Natural Gas Week articles from October 2006

Natural Gas Week archives from October 2006

Natural gas weekly spot prices.
October 2, 2006... NATURAL GAS WEEKLY SPOT PRICES Flow Dates: 9/26-10/2 Price Point $/MMBtu Chg. High Low GULF COAST ANR SE 3.92 -0.66 4.33 3.50 Col. Gulf - Erath 3.93 -0.70...

Watch dog: legislation seeks to bring regulation to OTC market.
October 2, 2006... Lack of official oversight or regulation in the over-the-counter (OTC) energy markets has drawn its fair share of attention and criticism over the past couple of years, especially as increased speculation has heightened natural gas price...

East, West coast LNG projects hit snags; smooth gulf sailing.
October 2, 2006... It was a tough week for the LNG industry, with projects on the East and West coasts under attack from federal sources and environmental groups, while on the Gulf Coast, a McMoRan Exploration project got good news from Louisiana and federal...

Cash crashes as NatGas market seeks November contract bottom.
October 2, 2006... Just when traders thought natural gas futures were poised to grind even lower, market bulls pulled a surprise whiplash, sending November prices muscling higher again. Despite light demand and brimming storage, traders are now wondering if...

Chesapeake opts to leave gas in ground than sell at today's prices.
October 2, 2006... Chesapeake Energy decided last week to leave some of its natural gas in the ground instead of selling the unhedged production into today's weak cash market. Over the weekend, the Oklahoma City-based gas producer began shutting in about 100...

Assets sold.(Late news ...)
October 2, 2006... Assets sold: Abraxas Petroleum has closed on the sale of certain non-core assets located in South Texas for $12 million, subject to closing adjustments. The buyer was not identified. The San Antonio-based company said the non-core assets are...

Properties bought.(Late news ...)
October 2, 2006... Properties bought: Ignis Petroleum has acquired 45% of the acreage, producing properties and natural gas gathering and treating system currently held by WB Osborn Oil & Gas Operations and St. Jo Pipeline Limited within the St. Jo Ridge (Barnett...

NGSA winter outlook sees lower prices; but market remains tight.
October 2, 2006... Natural gas consumers could see costs drop by $2 or more per MMBtu this winter over last year, according to Chris Conway, chairman of Natural Gas Supply Association. With storage bulging towards maximum capacity, supply on the rise and...

Intrastate weekly spot prices.
October 2, 2006... INTRASTATE WEEKLY SPOT PRICES Flow Dates: 9/26-10/2 Price Point $/MMBtu Chg. High Low Louisiana Intras -- -- -- -- Oklahoma Intras 3.72 -0.81 3.85 3.35 South Texas...

April leases shelved for review; Wyoming greens cheer action.
October 2, 2006... Some 20,000 acres in the Bridger-Teton National Forest that were auctioned by the Bureau of Land Management in an April lease sale were shelved by the Interior Board of Land Appeals (IBLA) Thursday, after two sets of environmental groups...

Gas market awaits more carnage; Amaranth feared just beginning.
October 2, 2006... In the wake of Amaranth Advisors' $6 billion loss from risky natural gas trading, financial markets have been churning out rumors about other similar debacles by hedge funds trapped on the wrong side of the energy complex. Amaranth, which...

Hess goes looking for deep gas play in Western Gulf of Mexico.
October 2, 2006... New York-based independent Hess is hoping to find gas with a deepwater well it plans to spud soon in the Port Isabel area in the southwest corner of the US Gulf of Mexico. Company spokesman Jay Wilson said the well on the Jack Hays...

Composite spot wellhead price.
October 2, 2006... COMPOSITE SPOT WELLHEAD PRICE January 2002 to Present ($/MMBtu) Year Jan. Feb. March April May June July 2006 8.20 7.30 6.47 6.61 5.93 6.04 5.93 2005 6.05 5.99 6.77 6.99 ...

Midstream deal paves way for expansion of Woodford Shale.
October 2, 2006... Newfield Exploration and MarkWest Energy Partners have signed an agreement for the construction of midstream facilities that will pave the way for expansion of Newfield's natural gas production in the Woodford Shale play of southeast Oklahoma....

