Daily Energy Report

Crude Oil Futures for March 2021 settled down $0.03 @ $61.67/bbl, trading in a $2.33 range including the overnight. RBOB settled up 1.69/cpg and heating oil settled up 0.94/cpg.

President Biden’s revocation of the March 2019 permit enabling the construction of the Keystone XL pipeline will likely result in more crude-by-rail volumes, according to industry advisors. “The cancellation of the Keystone pipeline project was inevitable oncethe government changed hands-despite its merits or drawbacks. This means that more crude will have to move by rail. The huge investments in the oil sands will not be abandoned, and the oil has to go somewhere.” According to the government of Alberta, the province’s oil sands represent the third-largest oil reserves in the world, following Venezuela and Saudi Arabia.

Natural Gas Futures for March 2021 settled down $0.074 @ $2.879/mmbtu, trading in a .110-cent range including the overnight session.

The Energy Information Administration currently forecasts that domestic production of dry natural gas will average 90.5 bcf/d in calendar 2021 and 91.0 bcf/d in calendar 2022, which are both down from an average of 91.3 bcf/d in 2020 and 93.1 bcf/d in 2019.

In the forecast, dry natural gas production remains relatively flat, averaging between 89.8 bcf/d and 91.0 bcf/d in every month from February 2021 through July 2022. Flat natural gas production is the result of falling production in several of the smaller natural gas producing regions being offset by growth in other regions, most notably in the Appalachia and Haynesville regions.


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