Analyst

Although the shakeout in the online energy trading marketplaceis expected to take its toll on large and small companies, in thelong run, the Internet will become the first choice for buying andselling energy products, according to an expert who follows theindustry on a daily basis.

Deutsche Banc Alex. Brown analyst Ed Tirello initiated coverageof Caminus Corp. with a Strong Buy rating, predicting that theenergy industry’s spending on information technology and softwarewould grow significantly in the next few years.

Deutsche Banc Alex. Brown analyst Ed Tirello initiated coverageof Caminus Corp. with a Strong Buy rating, predicting that theenergy industry’s spending on information technology and softwarewould grow significantly in the next few years.

Natural gas prices are going to jump; the only question is — how high? Calling the rising natural gas demand “phenomenal” both now and into the foreseeable future, Simmons and & Co. International vice president David Pursell said prices are trending upward, and predicted that natural gas is poised to gain a “good proportion” of the demand group.

Calling the increase in natural gas demand “phenomenal” both nowand for the foreseeable future, Simmons & Co. InternationalVice President David Pursell predicted it is “unlikely” thatproducers will see gas prices return anywhere near to $2 for atleast three to five years. He said $2 prices were “in the rear viewmirror” for gas producers.

After suffering through a long period of low prices and thinmargins, exploration and production (E&P) companies appear tobe headed toward a period of success, a report published recentlyby Deutsche Banc Alex. Brown said. Strong gas prices, industryconsolidation and probable low storage levels are the main factorscontributing the report’s bullish conclusions.

After suffering through a long period of low prices and thinmargins, exploration and production (E&P) companies appear tobe headed toward a period of success, a report published recentlyby Deutsche Banc Alex. Brown (Deutsche Banc) said. Strong gasprices, industry consolidation and probable low storage levels arethe main factors contributing the report’s bullish conclusions.

At an analyst meeting yesterday, executives from theOklahoma-City based Kerr-McGee, a major independent oil and gasproducer, outlined the company’s performance in 1999 and allowed afew glimpses into its strategy for next year.

A veteran natural gas reserve and production expert has issued abearish warning to natural gas market observers: 1998 total reserveadditions could jump as much as 3 Tcf from 1997’s figure to between22 and 23 Tcf. That would be well above the range of 14.9 to 20.2Tcf over the last nine years. With 1998 production estimated atabout 19 Tcf the forecast adds up to reserve additions exceedingproduction by 116% to 121%.