NYMEX Update

The February gas futures contract expired earlier this week at $2.68/MMBtu, the lowest end of month settlement since March of 2002.

The March gas futures contract, the new prompt month, settled today at $2.50/MMBtu, about $0.05 lower than it settled yesterday. By comparison, the 12 month strip settled at $3.06/MMBtu and next year's winter strip (Nov 12 - Mar 13) settled at $3.50/MMBtu

BP: North America to become Energy Self-Sufficient by 2030

With the growth of multiple unconventional energy extraction methods such as U.S. shale drilling, Canadian oil sands, and deep-water drilling, BP forecasts that North America will become energy self-sufficient by 2030.

BP doesn't expect other countries to be able to achieve similar results through their unconventional methods, in particular Europe and the Soviet Union. BP asserts however that if they were able to cooperate like the U.S. and Canada, they would be able to achieve energy independence by 2030 as well.

DOE Wary of Issuing Export Permits

The Department of Energy is taking the record low price of natural gas into consideration before issuing permits for facilities to export Liquefied Natural Gas.

According to Energy Secretary Steven Chu, "We have to consider what is in the best interest of the United States... We do not want natural gas prices to spike the way they have historically done in the last several decades."

Storage

Working gas in storage dropped below 3 Tcf to 2,996 Bcf according to EIA estimates as of Friday, January 27, 2012. This represents a net decline of 132 Bcf from the previous week, 60 Bcf less of a decline than last week, but still a larger withdrawal than analysts were expecting.

Stocks are still 586 Bcf higher than last year at this time and 601 Bcf above the 5-year average.

Weekend Forecast

Temperatures in the Buffalo/Niagara region have been unusually warm this winter, averaging 5 degrees higher than normal thus far. Temperatures are expected to drop later tonight accompanied by a few snow showers, and should remain under 33 degrees for the remainder of the weekend.