posted
for weeks natural gas has been talked about,almost all are in agreement that the increase will be at least 71% by mid winter,this morning CNN had someone that stated to expect a 100% increase or more witin months talking about the current conditions of supply and demand and lack of reserves.
AMEP is setting up to drill into their Barnett areas sitting on top of 30 trillion cubic feet of N gas,should be tapping wells with the next 10 days or so,they already have about 25 set up and producing now in other areas,news will be released soon imo.
U.S. Henry Hub nat gas pipeline has leak-governor Sat Sep 24, 2005 10:00 PM ET SINGAPORE, Sept 25 (Reuters) - The gas pipeline that links to the Henry Hub delivery point for U.S. natural gas contracts has a leak due to damage sustained from Hurricane Rita, the governor of Louisiana said on Sunday.
"We understand there is a gas leak and ... a possible shearing of an oil storage tank," Gov. Kathleen Blanco told CNN television channel in the United States.
She did not give any further details as to the extent of the damage but said they would need to plug the leak or flare the gas as it presented a danger.
Sabine Pipeline LLC, a unit of Chevron (CVX.N: Quote, Profile, Research) , which owns and operates the Henry Hub, did not immediately return phone calls.
The New York Mercantile Exchange on Friday declared force majeure on remaining September natural gas deliveries due to the closure of the Sabine Pipeline, which operates the key Henry Hub delivery point in Erath, Louisiana.
On Thursday, Sabine shut down its pipeline ahead of Hurricane Rita's expected landfall along the U.S. Gulf Coast and declared force majeure, the exchange said in a statement
September 24, 2005
Distillate leaks at natural gas hub following Hurricane Rita
ABBEVILLE, La. (CNN) -- A distillate used in processing natural gas was leaking Saturday night from a rupture at Henry Hub in Louisiana, which connects numerous natural gas pipelines in the region, but state officials said the incident posed no danger to residents.
Henry Hub is at the Sabine Pipe Line Henry Gas Processing Plant in Erath, La., part of Vermilion Parish. Vermilion was one of the three parishes worst hit by Hurricane Rita.
The officials said the chemical was leaking from a tank into a levee meant to contain such spills. The cause of the leak was being investigated. (Posted 10:15 p.m.)
The Times
Gas threat fuels energy crisis By Carl Mortished, International Business Editor
AMERICA’S energy industry was on tenterhooks yesterday, anticipating a natural gas emergency as Hurricane Rita shifted eastwards towards Port Arthur, Texas, on a trajectory to the heart of America’s gas industry.
The slight shift may spare the US refinery industry but will threaten Henry Hub, a gas facility that connects a web of pipelines, linking the Gulf of Mexico gasfields to the Midwest, south east, and New England.
Damage to Gulf Coast facilities would increase a price that has already jumped to a record level this week of $14 (£7.90) per million Btu. The US is short of natural gas, its onshore wells are nearly spent and September is a critical month when gas companies fill storage tanks before winter demand.
A key gas pipeline serving Henry Hub was shut down yesterday as a precaution, cutting off supplies and also causing Nymex, the commodities exchange, to declare force majeure on gas futures contracts that specify Henry Hub as the delivery point. Two thirds of the Gulf of Mexico’s gas output was shut yesterday, along with 92 per cent of oil production, as platform operators evacuated staff from offshore facilities. Fifteen refineries closed.
posted
Article published Sunday, September 25, 2005
In the eye of a storm: natural-gas price surge
By MARY-BETH McLAUGHLIN BLADE BUSINESS WRITER
Bob Eyre of Ohio Gas Co. in Bryan says his "crystal ball has duct tape on it," but he knows he made the right call when buying natural gas for this winter.
Starting in April, Mr. Eyre locked in at lower rates about two-thirds of the gas he will need this winter for 46,000 customers in the northwest section of Ohio, so he will be able to charge $1.11 per 100 cubic feet for the foreseeable future.
That, despite the twin disasters of Hurricanes Katrina and Rita which wreaked havoc on drilling platforms in the Gulf Coast and led to rapid escalation of prices that companies pay for natural gas - costs passed on to consumers.
"You should be locking in from April through August for the reason of exactly what happened," Mr. Eyre said. "You don't want to be caught in September and October buying a chunk of the gas you need for the winter."
