Something

In a world of accelerating decline rates, depleting reserves and LNG uncertainty, unconventional gas plays in the Lower 48 are something to be excited about. This is particularly true of the burgeoning Barnett Shale play in the Forth Worth basin of north-central Texas.

Indicating that Tuesday’s rebounds were something of a market aberration, prices reverted to falling at nearly all points Wednesday. The screen’s prior-day slide of 59.9 cents, the continued mildness of early January temperatures in most areas, and expectations of an unusually small storage withdrawal report were the primary influences in the renewed softening.

Each side got something and the industry may have gotten what one energy legal observer called an “important precedent” in last week’s DC Circuit federal appeals court ruling (June 22) that FERC doesn’t have the authority to force California’s electric transmission grid operator, CAISO, to revise its state-mandated governing board, noting that the federal regulatory panel lacks the authority and was “over-reaching” in attempting to do so the past three years.

It was something of a hodgepodge cash market Monday, with most western points rebounding strongly from weekend weakness while markets in the East generally revolved around flat but also ranged from about a dime lower to nearly 15 cents higher at various points. Consistency was an elusive characteristic outside the West.

Incremental LNG supplies are not something that’s going to happen all at once. New terminals will make their way through the permitting and construction process one by one, and the additional supplies will help offset declining production in other areas, according to an ExxonMobil executive.

Incremental LNG supplies are not something that’s going to happen all at once. New terminals will make their way through the permitting and construction process one by one, and the additional supplies will help offset declining production in other areas, according to an ExxonMobil executive.

Pipeline constraints and balancing requirements/penalties had something to do with the record high gas prices this winter in the Northeast, but energy consultant Ben Schlesinger also believes inadequate gas market information, particularly regarding peak shaving liquefied natural gas (LNG) capacity, was part of the cause.

Pipeline constraints and balancing requirements/penalties had something to do with the record high gas prices this winter in the Northeast, but energy consultant Ben Schlesinger also believes inadequate gas market information, particularly regarding peak shaving liquefied natural gas (LNG) capacity, was part of the cause.

Monday’s natural gas futures trading session had a little something for everyone. The market erupted higher at the opening bell in reaction to the news that cracks had been found in AEP’s Cook Nuclear Plant # 2. However that buying failed to propel the market past its $6.44 May 14 high, leaving the technical door open for profit-taking. Bears did not waste the opportunity and, with a little help from mild weather forecasts and a falling crude oil market, had no problem pushing the market lower throughout much of the trading session.