Natural Gas Inventory Report 12-28-07

Working gas in storage was 3,008 Bcf as of Friday, December 21, 2007, according to EIA estimates. This represents a net decline of 165 Bcf from the previous week. Stocks were 120 Bcf less than last year at this time and 220 Bcf above the 5-year average of 2,788 Bcf. In the East Region, stocks were 46 Bcf above the 5-year average following net withdrawals of 100 Bcf. Stocks in the Producing Region were 135 Bcf above the 5-year average of 803 Bcf after a net withdrawal of 47 Bcf. Stocks in the West Region were 40 Bcf above the 5-year average after a net drawdown of 18 Bcf. At 3,008 Bcf, total working gas is within the 5-year historical range.

Natural Gas Inventory Report 12-20-07

Working gas in storage was 3,173 Bcf as of Friday, December 14, 2007, according to EIA estimates. This represents a net decline of 121 Bcf from the previous week. Stocks were 4 Bcf less than last year at this time and 266 Bcf above the 5-year average of 2,907 Bcf. In the East Region, stocks were 68 Bcf above the 5-year average following net withdrawals of 74 Bcf. Stocks in the Producing Region were 155 Bcf above the 5-year average of 830 Bcf after a net withdrawal of 25 Bcf. Stocks in the West Region were 43 Bcf above the 5-year average after a net drawdown of 22 Bcf. At 3,173 Bcf, total working gas is within the 5-year historical range.

Natural Gas Inventory Report 12-13-07

Working gas in storage was 3,294 Bcf as of Friday, December 7, 2007, according to EIA estimates. This represents a net decline of 146 Bcf from the previous week. Stocks were 32 Bcf higher than last year at this time and 259 Bcf above the 5-year average of 3,035 Bcf. In the East Region, stocks were 61 Bcf above the 5-year average following net withdrawals of 101 Bcf. Stocks in the Producing Region were 145 Bcf above the 5-year average of 865 Bcf after a net withdrawal of 35 Bcf. Stocks in the West Region were 52 Bcf above the 5-year average after a net drawdown of 10 Bcf. At 3,294 Bcf, total working gas is above the 5-year historical range.

Natural Gas Inventory Report 12-06-07

Working gas in storage was 3,440 Bcf as of Friday, November 30, 2007, according to EIA estimates. This represents a net decline of 88 Bcf from the previous week. Stocks were 32 Bcf higher than last year at this time and 273 Bcf above the 5-year average of 3,167 Bcf. In the East Region, stocks were 84 Bcf above the 5-year average following net withdrawals of 45 Bcf. Stocks in the Producing Region were 143 Bcf above the 5-year average of 902 Bcf after a net withdrawal of 29 Bcf. Stocks in the West Region were 46 Bcf above the 5-year average after a net drawdown of 14 Bcf. At 3,440 Bcf, total working gas is above the 5-year historical range.

Natural Gas Inventory Report 11-29-07

Working gas in storage was 3,528 Bcf as of Friday, November 23, 2007, according to EIA estimates. This represents a net decline of 12 Bcf from the previous week. Stocks were 106 Bcf higher than last year at this time and 301 Bcf above the 5-year average of 3,227 Bcf. In the East Region, stocks were 95 Bcf above the 5-year average following net withdrawals of 14 Bcf. Stocks in the Producing Region were 157 Bcf above the 5-year average of 917 Bcf after a net injection of 3 Bcf. Stocks in the West Region were 49 Bcf above the 5-year average after a net drawdown of 1 Bcf. At 3,528 Bcf, total working gas is above the 5-year historical range.

Natural Gas Inventory Report 11-21-07

Working gas in storage was 3,540 Bcf as of Friday, November 16, 2007, according to EIA estimates. This represents a net increase of 4 Bcf from the previous week. Stocks were 91 Bcf higher than last year at this time and 284 Bcf above the 5-year average of 3,256 Bcf. In the East Region, stocks were 87 Bcf above the 5-year average following net withdrawals of 11 Bcf. Stocks in the Producing Region were 148 Bcf above the 5-year average of 923 Bcf after a net injection of 8 Bcf. Stocks in the West Region were 50 Bcf above the 5-year average after a net addition of 7 Bcf. At 3,540 Bcf, total working gas is above the 5-year historical range.

Natural Gas Inventory Report 11-15-07

Working gas in storage was 3,536 Bcf as of Friday, November 9, 2007, according to EIA estimates. This represents a net decline of 9 Bcf from the previous week. Stocks were 87 Bcf higher than last year at this time and 273 Bcf above the 5-year average of 3,263 Bcf. In the East Region, stocks were 92 Bcf above the 5-year average following net withdrawals of 15 Bcf. Stocks in the Producing Region were 139 Bcf above the 5-year average of 924 Bcf no net change in stock levels. Stocks in the West Region were 43 Bcf above the 5-year average after a net addition of 6 Bcf. At 3,536 Bcf, total working gas is above the 5-year historical range.

Natural Gas prices have retreated from their highs and now stand just above both the 50 and 200 day moving averages.

Natural Gas Inventory Report 11-08-07

Working gas in storage was 3,545 Bcf as of Friday, November 2, 2007, according to EIA estimates. This represents a net increase of 36 Bcf from the previous week. Stocks were 99 Bcf higher than last year at this time and 291 Bcf above the 5-year average of 3,254 Bcf. In the East Region, stocks were 110 Bcf above the 5-year average following net injections of 13 Bcf. Stocks in the Producing Region were 143 Bcf above the 5-year average of 920 Bcf a net injection of 17 Bcf. Stocks in the West Region were 37 Bcf above the 5-year average after a net addition of 6 Bcf. At 3,545 Bcf, total working gas is above the 5-year historical range.

Natural Gas Inventory Report 11-01-07

Working gas in storage was 3,509 Bcf as of Friday, October 26, 2007, according to EIA estimates. This represents a net increase of 66 Bcf from the previous week. Stocks were 56 Bcf higher than last year at this time and 272 Bcf above the 5-year average of 3,237 Bcf. In the East Region, stocks were 107 Bcf above the 5-year average following net injections of 34 Bcf. Stocks in the Producing Region were 133 Bcf above the 5-year average of 913 Bcf a net injection of 26 Bcf. Stocks in the West Region were 32 Bcf above the 5-year average after a net addition of 6 Bcf. At 3,509 Bcf, total working gas is above the 5-year historical range.

Natural Gas Inventory Report 10-25-07

Working gas in storage was 3,443 Bcf as of Friday, October 19, 2007, according to EIA estimates. This represents a net increase of 68 Bcf from the previous week. Stocks were 15 Bcf less than last year at this time and 232 Bcf above the 5-year average of 3,211 Bcf. In the East Region, stocks were 87 Bcf above the 5-year average following net injections of 38 Bcf. Stocks in the Producing Region were 116 Bcf above the 5-year average of 904 Bcf after a net injection of 23 Bcf. Stocks in the West Region were 28 Bcf above the 5-year average after a net addition of 7 Bcf. At 3,443 Bcf, total working gas is within the 5-year historical range.

Natural Gas Inventory Report 10-18-07

Working gas in storage was 3,375 Bcf as of Friday, October 12, 2007, according to EIA estimates. This represents a net increase of 39 Bcf from the previous week. Stocks were 59 Bcf less than last year at this time and 213 Bcf above the 5-year average of 3,162 Bcf. In the East Region, stocks were 78 Bcf above the 5-year average following net injections of 25 Bcf. Stocks in the Producing Region were 108 Bcf above the 5-year average of 889 Bcf after a net injection of 9 Bcf. Stocks in the West Region were 27 Bcf above the 5-year average after a net addition of 5 Bcf. At 3,375 Bcf, total working gas is within the 5-year historical range.

The United States Natural Gas Fund is on the verge of breaking through resistance above $41.50.

A close above $42 would be a very bullish signal and would indicate a high probability of a move back toward the highs set in August.

Natural gas futures on the NYMEX rose 47.1 cents to settle at $7.445 per 1,000 cubic feet in Mondays trading.

Cooler weather forecasts for next week in the Northeast and Midwest and a storm in the Caribbean Sea were catalysts for the price appreciation.

Natural Gas Technical Levels......Week Of 10-15-07

November Natural Gas Technical Levels

Resistance: 7.081 and 7.505

Support: 6.745 and 6.70

Natural Gas Inventory Report 10-11-07

Working gas in storage was 3,336 Bcf as of Friday, October 5, 2007, according to EIA estimates. This represents a net increase of 73 Bcf from the previous week. Stocks were 44 Bcf less than last year at this time and 237 Bcf above the 5-year average of 3,099 Bcf. In the East Region, stocks were 91 Bcf above the 5-year average following net injections of 43 Bcf. Stocks in the Producing Region were 118 Bcf above the 5-year average of 870 Bcf after a net injection of 23 Bcf. Stocks in the West Region were 29 Bcf above the 5-year average after a net addition of 7 Bcf. At 3,336 Bcf, total working gas is within the 5-year historical range.

