Upward

Production of oil, natural gas and condensate continues trending upward in the Eagle Ford Shale, according to Railroad Commission of Texas (RRC) data. During the first four months of this year, daily oil production surpassed that seen in 2012 and daily production of natural gas nearly met the 2012 level.

Unlike many producers today, Vanguard Natural Resources LLC is not necessarily focused on oil and natural gas liquids (NGL)-rich acquisitions. The company has done recent deals for both liquids and dry gas assets, instead focusing on margin and how the properties fit into its structure, CEO Scott Smith said Monday.

Raymond James & Associates Inc. on Tuesday revised upward its 2013 U.S. natural gas production forecast to average about 66.8 Bcf/d, up 1.3 Bcf/d from a previous forecast, mostly because Marcellus Shale output has not declined, while associated gas from oil drilling is only adding to the surplus.

Raymond James & Associates Inc.’s 2Q2012 U.S. natural gas production survey confirms an “upward growth trend among publicly traded producers,” which indicated another sequential supply increase of 0.49% (0.17 Bcf/d), or 7% year/year (2.45 Bcf/d).

Raymond James & Associates Inc.’s 2Q2012 U.S. natural gas production survey confirms an “upward growth trend among publicly traded producers,” which indicated another sequential supply increase of 0.49% (0.17 Bcf/d), or 7% year/year (2.45 Bcf/d).

The cash market continued its broad, upward trajectory Monday, adding on average about 6 cents. Particularly strong were Northeast points and Southern California. Northeast gains were expected to subside Tuesday, but California pricing is following strong power generation demand. At the close of futures trading August had gained 3.6 cents to $3.117 and September had put on 3.5 cents to $3.111. September crude oil tumbled $3.69 to $88.14/ bbl.

Natural gas storage companies say they are not concerned that Pennsylvania will run out of underground capacity, despite last winter’s mild weather, higher-than-normal amounts of gas already in storage and increased production from the Marcellus Shale.

Natural gas production in West Virginia is continuing on an upward swing dating back to 2003, thanks in part to development in the Marcellus Shale, a report released this month by the Department of Environmental Protection (DEP) said.

Prices were in modest rally mode at a large majority of points Wednesday as heat levels began to trend upward again in key northern market areas and what had previously appeared to be a benign tropical wave south of Cuba was designated as Tropical Storm Don in the afternoon as it headed into the Gulf of Mexico.