The hurricanes, the latest blow to an industry reeling from increasing prices, help put in focus how gas utilities purchase supplies and what, if anything, can be done to protect consumers from price spikes.
Pricing is of particular interest in northwest Ohio, where many residents typically have paid rates that are among the highest in the state.
Columbia Gas of Ohio, the dominant natural-gas utility in Toledo, its suburbs, and several nearby counties, with 250,000 customers, asked the Public Utilities of Commission of Ohio this month for permission to charge $1.32 per 100 cubic feet of gas next month, up 45 percent from a year ago. Smaller utilities in the region, with rare exceptions, are charging less than that.
The reasons range from the higher amount of the heating fuel that Columbia Gas buys on the spot market to some utilities' ability to purchase gas through pipelines not available to Columbia Gas.
An average bill next month, based on the requested rate and typical use of 3,000 cubic feet of gas, will be $53, up from $40 a year ago.
Last January, in the height of the heating season, when the Columbia Gas rate was less than $1 per 100 cubic feet, the typical bill was $214 for an average use of 17,000 cubic feet.
That would be nearly $60 higher at the current rate, but by winter, the rate is likely to be higher.
A spokesman for Columbia Gas defended his firm's purchase and storage practices, saying it is unfair to compare it to smaller utilities or to those in Michigan that might set their rates differently.
The company, with 1.2 million customers in 64 of the state's 88 counties, stores 50 percent of its estimated needs, buys 15 percent more through long-term markets, and obtains the rest, or about a third, on the daily spot market, often at volatile prices.
That proportion of spot-market purchasing is higher than at many other utilities.
Trying to show that metro Toledo residents aren't being singled out for higher rates, Columbia Gas spokesman Ray Frank said, "The rates or the costs for the gas in Toledo are no higher than in the Cleveland area, Columbus, or the southern part of the state."
But in the latest comparison compiled by state regulators, the Columbia Gas rates were noticeably higher than those elsewhere in Ohio. And, the difference between the company's October price and those of many other northwest Ohio utilities is larger than it was last November, when The Blade did a similar comparison.
Waterville Gas & Oil Co. is charging its 4,700 customers 80 cents per 100 cubic feet in October, or nearly 40 percent less than Columbia Gas, whose service territory abuts the tiny suburban Toledo utility's.
Rob Black, president of the Waterville utility, declined comment on Columbia Gas. But he said his company locked in a portion of its winter gas at lower rates before Katrina hit the Gulf Coast, interrupteding some natural gas supplies and prompting a nationwide boost in wholesale fuel prices.
He said he expects his November rate to rise substantially. Experts anticipate Columbia Gas also will also seek a sizable boost.
Mike Poole, an officer of Arlington Natural Gas Co. in Van Buren, said his company will charge its 2,000 customers $1.35 per 100 cubic feet in October. But the figure is considerably lower than Columbia Gas' because it includes transmission and other costs, which add more than 20 cents per 100 cubic feet to Columbia Gas customers' bills.
"The prices now are higher than everything we've ever seen," said Mr. Poole, the fourth-generation executive of a company founded in the 1880s.
He bought some fuel early in the summer but held off buying more because he thought prices would go down as they have in previous summers.
He was wrong, and now fears his charge will go to $1.70 per 100 cubic feet.
Driving up prices nationwide are several factors, in addition to the supply disruptions from the hurricanes.
Exploration for new natural gas supplies has been limited until recently because the price of the fuel was low and demand was not exorbitant.
But demand has risen dramatically in the past two or three years, particularly during the summer when natural gas supplies often were replenished and readied for the next winter's demand for heating fuel.
That summer demand is from an increase in the number of mini-power plants considered a cheaper way to help meet the nation's increased appetite for electricity to run air conditioners. Those plants are fueled by natural gas and use it in large quantities.
Despite that, some utilities have been able to hold down customer bills.
Consumers Energy in Adrian, for example, is charging its 1.7 million Michigan customers 84 cents per 100 cubic feet next month.
Spokesman Terry DeDoes explained, "The No. 1 thing we have working in our favor … is our vast capacity to store natural gas underground."
The firm has 15 storage fields, allowing it to have on hand or through long-term purchase contracts 76 percent of the gas it expects to need this winter, he said.