Natural Gas prices dipped below the 200 day moving average of $7.12, but remain above the 50 day moving average of $6.48

Natural Gas Inventory Report 10-04-07

Working gas in storage was 3,263 Bcf as of Friday, September 28, 2007, according to EIA estimates. This represents a net increase of 57 Bcf from the previous week. Stocks were 54 Bcf less than last year at this time and 227 Bcf above the 5-year average of 3,036 Bcf. In the East Region, stocks were 88 Bcf above the 5-year average following net injections of 33 Bcf. Stocks in the Producing Region were 109 Bcf above the 5-year average of 856 Bcf after a net injection of 14 Bcf. Stocks in the West Region were 30 Bcf above the 5-year average after a net addition of 10 Bcf. At 3,263 Bcf, total working gas is within the 5-year historical range.

Natural Gas Inventory Report 9-27-07

Working gas in storage was 3,206 Bcf as of Friday, September 21, 2007, according to EIA estimates. This represents a net increase of 74 Bcf from the previous week. Stocks were 37 Bcf less than last year at this time and 238 Bcf above the 5-year average of 2,968 Bcf. In the East Region, stocks were 101 Bcf above the 5-year average following net injections of 44 Bcf. Stocks in the Producing Region were 110 Bcf above the 5-year average of 841 Bcf after a net injection of 20 Bcf. Stocks in the West Region were 27 Bcf above the 5-year average after a net addition of 10 Bcf. At 3,206 Bcf, total working gas is within the 5-year historical range.

Natural Gas Inventory Report 9-27-07

Working gas in storage was 3,132 Bcf as of Friday, September 14, 2007, according to EIA estimates. This represents a net increase of 63 Bcf from the previous week. Stocks were 32 Bcf less than last year at this time and 238 Bcf above the 5-year average of 2,894 Bcf. In the East Region, stocks were 106 Bcf above the 5-year average following net injections of 41 Bcf. Stocks in the Producing Region were 107 Bcf above the 5-year average of 824 Bcf after a net injection of 16 Bcf. Stocks in the West Region were 25 Bcf above the 5-year average after a net addition of 6 Bcf. At 3,132 Bcf, total working gas is within the 5-year historical range.

Natural gas prices rallied last week, closing above $7.

The next target is the August high of $7.34

Also note that Natural Gas prices are within 7 cents of the 200 day moving average of $7.18

Natural Gas Inventory Report 9-13-07

Working gas in storage was 3,069 Bcf as of Friday, September 7, 2007, according to EIA estimates. This represents a net increase of 64 Bcf from the previous week. Stocks were at the same level as last year at this time and 260 Bcf above the 5-year average of 2,809 Bcf. In the East Region, stocks were 119 Bcf above the 5-year average following net injections of 50 Bcf. Stocks in the Producing Region were 113 Bcf above the 5-year average of 802 Bcf after a net injection of 12 Bcf. Stocks in the West Region were 28 Bcf above the 5-year average after a net addition of 2 Bcf. At 3,069 Bcf, total working gas is within the 5-year historical range.

Natural gas traders are watching the 20 day moving average of $5.926 (October NG contract). A close above this level would be a bullish signal and confirm that a near term low has been established.

Natural Gas Inventory Report 9-06-07

Working gas in storage was 3,005 Bcf as of Friday, August 31, 2007, according to EIA estimates. This represents a net increase of 36 Bcf from the previous week. Stocks were 39 Bcf higher than last year at this time and 284 Bcf above the 5-year average of 2,721 Bcf. In the East Region, stocks were 126 Bcf above the 5-year average following net injections of 39 Bcf. Stocks in the Producing Region were 123 Bcf above the 5-year average of 780 Bcf after a net injection of 1 Bcf. Stocks in the West Region were 34 Bcf above the 5-year average after a net drawdown of 4 Bcf. At 3,005 Bcf, total working gas is above the 5-year historical range.

Natural Gas Technical Levels

Resistance: $5.915 and $6.043

Support: $5.414 and $4.593

Natural Gas Inventory Report 8-30-07

Working gas in storage was 2,969 Bcf as of Friday, August 24, 2007, according to EIA estimates. This represents a net increase of 43 Bcf from the previous week. Stocks were 71 Bcf higher than last year at this time and 315 Bcf above the 5-year average of 2,654 Bcf. In the East Region, stocks were 136 Bcf above the 5-year average following net injections of 44 Bcf. Stocks in the Producing Region were 134 Bcf above the 5-year average of 768 Bcf after a net withdrawal of 2 Bcf. Stocks in the West Region were 45 Bcf above the 5-year average after a net addition of 1 Bcf. At 2,969 Bcf, total working gas is above the 5-year historical range.

Natural Gas Technical Levels......Week of 8-27-07

Natural Gas Technical Levels

Support: 5.491 and 5.46

Resistance: 5.795 and 5.855

Natural Gas Inventories......Week Ending August 17, 2007

Working gas in storage was 2,926 Bcf as of Friday, August 17, 2007, according to EIA estimates. This represents a net increase of 23 Bcf from the previous week. Stocks were 77 Bcf higher than last year at this time and 333 Bcf above the 5-year average of 2,593 Bcf. In the East Region, stocks were 137 Bcf above the 5-year average following net injections of 40 Bcf. Stocks in the Producing Region were 146 Bcf above the 5-year average of 758 Bcf after a net withdrawal of 15 Bcf. Stocks in the West Region were 51 Bcf above the 5-year average after a net drawdown of 2 Bcf. At 2,926 Bcf, total working gas is above the 5-year historical range.

Natural gas prices plummeted on Monday as traders focused on positive weather news for Texas based operations.

September natural gas broke through support levels at $6.58 and $6.532.

The next level of support is $5.906

September Natural Gas Technical Levels:

Resistance: $7.192 and $7.210

Support: $6.58 and $6.532

Natural Gas Inventory Report 8-16-07

Working gas in storage was 2,903 Bcf as of Friday, August 10, 2007, according to EIA estimates. This represents a net increase of 21 Bcf from the previous week. Stocks were 108 Bcf higher than last year at this time and 371 Bcf above the 5-year average of 2,532 Bcf. In the East Region, stocks were 143 Bcf above the 5-year average following net injections of 29 Bcf. Stocks in the Producing Region were 170 Bcf above the 5-year average of 749 Bcf after a net withdrawal of 13 Bcf. Stocks in the West Region were 58 Bcf above the 5-year average after a net addition of 5 Bcf. At 2,903 Bcf, total working gas is above the 5-year historical range.

EIA Natural Gas Storage Data
Lower 48 (08/10/07): 2,903 Bcf
Lower 48 (08/03/07): 2,882 Bcf
Implied net change: 21 Bcf
Year ago stocks: 2,795 Bcf
5-year avg stocks: 2,532
% dif to 5-yr avg: 14.7 %

The XNG Natural Gas Index is currently at 471.40, just below the 200 day moving average of 477.08

September Natural Gas closed up 2.16% to $6.940

Natural Gas Technical Levels

Resistance: 7.127 and 7.210

Support: 6.532 and 6.43

Natural Gas Technical Levels

Support: 6.328 and 5.906

Resistance: 6.958 and 7.210

Natural Gas Inventory Report 8-09-07

Working gas in storage was 2,882 Bcf as of Friday, August 3, 2007, according to EIA estimates. This represents a net increase of 42 Bcf from the previous week. Stocks were 117 Bcf higher than last year at this time and 407 Bcf above the 5-year average of 2,475 Bcf. In the East Region, stocks were 159 Bcf above the 5-year average following net injections of 33 Bcf. Stocks in the Producing Region were 190 Bcf above the 5-year average of 742 Bcf after a net injection of 4 Bcf. Stocks in the West Region were 58 Bcf above the 5-year average after a net addition of 5 Bcf. At 2,882 Bcf, total working gas is above the 5-year historical range.

Natural Gas Technical Levels

Resistance: 6.394 (20 day moving average) and 6.684

Support: 6.031 and 6.00

Working gas in storage was 2,840 Bcf as of Friday, July 27, 2007, according to EIA estimates. This represents a net increase of 77 Bcf from the previous week. Stocks were 68 Bcf higher than last year at this time and 410 Bcf above the 5-year average of 2,430 Bcf. In the East Region, stocks were 165 Bcf above the 5-year average following net injections of 56 Bcf. Stocks in the Producing Region were 187 Bcf above the 5-year average of 741 Bcf after a net injection of 16 Bcf. Stocks in the West Region were 59 Bcf above the 5-year average after a net addition of 5 Bcf. At 2,840 Bcf, total working gas is above the 5-year historical range.

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Natural Gas Technical Levels

Resistance #1 6.279

Resistance #2 6.320

Support #1 6.00

Support #2 5.588

Natural Gas Inventory Report 7-26-07

Working gas in storage was 2,763 Bcf as of Friday, July 20, 2007, according to EIA estimates. This represents a net increase of 71 Bcf from the previous week. Stocks were 6 Bcf higher than last year at this time and 384 Bcf above the 5-year average of 2,379 Bcf. In the East Region, stocks were 153 Bcf above the 5-year average following net injections of 59 Bcf. Stocks in the Producing Region were 176 Bcf above the 5-year average of 736 Bcf after a net injection of 9 Bcf. Stocks in the West Region were 56 Bcf above the 5-year average after a net addition of 3 Bcf. At 2,763 Bcf, total working gas is above the 5-year historical range.

