Natural Gas Gaining Favor As Vehicle Fuel

Rising gasoline prices are leading to increased demand for natural gas vehicles by both commercial fleets and individuals. The accompanying video demonstrates the implementation of CNG vehicles by transit agencies.

AP reports.......Personal ownership of natural gas-fueled vehicles in Utah soared from practically nothing a few years ago to an estimated 5,000 vehicles today, overwhelming a growing refueling network, where compressors sometimes can't maintain enough pressure to fill tanks completely for every customer.

"Nobody expected this kind of growth. We got caught by the demand," said Gordon Larsen, a supervisor at Utah utility Questar Gas.

Utah has 91 stations, including 20 open to the public, mostly in the Salt Lake City area. The others are reserved for commercial drivers, such as school districts, bus fleets and big businesses such as a Coca-Cola distributor.

Natural Gas Crosses $11

May natural gas contracts rose 1.6% (17.3 cents) to close at $10.963 in NYMEX trading.

After hours trading hit $11.05, the highest intraday natural gas price since 12-30-05.

The contract for May natural gas gained 4 percent this week and expires on April 28.

Natural Gas Inventory Report 4-24-08

Working gas in storage was 1,285 Bcf as of Friday, April 18, 2008, according to EIA estimates. This represents a net increase of 24 Bcf from the previous week. Stocks were 274 Bcf less than last year at this time and 25 Bcf below the 5-year average of 1,310 Bcf. In the East Region, stocks were 1 Bcf below the 5-year average following net injections of 16 Bcf. Stocks in the Producing Region were 6 Bcf above the 5-year average of 500 Bcf after a net injection of 3 Bcf. Stocks in the West Region were 31 Bcf below the 5-year average after a net addition of 5 Bcf. At 1,285 Bcf, total working gas is within the 5-year historical range.

Natural Gas Hits 27 Month High

Natural gas for May delivery closed 17.4 cents, or 1.6%, higher at $10.781 in trading on the NYMEX. Natural gas prices now sit at a 27 month high ahead of Thursday's inventory data.

Natural Gas Crosses $10.50

May natural gas futures rose 20.4 cents to settle at $10.587 per 1,000 cubic feet in trading on the NYMEX.

Global Demand Continues To Drive Natural Gas Prices Higher

(WSJ) Americans feeling the pain of record gasoline prices now face the likelihood of another fuel shock, from natural gas.

Prices in the U.S. have risen 93% since late August as power-hungry nations like South Korea and Japan compete in a global natural-gas market that scarcely existed a half-decade ago. Still, U.S. prices are as low as half the level of some overseas markets, suggesting they have much further to rise.

Continued WSJ

Natural Gas Inventory Report 4-17-08

Working gas in storage was 1,261 Bcf as of Friday, April 11, 2008, according to EIA estimates. This represents a net increase of 27 Bcf from the previous week. Stocks were 298 Bcf less than last year at this time and 3 Bcf below the 5-year average of 1,264 Bcf. In the East Region, stocks were 8 Bcf above the 5-year average following net injections of 19 Bcf. Stocks in the Producing Region were 19 Bcf above the 5-year average of 484 Bcf after a net injection of 5 Bcf. Stocks in the West Region were 30 Bcf below the 5-year average after a net addition of 3 Bcf. At 1,261 Bcf, total working gas is within the 5-year historical range.

May natural gas rose 15.2 cents to settle at $10.053 per 1,000 cubic feet.

EIA`s Weekly Natural Gas Storage Report ...the net withdrawal from working gas storage of 14 billion cubic feet (Bcf) is a dramatic departure from the 5-year average net injection of 15 Bcf and 2007's net injection of 33 Bcf for the same report week.


Heating demand for natural gas ... heating degree-days in the Lower 48 States were about 7% above normal levels during the report week (March 28-April 4, 2008) and almost 62% above the level reported for the same week last year, according to the National Weather Service`s degree-day data.

Natural Gas Inventory Report 4-10-08

Working gas in storage was 1,234 Bcf as of Friday, April 4, 2008, according to EIA estimates. This represents a net decline of 14 Bcf from the previous week. Stocks were 351 Bcf less than last year at this time and 23 Bcf below the 5-year average of 1,257 Bcf. In the East Region, stocks were 16 Bcf below the 5-year average following net withdrawals of 12 Bcf. Stocks in the Producing Region were 22 Bcf above the 5-year average of 476 Bcf after no net change in stock levels. Stocks in the West Region were 29 Bcf below the 5-year average after a net drawdown of 2 Bcf. At 1,234 Bcf, total working gas is within the 5-year historical range.

Natural gas continued to rally ahead of Thursday's inventory report. Analysts expect another decline in natural gas supplies due to a reduction in LNG imports.

Natural gas for May delivery gained 4.2 percent or 40.3 cents to $10.10 per million British thermal units on the New York Mercantile Exchange. Natural gas prices are currently up 35% in 2008.

HOUSTON, April 8, 2008 /PRNewswire-FirstCall/ -- Apache Corporation announced today that horizontal wells drilled in the Ootla shale play in Northeast British Columbia test-flowed at rates of 8.8 million cubic feet (MMcf), 6.1 MMcf and 5.3 MMcf of gas per day.

The three wells drilled during the 2008 winter season are producing from the Muskwa shale and flowing through Apache's Missile gas plant. The Ootla area is in the northeast corner of British Columbia, about 60 miles from Fort Nelson, B.C.

"Although we are still in the early stages of understanding the full scope of this play, these three wells help validate our view that Ootla has the potential to be one of the larger shale gas accumulations in North America," said G. Steven Farris, Apache's president and chief executive officer.

Apache Press Release

Natural Gas Stages Rally

Natural gas for May delivery rose 46.9 cents, or 5 percent, to settle at $9.791 per million btu in NYMEX trading.

Natural gas prices are up 30 percent from a year ago.

Analyst Forecasts $12 Natural Gas

``There's a real tug of war going on between the bulls and the bears,'' said Carl Neill, an energy analyst at Risk Management Inc. in Chicago. ``Natural gas storage is low, though there's nothing to really move the market right now'' as temperatures moderate with spring's arrival.

Futures prices are getting ``good support'' around $9.40 per million Btu and will probably move higher to about $12 this summer, Neill said.

Natural Gas Inventory Report 4-03-08

Working gas in storage was 1,248 Bcf as of Friday, March 28, 2008, according to EIA estimates. This represents a net decline of 29 Bcf from the previous week. Stocks were 304 Bcf less than last year at this time and 6 Bcf above the 5-year average of 1,242 Bcf. In the East Region, stocks were 2 Bcf below the 5-year average following net withdrawals of 32 Bcf. Stocks in the Producing Region were 33 Bcf above the 5-year average of 465 Bcf after a net injection of 4 Bcf. Stocks in the West Region were 25 Bcf below the 5-year average after a net drawdown of 1 Bcf. At 1,248 Bcf, total working gas is within the 5-year historical range.