Natural gas futures.
October 2, 2006... NATURAL GAS FUTURES Trading Dates: September 25-September 29, 2006 NEW YORK MERCANTILE EXCHANGE (NYMEX) (HENRY HUB) Monday Tuesday Last Volume Last Volume ...

Field extensions in Texas and Colorado boost US gas reserves.
October 2, 2006... US proved reserves of gas rose by 6.2% last year to 204.4 trillion cubic feet--the biggest percentage increase since 1970, according to the Energy Information Administration. US gas reserves have now risen for seven straight years, the EIA...

Report pushes methane hydrates from oddity to key energy source.
October 2, 2006... In the late 1960s, methane hydrates were considered at best a naturally-occurring curiosity for scientists and a genuine nuisance by the energy industry. Today, it is considered a possibly major part of America's energy future. Methane...

North American weekly gas storage.
October 2, 2006... NORTH AMERICAN WEEKLY GAS STORAGE (Billion Cubic Feet) Sep. 22 Sep. 15 Weekly Year Region Week Week Change Ago US East 1874 1835 39 1691...

Natural gas bidweek prices.
October 2, 2006... NATURAL GAS BIDWEEK PRICES Flow Dates: 10/1-10/31 October Chg. Price Avg. from Point $/MMBtu Prev. High Low GULF COAST ANR SE 4.03 ...

Crosstex sees bright future with success in Barnett Shale, Gulf.
October 2, 2006... Patience. Planning. People. For Dallas-based Crosstex Energy, those three words sum up the vision the company has followed since it was created a decade ago, said Executive Vice President A. Chris Aulds. That vision, he said, has...

NGW'S monthly weighted averages.
October 2, 2006... NGW'S MONTHLY WEIGHTED AVERAGES $/MMBtu Price Point Sep-06 Aug-06 Jul-06 Jun-06 Gulf Coast ANR SE 4.65 7.25 5.85 6.19 Col. Gulf - Erath 4.94 ...

Coal plants controversy heat rate increases.(Current)
October 2, 2006... If you thought the politics of energy was centered inside the Beltway, guess again. Local and state elections often hinge on a NIMBY issue or the high cost of energy. But a recent development in Texas shows a new twist: a race-based...

Fats, oils seen as future peaking fuel.(Current)
October 2, 2006... Music legend Willie Nelson says in his latest book, The Tao of Willie, that he's gained in popularity with the ladies since he's fueled his Mercedes with biodiese derived from used vegetable grease, emitting an aroma of donuts from its exhaust....

Petitioners seek PUCT support for lone star energy efficiency.(Current)
October 2, 2006... A coalition of electricity consumers is asking the Public Utilities Commission of Texas (PUCT) to set up a market-based plan to help energy efficiency programs flourish. Efficiency Texas, a broad-based coalition of electricity consumers,...

Supreme Court to hear emissions case.(Current)
October 2, 2006... The US Supreme Court will decide on a case in its upcoming term that has been brewing for more than 30 years. The outcome of Environmental Defense v. Duke Energy undoubtedly will set precedent on whether owners of older, less-efficient coal...

Spot electricity trading.(Current)
October 2, 2006... SPOT ELECTRICITY TRADING Trading Dates: September 25-September 29, 2006 NEW YORK MERCANTILE EXCHANGE (NYMEX) (HENRY HUB) Avg. Price Avg. Price This Last Year Month...

DOE to award $8 m for "new nuke" plans.(Current)
October 2, 2006... The Department of Energy's Idaho National Laboratory will award about $8 million to three companies for conceptual work in designing the high-temperature reactor to be used by the new generation of nuclear-fueled power plants. Westinghouse...

Utilities having a '70s flashback.(Current)
October 2, 2006... Everything old is new again, according to power industry leaders meeting last week, at EUCG's annual fall workshop in Dallas. Electricity utilities are experiencing a host of strategic and operational issues similar to the ones they faced in...

