Thursday, February 22, 2007

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.

Tuesday, February 20, 2007

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.

Thursday, February 15, 2007

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.

Wednesday, February 14, 2007

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."

Monday, February 12, 2007

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.

Thursday, February 08, 2007

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.

Wednesday, February 07, 2007

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.

Tuesday, February 06, 2007

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.

Monday, February 05, 2007

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.

Thursday, February 01, 2007

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.