injection during the week of Sept. 8 is accurate and represents a trend, “then U.S. producers would need to shut in about 10% of their production to rebalance the system over the next two months.”
NGI The Weekly Gas Market Report
Lehman: Market ‘Severely Out of Balance,’ Expect $5-8 Gas in Near Term
The natural gas market “is severely out of balance,” and participants can expect to see prices during injection season near “the top end of a $5.00-8.00/MMBtu range,” according to Lehman Brothers equity research.
Lehman Sees $5-8 Prices for ‘Severely Out of Balance’ Market
The natural gas market “is severely out of balance,” and participants can expect to see prices during injection season near “the top end of a $5.00-8.00/MMBtu range,” according to Lehman Brothers equity research.
APGA Lauds Market Transparency Measures in CFTC Reauthorization
Provisions designed to increase natural gas market transparency and more severely penalize market manipulators are part of a proposed amendment that Reps. Sam Graves (R-MO) and John Barrow (D-GA) are expected to offer this week during the House Agriculture Committee’s mark-up of legislation that will reauthorize the Commodity Futures Trading Commission (CFTC).