APGA Writes Congress Regarding Impacts of Record-High Natural Gas Prices
As the July contract for natural gas closed at a record-high last week, the American Public Gas Association (APGA) sent a letter to Senate and House leaders warning of the impact that record-high prices will have on winter heating bills. The letter was sent before Congress adjourned and lawmakers returned home to their districts for the July 4th holiday.
The closing price for the natural gas July contract on New York Mercantile Exchange (NYMEX) was $13.1 MMbtu. This price represents almost a 100% increase from last year’s closing contract for July. APGA explained in its letter to congressional leaders that this doubling of commodity costs will undoubtedly be reflected in consumer’s winter heating bills as utilities begin to buy and store natural gas today for use during the upcoming winter heating season.
APGA President & CEO Bert Kalisch pointed out in the letter that if gasoline prices would have increased at the same rate as natural gas prices, consumers would be paying over $6.50 per gallon at the pump today.
He went on in the letter to caution lawmakers from enacting policies that could drive the cost of natural gas even higher. ... Full Story
Congress Focuses on Energy Speculation
Congress will return next week from their July 4th holiday recess with plans to further address commodity market speculation. American Public Gas Association (APGA) Executive Vice President Dave Schryver and Government Relations Director Nate Hill have been meeting with congressional staff on the Senate and House side about their plans to address speculation during the remainder of the legislative year.
The House Agriculture Committee has scheduled three consecutive hearings July 9, 10 and 11 to take testimony from interest groups, experts and other House Members who have introduced legislation to curb speculation in commodity markets. The hearings will most likely focus on a broad range of topics including treatment of swaps, over-the-counter markets, foreign boards of trade, pension/index fund participation in commodity markets, hedging exemptions, margin requirements and others.
Several committees in the Senate including Agriculture, Energy, Homeland Security and Government Affairs and others have held hearings to consider legislation introduced by Senators. ... Full Story
ATTENTION…..State Gas Associations and Joint Action Agencies
The APGA 2009 Market Development Conference (MDC) is scheduled for March 23-25, 2009 in Atlanta, Georgia. The Task Force planning the MDC has agreed to invite state gas associations and joint action agencies (JAA) to collaborate on and jointly promote the 2009 MDC. This is a departure from past years where APGA was the sole planner and sponsor.
It was decided that the greater public gas industry needs to work together to make the 2009 MDC a premier event that will attract great numbers of gas utility employees.
MDC program planning is just getting underway. State associations and JAAs wanting to participate in program planning, be a cosponsor of the 2009 MDC and share in net revenue are invited to contact either Jimmy Sprouse, York County Natural Gas Authority or Bob Beauregard at APGA. Jimmy is the MDC Task Force Chairman and can be reached at (803) 327-7162 or jimmy.sprouse@ycnga.com. Bob can be reached at (202) 464-0831 or bbeauregard@apga.org.
July 3, 2008
IS U.S. NATURAL GAS PRODUCTION INCREASING?
The Energy Information Administration (EIA) reports on its website that natural gas production in the Lower 48 States has seen a large upward shift. After nine years of no net growth through 2006, an upward trend began that generated 3% growth between first-quarter 2006 and first-quarter 2007, followed by an exceptionally large 9% increase between first-quarter 2007 and first-quarter 2008. More than half of the increase in natural gas production between the first quarter of 2007 and the first quarter of 2008 came from Texas, where supplies grew by 15%. Other contributing regions included Wyoming with growth of 9%, Oklahoma with 6% growth, and Louisiana with 4% growth. Even production from the offshore Gulf of Mexico, which had been declining for years, increased 2% from first-quarter 2007 to first-quarter 2008. EIA suggests that production is increasing now because improved technology allows economic production of resources in deep water and large “unconventional” resources, which are difficult to produce. ... Full Story
PHMSA Proposes Distribution Integrity Management Programs (DIMP) Rule
In a June 25 Federal Register notice, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposed the long awaited Distribution Integrity Management Programs (DIMP) rule. The rule would require operators of gas distribution pipelines to develop and implement integrity management (IM) programs to identify and reduce pipeline integrity risks.
