Natural Gas Prices

Drilling in the Marcellus Shale region has slowed substantially this year because of the drop in natural-gas prices, and it is unlikely to resume at the same pace anytime soon. The number of drill rigs operating in the state is down 29 percent from its peak a year ago, according to Baker Hughes Inc., which tracks the industry nationwide. According to data from the Pennsylvania Department of Environmental Protection, the number of Marcellus Shale gas wells drilled in the first quarter declined 18 percent from the same period last year.

Crank up the thermostat, or better yet, pocket the cash you're about to save. Natural-gas prices are approaching their lowest levels in a decade because of mild weather and enormous production. Natural-gas futures plunged 6.8 percent Tuesday as forecasts of warmer weather have eroded demand just as production is ramping up from new resources such as Pennsylvania's Marcellus Shale. The price for February delivery closed Tuesday at $2.49 per million British thermal units (about a thousand cubic feet)

Natural-gas prices are rising just in time for the winter heating season. But local utility officials say their customers will still see lingering benefits from prices that hit seven-year lows in the summer. Peco Energy Co. said yesterday that it had completed filling storage facilities that it can draw upon on the coldest winter days, when the major interstate pipelines that supply the region are unable to fully meet demand. Peco spokesman Michael Wood said that the utility, which serves 485,000 gas customers in Philadelphia's suburbs, bought and stored gas at depressed summer prices, significantly lower than a year ago. The summer cost is significant because about half of Peco's winter price is based on gas purchased in the off-season, gas that is compressed and stored in underground caverns or liquefied at -260 degrees Fahrenheit and held in a huge tank in West Conshohocken that acts like a giant thermos.

Natural gas futures soared by 7.8 percent Monday after Chesapeake Energy Corp. announced it would dramatically reduce drilling in Pennsylvania's Marcellus Shale and in other gas-producing areas. The announcement came after natural gas prices have plummeted in the last month because of an oversupply, caused by warm weather and enormous shale-gas production. The share prices of natural gas producers also soared Monday on the prospect of greater profits from higher prices. Despite the increase, natural gas prices are still off 18 percent so far this year.

Lance Haver (right) and Patricia McNamara work the tables as the Consumers Education and Protective Association launches a petition drive yesterday outside City Hall to protest what it calls a "back door" gas rate increase by the Philadelphia Gas Works. CEPA charges the gas works collected an extra $22 million from falling natural gas prices over the past six months. Instead of passing on the savings to customers by reducing gas rates, CEPA says the utility kept the difference.

Oil prices fell more than $1 a barrel by midday today in London following President George Bush's decision to sell U.S. oil reserves. However, the drop took place during very light trading, brokers said. North Sea Brent Blend for November delivery was trading at $36.75 a barrel, down $1.20 from yesterday's close of $37.95 a barrel. Oil prices have doubled since Iraq's Aug. 2 invasion of Kuwait, threatening to disrupt supplies from that oil-rich region. Although Bush spoke of releasing only 5 million of America's 590 million barrels of strategic reserves, the announcement last night appeared to help calm the market, brokers said.

New Jersey's one-year moratorium on the controversial technique of natural-gas extraction known as fracking expired Thursday with little fanfare. While energy industry officials maintain that the natural-gas deposits in the state's northwest corner are too deep and uncertain to make hydraulic fracturing economically viable in the near term, environmentalists have lobbied heavily for continuing the ban as protection against the type of development seen across the Marcellus Shale formation in Pennsylvania.

Israel called off Saddam hit after five commandos died The revelation that Israel plotted to kill Saddam Hussein at the funeral of a relative infuriated military chiefs who worry that loose talk is harming Israel's security. "Operation Bramble Bush," the plot to assassinate Saddam with a missile attack, was shelved in 1992 after five commandos were killed training for the mission, which was undertaken after Saddam fired missiles at Israel during the 1991 Gulf War. Rumors had circulated for years that the training accident was linked to plans to kill Saddam, but military censors suppressed publication until yesterday.

THE DEBATE OVER the proposed liquefied natural gas (LNG) terminal in Port Richmond seems to be a surefire way to generate heat among critics and the press. What's needed is a little more light, too - especially at a time when natural-gas prices continue to skyrocket. In the year since Mayor Street first announced that the Philadelphia Gas Works was interested in developing an LNG import terminal at its existing LNG plant in Port Richmond, the project has been the subject of stories and commentaries warning of potential terrorist attacks on LNG tankers that could wreak havoc and destruction on the city.