Comparative fuel prices.(Current)
October 2, 2006... COMPARATIVE FUEL PRICES (Cash Market) October 2, 2006 APPALACHIA Appalachian Pool Ohio/Big Sandy River Coal Dlvd (Util) $43.25/ton $4.26/MMBtu ...

BLM Alaska lease sale includes 83 Tcf in reserves, hits $13.8 m.(Regional Market Roundup)
October 2, 2006... Four companies--ConocoPhillips, FEX LP, Petro-Canada and Anadarko Petroleum--bid for the rights to develop 81 oil and gas tracts on 940,000 acres of the National Petroleum Reserve-Alaska. The controversial lease sale in a northern Alaska...

Key Republican leaders have demanded the Interior Department to come up with a new plan to recover disputed royalties from companies for deepwater leases issued in 1998-99.(Washington, D.C.)
October 2, 2006... Key Republican leaders have demanded the Interior Department to come up with a new plan to recover disputed royalties from companies for deepwater leases issued in 1998-99. In a letter to Interior Secretary Dirk Kempthorne, Government...

US proved crude oil reserves last year rose for the first time in three years and natural gas reserves had their biggest annual increase since 1970, according to the federal Energy Information Administration.(Washington, D.C.)
October 2, 2006... US proved crude oil reserves last year rose for the first time in three years and natural gas reserves had their biggest annual increase since 1970, according to the federal Energy Information Administration. Crude oil reserves jumped 1.8%...

Mariner Energy has restarted production at two of its deepwater Gulf of Mexico projects--Ochre, shut down by Hurricane Ivan in 2004, and Pluto, shut down by Hurricane Katrina a year later.(Gulf of Mexico)
October 2, 2006... Mariner Energy has restarted production at two of its deepwater Gulf of Mexico projects--Ochre, shut down by Hurricane Ivan in 2004, and Pluto, shut down by Hurricane Katrina a year later. A spokesman for Houston-based Mariner Energy said...

Baker Hughes rig count.(Regional Market Roundup)
October 2, 2006... BAKER HUGHES RIG COUNT Week Ended Sep. 29 Rotary Rigs Current Previous Year Week Week Ago Total US 1,744 1,754 1,483 Land ...

Semisubmersible ordered.(Also noted)
October 2, 2006... Semisubmersible ordered: Offshore driller Ensco plans to build another ultra-deepwater drilling rig, announcing that a Singapore shipyard has been contracted to build the Ensco 8502 semisubmersible. The Ensco 8502 joins two other deepwater...

Company bought.(Also noted)
October 2, 2006... Company bought: Harvey, Louisiana-based Superior Energy Services will acquire Warrior Energy Services in a cash and stock deal valued at about $358 million. Superior Energy's Chairman and Chief Executive Terence Hall said that under the deal,...

Plant online.(Also noted)
October 2, 2006... Plant online: Atlas Pipeline Partners' new 120 million cubic feet per day cryogenic gas processing plant and gathering systems in Beckham County, Oklahoma, is now operational. The Sweetwater plant is located about 30 miles west of the...

Gas price trends.(Regional Market Roundup)
October 2, 2006... GAS PRICE TRENDS ($/MMBtu) ROCKY NEW CALIFORNIA MTNS MEXICO South North October 2, 2006 Inter (well) ...

Bear Head LNG sale collapses; buyers miss closing deadline.(Canadian Markets)
October 2, 2006... Anadarko Petroleum's efforts to sell its Bear Head LNG project in Nova Scotia to a European investment group have fallen through as the prospective buyer did not close by the stipulated date, the company last week said in a filing with the...

LNG pack inked.(Canadian Markets)
October 2, 2006... LNG pack inked: Australia's LNG Ltd. has signed an agreement to supply 1.8 million tons of liquefied natural gas per year (240,000 cubic feet per day) to Kitimat LNG's proposed regasification terminal in British Columbia. The agreement...

Wind project OK'd.(Canadian Markets)
October 2, 2006... Wind project OK'd: Officials with Shear Wind of Halifax, Nova Scotia, and Vindt Resources of Calgary, Alberta, have established a joint venture to develop the Coyote Ridge Wind Park Project, outside Lethbridge, Alberta. The project would cover...

