Natural gas futures dropped this morning, after yesterday's 7% move higher, on forecasts for...
Natural gas futures dropped this morning, after yesterday's 7% move higher, on forecasts for cold weather to drive up heating demand and cause freeze-offs in several shale regions, which is outweighing predictions for a large draw in storage. Updated estimates for storage week-ending 19-January now expect a draw of over (270) Bcf, potentially making it one of the ten largest pulls on record. Near-term, consensus for EIA storage week-ended 5-January due tomorrow has a draw of around (115) Bcf.
The energy sector is set off to a higher start, supported by strength in the crude complex, while futures tied to the major equity indices are flat as investors wait for the consumer price index report due tomorrow.
WTI and Brent crude oil futures are recovering some of this week’s losses on rising geopolitical tensions in the Middle East, the shutdown of a top Libyan oilfield, and a weaker dollar. Houthis today said they targeted a U.S. ship supporting Israel, while Iraqi Prime Minister Mohammed Shia al-Sundai said his nation wants a quick and orderly negotiated exit of U.S.-led military forces from its soil, stating their presence is destabilizing. Last night’s API data points to a large draw in crude inventories. The report also shows builds in gasoline and distillate inventories that exceed analyst estimates. Expectations for record-high output in 2024 and worries about weak economic growth are limiting gains.
Many cities and some states are considering or have passed restrictions for natural gas hookups in new...
Many cities and some states are considering or have passed restrictions for natural gas hookups in new construction to curb emissions, but many such actions were met with legal challenges in 2023 and the situation prompts a closer look at building electrification rules under the federal Energy Policy and Conservation Act, asserts Amy Turner of Columbia University. This piece explores the natural gas ban landscape in 2023, as well as some disputes to watch in 2024. READ MORE
The US natural gas industry faces a challenging outlook for 2024 as a warm winter and high storage levels...
The US natural gas industry faces a challenging outlook for 2024 as a warm winter and high storage levels have pushed prices below $3 per million British thermal units, with sub-$2 prices possible unless the surplus inventory is reduced. Nevertheless, US gas drillers are keeping production high in anticipation of the upcoming surge in demand from new liquefied natural gas terminals.
Industry leaders battle declining appeal of oil, gas jobs
US shale tycoon Harold Hamm has recently donated $50 million to establish the Hamm Institute for American...
US shale tycoon Harold Hamm has recently donated $50 million to establish the Hamm Institute for American Energy at Oklahoma State University as part of efforts to counter younger generations' dwindling interest in oil and natural gas careers, while oil giants including ExxonMobil, Chevron and Shell have launched similar initiatives. Undergraduate enrollment in petroleum engineering courses has dropped from 7,046 in 2019 to 3,911 in 2023, heightening concerns about skills shortages in the industry.