"Which means," he said, "we don't have to go out on the open market when the gas costs the most."
Ohio regulators closely monitor the buying practices and strategies of natural-gas utilities in the state, said Thom Pearce, senior natural gas specialist for the Public Utilities Commission of Ohio.
The agency hires outside consultants every two years to audit the state's four large gas companies, including Columbia Gas. Hearings on the consultant's findings and recommendations likely will be held in about a year, Mr. Pearce said.
Under Ohio law, natural-gas utilities are legally permitted to pass on to customers their increased cost to buy fuel.
Asked whether state regulators would ever require a utility to make investments to build more storage or new pipelines to bring cheaper gas to its customers, he said the PUCO has and would. But he added that the benefits of such ventures must be weighed against the costs.
Asked why some companies in northwest Ohio and elsewhere in the state charge less than Columbia Gas, Mr. Pearce said that might be because they have been grandfathered in to using certain pipelines to which the large utility does not have access or they can tap into pipelines in Michigan more easily and cheaply than Columbia Gas could.
Spokesman Neil Durbin, of Dominion East Ohio Gas Co., said natural gas prices will remain high until new gas supplies are tapped.
His firm, which does business in northwest Ohio as East Ohio Gas, has asked regulators for permission to charge $1.32 per 100 cubic feet in October, the same as Columbia Gas.
Under Ohio's choice program, Columbia Gas customers can select from nearly 10 other natural-gas suppliers, although most offer rates similar to Columbia Gas.
As one solution, executives from Ohio's major natural gas utilities, including Columbia Gas, asked state lawmakers last week to urge Congress to lift its ban on drilling for the fuel under the Great Lakes, in Alaska wildlife preserves, and along the coastlines.
As to why Columbia Gas doesn't find new supply routes that others use to offer cheaper prices, Mr. Frank of the utility said it would be too costly to build new pipelines to carry more gas to storage.
"If there's cheaper gas available and someone has it for sale, let us know," he said.
posted
it will go up gradually and have its pull backs. no one is here to hype this stock, it will only have a negative affect. its a very good long term and swinger for the dts
Posts: 2329 | From: MD | Registered: Jul 2005
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opened at .041 in Berlin and has climbed up to 12% on decent volume.I don't have my currency converter but .041 there I believe is about .046 here. Friday took a serious retrace and felt the effect of the DT exits EOD.We should be hearing about the new well targets and entries very soon after speaking with the America Oil Group's Joe Christopher since now there will be no wait time for drilling rigs as so many do.
posted
Quest, have the two been following each other at the same rate? Or have we been up more than them?
Posts: 414 | From: Auburn, Alabama | Registered: Aug 2005
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posted
.040 x .040...if I remember correctly it gapped down the morning we got the last PR...BTW according to the news right now on CNN the Balarro refinery(biggest) and most others will not be operational for 5 weeks...ya think this will affect ONG prices...LOL...definitely if it takes that long.
posted
The U.S. Minerals Management Service said Sunday that 666 platforms in the Gulf remained unstaffed, up slightly from Saturday. Oil production in the Gulf of Mexico was totally shut down, and more than 80 percent of natural gas output was off. Since Katrina hit a month ago, more than 33 million barrels of oil and 156 billion cubic feet of natural gas have been lost.
The acting secretary-general of the Organization of Petroleum Exporting Countries warned Saturday that volatility is likely to remain a feature of the oil market unless consuming nations and international oil companies commit sufficient financial resources to refinery construction and development.
"It is clear that the present tightness in the downstream sector, especially the lack of adequate refining capacity, will continue to put pressure on prices," Adnan Shihab-Eldin was quoted as saying by Dow Jones Newswires.
Elsewhere, China said its oil imports grew 3.9 percent in August from a year ago, with the mainland bringing in 91.49 U.S. tons of crude for the year. Still, imports fell 6 percent to 9.59 U.S. tons from the previous month -- a possible indication of falling demand in the second-biggest oil consuming nation after the United States.
Associated Press Writer En-Lai Yeoh in Singapore contributed to this report.
posted
got a partial fill,people don't realize that the natural gas problem is going to be on the top burner in the next few weeks thats why now is the best time to load up on NG stocks and play elsewhere until then.
