Supportive

Encana Corp. has close to 11.7 million net acres from which to pick and choose for development in North America’s onshore, but the Horn River Basin in British Columbia (BC) is drawing special attention, in part because of the promise it holds for natural gas demand in the oilsands, as well as promising liquefied natural gas (LNG) exports, company officials said Tuesday.

The natural gas industry said it was largely supportive of the New York Department of Environmental Conservation’s (DEC) final draft report on the environmental impacts of hydraulic fracturing (fracking).

September natural gas inched higher Wednesday as traders noted a less supportive weather environment, but they were reluctant to initiate any new positions prior to the release of a key government inventory report Thursday. At the close September was up 0.1 cent to $3.933 and October had added 0.1 cent to $3.943. September crude oil rose 93 cents to $87.58/bbl.

July natural gas futures gained as traders noted a firm tone to the market as well as a supportive weather outlook. Negative news on the economy was shrugged off, and at the close July had gained 14.8 cents to $4.666 and August had risen 14.3 cents to $4.700. July crude oil surged $2.11 to $102.70/bbl.

Capitol Hill reaction to President Obama’s blueprint for securing the nation’s future energy supplies has run the gamut from supportive to skeptical about whether his targeted goal to reduce foreign imports can be met. Republicans said there is a wide disconnect between what Obama said Wednesday and his anti-drilling policies.

A significant majority of Pennsylvania residents support the use of a severance tax on drilling operations to help close a projected $4 billion state budget gap, according to the results of a survey released Thursday by the Center for Opinion Research at Franklin & Marshall College in Lancaster, PA.

March natural gas futures eased Tuesday as traders elected to discount both supportive weather reports and sharply higher oil prices caused by strife in North Africa and the Middle East. March fell 0.9 cent to $3.867 and April added 0.1 cent to $3.907. March crude oil bounded higher $7.37 to $93.57/bbl.

Shale gas plays have been a magnet for energy deals, and that was even more true last year, which saw a record dollar value for upstream energy mergers and acquisitions (M&A), driven largely by shale-related activity, according to consultancy Wood Mackenzie.

Noting that while there are “important questions” about the environment, it has been reported that the Marcellus Shale could provide enough gas to meet U.S. demand for decades, while creating thousands of jobs, and most important can be developed responsibly, according to John Felmy, chief economist with the American Petroleum Institute (API).