Natural Gas News – September 5, 2018
Natural Gas News – September 5, 2018
NYMEX Oct Natural Gas Futures Lower at $2.847/MMBtu After Production Hits Record High Over Weekend
S&P Global reported: NYMEX October natural gas futures dropped 6.9 cents Tuesday, as record production over the weekend put downward pressure on the market. The front-month contract was at $2.847/ MMBtu at 10:25 am EDT (1425 GMT), after trading in a range of $2.818 and $2.904 on Tuesday. US dry gas production reached a record high over the long Labor Day Weekend, increasing to 83.4 Bcf/d Sunday. It has decreased to 82.5 Bcf/d Tuesday, according to S&P Global Platts Analytics. Total demand — including exports to Mexico and LNG exports — decreased by 700 MMcf/d on the day to 75.8 Bcf/d Tuesday. For more on this story visit spglobal.com or click https://bit.ly/2wJ6oDc
African Oil Hunt Returns as Majors Seek to Tap Vast Reserves
Bloomberg reported: Africa is entering the oil-hunt spotlight as drillers, flush with cash after crude’s recovery, are turning their attention back to the continent’s potentially vast resources. The world’s biggest companies from Exxon Mobil Corp. to Royal Dutch Shell Plc and BP Plc are setting up camp across Africa. Armed with stronger balance sheets and higher crude prices the industry is on track to double drilling in African waters this year. Rising natural gas demand is adding to the attraction. “The majors starting to move into these areas for exploration again is probably the first sign of things picking up,” said Adam Pollard, an analyst at consultant Wood MacKenzie Ltd. He said Africa “may be one of the first to get hit when the price goes against explorers, but equally it’s perceived to be one of the places where people are keen to get involved when the price is supportive.” There are plenty of signs of a recovery. Rigs working in waters off Africa have increased to the highest in two years, according to Baker Hughes data. Consultant Rystad Energy AS expects 30 offshore exploration wells to be drilled this year compared with 17 last year. For more on this story visit bloomberg.com or click https://bloom.bg/2wL501I
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