Skyrocketed

Bonus payments to landowners with oil and natural gas leases climbed to new highs during the third quarter, but they skyrocketed in Ohio’s Utica Shale, according to a survey by Farmers National Co. (FNC), a real estate management firm that also tracks data for landowners.

Bonus payments to landowners with oil and natural gas leases climbed to new highs during the third quarter, but they skyrocketed in Ohio’s Utica Shale, according to a survey by Farmers National Co. (FNC), a real estate management firm that also tracks data for landowners.

It may take some time before fewer drilling rigs and curtailed output make a dent in domestic onshore natural gas production. Dry gas production skyrocketed 11.6% in January from a year earlier to 2,047 Bcf gross, the Energy Information Administration (EIA) said.

With even higher temperatures still to come, prices skyrocketed by more than a dollar at Northeast citygates Wednesday while considerably more modest gains permeated the rest of the market.

Both the cash and futures markets skyrocketed Tuesday due to the rapid transition of Gustav from tropical storm to hurricane and, more important, the fact that its most likely projected tracking was looking much more ominous for Gulf of Mexico (GOM) production infrastructure.

Prices skyrocketed to as high as $19.50/MMBtu Wednesday in the Northeast as low temperatures ranging from single digits to the 20s were forecast to keep the region chilled out Thursday. But with warming trends due in the South and Midwest while the West essentially maintains its status quo of seasonably cold to mild conditions, the market outside the Northeast saw mixed price movement that was mostly close to flat and biased toward the downside.

Northeast citygates skyrocketed Wednesday to as high as $23.50 at Transco Zone 6’s New York City pool in response to the approach of a major winter storm. The spikes in that region easily outpaced gains at nearly all other points as icy conditions continued to ravage the nation’s midsection and much of the previously balmy South prepared to get a return taste of winter Thursday.

With snowstorms remaining in the regional forecast and highs in the 20s due Tuesday in New England and much of New York state, most Northeast citygates skyrocketed by multi-dollar amounts Monday to as high as $22.75 in Transco Zone 6’s New York City pool. However, such super-strength was not matched anywhere else even though the Midwest also faces highs in the 20s or less Tuesday. A few small gains outside the Northeast were heavily outweighed by declines.

Domestic natural gas prices skyrocketed from 1995 through 2006, but during the same period flaring of associated gas production worldwide has remained constant, according to research sponsored by The World Bank.