Natural Gas News – August 6, 2018
Natural Gas News – August 6, 2018
Natural Gas Price Spike May Be Looming
Forbes reported: The late Matt Simmons predicted in 2003 that with “certainty,” by 2005 the US would embark on a long-term natural gas crisis for which the only solution was “to pray.” T. Boone Pickens and a number of high-profile energy insiders concurred. ConocoPhillips and ExxonMobil made large acquisitions of natural gas companies, betting on a future with much higher natural gas prices. Liquefied natural gas (LNG) import terminals were built to help address the expected supply shortfall. Of course, that didn’t happen. Natural gas production rose sharply as a result of advances in hydraulic fracturing and horizontal drilling, and that kept prices under control. Natural gas spot prices fell below $10/MMBtu in 2008, and since 2010 have rarely been above $5/MMBtu. There have been two exceptions since then. During the winter of 2014, low natural gas inventories caused spot prices to briefly spike above $8/MMBtu. For more on this story visit forbes.com or click https://bit.ly/2KwYPDE
US FERC Halts Work on Full Route of Mountain Valley Natural Gas Pipeline After Court Ruling
S&P Global Platts reported: The US Federal Energy Regulatory Commission late Friday halted work on the full route of the 301-mile, 2 Bcf/d Mountain Valley Pipeline, in light of an appeals court ruling that struck the federal permits allowing the natural gas project to run through national forest land. The decision marks another hurdle for a project that would move West Virginia production to downstream markets in Transcontinental Pipe Line’s Zone 5 near the Virginia-North Carolina border. In a letter order Friday, Terry Turpin, director of FERC’s Office of Energy Projects, said: “Allowing continued construction poses the risk of expending substantial resources and substantially disturbing the environment by constructing facilities that ultimately might have to be relocated or abandoned,” should federal resource agencies need to authorize alternative routes. For more on this story visit spglobal.com or click https://bit.ly/2nfJyO4
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