January 5, 2016
Natural Gas reversed year end gains to trade at 2.261 falling 76 point as weather remained warm. Investments in gathering and processing natural gas are expected to continue in 2016, even as companies look to pull more drilling rigs and hold off on completing wells. North Dakota is scheduled to have four new gas processing plants come online in 2016, plus additional gathering lines and compressor stations.
Companies that transport and process natural gas have indicated that if the state had 90 or 100 drilling rigs operating, they would be racing to keep up, Helms said. With a lower rig count — 61 last week — companies are able to catch up on a backlog of wells that need pipelines to gather the natural gas.
The latest weather reports from NOAA (National Oceanic and Atmospheric Administration) reported that warmer-than-normal winter weather could be experienced for the next two weeks. El Nino weather is the major cause for the warm winter weather in 2015 and 2016. The warm weather will likely curb the heating demand, and as a result, natural gas prices fell.
Dec 31-Jan 6th: A strong cold blast will push across the central and eastern US the next few days with overnight lows dropping well below freezing, including fairly deep into the southern US. The West, Plains, and northern Texas will see the coldest temperatures with lows into the single digits and teens, locally below 0°F. Temperatures should again warm over the East during the middle of next week as high pressure returns, while the interior West and Plains remain cool and unsettled with rain and snow showers. This will increase nat gas demand from MODERATE to HIGH.