Space

While the economy continues to send shivers through various clean fuel sectors, California’s budding electric and natural gas transportation space remains healthy and optimistic, according to major utilities in the state. They told NGI that both the infrastructure and the vehicles (dedicated and converted) are taking shape in the nation’s most automobile-dense state.

Global credit woes continue to seep into the public-sector utility space where the electrics made bold natural gas hedging plays in recent years, and at least one of the major ratings agencies, Moody’s Investors Service, on Thursday downgraded several of the utilities in California and elsewhere around the nation. The hedges were bad enough that one municipal said it was closing up its hedging program.

Global credit woes continue to seep into the public-sector utility space where the electrics made bold natural gas hedging plays in recent years, and at least one of the major ratings agencies, Moody’s Investors Service, on Thursday downgraded several of the utilities in California and elsewhere around the nation. The hedges were bad enough that one municipal said it was closing up its hedging program.

Direct use of natural gas — such as for space and water heating, cooking and clothes drying — is a good thing, and more of it would be even better, according to the American Gas Foundation (AGF). This is particularly true when caps are placed on carbon dioxide (CO2) emissions.

Direct use of natural gas — such as for space and water heating, cooking and clothes drying — is a good thing, and more of it would be even better, according to the American Gas Foundation (AGF). This is particularly true when caps are placed on carbon dioxide (CO2) emissions.

Electronic energy marketplace IntercontinentalExchange (ICE) continued its busy week Wednesday in announcing that it has licensed office space at 2 World Financial Center in the downtown financial district of New York City. The company said the offices will serve as a “state-of-the-art” electronic trading center that will provide access to ICE’s electronic markets as well as host training and marketing activities.

Xcel Energy told Colorado regulators last week that it’s in the market for more storage space to support its gas supply portfolio. The push for more renewable energy such as wind power in Colorado has created a need for more back-up gas-fired generation, and as gas demand increases so does the need for more storage.

With gas prices plummeting over the last two weeks and storage space severely limited, it may not be long before producers start curtailing production. Analysts at Raymond James & Associates said last week if recent higher-than-average storage injections continue, “then U.S. producers would need to shut in about 10% of their production to rebalance the system over the next two months.”

With gas prices collapsing Friday to $4.40 at the Henry Hub and to $1.73 on Kern River in the Rockies and storage space severely limited, it may not be long before producers start shutting in wells. Analysts at Raymond James & Associates said Monday if last week’s storage report of a 108 Bcf injection during the week of Sept. 8 is accurate and represents a trend, “then U.S. producers would need to shut in about 10% of their production to rebalance the system over the next two months.”