Natural gas prices continued to slide on Tuesday, breaking technical support at the $6 level. August natural gas fell 2.9% to close at $5.863.

Natural gas prices are currently at a 10 month low.


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Natural gas prices slid further on Monday and are now testing critical support at the $6 level.

Natural Gas prices are currently consolidating near the lows set in January.

Natural Gas Inventory Report 7-19-07

Working gas in storage was 2,692 Bcf as of Friday, July 13, 2007, according to EIA estimates. This represents a net increase of 65 Bcf from the previous week. Stocks were 63 Bcf less than last year at this time and 365 Bcf above the 5-year average of 2,327 Bcf. In the East Region, stocks were 138 Bcf above the 5-year average following net injections of 48 Bcf. Stocks in the Producing Region were 171 Bcf above the 5-year average of 732 Bcf after a net injection of 7 Bcf. Stocks in the West Region were 55 Bcf above the 5-year average after a net addition of 10 Bcf. At 2,692 Bcf, total working gas is within the 5-year historical range.

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Natural Gas Inventory Report 7-12-07

Working gas in storage was 2,627 Bcf as of Friday, July 6, 2007, according to EIA estimates. This represents a net increase of 106 Bcf from the previous week. Stocks were 64 Bcf less than last year at this time and 374 Bcf above the 5-year average of 2,253 Bcf. In the East Region, stocks were 145 Bcf above the 5-year average following net injections of 70 Bcf. Stocks in the Producing Region were 175 Bcf above the 5-year average of 721 Bcf after a net injection of 29 Bcf. Stocks in the West Region were 54 Bcf above the 5-year average after a net addition of 7 Bcf. At 2,627 Bcf, total working gas is within the 5-year historical range.

Working gas in storage was 2,521 Bcf as of Friday, June 29, 2007, according to EIA estimates. This represents a net increase of 78 Bcf from the previous week. Stocks were 84 Bcf less than last year at this time and 364 Bcf above the 5-year average of 2,157 Bcf. In the East Region, stocks were 135 Bcf above the 5-year average following net injections of 54 Bcf. Stocks in the Producing Region were 170 Bcf above the 5-year average of 697 Bcf after a net injection of 14 Bcf. Stocks in the West Region were 59 Bcf above the 5-year average after a net addition of 10 Bcf. At 2,521 Bcf, total working gas is within the 5-year historical range.

Natural gas prices were down a penny in Monday's trading and settled at $6.764 per 1,000 cubic feet.

Natural gas prices currently have a Williams %R reading of -87.28.

Williams %R readings of -80 to -100 are considered oversold conditions.

Natural Gas prices rebounded slightly on Friday to close the week at $6.77

Natural Gas Inventory Report 6-28-07

Working gas in storage was 2,443 Bcf as of Friday, June 22, 2007, according to EIA estimates. This represents a net increase of 99 Bcf from the previous week. Stocks were 90 Bcf less than last year at this time and 372 Bcf above the 5-year average of 2,071 Bcf. In the East Region, stocks were 136 Bcf above the 5-year average following net injections of 67 Bcf. Stocks in the Producing Region were 176 Bcf above the 5-year average of 677 Bcf after a net injection of 21 Bcf. Stocks in the West Region were 59 Bcf above the 5-year average after a net addition of 11 Bcf. At 2,443 Bcf, total working gas is within the 5-year historical range.

Natural Gas prices continued to slide on Tuesday, trading down 4% to close at $6.88

Natural Gas prices fell further on Monday, trading down 5.54% to close at $6.94

Natural Gas prices retreated last week and now sit at $7.35, just above the 200 day moving average of $7.28.

Natural Gas Inventory Report 6-21-07

Working gas in storage was 2,344 Bcf as of Friday, June 15, 2007, according to EIA estimates. This represents a net increase of 89 Bcf from the previous week. Stocks were 121 Bcf less than last year at this time and 365 Bcf above the 5-year average of 1,979 Bcf. In the East Region, stocks were 130 Bcf above the 5-year average following net injections of 60 Bcf. Stocks in the Producing Region were 176 Bcf above the 5-year average of 656 Bcf after a net injection of 16 Bcf. Stocks in the West Region were 59 Bcf above the 5-year average after a net addition of 13 Bcf. At 2,344 Bcf, total working gas is within the 5-year historical range.

Gazprom Raises Natural Gas Production Estimates

Russian energy giant Gazprom said it could produce 670 billion cubic meters of natural gas by 2020, increasing its estimate by 14 percent.

"If the market situation is positive or very positive, we could reach this production level," said Alexander Ananenkov, Gazprom deputy board chairman.

Ananenkov said total natural gas output in 2010 is planned at a maximum of 560 billion cubic meters, but could be increased to 570 billion cubic meters if needed, Novosti reported Thursday.

Gazprom estimates the value of the company's hydrocarbon reserves at $182.5 billion, not including oil subsidiary Gazprom Neft, whose reserves are worth $24 billion.

Natural Gas Inventory Report 6-14-07

Working gas in storage was 2,255 Bcf as of Friday, June 8, 2007, according to EIA estimates. This represents a net increase of 92 Bcf from the previous week. Stocks were 131 Bcf less than last year at this time and 365 Bcf above the 5-year average of 1,890 Bcf. In the East Region, stocks were 128 Bcf above the 5-year average following net injections of 61 Bcf. Stocks in the Producing Region were 179 Bcf above the 5-year average of 637 Bcf after a net injection of 20 Bcf. Stocks in the West Region were 58 Bcf above the 5-year average after a net addition of 11 Bcf. At 2,255 Bcf, total working gas is within the 5-year historical range.

Working gas in storage was 2,163 Bcf as of Friday, June 1, 2007, according to EIA estimates. This represents a net increase of 110 Bcf from the previous week. Stocks were 146 Bcf less than last year at this time and 366 Bcf above the 5-year average of 1,797 Bcf. In the East Region, stocks were 128 Bcf above the 5-year average following net injections of 66 Bcf. Stocks in the Producing Region were 179 Bcf above the 5-year average of 617 Bcf after a net injection of 28 Bcf. Stocks in the West Region were 59 Bcf above the 5-year average after a net addition of 16 Bcf. At 2,163 Bcf, total working gas is within the 5-year historical range.

Working gas in storage was 2,053 Bcf as of Friday, May 25, 2007, according to EIA estimates. This represents a net increase of 107 Bcf from the previous week. Stocks were 179 Bcf less than last year at this time and 355 Bcf above the 5-year average of 1,698 Bcf. In the East Region, stocks were 123 Bcf above the 5-year average following net injections of 65 Bcf. Stocks in the Producing Region were 175 Bcf above the 5-year average of 593 Bcf after a net injection of 28 Bcf. Stocks in the West Region were 57 Bcf above the 5-year average after a net addition of 14 Bcf. At 2,053 Bcf, total working gas is within the 5-year historical range.

China's state run media is reporting that a large natural gas reserve has been discovered in the southwestern province of Sichuan.

A total of 3.8 trillion cubic metres (133 trillion cubic feet) of natural gas deposits have been found in the western part of the Sichuan Basin, the China Daily said, citing officials in Dazhou city, near the reserve.

The discovery is equivalent to about 60 years of China's total production at current output levels.

The deposits include proven exploitable reserves of a newly-discovered 244 billion cubic metres of gas alongside the 356 billion cubic metres in Puguang gas field, which was announced in March, the report said.

It has become the largest gas field in the country, topping the Sulige gas field in north China's Inner Mongolia Region discovered last year with exploitable reserves of 533.6 billion cubic metres, the newspaper said.

China plans to boost its annual natural gas output from 49.3 billion cubic metres in 2005 to 92 billion cubic metres by 2010, as consumption is expected to more than double the 2005 figure to top 100 billion cubic metres by 2010.

The government has strengthened exploration efforts in a bid to feed the country's brisk economic expansion that has seen double-digit growth for four consecutive years.

Last week, a large gas field with reserves of nearly 30 billion cubic metres was discovered in Karamay in the Xinjiang region in the northwest.

A major oil field, the Jidong Nanpu oil field in Bohai Bay in the north, has also been announced recently.

The oil field is the largest discovery in the country in more than four decades, with expected reserves reaching one billion tonnes or about 7.35 billion barrels.

Working gas in storage was 1,946 Bcf as of Friday, May 18, 2007, according to EIA estimates. This represents a net increase of 104 Bcf from the previous week. Stocks were 205 Bcf less than last year at this time and 334 Bcf above the 5-year average of 1,612 Bcf. In the East Region, stocks were 111 Bcf above the 5-year average following net injections of 67 Bcf. Stocks in the Producing Region were 169 Bcf above the 5-year average of 571 Bcf after a net injection of 23 Bcf. Stocks in the West Region were 55 Bcf above the 5-year average after a net addition of 14 Bcf. At 1,946 Bcf, total working gas is within the 5-year historical range.