Ethanol plant opened.(Canadian Markets)
October 2, 2006... Ethanol plant opened: Husky Energy has opened the Lloydminster, Saskatchewan Ethanol Plant. The facility is the largest plant of its kind in Western Canada and will produce annually at peak production about 30 million gallons of ethanol and...

Rig Count.(Canadian Markets)
October 2, 2006... Rig Count: There were 313 rigs drilling for natural gas and oil in Western Canada as of Sep. 26, a decrease of 123 from the week before, according to the CAODC. During the same period a year ago, CAODC reported that 583 rigs were drilling...

Working gas.(Canadian Markets)
October 2, 2006... Working gas in all Canadian storage facilities rose to 91.9% of capacity as of Sep. 22, with a 5.5 Bcf increase from the week before, according to the most recent Canadian Enerdata gas storage survey. A total of 439.0 Bcf of gas was in...

The composite spot import price.(Canadian Markets)
October 2, 2006... The composite spot import price this week is US$3.90/MMBtu for gas leaving Canada and entering the US through six border crossing points. Natural Gas Week's Oct. 3, 2005, average for Canadian exports was US$10.98/MMBtu. Canada's...

Qatari concern over North Field geology delays LNG, GTL projects.(World Roundup)
October 2, 2006... It's likely to be 2009 before Qatar approves any new LNG or gas-to-liquids projects--if it even does then. Qatari sources confirm reports that a technical study of the North Field reservoir will not be complete before late 2008, at the...

Germans pay up for gas; UK gets cheap.(World Roundup)
October 2, 2006... Germany's average wholesale gas import price reached almost $8/MMBtu in July, as lagged indexation to oil prices in long-term contracts took its toll on buyers in mainland Europe's largest market after Russia. But illustrating just how...

Tangguh sold out, third train likely.(World Roundup)
October 2, 2006... An agreement to supply LNG from Indonesia's Tangguh project to a receiving terminal under construction at Fujian, China, means that the first two trains of the BP-led project are sold out to customers in China, Mexico and South Korea. A...

Canadian price report.(World Roundup)
October 2, 2006... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) --BRITISH COLUMBIA-- Huntingdon/ Kingsgate/ Total ...

Benign hurricane season sinks Amaranth, more fallout expected.
October 2, 2006... I love a good conspiracy as much as the next guy, but the sudden collapse of gasoline prices--as fortuitous as it is for Republicans right before the mid-term elections--isn't that mysterious. Driving season is over, inventories are...

Gas price report.
October 2, 2006... GAS PRICE REPORT ($/MMBtu--Spot) October 2, 2006 Interstate Intrastate Wellhead Wellhead Bid Bid ...

The Natural Gas Week composite spot wellhead price this week is $3.85/MMBtu, 48 cents less than last week and $8.17 less than the Oct. 3, 2005, average.
October 2, 2006... The Natural Gas Week composite spot wellhead price this week is $3.85/MMBtu, 48 cents less than last week and $8.17 less than the Oct. 3, 2005, average. The spot delivered-to-pipeline price this week is $3.99/MMBtu, 61 cents less than last week...

Murkowski handing off uncertain future for Alaska NatGas pipeline.
October 9, 2006... With only two months remaining in his term, the future of Gov. Frank Murkowski's proposal for a stranded gas contract with Alaska's three big oil companies remains very much in doubt. Murkowski, a Republican, has all but given up attempting...

Natural gas weekly spot prices.
October 9, 2006... NATURAL GAS WEEKLY SPOT PRICES Flow Dates: 10/3-10/9 Price Point $/MMBtu Chg. High Low GULF COAST ANR SE 4.24 +0.32 4.64 3.89 Col. Gulf - Erath 4.26 +0.34 4.67...

"Arrogance": Blanco broadsides MMS in wake of landloss report.
October 9, 2006... A report from the US Geological Survey released this week shows Louisiana lost 217 square miles because of tidal actions from hurricanes Katrina and Rita. And like throwing a match into a gas-filled room, the report has unleashed a firestorm of...

