Gas Producers May Withhold Production to Move Prices Up

According to this Platts article US gas producers are feeling the sting from warmer weather and may try an OPEC like move to get pricing up. This could move electricity pricing up but this will have to hurry as the winter heating season end is not to far in the distance.

Voluntary US gas shut-ins in first quarter of 2012 foreseen by analyst
Knoxville, Tennessee (Platts)–3Jan2012/317 pm EST/2017 GMT

With the unusually mild fall extending into the winter, US gas producers’ “weather luck” has expired, meaning some operators may choose to shut their production voluntarily in the first quarter, a analyst said in a recent report.

“For the last seven months, Lower-48 onshore gross gas production has been running 5.5 to 6.5 Bcf/d higher than year-ago levels,” analyst Stephen Smith, principal of Stephen Smith Energy Associates, said in a note published on December 31. …

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