Working gas in storage was 1,842 Bcf as of Friday, May 11, 2007, according to EIA estimates. This represents a net increase of 95 Bcf from the previous week. Stocks were 225 Bcf less than last year at this time and 315 Bcf above the 5-year average of 1,527 Bcf. In the East Region, stocks were 96 Bcf above the 5-year average following net injections of 61 Bcf. Stocks in the Producing Region were 168 Bcf above the 5-year average of 549 Bcf after a net injection of 22 Bcf. Stocks in the West Region were 51 Bcf above the 5-year average after a net addition of 12 Bcf. At 1,842 Bcf, total working gas is within the 5-year historical range.

Working gas in storage was 1,747 Bcf as of Friday, May 4, 2007, according to EIA estimates. This represents a net increase of 96 Bcf from the previous week. Stocks were 230 Bcf less than last year at this time and 297 Bcf above the 5-year average of 1,450 Bcf. In the East Region, stocks were 83 Bcf above the 5-year average following net injections of 61 Bcf. Stocks in the Producing Region were 166 Bcf above the 5-year average of 529 Bcf after a net injection of 23 Bcf. Stocks in the West Region were 49 Bcf above the 5-year average after a net addition of 12 Bcf. At 1,747 Bcf, total working gas is within the 5-year historical range.

Working gas in storage was 1,651 Bcf as of Friday, April 27, 2007, according to EIA estimates. This represents a net increase of 87 Bcf from the previous week. Stocks were 245 Bcf less than last year at this time and 266 Bcf above the 5-year average of 1,385 Bcf. In the East Region, stocks were 58 Bcf above the 5-year average following net injections of 52 Bcf. Stocks in the Producing Region were 161 Bcf above the 5-year average of 511 Bcf after a net injection of 25 Bcf. Stocks in the West Region were 46 Bcf above the 5-year average after a net addition of 10 Bcf. At 1,651 Bcf, total working gas is within the 5-year historical range.

Working natural gas in storage was 1,564 Bcf as of Friday, April 20, 2007, according to EIA estimates. This represents a net increase of 18 Bcf from the previous week. Stocks were 276 Bcf less than last year at this time and 233 Bcf above the 5-year average of 1,331 Bcf. In the East Region, stocks were 36 Bcf above the 5-year average following net injections of 1 Bcf. Natural gas stocks in the Producing Region were 154 Bcf above the 5-year average of 493 Bcf after a net injection of 11 Bcf. Stocks in the West Region were 43 Bcf above the 5-year average after a net addition of 6 Bcf. At 1,564 Bcf, total working natural gas is within the 5-year historical range.

Working gas in storage was 1,546 Bcf as of Friday, April 13, 2007, according to EIA estimates. This represents a net decline of 46 Bcf from the previous week. Stocks were 217 Bcf less than last year at this time and 280 Bcf above the 5-year average of 1,266 Bcf. In the East Region, stocks were 73 Bcf above the 5-year average following net withdrawals of 43 Bcf. Stocks in the Producing Region were 163 Bcf above the 5-year average of 473 Bcf after a net withdrawal of 6 Bcf. Stocks in the West Region were 44 Bcf above the 5-year average after a net addition of 3 Bcf. At 1,546 Bcf, total working gas is within the 5-year historical range.

Natural Gas ETF

An natural gas based exchange-traded fund made its debut on Thursday. The United States Natural Gas Fund (UNG) is traded on the AMEX.

The fund expects its price to reflect the daily percentage change in the price of natural gas delivered at Henry Hub, La. The fund has an expense ratio of 0.6%.

"UNG intends to invest primarily in those futures contracts that are in the two months closest to expiration because we feel those contracts will permit the fund to best achieve its investment objective," said John Hyland, the fund's portfolio manager in a written statement. He added that the partnership "does not seek to use leverage in the portfolio to achieve its investment goals."

Working gas in storage was 1,592 Bcf as of Friday, April 6, 2007, according to EIA estimates. This represents a net increase of 23 Bcf from the previous week. Stocks were 119 Bcf less than last year at this time and 352 Bcf above the 5-year average of 1,240 Bcf. In the East Region, stocks were 124 Bcf above the 5-year average following net injections of 4 Bcf. Stocks in the Producing Region were 182 Bcf above the 5-year average of 460 Bcf after a net injection of 13 Bcf. Stocks in the West Region were 46 Bcf above the 5-year average after a net addition of 6 Bcf. At 1,592 Bcf, total working gas is within the 5-year historical range.

Working gas in storage was 1,569 Bcf as of Friday, March 30, 2007, according to EIA estimates. This represents a net increase of 58 Bcf from the previous week. Stocks were 127 Bcf less than last year at this time and 337 Bcf above the 5-year average of 1,232 Bcf. In the East Region, stocks were 118 Bcf above the 5-year average following net injections of 25 Bcf. Stocks in the Producing Region were 177 Bcf above the 5-year average of 452 Bcf after a net injection of 32 Bcf. Stocks in the West Region were 42 Bcf above the 5-year average after a net addition of 1 Bcf. At 1,569 Bcf, total working gas is within the 5-year historical range.

Natural Gas producer Pioneer Natural Resources Co. announced it has started production at a new natural gas field in Canada.

Production has begun at a rate of 18 million cubic feet of gas per day from three wells. Pioneer holds a 100 percent working interest and a 75 percent stake in net revenue from the field, assuming a 25 percent royalty to the government.

"This new play is expected to deliver strong returns and make a significant contribution to Pioneer's projected 2007 production growth in Canada of 30 percent to 35 percent," said Chairman and Chief Executive Scott Sheffield in a statement

Field operations, which are limited to the winter season, currently have capacity for 24 million cubic feet of gas per day, although that may be expanded up to 40 million cubic feet daily, Pioneer said.

The company holds about 375,000 acres in the field area with an average working interest of 98 percent. Pioneer said it has located six other potential prospects on the land; two have tested for gas and are awaiting development.

Working gas in storage was 1,511 Bcf as of Friday, March 23, 2007, according to EIA estimates. This represents a net decline of 22 Bcf from the previous week. Stocks were 209 Bcf less than last year at this time and 267 Bcf above the 5-year average of 1,244 Bcf. In the East Region, stocks were 76 Bcf above the 5-year average following net withdrawals of 41 Bcf. Stocks in the Producing Region were 149 Bcf above the 5-year average of 448 Bcf after a net injection of 13 Bcf. Stocks in the West Region were 42 Bcf above the 5-year average after a net addition of 6 Bcf. At 1,511 Bcf, total working gas is within the 5-year historical range.

Mexican state oil monopoly Petroleos Mexicanos, or Pemex, awarded two long-term contracts to develop natural gas reserves in the Burgos basin of northeastern Mexico.

The Nejo natural gas block was awarded to a consortium formed by Spain's Cobra and Mexico's Monclova Pirineos Gas, while the Monclova block was won by Construcciones Mecanicas Monclova and Administradora de Proyectos de Campos, of Mexico, along with Colombia's Production Testing Services, Pemex said in a news release Sunday.

A third block, Euro, received no bids, and will be reevaluated, the company said.

Pemex said the two natural gas contracts will involve investment of at least US$177 million in the next three years. The contracts are for up to 15 years, with investment up to US$1.35 billion

Working gas in storage was 1,533 Bcf as of Friday, March 16, 2007, according to EIA estimates. This represents a net increase of 17 Bcf from the previous week. Stocks were 279 Bcf less than last year at this time and 239 Bcf above the 5-year average of 1,294 Bcf. In the East Region, stocks were 76 Bcf above the 5-year average following net withdrawals of 10 Bcf. Stocks in the Producing Region were 132 Bcf above the 5-year average of 452 Bcf after a net injection of 20 Bcf. Stocks in the West Region were 32 Bcf above the 5-year average after a net addition of 7 Bcf. At 1,533 Bcf, total working gas is within the 5-year historical range.

Working gas in storage was 1,516 Bcf as of Friday, March 9, 2007, according to EIA estimates. This represents a net decline of 115 Bcf from the previous week. Stocks were 324 Bcf less than last year at this time and 158 Bcf above the 5-year average of 1,358 Bcf. In the East Region, stocks were 35 Bcf above the 5-year average following net withdrawals of 92 Bcf. Stocks in the Producing Region were 103 Bcf above the 5-year average of 461 Bcf after a net withdrawal of 22 Bcf. Stocks in the West Region were 19 Bcf above the 5-year average after a net drawdown of 1 Bcf. At 1,516 Bcf, total working gas is within the 5-year historical range.

Working gas in storage was 1,631 Bcf as of Friday, March 2, 2007, according to EIA estimates. This represents a net decline of 102 Bcf from the previous week. Stocks were 268 Bcf less than last year at this time and 194 Bcf above the 5-year average of 1,437 Bcf. In the East Region, stocks were 70 Bcf above the 5-year average following net withdrawals of 78 Bcf. Stocks in the Producing Region were 113 Bcf above the 5-year average of 473 Bcf after a net withdrawal of 6 Bcf. Stocks in the West Region were 12 Bcf above the 5-year average after a net drawdown of 18 Bcf. At 1,631 Bcf, total working gas is within the 5-year historical range.

