Traded

The total volume of pipeline capacity traded by the top 20 gas pipeline capacity trading players was up 106% this year over 2012 volumes, surpassing 15.8 Bcf/d, according to Skipping Stone’s Capacity Center. It marks the fourth consecutive annual increase in the volume of capacity traded, according to the firm.

Gulf of Mexico explorer McMoRan Exploration Co. (MMR) is no longer a publicly traded stock after shareholders on Monday (June 3) approved a merger with a subsidiary of affiliated conglomerate Freeport-McMoRan Copper & Gold Inc. Under a friendly agreement in late 2012, Freeport agreed to pay close to $3 billion for MMR and more than $9 billion including debt for Plains Exploration & Production Co.; the Plains deal closed at the end of May (see Daily GPI, June 3; Dec. 6, 2012). Freeport Chairman Jim Bob Moffatt co-chaired McMoRan with Freeport CEO Richard Adkerson. MMR shareholders are to receive $14.75/share in cash, or $2.2 billion for shares not owned by Freeport, as well as 1.15 units in Gulf Coast Ultra Deep Royalty Trust, which would hold a 5% overriding royalty stake in future output from 20 specified ultra-deep exploration targets.

With acquisitions and infrastructure agreements in hand, Waltham, MA-based Global Partners LP, a publicly traded master limited partnership, is establishing a “virtual pipeline” for shipping North Dakota Bakken and Canadian crude oil to refineries on both the U.S. West and East Coasts.

Tony Clark may have traded in his state regulator’s hat for a seat at FERC, but he has not changed his opinion that states are better equipped to oversee the regulation of hydraulic fracturing (fracking) than the federal government.

Spots cash prices played catch-up with the screen in Friday’s trading. The average overall loss was 34 cents, and all actively traded points endured declines in the 30-cent area. Traders see the highs for the year in place and see mounting fundamental pressure on prices in the spring and summer. At the close of futures trading, June had risen 1.6 cents to $4.041 and July also had gained 1.6 cents to $4.093. June crude oil, aided by a supportive employment report, gained $1.62 to $95.61/bbl.

Tony Clark may have traded in his state regulator’s hat for a seat at FERC, but he has not changed his opinion that states are better equipped to oversee the regulation of hydraulic fracturing (fracking) than the federal government.

The cash market overall retreated 28 cents Wednesday, but if multi-dollar swan dives taken by Northeast and other thinly traded points are excluded, the drop comes to a more meaningful 11 cents. Nearly all points sustained sizeable losses. Midcontinent and California locations were down by double digits, but Gulf points also weakened. At the close of futures trading May had fallen 6.9 cents to $3.900 and June was off by 6.9 cents as well to $3.950. May crude oil plunged $2.74 to $94.45 on unsupportive inventory data and weak economic news.

The cash market scored an average gain of 8 cents in Tuesday’s trading. Gains were widespread and only a handful of thinly traded points fell into the loss column.

Thanks to volatile Northeast gas prices, the national average for physical natural gas traded Thursday for Friday delivery dropped nearly 50 cents.