Warmer

Exploration and production (E&P) equities are down nearly 15% since early December, but if the current seasonal weather reverts to warmer-than-normal conditions in the next three weeks, share prices likely will be slapped down again in mid to late February, which could create “compelling acquisition opportunities,” energy analysts said Tuesday.

Ex-Enron Corp. CEO Jeffrey Skilling will remain in the warmer climes of Houston — at least for the time being. Skilling was to report to a minimum security Minnesota prison on Tuesday to begin serving his 24-year sentence, but the U.S. Fifth Circuit Court of Appeals is considering his request to remain free while he appeals his convictions on 19 criminal counts (see Daily GPI, Oct. 13).

With high storage levels for all the winter heating fuels and forecasts of warmer than normal temperatures, FERC staff is predicting a relatively good winter ahead for energy consumers and sees no red flags on the horizon for market participants.

With high storage levels for all the winter heating fuels, forecasts of warmer than normal temperatures and recent price declines, FERC staff is predicting a relatively good winter ahead for energy consumers and sees no red flags on the horizon for market participants.

Due to “limited operational flexibility and warmer temperatures across the system,” Tennessee issued a Critical Day 1 OFO Wednesday that will be in effect until further notice. All LMS-PA, LMS-MA and LMS-PL Balancing Parties with meters in Zones L,1, 2, 3, 4, 5 and 6 are required to maintain an actual daily flow rate not exceeding a tolerance of 2% from scheduled quantities or 1,000 Dth/d, whichever is greater. Customers will be assessed $5/Dth plus the applicable regional daily spot price for underdeliveries by receipt point operators and overtakes by delivery point operators that exceed this tolerance. Tennessee said it cannot accept unscheduled imbalances and requires all customers to nominate and schedule all payback.

Continued strength from the tension-filled petroleum sector combined with warmer than normal temperatures in the southern regions of the U.S. worked to buoy natural gas futures Tuesday as May natural gas finally broke out of its recent $6.65-7.65 trading range. Following a high of $8.10 in afternoon trading, the prompt month went on to settle at $8.008, up 43.1 cents on the day, bringing the week’s two-day total gain to 87.3 cents.

Citing a forecast of warmer weather in central Florida and lower linepack, Florida Gas Transmission issued an Overage Alert Day for customers in its market area Friday. The tolerance for negative daily imbalances was set at 20%.

Due to warmer weather being forecasted for Florida, Florida Gas Transmission declared an Overage Alert Day for customers in its market area Monday. The OAD carries 25% tolerance for negative daily imbalances.

Plenty of gas in storage and warmer temperatures on the way will make for happier days for natural gas consumers. Investors in the industry, however, might want to buckle their seatbelts and prepare for some unpleasantness as the market transitions through a light injection season on its way to another winter.