Snaps

Strong growth in the total marketed production of natural gas last year — an estimated increase of 4.8 Bcf/d (7.9%) compared with 2010 — was driven in large part by increases in shale gas production, according to the Energy Information Administration (EIA).

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.

Cold snaps, an accelerating switch in drilling targets to chase high oil prices and strong demand by Alberta thermal bitumen extraction projects are deflating Canada’s share in the North American natural gas surplus.

Cold snaps, an accelerating switch in drilling targets to chase high oil prices and strong demand by Alberta thermal bitumen extraction projects are deflating Canada’s share in the North American natural gas surplus.

Deteriorating production, cold snaps, a switch in drilling targets to oil and strong Alberta industrial demand are cutting down the Canadian natural gas surplus overhanging the North American market.

Deteriorating production, cold snaps, a switch in drilling targets to oil and strong Alberta industrial demand are cutting down the Canadian natural gas surplus overhanging the North American market.

Following on the heels of price strength in the overnight Access trading session, natural gas futures extended to a new, one-week high Monday morning. However, as with the other rallies above the $5.30 mark in the last month, overhead selling entered the market and was enough to crush the advance. The February contract finished at $5.251, up 10.8 for the session, but well below its early morning Access high at $5.36.