US Gas Prices Spike Ahead of Freeze. With swathes of the US preparing for a cold spell, natural gas spot prices in the Northeast have soared to a five-year high with the benchmark Algonquin city-gates quote exceeding $30 per mmBtu, a whopping $22-23/mmBtu premium to Henry Hub.
Our large-cap "gassers" (AR, CRK, EQT, RRC and CTRA) have first class marketing teams that can take advantage of these high spot market prices.
Natural Gas Spot Prices - Dec 23
Natural Gas Spot Prices - Dec 23
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Natural Gas Spot Prices - Dec 23
U.S. natural gas output drops as winter storm disrupts production. Bloomberg.
U.S. natural gas output is expected to plunge the most since last winter as freezing weather across key production regions shuts wells. Daily output of the heating and power-generation fuel is estimated at less than 96 billion cubic feet on Thursday, down from roughly 100 billion a day earlier, according to preliminary BloombergNEF data based on pipeline nominations. That would be the biggest one-day drop since Feb. 3, when bitter cold and snow descended on Texas.
Winter storm: Energy demand will stress the electrical, natural gas systems. Fox Business.
America's natural gas and electrical system will be put to the test in the next few days as a winter storm that's expected to cascade across the country brings heavy snowfall, ice, flooding and powerful winds. The National Weather Service says a tremendously impactful winter storm will continue to affect large portions of the nation late this week and going into the holiday weekend. Winter weather hazards will stretch from border to border across the central and eastern U.S. and from coast to coast from the east coast to the Pacific Northwest. Although the system is going to be stressed like never before, Harbert said utility companies have been preparing all year for this. "Demand is going to be unprecedented. And they're going to try and manage that load demand very carefully," she added.
Bearish natural gas storage print sends futures prices below $5 despite ‘bomb cyclone’. NGI.
Natural gas futures fell for the fourth time in five sessions on Thursday, following a bearish storage print and continued calls for warmer weather to start the year ahead. The January Nymex gas futures contract settled at $4.999/MMBtu, down 33.3 cents day/day. February fell 31.0 cents to $4.928. NGI’s Spot Gas National Avg. climbed on Thursday, adding 51.5 cents to $16.580. Cash prices held in lofty territory after spiking nearly $7.00 the day before as a fierce Arctic chill spread across much of the Lower 48. Snow and ice storms were underway Thursday across the Midwest, and National Weather Service (NWS) data pointed to such conditions spreading to the East and South by Friday.
U.S. oil, gas rig count falls by nine as gas-focused drilling slows. S&P Global.
The US oil and gas drilling rig count fell nine to 863 in the week ended Dec. 21, S&P Global Commodity Insights data showed Dec. 22. An eight-rig slide in the number of gas-focused drilling rigs to 184 comprised the bulk of the weekly decline, while the number of rigs chasing primarily oil dipped one to 679. Most of these idled gas rigs were found outside the major plays, however. Rig counts in the eastern Marcellus and Utica shale play declined by two and one, respectively, to 33 and 14, but the number of rigs active in the southern Haynesville basin was steady at 81. In contrast, Permian basin rig counts climbed to 354, testing the top of its recent range, and Bakken drillers added three rigs for a total of 44—a six-week high.
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I just scrolled through the 10-day weather forecast maps. Looks like after Christmas Day the SE quarter of the country will warm up (over 70F in Houston) for the rest of the week. However, by day 9 the cold air over the western half of the country starts to spread and by January 1 the Great Lakes region is back near freezing temperatures at night. Just a reminder that we are just at the beginning of winter.
U.S. natural gas output is expected to plunge the most since last winter as freezing weather across key production regions shuts wells. Daily output of the heating and power-generation fuel is estimated at less than 96 billion cubic feet on Thursday, down from roughly 100 billion a day earlier, according to preliminary BloombergNEF data based on pipeline nominations. That would be the biggest one-day drop since Feb. 3, when bitter cold and snow descended on Texas.
Winter storm: Energy demand will stress the electrical, natural gas systems. Fox Business.
America's natural gas and electrical system will be put to the test in the next few days as a winter storm that's expected to cascade across the country brings heavy snowfall, ice, flooding and powerful winds. The National Weather Service says a tremendously impactful winter storm will continue to affect large portions of the nation late this week and going into the holiday weekend. Winter weather hazards will stretch from border to border across the central and eastern U.S. and from coast to coast from the east coast to the Pacific Northwest. Although the system is going to be stressed like never before, Harbert said utility companies have been preparing all year for this. "Demand is going to be unprecedented. And they're going to try and manage that load demand very carefully," she added.
Bearish natural gas storage print sends futures prices below $5 despite ‘bomb cyclone’. NGI.
Natural gas futures fell for the fourth time in five sessions on Thursday, following a bearish storage print and continued calls for warmer weather to start the year ahead. The January Nymex gas futures contract settled at $4.999/MMBtu, down 33.3 cents day/day. February fell 31.0 cents to $4.928. NGI’s Spot Gas National Avg. climbed on Thursday, adding 51.5 cents to $16.580. Cash prices held in lofty territory after spiking nearly $7.00 the day before as a fierce Arctic chill spread across much of the Lower 48. Snow and ice storms were underway Thursday across the Midwest, and National Weather Service (NWS) data pointed to such conditions spreading to the East and South by Friday.
U.S. oil, gas rig count falls by nine as gas-focused drilling slows. S&P Global.
The US oil and gas drilling rig count fell nine to 863 in the week ended Dec. 21, S&P Global Commodity Insights data showed Dec. 22. An eight-rig slide in the number of gas-focused drilling rigs to 184 comprised the bulk of the weekly decline, while the number of rigs chasing primarily oil dipped one to 679. Most of these idled gas rigs were found outside the major plays, however. Rig counts in the eastern Marcellus and Utica shale play declined by two and one, respectively, to 33 and 14, but the number of rigs active in the southern Haynesville basin was steady at 81. In contrast, Permian basin rig counts climbed to 354, testing the top of its recent range, and Bakken drillers added three rigs for a total of 44—a six-week high.
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I just scrolled through the 10-day weather forecast maps. Looks like after Christmas Day the SE quarter of the country will warm up (over 70F in Houston) for the rest of the week. However, by day 9 the cold air over the western half of the country starts to spread and by January 1 the Great Lakes region is back near freezing temperatures at night. Just a reminder that we are just at the beginning of winter.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group