Stretched

Although Norse Energy Corp. ASA has put most of its leasehold in New York up for sale, the company said it hopes to continue doing business in the state — especially through a joint venture (JV) — and is currently in negotiations with several interested parties over its assets.

The Pacific Northwest hydrolectric season has stretched into an eight-month-long period, producing a similarly long period in which natural gas-fired generation plants remain mostly idle, according to the U.S. Energy Information Administration (EIA). For gas-fired plant operators the short-term summer prospects look bleak, according to EIA. While it is not unusual to see gas generation drop dramatically in the spring, EIA’s data reported a dramatic gas drop in the region since mid-January, with little change envisioned before September. “Natural gas use at [the region’s] plants dropped almost to zero during the third week of May,” EIA said. “This coincides with the curtailment of wind generators discussed in previous [EIA reports]. Gas use for power generation in 2011 is down 68%, or about 300 MMcf/d, compared to the first five months of 2010 [Jan. 1-May 25].”

As record water levels continue over an extended time period this year in the Pacific Northwest, the hydrolectric season has stretched into an eight-month-long period, producing a similarly long period in which natural gas-fired generation plants remain mostly idle, according to the most recent statistics from the U.S. Energy Information Administration (EIA).

September natural gas futures stretched their losing streak to five for the week on Friday but relative to the economy-dependent crude oil market fared reasonably well.

A dramatic increase in oil and natural gas development on federal lands over the past six years has stretched the staff of Interior Department’s Bureau of Land Management (BLM) to a point that it has been unable to meet its environmental protection responsibilities, according to a new report issued by the Government Accountability Office (GAO) last Thursday.

A dramatic increase in oil and natural gas development on federal lands over the past six years has stretched the staff of Interior Department’s Bureau of Land Management (BLM) to a point that it has been unable to meet its environmental protection responsibilities, according to a new report issued by the Government Accountability Office (GAO) Thursday.

Like a rubber band stretched to its snapping point, the natural gas futures market was unable to extend any further to the downside Monday as both bull and bear traders were reluctant to make a move ahead of the December expiry Tuesday. Modest buying was seen at the closing bell, gently nudging the prompt month 4.8 cents higher to its penultimate day settlement of $4.682.

In trading ranges that were stretched extensively due to post-storage report dives, cash prices were rather indecisive Thursday, ranging up and down from flat by up to a dime in both directions. Small gains tended to outweigh small losses.

Richmond, VA-based Dominion Energy stretched across the Continent to complete its purchase of gas producer Remington Energy Ltd., of Calgary, AB in a deal valued at nearly US$300 million that will give Dominion a stake in Alliance Pipeline. Still to be completed is its $6.3 billion agreement to buy Consolidated Natural Gas (CNG), which was originally announced in February, just days before the Remington buyout was revealed (See NGI March 1, 1999).