Trends

While low volatility and volumes marked the North American natural gas futures market in the first quarter, IntercontinentalExchange (ICE) has noted a strengthening in volume trends in both March and April, driven by increasing natural gas prices. Convinced of the globalization of the natural gas market, ICE is looking to establish a European marker.

While low volatility and volumes marked the North American natural gas futures market in the first quarter, IntercontinentalExchange (ICE) has noted a strengthening in volume trends in both March and April, driven by increasing natural gas prices. Convinced of the globalization of the natural gas market, ICE is looking to establish a European marker.

The Railroad Commission of Texas (RRC) has a new $6 million grant program to help companies replace their older forklifts and medium- and heavy-duty diesel vehicles with ultra low-emission natural gas- and propane-fueled equipment. The grant program is funded by the Texas Emissions Reduction Plan through the Texas Commission on Environmental Quality (TCEQ). Since 2005, the RRC has awarded $39.5 million in grants to Texas companies and school districts, and has reduced emissions of smog-forming nitrogen oxides by nearly 5,000 tons. To be eligible for the grants, new equipment must meet the latest emissions standards and operate in one of the 43 counties designated by the TCEQ as having substandard air quality. The grant amount averages $9,500. For more information, visit www.altenergy.rrc.state.tx.us.

Raymond James & Associates Inc. on Monday raised its 4Q2012 natural gas price assumptions by 75 cents and lifted the 2013 forecast by 50 cents, predicting 1Q2013 price “spikes to near $5.00/Mcf.”

Trends that surfaced last year indicate “a continued preference for crude oil and liquids-rich gas development over dry gas options,” and are likely to reduce — and possibly reverse — recent domestic dry gas production growth rates, according to a new report from Pace Global.

Trends that surfaced last year indicate “a continued preference for crude oil and liquids-rich gas development over dry gas options,” and are likely to reduce — and possibly reverse — recent domestic dry gas production growth rates, according to a new report from Pace Global.

United States natural gas production is expected to increase every year through 2035 thanks to increased shale development, according to the U.S. Energy Information Administration’s (EIA) complete version of the Annual Energy Outlook 2012 (AEO2012). Just as the preliminary report released in January found (see Shale Daily, Jan. 24), the EIA also believes the United States will transition from being a net importer to a net exporter of natural gas in approximately nine years.

A warmer-than-normal winter colored Southern Company’s 1Q2012 financial results, but natural gas issues, and particularly coal-to-gas trends, dominate the current landscape for the Atlanta-based operator, which recently received the first construction/operating licenses for two nuclear units in more than 30 years.

Focusing on oil and natural gas liquids (NGL) has paid off for small exploration and production (E&P) companies, according to Moody’s Investors Service, as they are expected to gain from rapid production and reserve growth.