Soaring

Although it was eventually far outpaced by a soaring screen, the cash market did make some effort to keep up Monday. Nearly all points rose between 2-3 cents and about 15 cents, with gains on either side of a dime being most prevalent. Sources in several areas, however, reported lower numbers in late deals. A Northeast buyer said Transco Zone 6-NYC started in the mid $3.20s but was about a dime lower at the end.

It was off to the races Tuesday for spot prices, as a soaring screen paced the cash market to large gains. Except for the Rockies and Southern California border, nearly all other points managed to surpass the November futures advance of a little more than 21 cents. The run-ups were attributed largely to a noted meteorologist’s forecast that the coming winter will rank among the top third of the coldest over the last 106 years (see related story).

The growth of global liquefied natural gas trade because of soaring gas prices in the United States last winter is tightening the linkage between U.S. and European gas markets, according to a new study by DRI-WEFA Inc., a subsidiary of Global Insight Inc. The study “European Gas Supply and Demand: The Outlook to 2025” indicates that European and U.S. gas prices now will be more closely tied together because of the burgeoning global commodity.

The growth of global liquefied natural gas trade because of soaring gas prices in the United States last winter is tightening the linkage between U.S. and European gas markets, according to a new study by DRI-WEFA Inc., a subsidiary of Global Insight Inc. The study “European Gas Supply and Demand: The Outlook to 2025” indicates that European and U.S. gas prices now will be more closely tied together because of the rapidly developing international LNG trade.

High commodity price have sent profits soaring for both major producers and independents. Number one major Exxon Mobil Corp. reported nearly double the profits from a year ago, and fourth-ranked Conoco Inc. also jumped. Independents EOG Resources Inc. and Houston Exploration Co., meanwhile, attributed record earnings to not only prices, but robust domestic gas production.

Soaring California gas prices and rapidly rising gas demandmainly for power generation the Pacific Northwest and Californiahas prompted an expansion of the PG&E Gas TransmissionNorthwest (GTN) system. The pipeline said last week it plans tofile with FERC in April for a small initial expansion project fornext year but potentially could add 1 Bcf/d of capacity over thenext decade.

Soaring gas and power prices, market volatility and greaterpower sales volumes put a lot of zip in the Williams Cos.’sfinancial results, which significantly surpassed Wall Streetexpectations for the fourth quarter and the year.

Prices soared everywhere Friday except in Northern California asmore bullish weather forecasts and current conditions, along with asecond straight day of rising futures, propped up what had been arecently sagging cash market. Nearly all gains were within therange of 50-90 cents.

As soaring December bills for natural gas use hit the home frontin Illinois last week, city and state officials opened a broadinvestigation into the causes of skyrocketing prices and madeattempts to increase assistance to low-income households.