Piedmont Natural Gas Co. said Wednesday its fiscal first-quarter profit slipped nearly 2 percent, hurt by weaker demand amid warm weather.

The natural gas distributor's quarterly earnings fell to $70.7 million from $72 million in the prior-year period. Per-share profit was flat at 94 cents, as the number of outstanding shares declined over the year-earlier period.

Wall Street, on average, expected quarterly earnings of 98 cents per share, according to an analyst poll by Thomson Financial.

Operating revenue dropped to $677.2 million from $921.3 million, as this year's first quarter was 15 percent warmer than normal and 6 percent warmer than the prior year. The reduced demand offset Piedmont Natural Gas' growing customer rolls and reduced operations and maintenance expenses.

Piedmont Natural Gas shares fell 21 cents to $24.93 in morning trading on the New York Stock Exchange.

Venezuelan President Hugo Chavez's proposal for a South American organization of natural gas producers based on the oil-exporting cartel OPEC has baffled analysts.

Chavez said on his radio talk show late Thursday that he had spoken to Argentine President Nestor Kirchner about the idea of forming "a kind of Organization of Gas Exporting and Producing Countries in South America." He proposed naming it Opegas Sur, and said it would start with Venezuela, Bolivia and Argentina, but could be expanded.

Far-fetched and toothless is how some natural gas experts described the idea Friday. One reason is that none of the three countries exports natural gas outside of South America, which stymies their ability to influence world gas markets. Venezuela doesn't export any gas at all.

"I'm not really sure what would be the objective," said Anouk Honore, a natural gas analyst at the London-based Oxford Institute for Energy Studies. It might make more sense if the proposed cartel were to include Trinidad, a major gas exporter, she suggested.

"It would have zero impact," declared Bolivian petroleum analyst Andres Stepkowski.

He noted that the Organization of the Petroleum Exporting Countries influences oil prices because crude is sold on a spot market — that is, sold for cash and delivered immediately — so any output cuts are felt immediately.

Natural gas, however, is sold through long-term contracts, and suppliers and buyers use a formula to adjust the price every three or six months.

A natural gas cartel might work against Chavez's integrationist goals because it would mostly hurt South American consumers.

Working gas in storage was 1,733 Bcf as of Friday, February 23, 2007, according to EIA estimates. This represents a net decline of 132 Bcf from the previous week. Stocks were 263 Bcf less than last year at this time and 179 Bcf above the 5-year average of 1,554 Bcf. In the East Region, stocks were 71 Bcf above the 5-year average following net withdrawals of 98 Bcf. Stocks in the Producing Region were 91 Bcf above the 5-year average of 501 Bcf after a net withdrawal of 24 Bcf. Stocks in the West Region were 16 Bcf above the 5-year average after a net drawdown of 10 Bcf. At 1,733 Bcf, total working gas is within the 5-year historical range.

Working gas in storage was 1,865 Bcf as of Friday, February 16, 2007, according to EIA estimates. This represents a net decline of 223 Bcf from the previous week. Stocks were 296 Bcf less than last year at this time and 182 Bcf above the 5-year average of 1,683 Bcf. In the East Region, stocks were 87 Bcf above the 5-year average following net withdrawals of 151 Bcf. Stocks in the Producing Region were 84 Bcf above the 5-year average of 532 Bcf after a net withdrawal of 60 Bcf. Stocks in the West Region were 12 Bcf above the 5-year average after a net drawdown of 12 Bcf. At 1,865 Bcf, total working gas is within the 5-year historical range.

Northamerican Energy Group Corporation announced today that in keeping with previous announcements regarding natural gas production, the Company has initiated gas production under the Gas Purchase Agreement disclosed Jan 22, 2007.

Northamerican Energy Group Corporation has developed a proven growth strategy of identification, acquisition, and development of domestic hydrocarbon reserves. The Company concentrates on identifying prospects that, for the most part, have proven oil and gas production and have been operating for many years. By acquiring working interests in proven, low-risk fields, the Company eliminates the risk of drilling dry-holes and avoids the expense of building major infrastructure to get the product to market. The Company's low-cost operations and low overhead structure allows it to maximize income and revenue.

The Company confirmed that this step not only begins its program to put back into production natural gas operations on its existing oil and gas wells, but also the gas wells that are part of its 17 lease package that Northamerican disclosed on November 8th and December 26th 2006.

Working gas in storage was 2,088 Bcf as of Friday, February 9, 2007, according to EIA estimates. This represents a net decline of 259 Bcf from the previous week. Stocks were 193 Bcf less than last year at this time and 268 Bcf above the 5-year average of 1,820 Bcf. In the East Region, stocks were 151 Bcf above the 5-year average following net withdrawals of 179 Bcf. Stocks in the Producing Region were 109 Bcf above the 5-year average of 567 Bcf after a net withdrawal of 68 Bcf. Stocks in the West Region were 8 Bcf above the 5-year average after a net drawdown of 12 Bcf. At 2,088 Bcf, total working gas is within the 5-year historical range.

BioEnergy Solutions, a Californian waste-to-energy company, has announced (13th February) an agreement with Pacific Gas & Electric Company (PG&E) to provide natural gas created from animal waste and other renewable sources. Under the agreement, the company will deliver up to three billion cubic feet of renewable natural gas a year to PG&E, enough to meet the electricity needs of approximately 50,000 California homes. It is expected to break ground on the project in the spring and begin delivering natural gas to PG&E in the summer.

BioEnergy Solutions is offering a cost-free alternative to the capital costs farmers and other food processors face in coming years to meet new state air quality and greenhouse gas standards. The company designs, builds and maintains the waste-to-gas system on the farm or at the processing facility, then sells the natural gas to power generators. The property owners also enjoy a new source of revenue, sharing in the sales of biogas and carbon credits.

"BioEnergy Solutions was founded by dairymen, and we understand the challenges agriculture faces in the coming years to reduce emissions," said company President DavidAlbers, a third-generation dairyman. "PG&E has a similar challenge, which is to increase its production of renewable energy. This agreement turns what would otherwise be a growing problem for farmers into a new revenue source and helps PG&E reach the environmental goals set by the company and the state."

"Developing new sources of renewable energy is a priority for PG&E," said Fong Wan, PG&E's vice president of energy procurement. "This project is yet another example of our company's commitment to the environment by delivering clean, climate-friendly energy to our customers."

Oil prices fell back from the $60-a-barrel mark Monday as the market anticipated a supply surplus in the second quarter and following a suggestion that OPEC is unlikely to further cut production.

On Friday, prices climbed briefly above the psychological $60 barrier on unrelenting cold U.S. weather.


But light, sweet crude for March delivery was down 84 cents to $59.05 a barrel in electronic trading on the New York Mercantile Exchange by afternoon in Europe. Brent crude for March dropped $1.13 to $57.88 a barrel at London's ICE Futures exchange.

The biggest market driver in recent weeks has been the weather, which has depleted U.S. supplies of distillate fuels, which include heating oil, by the largest amount since December 2005. With temperatures still below normal across the Northeast United States, which consumes 80 percent of the nation's heating oil, traders are bracing for the U.S. government inventory data on Wednesday to show an even bigger decrease.


Heating oil was down 3.26 cents to $1.6925 a gallon on the Nymex, and natural gas fell 40.7 cents to $7.420 per 1,000 cubic feet.
Natural gas, the more popular form of home heating in the United States, had risen more than 60 percent over the past month on the recent cold weather.

Working gas in storage was 2,347 Bcf as of Friday, February 2, 2007, according to EIA estimates. This represents a net decline of 224 Bcf from the previous week. Stocks were 26 Bcf less than last year at this time and 378 Bcf above the 5-year average of 1,969 Bcf. In the East Region, stocks were 238 Bcf above the 5-year average following net withdrawals of 139 Bcf. Stocks in the Producing Region were 137 Bcf above the 5-year average of 607 Bcf after a net withdrawal of 63 Bcf. Stocks in the West Region were 3 Bcf above the 5-year average after a net drawdown of 22 Bcf. At 2,347 Bcf, total working gas is within the 5-year historical range.

he United States' largest natural gas pipeline company settled its United Nations oil-for-food program liabilities Wednesday, agreeing to pay the U.S. government $7.7 million (€5.94 million) to resolve allegations that it dealt with companies which paid secret illegal surcharges to the former government of Iraq.

Under an agreement announced by federal prosecutors and the FBI, El Paso Corp. will forfeit $5.48 million (€4.23 million) to the United States, which will seek to transfer the money to the Development Fund of Iraq to be paid as restitution for the benefit of the people of Iraq.

In a separate deal with the Securities and Exchange Commission, the Houston-based El Paso agreed to pay an additional $2.25 million (€1.74 million).

