Trap

Global support for natural gas use, as well as the technology to trap and store carbon dioxide (CO2) emissions from burning fuel, would curb greenhouse gas (GHG) emissions in this century, but it will take cooperation between government and the industry, according to Royal Dutch Shell plc.

The trap door remained wide open Tuesday as January natural gas continued to plummet, carving out a low of $10.960 in afternoon trade before closing at $11.022, down $1.261 for the day. The move brings the contract’s three-day decline to $3.249.

A political trap has been added to the geological, technical and environmental obstacle course faced by Canadian natural gas suppliers. A sore spot in industry relations with native communities is worsening to the point where the Canadian Energy Pipeline Association (CEPA) has warned that “a point of crisis” is at hand.

A political trap has been added to the geological, technical and environmental obstacle course faced by Canadian natural gas suppliers. A sore spot in industry relations with native communities is worsening to the point where the Canadian Energy Pipeline Association has warned that “a point of crisis” is at hand.

The sell-off continued Friday at Nymex as traders liquidatedlong positions ahead of the weekend in response to some blaringtechnical factors and in anticipation of moderating temperaturesthis week in key gas consuming regions. The September contractprobed lower to finish down 2.6 cents at $2.543 Friday. Estimatedvolume of 78,445 was low relative to the preceding five-straight,100,000-plus trading sessions.

The surprisingly small storage withdrawal last week of 69 Bcf,as reported late Wednesday by the American Gas Association, tookthe blame for a 12.1-cent tumble in the April Henry Hub futurescontract yesterday. Most observers were expecting about 110 Bcf tobe withdrawn, so the AGA report was enough to trigger along-awaited correction. Heavy selling sent the front-month Nymexgas futures contract cascading down throughout the day to a low of$1.810 before closing at $1.820.