The IM programs required by the proposed rule would be similar to those currently required for gas transmission pipelines, but tailored to reflect the differences in and among distribution systems. In accordance with Federal law, the proposed rule would require operators to install excess flow valves on certain new and replaced residential service lines, subject to feasibility criteria outlined in the rule. Based on the required risk assessments and enhanced controls, the proposed rule also would establish procedures and standards permitting risk-based adjustment of prescribed intervals for leak detection surveys and other fixed-interval requirements in the agency's existing regulations for gas distribution pipelines. ... Full Story
EIA Weekly Storage Report
Here is the weekly EIA Summary Report issued Thursday, July 3, 2008. A 85 Bcf increase has been reported.
EIA Storage Report Highlights for Friday, June 27, 2008:
Summary
Working gas in storage was 2,118 Bcf as of Friday, June 27, 2008, according to EIA estimates. This represents a net increase of 85 Bcf from the previous week. Stocks were 381 Bcf less than last year at this time and 57 Bcf below the 5-year average of 2,175 Bcf. In the East Region, stocks were 27 Bcf below the 5-year average following net injections of 57 Bcf. Stocks in the Producing Region were 4 Bcf below the 5-year average of 707 Bcf a net injection of 18 Bcf. Stocks in the West Region were 26 Bcf below the 5-year average after a net addition of 10 Bcf. At 2,118 Bcf, total working gas is within the 5-year historical range.
June 28, 3008
SUPREME COURT SETS NEW BARRIERS TO EFFECTIVE FERC REGULATION
The U.S. Supreme Court has ruled that wholesale energy contracts subject to FERC jurisdiction
are presumptively just and reasonable even if they result in rates that were excessive by any normal
measure because of problems in the marketplace. According to the Court, the sanctity of private contracts
should hold sway over market impacts, including in this specific case extremely onerous electric rates in
the California energy crisis. In what will be a seminal energy decision, Morgan Stanley Capital Group
Inc. v. Public Utility District No. 1 of Snohomish County, the high Court held that FERC may overturn
such a rate only if it is shown that the rate creates serious harm to the public. Thus, the Court has
clarified and added onto is decades-old Mobile-Sierra cases. ... Full Story
June 26, 2008 - APGA Pushes for Action on High Natural Gas Prices
CONTACT:
Dave Schryver, Executive Vice President
Phone: (202)
464-0835
Email: dschryver@apga.org
APGA Pushes for Action on High Natural Gas Prices
Washington, D.C. (June 26, 2008) Today, the American Public Gas Association (APGA) sent a letter to congressional leadership that urges decisive and deliberate action to address high natural gas prices. Letters were sent to Senate Majority Leader Reid, Senate Minority Leader McConnell, Speaker Pelosi, House Majority Leader Hoyer and House Minority Leader Boehner. Copies of the letters that were sent are available on the APGA website at: APGA correspondence section. ... Full Story
June 26, 2008 - Letter to Senate Minority Leader on High Natural Gas Prices
June 26, 2008
Honorable Mitch McConnell
Minority Leader
U.S. Senate
361- A Russell Senate Office Building
Washington, D.C. 20510
Subject:
APGA Pushes for Action on High Natural Gas Prices
Dear Minority Leader McConnell:
On behalf of over 700 publicly-owned, not-for-profit, natural gas retail distribution systems in 36 states across the country, the American Public Gas Association (APGA) strongly urges Congress to act to bring consumers relief from record high natural gas prices.
Since earlier this year, our nation’s attention has been focused on the high price of gasoline, especially in advance of the summer driving season. ... Full Story
June 26, 2008 - Letter to House Majority Leader Hoyer on High Natural Gas Prices
June 16, 2008
Honorable Steny Hoyer
Majority Leader
U.S. House of Representatives
1705 Longworth House Office Building
Washington, D.C. 20515
Subject:
APGA Pushes for Action on High Natural Gas Prices
Dear Majority Leader Hoyer:
On behalf of over 700 publicly-owned, not-for-profit, natural gas retail distribution systems in 36 states across the country, the American Public Gas Association (APGA) strongly urges Congress to act to bring consumers relief from record high natural gas prices.
Since earlier this year, our nation’s attention has been focused on the high price of gasoline, especially in advance of the summer driving season. ... Full Story
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