After testing the $6 resistance level on Monday, May natural gas futures raised the white flag early on Tuesday, retreating 22.1 cents to close at $5.788 on heavy volume, with 92,904 contracts changing hands.
Testing
Articles from Testing
MMS Examines Scope of Its Authority Over Offshore Pipelines
Taking over where FERC left off, the Minerals Management Service (MMS) is testing the waters for possibly putting a new regulatory framework in place to ensure non-discriminatory open access to offshore gas and oil pipeline systems.
Transportation Notes
Questar has started inventory and deliverability testing at its Clay Basin Storage facility. From April 1 through April 5 the work restricted customers to withdrawals only. A withdrawal test of up to 370,000 dekatherms was set for Tuesday. From Wednesday until April 22, the facility will be shut in for inventory verification, preventing Questar from using Clay Basin to balance receipt and delivery imbalances. Thus it stressed to customers the importance of preventing physical imbalances during that period.
Cracks Confirmed in Unit 1 of South Texas Nuclear Plant
South Texas Project (STP) nuclear power plant officials revealed Thursday that ultrasonic testing has confirmed small vertical cracks in the two instrumentation tubes inside the Unit 1 reactor vessel. The tubes had exhibited seepage in late April during a scheduled refueling and maintenance outage.
Transportation Notes
Sonat completed shut-in testing Tuesday at its Bear Creek storage facility in North Louisiana and canceled the associated force majeure that had been in effect since April 1.
After Testing Lower End of Recent Range, Futures Post Modest Rebound
After bending but not breaking lower at the open, natural gas futures battled back Monday as traders digested updated weather forecasts and storage estimates. The January contract finished at $5.116, down 6.7 cents for the session but up 8.6 cents from its $5.03 low. As expected, estimated volume — at 66,458 — was weak, as many traders elected to remain on the sidelines ahead of the holidays. Nymex energy markets will close at 1 p.m. Tuesday and reopen at 7 p.m. Wednesday with Access trading.
EIA Storage Survey Faces OMB Review, Several Months of Testing
The Energy Information Administration is preparing take over the American Gas Association’s (AGA) storage survey at the end of the winter. But it first must get clearance from the Office of Management and Budget for the reporting burden placed on storage companies, EIA’s survey methodology and the budget requirements for conducting the survey. It also has to arrange the staffing and resources and perform an operational test before it can get a green light.
EIA Storage Survey Faces OMB Review, Several Months of Testing
The Energy Information Administration is preparing take over the American Gas Association’s (AGA) storage survey at the end of the winter. But it first must get clearance from the Office of Management and Budget for the reporting burden placed on storage companies, EIA’s survey methodology and the budget requirements for conducting the survey. It also has to arrange the staffing and resources and perform an operational test before it can get a green light.
EIA Storage Survey Faces OMB Review, Several Months of Testing
The Energy Information Administration is preparing take over the American Gas Association’s (AGA) storage survey at the end of the winter. But it first must get clearance from the Office of Management and Budget for the reporting burden placed on storage companies, EIA’s survey methodology and the budget requirements for conducting the survey. It also has to arrange the staffing and resources and perform an operational test before it can get a green light.
Industry Briefs
Houston-based Vector Energy Corp. recently completed the testing of three wells at its Mustang Island Block 818-L off of the Texas Gulf Coast. The wells tested at a combined rate of 1.6 MMcf/d. The company reported that there are still three wells on the location that need to be tested. “I am excited that finally we have test results from these wells that substantiate the proven reserves we have always anticipated,” said Sam Skipper, CEO of Vector. “I believe the remaining wells will also be very productive. All are exhibiting wellhead shut-in pressures in excess of 4,000 pounds, which is similar to the pressures experienced on the three wells that have been tested. All that remains is for the pipeline to be pigged and then sales can commence.”