-------------------- Sometimes you gotta create what you want to be a part of. - Geri Weitzman Posts: 40 | From: Macon, GA | Registered: Aug 2005
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posted
lol, its all good Ian. We are building a firm base which is good. This should be another good week. Soon as the PR hits about the well being up it should get above .06
Posts: 414 | From: Auburn, Alabama | Registered: Aug 2005
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posted
AMEP over the past month and a half has gradually worked up to higher levels...I might add not as fast as I would have liked but its still early in the season.
here are some pics from some of AMEP's current projects.
posted
after the gains that we have seen we could and should see a little bit of a pullback this week and that is a good thing for the long term,last week we made some real good money here and we are now setting a new support line.a support of .04 or better is great.look how far we came with just news on the drilling rig being delivered. now imagine what happens when it compleats its first hole. as far as im concerned the day to day wiggles leave me with little to worry about. its all the "natural progresion" remember shooting stars burn out qiuckly. bmax,
Posts: 629 | From: new england | Registered: Feb 2005
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posted
What a great swing stock! I know it would be risky to not be in this for the long and miss the train but wow...thats all i have to say.
-------------------- Sometimes you gotta create what you want to be a part of. - Geri Weitzman Posts: 40 | From: Macon, GA | Registered: Aug 2005
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posted
definitely a good swing play but one day its not coming back down to recover shares imo,natural gas is going to be in the spotlight over the next few months.
MINERAL WELLS, Texas, Sep 16, 2005 (BUSINESS WIRE) -- American Energy Production Inc. (AMEP, Trade) announced today the Ideco drilling rig purchased by Investee AMEP Strategic Investments Inc. from Aramdrill in Mexico has arrived in Mineral Wells, Texas.
Charles Bitters, President of American Energy Production Inc., said, "The Company is very excited with the delivery of the Ideco drilling Rig from Mexico City to Mineral Wells. To locate a rig of this type in the current demand driven environment and go through Mexico and U.S. Customs without any major problems is no small feat. There just are not any rigs of this quality for sale. Because of the recent record prices for crude oil and natural gas, it is almost impossible to schedule a rig. This is the perfect drilling rig for the productions horizons the Company is interested in exploiting." The Company will immediately begin checking out the drilling rig and mud pump engines and add the support equipment necessary to begin drilling operations. This drilling rig should be in the field drilling in the next three weeks. AMEP will continue to inform shareholders as work progresses.
posted
I agree with Quest, this week and next may be the last of the swing days. Its starting to cool off in Michigan. Consumers Energy, on my last bill, said they have put in the petition to raise our bills by 12% initially.
Posts: 43 | Registered: Sep 2005
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posted
energy talking on CNBC just now and coming back on talking about gas prices,supply and so on....wait until they get into heating oil and natural gas and their projections,numbers are high.
posted
AMEP - AMERICAN ENERGY PROD (OTCBB) Date Open High Low Last Change Volume % Change 09/26/05 0.0400 0.0490 0.0370 0.0460 +0.0040 16065217 +9.52%
Composite Indicator Trend Spotter TM Buy
Short Term Indicators 7 Day Average Directional Indicator Buy 10 - 8 Day Moving Average Hilo Channel Buy 20 Day Moving Average vs Price Buy 20 - 50 Day MACD Oscillator Buy 20 Day Bollinger Bands Hold
Short Term Indicators Average: 80% - Buy 20-Day Average Volume - 39541070
Medium Term Indicators 40 Day Commodity Channel Index Buy 50 Day Moving Average vs Price Buy 20 - 100 Day MACD Oscillator Buy 50 Day Parabolic Time/Price Sell
Medium Term Indicators Average: 50% - Buy 50-Day Average Volume - 22722523
Long Term Indicators 60 Day Commodity Channel Index Buy 100 Day Moving Average vs Price Buy 50 - 100 Day MACD Oscillator Buy
Long Term Indicators Average: 100% - Buy 100-Day Average Volume - 15666448
Overall Average: 80% - Buy
Price Support Pivot Point Resistance
0.0420 0.0326 0.0452 0.0578
Click on the indicator for a graphical interpretation of the result or visit the Learning Center for more information on the studies
Posts: 289 | From: Atlanta | Registered: Jul 2005
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posted
here comes another buying wave,looks like many are prepping for another spike due to N gas and heating issues....right now in the gulf there is zero production of natural gas.
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