Shifting

Kinder Morgan Inc. (KMI) pipelines have virtually no exposure to low natural gas prices, but they are subject to shifting continental gas flows, particularly those resulting from developing shale gas supply basins.

Kinder Morgan Inc. (KMI) pipelines have virtually no exposure to low natural gas prices, but they are subject to shifting continental gas flows, particularly those resulting from developing shale gas supply basins.

Wednesday’s market was something of a mirror image of the one on Tuesday, with a majority of locations shifting to reverse gear. Flat numbers were common again, but while small gains had dominated Tuesday, more points were recording small increases Wednesday. Heating load is relatively scarce at this point as most areas experience a fairly mild prelude to the official start of winter, and traders were mindful of the upcoming storage report being bearish in comparison to year-ago and five-year average withdrawals.

Investors have traditionally viewed long-haul natural gas pipelines as a relatively safe haven from risk; however, shifting trends in gas flows, “a much more proactive FERC” and the potential for higher maintenance expenses are changing that, according to an analysis by U.S. Capital Advisors.

Investors have traditionally viewed long-haul natural gas pipelines as a relatively safe haven from risk; however, shifting trends in gas flows, “a much more proactive FERC” and the potential for higher maintenance expenses are changing that, according to an analysis by U.S. Capital Advisors.

Encana Corp. is hunkering down with a reduced spending plan for 2012 in dry natural gas plays and shifting more investments to liquids and oil-prone unconventionals in North America, CEO Randy Eresman said Wednesday.

Hydraulic fracturing (fracking) has been around for decades with little or no environmental problems, and it is a key to the nation’s energy independence through stepped up use of plentiful natural gas supplies in transportation, oilman-turned-clean transportation advocate T. Boone Pickens told a National Press Club luncheon Tuesday in which he tackled a wide-ranging set of energy, environmental and political issues with fellow billionaire and CNN founder Ted Turner.

Natural gas has been the primary target of domestic drilling throughout the past decade, but the focus appears to be shifting to crude oil, according to a report on first quarter well completions issued by the American Petroleum Institute (API). The estimated number of oil wells drilled in the first quarter outnumbered natural gas wells by 5,718 to 3,860, API reported. The figures for oil well completions “show the focus is changing,” the producer group said. While oil and gas well activity was up from the same period in 2010, it was down from 2009, API said. It estimated that 10,431 oil and natural gas wells and dry holes were completed in the most recent first quarter, up 29% from 2010’s first quarter but almost 8% below completions in the first quarter of 2009. API also reported total estimated footage of 75.66 million feet was drilled in the first quarter, a 38% increase from the same period of 2010.

Natural gas has been the primary target of domestic drilling throughout the past decade, but the focus appears to be shifting to crude oil, according to a report on first quarter well completions issued by the American Petroleum Institute (API).