Posted by CNE Market Intel
It appears to be a bright, sunny day for those on the buy-side of natural gas and by extension, electricity. Natural gas futures on the NYMEX for prompt month fell on Thursday, closing within pennies of the 10-year low set in January. Following the EIA’s weekly storage report indicating a smaller-than-expected 80Bcf was withdrawn from storage last week, the market continued its downward trend with prices for delivery in April falling to $2.27/MMBtu.…
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Posted by CNE Market Intel
Last month the EIA released a study focused on the long-term impact of increased domestic natural gas demand from LNG exports. This assessment is timelier than ever considering the Department of Energy now has a total of seven LNG export applications and several projects in progress.
The two main reasons for this surge in project development is cheap domestic supply of natural gas relative to global markets and increasing global demand.
The tragedy of the March 2011 Japanese earthquake and tsunami has forever altered global natural gas demand. Japan…
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Posted by CNE Market Intel
Encana Corp, Canada’s largest natural gas producer and the third largest in North America behind Exxon Mobil and Chesapeake Energy, announced this morning that they were cutting production immediately by 250 mmcf/day and further reductions through reduced capital expenditures (capex) that will bring total volumes cut to 600mmcf/d or .6 Bcf/d.
Encana was producing approximately 3.5 Bcf/d of gas production at the end of 2011. Encana joins Chesapeake and Conoco Phillips in announcing production cuts over the past several weeks as producers look to conserve cash and shift production away from “dry” (almost pure methane) gas to either oil…
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Posted by CNE Market Intel
Renewable Portfolio Standards or RPS are guidelines established by individual states to increase the amount of electricity generated from renewable sources. Renewable sources of electricity include wind, solar, geothermal, biomass and some types of hydro, but can also include landfill gas, municipal solid waste and tidal energy.
The U.S. has always relied heavily on fossil fuels such as natural gas, coal and nuclear to generate the lion-share of its electricity. Those fuels are considered nonrenewable because they represent a finite resource that will ultimately become exhausted or will be too expensive or…
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Posted by CNE Market Intel
On Jan. 23, the NYMEX February gas contract hit a 10-year low of $2.231/mmbtu, a price last seen in March 2002. Monday began what turned out to be a volatile week as Chesapeake Energy (CHK), the second largest gas producer, announced revisions to their 2012 outlook with an immediate cut in gas production and the possibility of further cuts. The announcement sent the NYMEX rallying 38 cents, or as much as 17% on Monday and further gains were made throughout the week. On Thursday, the rally stalled as weather forecasts for February continued to come in warmer than normal, returning…
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Posted by CNE Market Intel
Underground natural gas storage is at a record level and is poised to stay that way throughout the remainder of 2012. The glut of natural gas stems partly from the energy industry’s success with new and more efficient drilling techniques that has allowed production to skyrocket in areas known as shale formations. While production has been increasing, demand for natural gas has not been able to keep up, forcing producers to put their natural gas into storage.
The mild winter across the country has added to the supply/demand imbalance. During the winter season, natural gas is withdrawn from storage to…
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