Stagnation

Shale gas is the “magic bullet” the U.S. petrochemical industry needs to make a full recovery from a decade of economic stagnation, according to researchers from Chemical Market Resources Inc. (CMR), a Houston firm that advises the chemical, petrochemical and plastics industries.

A bill recently introduced in the Pennsylvania General Assembly would require the state’s Environmental Quality Board (EQB) to develop standards for the construction of oil and gas well pads in the Marcellus and Utica shales, according to Rep. Fred Keller, a Republican from central Pennsylvania.

Despite continued stagnation in terms of shut-in returns from the Gulf of Mexico, October natural gas futures continued to explore lower on Tuesday, testing support lines and settling below $11 for the first time since Hurricane Katrina hit at $10.763, down 26.8 cents from Monday.

After several successive days of stagnation, the cash marketfinally was able to use a little bit of screen support andexpectations of colder weather moving into major market areas toget out of its rut Tuesday. Prices ranged from flat in theSouthwest basins to more than a nickel higher at New Englandcitygates and for intra-Alberta and several related western points.Most quotes rose between 3 and 5 cents.