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

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

Sign up for FUELSNews for daily market information and insights
Sign Me Up
Make a Call

We are happy to discuss your business challenges over the phone and answer any questions.

800.695.6626

Send Email

Ask your toughest questions. We'll get back to you with the best answer humanly possible.

Send Email

Find a Location

Need to contact a specfic office? View contact information for offices across the country.

View Locations

Get a Quote

Let us know what type of fuel or service you need and a team member will get a quote to you quickly.

Get a Quote