While unconventional resources are playing a large role in the gas market, unconventional liquefied natural gas (LNG) is expected to have a much smaller part on the world gas stage, according to consultant Wood Mackenzie.
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Futures Fall Below $5 Despite 18 Bcf Storage Build
Colder-than-normal conditions in a number of the country’s major gas markets last week resulted in a smaller-than-normal storage injection report. The Energy Information Administration (EIA) reported Thursday morning that 18 Bcf was added to working gas storage for the week ending Oct. 16, well below both last year’s 71 Bcf build for the week and the five-year average injection of 60 Bcf.
Overall Losses Continue, But With Some Hints of Firmness
The October aftermarket got going on a moderately bearish note Wednesday, but in nearly all cases the losses were quite a bit smaller than Tuesday’s September-ending quotes, which saw double-digit declines at all points. A bit of extra chill and the previous day’s gain of 4.5 cents in the first prompt-month trading by November futures may have helped spur increases at several points, mostly in the West, but weak weather fundamentals continued to deny increases in most of the East.
North America Seen Most Affected by Producer Capex Cuts
Spending by oil majors has held steady, but independents and smaller producers have cut their capital spending (capex) this year by at least a third because of weak cash flow and a lack of borrowing access, a survey by energy investment bank Tristone Capital reported Friday.
North America Seen Most Affected by Producer Capex Cuts
Spending by oil majors has held steady, but independents and smaller producers have cut their capital spending (capex) this year by at least a third because of weak cash flow and a lack of borrowing access, a survey by energy investment bank Tristone Capital reported Friday.
100-Year-Old Aquila Near the End of the Road
Colorado regulators have approved the sale and transfer of Aquila Inc.’s utility operations in Colorado to Black Hills Corp. That leaves outstanding only the approval of Missouri officials for the multi-billion dollar, three-way transaction that will spell the end of Aquila and its predecessors, which have served portions of mid America since 1908.
Screen Gain May Reverse Softness at Most Points
Prices continued to fall Wednesday at most points, although the declines were smaller than Tuesday’s in most cases. And although the Rockies joined the overall softness after having constituted the sole rising market area a day earlier, a number of other points at scattered locations ranged from flat to about 20 cents higher Wednesday.
Most Points Still Rising; Rockies Low Is 9 Cents
Most of the cash market continued to see price increases Wednesday, although the gains were much smaller than those of the day before. A sharp pickup in tropical activity, highlighted by the formation of Tropical Storm Humberto off the Texas coast, and modest prior-day screen support were the main causes of further firmness, as cooling load remained light in most areas of North America.
Despite Supportive Storage Build, Overall Fundamentals Leave Bulls Cold
The Energy Information Administration (EIA) reported Thursday morning that 36 Bcf was injected into underground storage for the week ended Aug. 31. While the injection was smaller than most industry estimates and historical comparisons, natural gas futures bulls were having trouble gaining traction as the report pushed working gas levels in storage above the 3 Tcf level with two full months left in the traditional injection season.
Most Points Up a Little; Big Comeback in Rockies
Most of the cash market continued to rise Wednesday, but by notably smaller amounts than the day before. With heat levels greatly increasing in much of the West, particularly in inland California, Rockies gas found enough cooling load to arrest its recent slide into sub-$1 averages and cause large rebounds.