Deja-Vu: 'October Surprise' run hits early, shocks market again.
October 9, 2006... Riddle: What happens like clockwork in the US natural gas market, but still seems to take everyone by surprise? Answer: The annual "October Surprise" natural gas rally, which, as much as it flies in the face of light shoulder-month demand and...

Questar responds to low prices by shutting in some production.
October 9, 2006... It certainly doesn't amount to a stampede as yet, but another producer has decided to shut in a portion of its unhedged gas production in response to low gas prices. Questar Exploration & Production is temporarily suspending 70 million...

Project canceled.(Late news ...)
October 9, 2006... Project canceled: Officials with El Paso have announced they are dropping their plans for a 700-mile, 1 billion cubic feet per day pipeline project called the Continental Connector because of the heavy competition among pipeline companies to...

Opposition grows.(Late news ...)
October 9, 2006... Opposition grows: The opposition to Sound Energy Solutions' proposed $700 million, 700 MMcf/d receiving terminal at the Port of Long Beach in Long Beach, California, is continuing to grow, with Mayor-elect Bob Foster joining the list of...

Ex-trader sentenced.(Late news ...)
October 9, 2006... Ex-trader sentenced: Former El Paso Vice President Todd Geiger has been sentenced to two years in prison with two years of probation after he serves his time in federal prison. The sentence was handed down by US District Judge Nancy Atlas in...

Alaska, Exxon Mobil headed for showdown on Point Thomson field.
October 9, 2006... Alaska lawmakers disagree on whether the massive Point Thomson natural gas field should qualify for incentives under any deal between the state and three big oil companies for a $25 billion pipeline project. Gov. Frank Murkowski has...

4Gas outlines maple LNG plans, fourth Atlantic Basin LNG project.
October 9, 2006... Plans for an LNG receiving terminal near Goldboro, Nova Scotia, never progressed much beyond the concept stage until Dutch-based 4Gas and partners took over the venture late last year from Keltic Petrochemical. Now, executives of the LNG...

Intrastate weekly spot prices.
October 9, 2006... INTRASTATE WEEKLY SPOT PRICES Flow Dates: 10/3-10/9 Price Point $/MMBtu Chg. High Low Louisiana Intras -- -- -- -- Oklahoma Intras 3.85 +0.13 4.25 3.75 South Texas...

New frontier energy finding CBM projects fit well in strategic plan.
October 9, 2006... Unconventional gas plays are very quickly becoming a key to the nation's energy future. "And it will only get bigger. That's why we are here," said Paul G. Laird, president of New Frontier Energy, of the Littleton, Colorado-based...

Petsec energy starts aggressive Gulf of Mexico gas drilling spree.
October 9, 2006... Embarking on an admittedly ambitious plan, Petsec Energy has forecasted it will drill as many as 11 wells in the Gulf before the end of the year. Petsec Executive Chairman Terry Fern said the Australian company, which has its US...

North American weekly gas storage.
October 9, 2006... NORTH AMERICAN WEEKLY GAS STORAGE (Billion Cubic Feet) Sep. 29 Sep. 22 Weekly Year Region Week Week Change Ago US East 1914 1874 40 1728...

Natural gas futures.
October 9, 2006... NATURAL GAS FUTURES Trading Dates: October 2-October 6, 2006 NEW YORK MERCANTILE EXCHANGE (NYMEX) (HENRY HUB) Monday Tuesday Wednesday Last Volume Last ...

Pipeline capacity utilization.
October 9, 2006... PIPELINE CAPACITY UTILIZATION October October (2006) (2005) Month-to- Month-to- Location ...

Fuss ebbing over undersea connections to grid.(Current)
October 9, 2006... Most parents with several children will admit sheepishly how they over-documented Jr.'s first steps and even such minor hallmarks as the first time he ate solid food. But by the time the third child comes around, he's lucky to have a hospital...

Northwest hydro reserves hit year lows.(Current)
October 9, 2006... Not so coincidentally, the diciest time of year in terms of planning power resources around scant hydro in the Pacific Northwest is also the easiest. Just before winter precipitation falls and the coveted snowpack begins to build, usually...