In a statement, U.S. Attorney Michael Garcia said the $5.48 million (€4.23 million) represented the amount of illegal surcharges paid to Saddam Hussein's government by third parties from whom El Paso purchased Iraqi oil from approximately mid-2000 until about March 2003.

In return for the settlements, El Paso will not be prosecuted for any crimes except possibly criminal tax violations as long as it continues to continue cooperating fully with the federal government in its investigation into the scandal-ridden U.N. program, Garcia said.

A senior member of Russia's upper house of parliament said Tuesday an international natural gas organization could be created eventually, but Russia was unlikely to join such a body.

Iran proposed to Russia in late January establishing "a cooperation organization in the gas sector similar to OPEC." The Russian president said the idea was worth considering, a response some experts said was calculated to influence Europe's attitude to Russian energy supplies.

"Iran has proposed to Russia setting up a gas equivalent of OPEC," said Mikhail Margelov, head of the Federation Council's international affairs committee. "But my prediction is that we are unlikely to become a member of a gas OPEC."

"By not joining a [gas] OPEC we would preserve our freedom of action. Russia needs to be able to maneuver freely on the global natural gas market," Margelov said.

Margelov's opinion reflects the position of some Russian experts and officials, who have called the proposal political, and argued that regulating gas production and fixing the price would be difficult, as gas supplies are largely regulated by long-term contracts at present.

President Vladimir Putin welcomed the idea at an annual news conference with the Russian and foreign media at the beginning of the month, saying that such an organization could coordinate policies in the gas sphere to ensure uninterrupted supplies, but should not fix prices like the Organization of Petroleum Exporting Countries.

"A 'gas OPEC' is an interesting idea. We will think about it," Putin said.

"At the first stage, we agree with Iranian experts, partners and some other countries that produce and supply hydrocarbons to world markets in large volumes. We are already trying to coordinate our actions to develop markets and intend to do so in the future," the president said.

Russia's image as a reliable energy supplier has been marred in the last two years over pricing rows with Ukraine and Belarus, which resulted in a brief disruption of gas and oil exports to the European Union. Moscow has also clashed with the EU over its reluctance to sign an energy charter giving access to its export pipelines.

Margelov said gas would be central on the agenda of President Putin's tour of Persian Gulf countries, including major energy producers Saudi Arabia and Qatar, in mid-February.

Russia and Saudi Arabia are in talks on the Mideast nation's initiative to develop its gas sector with Russia's assistance. The total value of the projects was estimated at $20-25 billion.

Contacts between Qatar, which has the world's third-largest gas reserves of 11.2 trillion cubic meters, and Russia's Gazprom, the world's largest gas producer, have intensified during the last few years of Putin's presidency.

Natural gas and crude oil prices edged up Monday on expectations of colder weather in major U.S. markets.

Light, sweet crude for March delivery rose 10 cents to $59.10 a barrel in early afternoon trading on the New York Mercantile Exchange. Brent crude for March delivery on the ICE Futures exchange inched up 2 cents to $58.43 a barrel.

Natural gas futures gained nearly 17 cents to $7.644 per 1,000 cubic feet.

"The weather is what's the most urgent, short-term issue here," said Tim Evans, an energy analyst at Citigroup Global Markets. "Over the weekend, the weather forecast became a lot colder for the six to 10 day period as well as the 11 to 15 day period."

Colder-than-normal temperatures blanketed the Northeast and Midwest on Monday and were expected to linger through Feb. 18, according to the National Weather Service. On Monday, temperatures registered in the single-digits and teens from Maryland to Maine, while many states in the Midwest were experiencing below zero temperatures with dangerous wind chills.

The Northeast accounts for 80 percent of U.S. heating oil consumption, while the Midwest is the bulk of the natural gas market. Heating oil futures rose half a cent to $1.6890 a gallon.

Oil prices had fallen as low as $49.90 a barrel last month after an unseasonably warm January.

Monday's gain in oil prices comes after Friday's rally that saw prices rise $1.72 to settle at $59.02 a barrel on winter weather concerns and supply worries driven by a second round of OPEC production cuts. That was the highest close since it finished at $61.05 on the last trading day of 2006.

Working gas in storage was 2,571 Bcf as of Friday, January 26, 2007, according to EIA estimates. This represents a net decline of 186 Bcf from the previous week. Stocks were 152 Bcf higher than last year at this time and 454 Bcf above the 5-year average of 2,117 Bcf. In the East Region, stocks were 283 Bcf above the 5-year average following net withdrawals of 120 Bcf. Stocks in the Producing Region were 165 Bcf above the 5-year average of 642 Bcf after a net withdrawal of 45 Bcf. Stocks in the West Region were 6 Bcf above the 5-year average after a net drawdown of 21 Bcf. At 2,571 Bcf, total working gas is above the 5-year historical range.

February natural gas gained 11.5 cents to $7.29 per million British thermal units, with colder-than-normal temperatures expected to remain in the Northeast and Midwest over the next several days. March will become the lead futures contract at the session's end. March natural gas was at $7.28, up 12.2 cents.

Russia and Venezuela have signed an agreement worth US$15 million (€11.5 million) to cooperate in developing Venezuela's natural gas resources, Venezuelan state oil company Petroleos de Venezuela SA, or PDVSA, announced Tuesday.

The pact, which initially covers a period of one year, includes an assessment of Venezuela's natural gas industry and the development of a plan to improve its efficiency.

Venezuela hopes to consolidate its system to transport and distribute natural gas with the agreement, PDVSA said in a statement.

Felix Rodriguez, president of PDVSA GAS, said his company hopes to incorporate the experience of Russian state company GAZPROM through a project that "will allow us to increase production and improve our ability to respond to contingencies."

Venezuela has 147.5 billion cubic feet of proven natural gas reserves, according to official estimates. This would give it the eighth largest reserves in the world and the largest in Latin America.

Working gas in storage was 2,757 Bcf as of Friday, January 19, 2007, according to EIA estimates. This represents a net decline of 179 Bcf from the previous week. Stocks were 251 Bcf higher than last year at this time and 472 Bcf above the 5-year average of 2,285 Bcf. In the East Region, stocks were 291 Bcf above the 5-year average following net withdrawals of 75 Bcf. Stocks in the Producing Region were 170 Bcf above the 5-year average of 682 Bcf after a net withdrawal of 61 Bcf. Stocks in the West Region were 11 Bcf above the 5-year average after a net drawdown of 43 Bcf. At 2,757 Bcf, total working gas is above the 5-year historical range.

A BP PLC-led consortium has again halted production of natural gas at a giant Caspian Sea field off the coast of Azerbaijan because of unspecified technical problems, BP said Tuesday.

Gas from the Shah Deniz field – one of Azerbaijan's largest – has been keenly awaited by both Azerbaijan and neighboring Georgia, both of which have been affected by Russia's decision to increase prices sharply last year.

The operators had already stopped output at the field a week after starting commercial production in December, and only brought it back onstream a month later on Jan. 14.

The decision to cease production again was taken after checks on the effectiveness of that maintenance work, said a spokeswoman for BP's Azerbaijani subsidiary, Tamam Bayatli.

The Dec. 15 halt in production forced Georgia to sign stopgap gas supply deals with Moscow at what it considers to be extortionate prices.

The BP-led consortium, which also includes Norway's Statoil, France's Total, Russia's Lukoil and other companies, has said it plans to produce at least 5.4 billion cubic meters of gas from Shah Deniz this year, with about 2.4 billion cubic meters earmarked for domestic consumption, 2.8 billion cubic meters for export to Turkey, and 270 million cubic meters for export to Georgia.

Texas Gas Transmission is proposing a 167-mile natural gas pipeline from central Arkansas to northern Mississippi as a way to get natural gas to market from the Fayetteville Shale deposits.
Texas Gas, which is headquartered in Owensboro, Kentucky, has begun the filing process with the Federal Energy Regulatory Commission.

The commission will be the lead federal agency for conducting an environmental review of the project.

The company expects the line will cost about 360 (m) million dollars.

With regulatory approval, Texas Gas plans to begin construction in 2008 and complete the project in early 2009.

The line would carry gas from the Fayetteville Shale, an underground reservoir of natural gas that was first plumbed by Houston-based Southwestern Energy Company in 2004.

A pipeline to carry gas from Qatar should start supplying Oman on schedule by 2008, Oman's oil and gas minister said.

'Qatari gas will come to Oman by 2008,' Mohammad Al Rumhy said in Muscat.

'They will supply around 200 million cubic feet a day.'

The gas will flow through the Dolphin pipeline, the first cross-border gas line in the region.

Dolphin Energy aims to take up to 3.5 billion cubic feet a day of natural gas to the UAE and then later to Oman.

Doubts about the $3.5 billion project surfaced last July when Saudi Arabia told minority partners in the project, Total and Occidental Petroleum, it had reservations about the pipeline route.

Dolphin said then it had not received any objection from Saudi Arabia and in August it completed the sub-sea line.

The line is scheduled to begin supplying the UAE in 2007.

At present, Oman supplies up to 135 million cubic feet of gas per day to the UAE. But the flow will change direction in 2008 when Oman's gas consumption rises as new gas-consuming industries start.

