Tightening

Record natural gas use by U.S. utilities is tightening supply/demand balances sooner than the market was expecting, setting the stage for natural gas bulls to come charging back, according to BNP Paribas.

Record natural gas use by U.S. utilities is tightening supply/demand balances sooner than the market was expecting, setting the stage for natural gas bulls to come charging back, according to BNP Paribas.

Expectations for improved results in California and in its shale plays, along with tightening of its finances, caused Standard & Poor’s Ratings Services (S&P) to increase its ratings and outlook on Houston-based midsize exploration and production (E&P) company, Plains Exploration & Production Co. (PXP), the rating agency announced earlier in November.

Encana Corp. is tightening the purse strings and slowing output in 2011 because of sustained low natural gas prices, an executive said last week.

Encana Corp. is tightening the purse strings and slowing output in 2011 because of sustained low prices, an executive said Wednesday.

Pacific Gas and Electric (PG&E) belatedly issued a systemwide Stage 2 high-inventory OFO for Tuesday and extended it through Wednesday, tightening the tolerance for positive daily imbalances from 12% to 9%.

Pacific Gas and Electric did not extend a systemwide Stage 2 high-inventory OFO on its California Gas Transmission system beyond Thursday.

Energy analysts scouring the government’s monthly natural gas production and industrial gas demand statistics for bullish signs now see a tightening market based both on anecdotal evidence and the Energy Information Administration’s (EIA) monthly report for December.

After tightening the negative imbalance tolerance Tuesday from 25% to 10% in the 11th day of an Overage Alert, Florida Gas Transmission allowed the Overage Alert to expire Wednesday.