Spring

Following up on President Obama’s mandate earlier this spring, U.S. Energy Secretary Steven Chu has announced a group of environmental, industry and state regulatory experts that will make recommendations to improve the safety and environmental performance of natural gas hydraulic fracturing in shale formations.

Following a week in which weather across Canada and much of the northern U.S. seemed more appropriate for winter than the still-young spring season — keeping spot prices mostly flat or firmer — just a few areas of significant heating load remained Monday. The upshot was falling prices at most points.

EOG Resources Inc. has taken its Marcellus Shale leasehold off the market because it’s a “core holding” and big plans are on the table to develop it once natural gas prices recover, CEO Mark Papa said Tuesday.

Shaking off last Friday’s softness, natural gas cash points across the country overlooked early spring temperatures to record gains across the board, but behind the scenes most of the talk was centered on what, if any, repercussions might the U.S. gas market see down the road from the unfolding tragedy in Japan.

Although some local forecasters are still on the fence, the National Weather Service (NWS) is calling for above-normal rainfall in the spring and summer in the Pacific Northwest, and that should boost hydroelectric production. More hydro brings with it the promise of continued shrinking prices and use of coal and natural gas in the region, according to industry sources in the Northwest.

With more spring-like conditions having replaced the prevalent bitter cold of the past two weeks in many market regions, a majority of points recorded losses ranging from 2-3 cents to about a dime, with only a couple of them being more than single digits. The Northeast, which is getting what is expected to be short-lived return of wintry weather, was home to most of the locations that were flat to about 95 cents higher.

This spring will see the end of shipments of liquefied natural gas (LNG) from Kenai, AK, to Japan, at least for a while. ConocoPhillips, 70% owner and operator of the Kenai LNG terminal, is mothballing the facility after more than 40 years of operation due to poor conditions in the Asian LNG market.

This spring will see the end of shipments of liquefied natural gas (LNG) from Kenai, AK, to Japan, at least for a while. ConocoPhillips, 70% owner and operator of the Kenai LNG terminal, is mothballing the facility after more than 40 years of operation due to poor conditions in the Asian LNG market.

It has been conventional wisdom that with gas rig counts beginning a slow decline recently, production is still rising overall because it is mostly rigs being deactivated in conventional plays rather than those involved in the more prolific shale gas search. However, some market watchers are not buying that argument.