Oman will boost gas output this year to 60 million cubic metres (2.119 billion cu ft) per day from 50 million cu m/d in the previous year through redevelopment of existing fields, Rumhy said.

Abu Dhabi's state-run Mubadala group owns 51 per cent of Dolphin, while France's Total and US Occidental Petroleum each hold a 24.5 per cent stake.

With an explosively intensifying low-pressure system heading into the Canadian Maritimes, northwest winds are becoming strong and gusty across the Mid-Atlantic and Northeast. The winds will continue across the region Saturday and across New England a final day on Sunday. On Saturday, gusts will be in the 40-to-50-mph range over eastern New York and the 40-to-60-mph range across New England. Some tree damage and power outages are possible.

On Saturday, heavy lake-effect snow will continue for northwest Pennsylvania and parts of Upstate New York with snow totals locally in the 1-to-2-foot range by evening.

By Sunday, the lake effect snow will decrease, but a new winter storm will move into the southern Great Lakes and Ohio Valley. This system will spread a light wintry mix into the southern Mid-Atlantic.

On Monday, rain will douse southeast Virginia while flurries linger from the Appalachians westward.


A developing winter storm is quickly impacting parts of Texas with snow for the far west-central counties and the panhandle, sleet and freezing rain from the Davis Mountains to Lubbock to Childress and rain over the remainder of the state.

As the storm evolves Saturday, heavy snow and sleet will accumulate over 6 inches in parts of far west Texas and western Oklahoma. Sleet and freezing rain will extend from parts of western Texas northward across a diagonal slice of Oklahoma from the southwest to northeast corners including Oklahoma City and Tulsa. Also wintry mix will develop over northern Arkansas.

Steady locally inch-plus rain will develop through central and east Texas and southeast Oklahoma, moving across the Lower Mississippi River Valley into Saturday night.

On Sunday, the storm will rapidly shift eastward with rain moving through the Tennessee Valley and northern Gulf Coast States. By Sunday night and early Monday as the rain enters the Southeast, the western Carolinas could see some sleet and freezing rain.

On Monday, a corridor of heavy inch-plus rain may stall for a time from the eastern Carolinas to southern Louisiana. A new storm in the Southwest will bring a burst of accumulating snow to southwest Texas.

Working gas in storage was 2,936 Bcf as of Friday, January 12, 2007, according to EIA estimates. This represents a net decline of 89 Bcf from the previous week. Stocks were 354 Bcf higher than last year at this time and 491 Bcf above the 5-year average of 2,445 Bcf. In the East Region, stocks were 262 Bcf above the 5-year average following net withdrawals of 52 Bcf. Stocks in the Producing Region were 193 Bcf above the 5-year average of 720 Bcf after a net withdrawal of 20 Bcf. Stocks in the West Region were 37 Bcf above the 5-year average after a net drawdown of 17 Bcf. At 2,936 Bcf, total working gas is above the 5-year historical range.

Sherritt International Corp. has partnered with the Ontario Teachers Pension Plan to create a $1.5-billion project to produce synthetic natural gas from coal.

Details of the proposed Dodds-Roundhill Coal Gasification Project were released in a public disclosure document on the company's website. The application will be submitted for regulatory approval in 2008.

Sherritt, a Toronto-based natural resource company, plans to build a surface coal mine and gasification facility to process coal and produce the gas about 80 kilometres southeast of Edmonton. The project will be managed and operated by Sherritt. The coal feedstock is owned by the Carbon Development Partnership, which is an equally divided partnership between Sherritt and the OTPP.

''The Dodds-Roundhill coal gasification project represents a key step towards Alberta's future as a global centre of excellence in innovative 'clean coal' technology,'' Barry Hatt, senior vice-president of Sherritt, said in the report.

''This new technology will help preserve natural gas resources for higher value uses and unlock the full energy potential of coal. This new energy source can support the development of Alberta's vast oilsands resources in an environmentally sustainable manner,'' he said.

Following regulatory approval, which the company expects in 2009, construction would begin mid-2009 and the start up of the plant would be 2011, the company said.

The proposed mine and plant are the first stage of the project. The company's long-term plans involve as many as four similar facilities.

The Russian natural gas giant Gazprom is partly suspending cooperation with the operator of the Polish segment of a major pipeline after its request for lower transit fees was rebuffed, Poland's state-owned gas monopoly said Tuesday.

The Polish company, Polskie Gornictwo Naftowe & Gazownictwo, or PGNiG, did not specify what, if any, effect the dispute involving the Yamal pipeline, which carries Russian gas to Europe, might have.

The dispute comes as Russia, under President Vladimir Putin, has been putting pressure on other European countries regarding energy resources. Most recently, Gazprom suspended natural gas supplies to Belarus after a dispute over fees. That was resolved Dec. 31 with a new deal on prices, barely avoiding a cutoff to Europe. But Putin said Tuesday that Russia would cut energy subsidies to Belarus.

Gazprom and Rosneft, both state- controlled Russian companies, have also been jockeying for rights to buy out the Russian partners of the British oil company BP. The move might eventually leave BP with a minority stake in the venture; it now owns half.

And in December, Gazprom took majority control of the largest combined oil and natural gas field in the world, Sakhalin-2, when the foreign developers, led by Royal Dutch Shell, agreed to sell 50 percent plus one share to Gazprom. That came after months of pressure on the company and accusations from a Russian environmental regulator. Critics called the sale of the Russian Far East field a forced nationalization.

Chevron Corp. and Royal Dutch Shell Plc are delaying construction projects from Australia to Nigeria, and that may raise natural gas prices for years to come.

None of the world's biggest energy companies approved developments last year to increase production of liquefied natural gas, which helps heat homes and run power plants from Tokyo to Boston. The main reason is the cost to build LNG plants has tripled in six years, according to Bechtel Group Inc., the biggest U.S. contractor.

Natural gas prices are three times higher than during the 1990s and consumption of the fuel will outpace the 1.6 percent annual gain in energy demand for the next 25 years, according to the International Energy Agency. Gas is also becoming more popular because it emits 29 percent less carbon dioxide than oil and 45 percent less than coal burned in power stations.

"Costs are going up and they're going up far faster than anybody expected," said Andy Flower, a U.K.-based consultant to the LNG industry and a former BP Plc executive. He forecasts that the world LNG shortage will last until at least 2011.

Gas may become more important than oil in the next 50 years because crude supplies are running out faster, according to the Paris-based IEA. Global oil and natural gas reserves were about the same at the end of 2005, equal to 1.2 trillion barrels of crude, according to data compiled by BP. Oil reserves are being burned almost twice as quickly as gas.

LNG sales rose about 11 percent last year to 157 million metric tons, according to Wood Mackenzie Consultants Inc. in Edinburgh. It may jump about 66 percent to 261 million tons in 2010 and another 87 percent to 488 million by 2020, the group said.

Record LNG prices won't fall for "years to come," said Ari Soemarno, president of Indonesia's state energy company, PT Pertamina, until 2005 the world's largest LNG exporter. Prices under multiyear contracts, excluding freight and insurance, range as high as about $10 per million British thermal units in Asia, assuming $60 a barrel for oil, part of LNG price formulas.

Natural gas deposited near industrialized nations is typically transported through pipelines. The challenge is getting gas from the biggest producers -- Russia, Qatar and Iran -- to consumers worldwide who aren't linked by those networks. Now, gas that can't be transported is pumped back underground to force more crude to the surface, or burned off.

Cold Brings Increased Natural Gas Usage

A sprawling winter storm system continues to plague much of the nation today with ice, snow and heavy rain.

Ice storm warnings remain posted from portions of western and northern Texas northeastward to the mid-Mississippi Valley. Over the next 12 hours, the most significant icing--up to a quarter of an inch or so--seems likely from north-central and parts of northeastern Texas into eastern Oklahoma. But that's not to say that other areas under ice storm warnings won't experience problems. Even freezing drizzle can be extremely dangerous on roads.

Freezing rain hit Oklahoma on Friday at the start of what forecasters say could be a brutal ice storm.

Millions of people in the Texas Panhandle, Oklahoma and eastern Missouri are being warned that conditions will deteriorate Friday afternoon and the storm could spread as far east as Ohio and New York over the Martin Luther King Jr. holiday weekend.

"This is a one-in-maybe-15-to 25-year event," CNN severe weather expert Chad Myers said Friday of the forecast freezing rain, sleet and snow.

Freezing rain was also forecast for southeast Kansas into central Missouri Friday and is expected to hit I-44 by late Friday afternoon, the National Weather Service said.

Ice up to three-quarters of an inch will be likely by Saturday morning, and some parts could see ice accumulations of an inch and a half by Sunday, all of which could mean widespread power outages, the weather service said.

Temperatures in the week ahead will have highs in the 20s and lows in the teens and possibly single digits, the weather service added, according to AP.

In addition to the central U.S., a cold snap also was predicted this weekend for California, where farmers were preparing to monitor the health of a nearly $1 billion citrus crop, The Associated Press reported.

