Appears

The Gothic Shale of the Paradox Basin in southwestern Colorado appears to hold a “significant” amount of natural gas, according to Denver-based Bill Barrett Corp., which reported its initial well results on Wednesday.

The widely held belief of the last few years that natural gas would be transitioning to a crude oil-like global market in the near future appears to be overstated, if a new report from Goldman Sachs analysts holds up. Higher than expected U.S. production levels will likely prolong the “winter disconnect” between U.S. and international natural gas prices through, and possibly beyond 2009, according to Goldman Sachs analysts Samantha Dart and Jefferey Curry.

The widely held belief of the last few years that natural gas would be transitioning to a crude oil-like global market in the near future appears to be overstated, if a new report from Goldman Sachs analysts holds up. Higher than expected U.S. production levels will likely prolong the “winter disconnect” between U.S. and international natural gas prices through, and possibly beyond 2009, according to Goldman Sachs analysts Samantha Dart and Jefferey Curry.

Being on the wrong side of wide swings in energy futures appears to have caused the downfall of yet another hedge fund as Ospraie Management LLC reported last Tuesday that it will close its fund after its value fell 38.6% this year, according to a letter to investors. The collapse could have repercussions within the energy industry.

Being on the wrong side of wide swings in energy futures appears to have caused the downfall of yet another hedge fund as Ospraie Management LLC reported Tuesday that it will close its fund after its value fell 38.6% this year, according to a letter to investors. The collapse could have repercussions within the energy industry.

While the 57 Bcf injection into natural gas storage for the week ended June 13 was well under historical comparisons, it appears traders were expecting an even lower build Thursday morning as July natural gas futures sunk following the 10:35 a.m. EDT report from the Energy Information Administration (EIA). The prompt-month contract closed Thursday’s regular session at $12.861, down 34.9 cents from Wednesday’s close.

Although it was challenged by the Illinois attorney general, a revenue decoupling plan instituted by Peoples Gas and North Shore Gas appears to be paying off for consumers, at least for now.

The bet made by Pioneer Natural Resources Co. to focus on U.S. exploration appears to paid off — proved reserves grew by 128 MMboe last year, and the producer replaced 357% of production primarily in its core onshore areas and through several key U.S. acquisitions.

The natural gas potential in British Columbia has been on the radar screens of producers for years, but BP plc appears ready to sink C$1 billion in the region to unlock coalbed methane (CBM) reserves using a process it developed at its successful Wamsutter project in Wyoming.