After several days of internal discussion, PGW and city officials said yesterday that the city-owned utility would accept an agreement with the state Public Utility Commission which clears the way for its first base-rate hike in a decade. Starting March 1, all PGW customers will see the monthly customer charge rise from $8 to $11.66. The boost will raise $11 million for the fiscally challenged utility. In addition, the PUC approved a $7 million increase in the gas-cost rate, which has already soared by 43 percent this year.

New Jersey's one-year moratorium on the controversial technique of natural-gas extraction known as fracking expired Thursday with little fanfare. While energy industry officials maintain that the natural-gas deposits in the state's northwest corner are too deep and uncertain to make hydraulic fracturing economically viable in the near term, environmentalists have lobbied heavily for continuing the ban as protection against the type of development seen across the Marcellus Shale formation in Pennsylvania.

In the Region Sandy a blow to November retail Major retailers from Target to Macy's reported weak November sales as the strong start to the holiday shopping season wasn't enough to fully offset the damage caused by Hurricane Sandy earlier in the month. The storm stunted enthusiasm among shoppers during the first half of November just as stores were preparing for the busiest shopping period of the year. Eighteen retailers on Thursday reported that November sales at stores open at least a year - an indicator of a retailer's health - through last Saturday were up 1.7 percent compared with the year-ago period, according to the International Council of Shopping Centers . That's well below the group's anticipated forecast for a 4.5 percent to 5.5 percent gain.

By Kathryn Z. Klaber Philadelphia's access to key waterways and markets - bolstered by the commonwealth's rich natural resources - has long positioned Southeastern Pennsylvania as a powerful economic engine. Philadelphia's piers, and the region's economy, have long been sustained by coal, petroleum, and other energy resources. The city's natural-gas history is also deep. In 1836, according to the Philadelphia Gas Works, "Forty-six natural gas lights along Philadelphia's Second Street were lit for the first time by employees of the newly formed Gas Works.

Drilling in the Marcellus Shale region has slowed substantially this year because of the drop in natural-gas prices, and it is unlikely to resume at the same pace anytime soon. The number of drill rigs operating in the state is down 29 percent from its peak a year ago, according to Baker Hughes Inc., which tracks the industry nationwide. According to data from the Pennsylvania Department of Environmental Protection, the number of Marcellus Shale gas wells drilled in the first quarter declined 18 percent from the same period last year.

The collapse of natural gas prices has created a buying opportunity for Atlas Energy L.P., the Philadelphia company controlled by Edward E. Cohen's family that cashed out most of its Marcellus Shale assets for billions in 2010. Atlas Resource Partners L.P., the company's exploration and production subsidiary, on Thursday announced it is buying the Barnett Shale assets of Titan Operating L.L.C., a private company in Fort Worth, Texas, for $184 million. The leases contain 250 billion cubic feet of proven reserves and 43 producing wells on about 16,000 acres.

Residential electricity prices in Pennsylvania and New Jersey continue to move downward, thanks to the low cost of natural gas. PPL Electric Utilities this week became the latest utility to reduce its default generation charge. The Allentown company said its electricity supply fee, which is adjusted quarterly, will decrease nearly 11 percent March 1. "Low natural gas prices have driven down the price of electricity in wholesale markets," said Kurt Blumenau, a spokesman for PPL, which serves a large swath of eastern Pennsylvania, including parts of Bucks and Montgomery Counties.

Natural gas futures soared by 7.8 percent Monday after Chesapeake Energy Corp. announced it would dramatically reduce drilling in Pennsylvania's Marcellus Shale and in other gas-producing areas. The announcement came after natural gas prices have plummeted in the last month because of an oversupply, caused by warm weather and enormous shale-gas production. The share prices of natural gas producers also soared Monday on the prospect of greater profits from higher prices. Despite the increase, natural gas prices are still off 18 percent so far this year.

Crank up the thermostat, or better yet, pocket the cash you're about to save. Natural gas prices are approaching their lowest levels in a decade because of mild weather and enormous production. Natural gas futures plunged 6.8 percent Tuesday as forecasts of warmer weather have eroded demand just as production is ramping up from new resources such as Pennsylvania's Marcellus Shale. The price for February delivery closed Tuesday at $2.49 per million British thermal units (about a thousand cubic feet)