Crude oil for February delivery rose as much as $1.06, or 2 percent, to $52.94 a barrel in after-hours electronic trading on the New York Mercantile Exchange, its first gain this week. The contract traded at $52.34 at 12:58 p.m. in London.

Brent crude oil for February settlement climbed as much as $1.24, or 2.4 percent, to $52.94 a barrel in electronic trading on the ICE Futures exchange and traded at $52.36 in London.

Some analysts and brokers expect a forecast for colder weather next week to push prices higher. Colder weather will reach the northeastern U.S. Jan. 17 through Jan. 21, according to the U.S. National Weather Service. Temperatures in the region were milder than normal through the first part of winter. New York had its third-warmest December on record.

``The temperature is expected to drop below normal after'' the next five days, said Michael Davies, an analyst in London with broker Sucden (U.K.) Ltd. ``Many traders are expecting OPEC to take action in order to support prices.''

Working gas in storage was 3,025 Bcf as of Friday, January 5, 2007, according to EIA estimates. This represents a net decline of 49 Bcf from the previous week. Stocks were 401 Bcf higher than last year at this time and 461 Bcf above the 5-year average of 2,564 Bcf. In the East Region, stocks were 241 Bcf above the 5-year average following net withdrawals of 28 Bcf. Stocks in the Producing Region were 182 Bcf above the 5-year average of 751 Bcf after a net withdrawal of 9 Bcf. Stocks in the West Region were 38 Bcf above the 5-year average after a net drawdown of 12 Bcf. At 3,025 Bcf, total working gas is above the 5-year historical range.

Chevron Corp., the No. 2 U.S. oil company, reported on Tuesday that its fourth-quarter oil and gas production fell both in the United States and internationally, and it said it expects results in the quarter to be hurt by lower commodity prices.

The company said U.S. liquids and natural gas production fell almost 1 percent from the third quarter as planned project activity in the Gulf of Mexico continued into December.

Combined international liquids and natural gas production volumes were down 3.4 percent from the previous quarter.

Chevron said production volumes reflect the impact of a change in its service agreement with Venezuela's state oil company, which is estimated to reduce volumes by about 90,000 barrels per day.

U.S. crude realizations decreased by $11.72 per barrel, in line with the decrease in the price of West Texas Intermediate crude and California heavy crude, while international liquids realizations fell $11.05 per barrel, in line with the decrease in Brent spot prices.

Chevron said. U.S. natural gas realizations fell by 51 cents per thousand cubic feet.

Chevron said it expects fourth-quarter results to be at or above the high end of its standard forecast for net after-tax charges for corporate and other activities of between $160 million and $200 million.

Crude oil fell to the lowest in a year and a half as mild weather in the eastern U.S. curbed heating- fuel consumption, causing stockpiles to increase.

Temperatures in New York will rise to 48 degrees Fahrenheit (9 Celsius) today, 10 degrees above the normal high, the National Weather Service said. The city had its third-warmest December on record. OPEC will speed up a 500,000 barrel-a-day output cut by almost a month to stop the fall in oil prices, Qatar's oil minister said.

``It's hard to be worried about heating-oil supplies when we've seen 60-degree weather this January,'' said Rick Mueller, an analyst with Energy Security Analysis Inc. ``Refiners are shifting to gasoline production, which should leave us with ample supplies when demand picks up. Demand for crude oil should fall as the product stockpiles grow.''

Crude oil for February delivery fell $1.37, or 2.4 percent, to $54.72 a barrel at 10:21 a.m. on the New York Mercantile Exchange. Futures touched $53.88, the lowest since June 13, 2005, prior to Hurricane Katrina, which destroyed oil platforms and refineries along the U.S. Gulf of Mexico coast. Prices are down 10 percent this year and 14 percent from a year ago.

Crude oil rose for a second day on speculation that falling temperatures in the U.S. may boost heating demand in the world's largest energy consumer and as Russian supplies to Poland and Germany were curtailed.

Up to six inches of snow may fall today in parts of the U.S. Northeast, where four-fifths of the country's heating oil is burned, according to forecasting service Accuweather.com. Russian crude oil deliveries to Poland and Germany along a million barrel- a-day pipeline were halted following a dispute between Russia and Belarus, according to the Polish pipeline operator.

``The weather is the main driver of the market now,'' said Gerrit Zambo, an oil trader at BayernLB in Munich. ``Even small signs of cooler temperatures can bring prices back up toward the $60 a barrel region.''

Crude oil for February delivery rose as much as $1.41, or 2.5 percent, to $57.72 a barrel on the New York Mercantile Exchange and traded at $57.46 at 2:41 p.m. London time. Brent crude oil gained $1.35 to $56.99 a barrel on the London-based ICE Futures exchange.

Polish pipeline operator PERN Przyjazn SA and Grupa Lotos SA, Poland's second-largest refiner, said supplies via the Druzhba pipeline that transports Russian crude through Belarus were cut off last night. The Polish segment of the pipeline carries about 50 million tons of oil a year, including 27 million tons to German refiners.

U.S. Weather

Temperatures may drop below normal in the western U.S. this week and cooler weather will spread across most of the country until Jan. 20, according to the National Weather Service.

New York-traded crude rose 72 cents, or 1.3 percent, to $56.31 a barrel on Jan. 5 after dropping almost 9 percent the previous two sessions. Prices fell last week amid mild weather in the U.S. Northeast and after U.S. fuel inventories climbed more than expected.

Last week's price decline was the biggest since April 2005. The price of oil has plunged about 27 percent from the record $78.40 a barrel reached July 14 after Israeli forces invaded Lebanon to fight Hezbollah militants.

``The next move is likely to be back up again,'' said Adam Sieminski, chief energy economist at Deutsche Bank AG in New York. ``There could be rising hysteria in OPEC because a number of the countries like Iran and Venezuela have been spending like oil was going to stay at $70 a barrel.''

The Organization of Petroleum Exporting Countries agreed to cut output by 1.2 million barrels a day in November, citing slower-than-forecast demand growth and rising global stockpiles. Members agreed in December to cut another 500,000 barrels a day starting Feb. 1.

Working gas in storage was 3,074 Bcf as of Friday, December 29, 2006, according to EIA estimates. This represents a net decline of 47 Bcf from the previous week. Stocks were 433 Bcf higher than last year at this time and 408 Bcf above the 5-year average of 2,666 Bcf. In the East Region, stocks were 201 Bcf above the 5-year average following net withdrawals of 33 Bcf. Stocks in the Producing Region were 170 Bcf above the 5-year average of 772 Bcf after a net withdrawal of 5 Bcf. Stocks in the West Region were 37 Bcf above the 5-year average after a net drawdown of 9 Bcf. At 3,074 Bcf, total working gas is above the 5-year historical range.

Oil prices plunged below $59 a barrel Wednesday as mild weather persisted in the United States, dampening demand for winter fuels such as heating oil and natural gas.

Light, sweet crude for February delivery on the New York Mercantile Exchange fell to $58.97 a barrel in midmorning trading, a drop of $2.08 from Friday's settlement price.

The Nymex trading floor was closed Monday for New Year's Day and Tuesday for the memorial service for former U.S. President Gerald Ford, although there was some electronic trading.

The Brent crude contract for February delivery fell $1.58 to $60.05 a barrel on the ICE Futures exchange, which was open on Tuesday.

In New York City, temperatures on the first day of 2007 hit a peak of 54 degrees Fahrenheit _ much warmer than normal.

But many analysts expect crude oil futures to stay on average above $60 a barrel this year because of robust demand growth in Asia and the Middle East, efforts by the Organization of Petroleum Exporting Countries to trim supply and market-rattling instability in suppliers such as Nigeria and Iraq.

OPEC's concerns that high global stockpiles and sluggish demand would undermine prices led it to agree on a 1.2 million barrel-a-day crude oil output cut in November and a further 500,000 barrel-a-day cut to take place Feb. 1.

"For 2007, oil pricing is likely going to be stubbornly high, with the OPEC group looking like it will want to defend a $55 floor under prices," said Victor Shum, an analyst with Purvin & Gertz in Singapore. He projected crude futures would trade in the $60-65 a barrel range. "With ongoing geopolitical concerns such as Iran and Nigeria, the market will also tend to have buyers on the high side."

Slower economic growth in the U.S. and a production spurt from non-OPEC countries should keep prices below the 2006 average of roughly $66 a barrel, analysts say.

A survey of energy analysts showed U.S. crude oil stocks were expected to decline for a fifth straight week in data due Thursday from the U.S. Energy Information Administration. The data, which will cover the week ended Dec. 22, have been delayed until Thursday because of the three-day Christmas holiday.

Crude stocks were expected to show a draw of 1.32 million barrels on average, a Dow Jones Newswires survey said, while both distillate and gasoline stocks were predicted to rise.

Distillate stocks, which include heating oil and diesel fuel, are expected to increase by an average of 220,000 barrels while gasoline inventories were seen rising by an average of 590,000 barrels.

Heating oil futures fell 4.72 cents to $1.6010 a gallon, while natural gas prices dropped 11.2 to $6.187 a gallon.