BPA makes good on 3% wholesale rate cut for northest customers.(Current)
October 9, 2006... Bonneville Power Administration (BPA), the not-for-profit federal agency that markets about 40% of the electricity consumed in the Pacific Northwest, announced last week that it cut its wholesale power rates as planned by about 3% (NGW...

Montana coal-to-liquids plant announced.(Current)
October 9, 2006... Arch Coal and DKRW Advanced Fuels say they're planning a $1 billion coal-to-liquids plant in Montana that will be able to produce 22,000 barrels of diesel and 300 megawatts of electricity within six years. The stored carbon dioxide will be...

Spot electricity trading.(Current)
October 9, 2006... SPOT ELECTRICITY TRADING Trading Dates: October 2-October 6, 2006 NEW YORK MERCANTILE EXCHANGE (NYMEX) (HENRY HUB) Avg. Price Avg. Price This Last Year Month...

Renewables cinch constellation contract.(Current)
October 9, 2006... Constellation Energy subsidiary Constellation NewEnergy has won a five-year extension of its competitive power supply contract with the Alberta municipality of Jasper. The new contract calls for the supply portfolio to consist of...

Wells Fargo inks wind energy contract.(Current)
October 9, 2006... Financial services company Wells Fargo & Co. will buy renewable energy certificates to support generating 550 million kilowatt hours of clean, renewable wind energy a year for three years. The move makes Wells Fargo the largest corporate...

Comparative fuel prices.(Current)
October 9, 2006... COMPARATIVE FUEL PRICES (Cash Market) October 9, 2006 APPALACHIA Ohio/Big Sandy Appalachian Pool River Coal Dlvd (Util) $42.75/ton ...

Study foresees rockies NatGas production doubling in decade.(Regional Market Roundup)
October 9, 2006... Rocky Mountain natural gas production capacity could "nearly double" by 2015, according to a new study by New York-based energy consulting firm PIRA Energy Group. "Ready for Prime Time: Future Rockies Supply and Western Basis" is the first...

Dominion and Statoil ASA have broken ground on an expansion project that will increase capacity.(Maryland)
October 9, 2006... Dominion and Statoil ASA have broken ground on an expansion project that will increase capacity and storage at the Dominion Cove Point LNG facility in southern Maryland. In a joint statement, officials with Dominion and Statoil said the...

The West Coast governors have banded together to fight "any action" by the federal government to end or weaken the ban on drilling for oil and gas off the coasts of California.(California)
October 9, 2006... The West Coast governors have banded together to fight "any action" by the federal government to end or weaken the ban on drilling for oil and gas off the coasts of California, Oregon and Washington. In a letter to President Bush early...

The Federal Energy Regulatory Commission has approved a plan by Straight Creek Gathering.(Kentucky)
October 9, 2006... The Federal Energy Regulatory Commission has approved a plan by Straight Creek Gathering, a subsidiary of Atmos Energy, to build a 60-mile natural gas pipeline in eastern Kentucky at a cost of between $75 million and $80 million. Officials...

El Paso has withdrawn its application for a $190 million Bahamas-to-Florida pipeline.(Florida)
October 9, 2006... El Paso has withdrawn its application for a $190 million Bahamas-to-Florida pipeline. In its letter to the Federal Energy Regulatory Commission, the company said it is shelving the Seafarer US Pipeline System because LNG supply had not been...

The Federal Energy Regulatory Commission has OK'd a 172-mile.(Texas)
October 9, 2006... The Federal Energy Regulatory Commission has OK'd a 172-mile, $425 million natural gas pipeline between Texas and Louisiana. The CenterPoint Energy Gas Transmission project will move 1.2 billion cubic feet per day from East Texas to the...

Baker hughes rig count.(Regional Market Roundup)
October 9, 2006... BAKER HUGHES RIG COUNT Week Ended Oct. 6 Rotary Rigs Current Previous Year Week Week Ago Total US 1,724 1,744 1,481 Land ...

Property sold.(Also noted)
October 9, 2006... Property sold: Cabot Oil & Gas has completed the sale of its offshore and South Louisiana reserves to Phoenix Exploration in a cash deal valued at $340 million.