Betting

Caught between short-term weather/storage bulls and long-term bears betting against another price spike like spring 2003, the natural gas futures market chopped quietly sideways to close out the week.

While many gas market forecasters are betting gas prices will match the current Nymex strip for the rest of the year, which is higher than $5.70/MMBtu, consultants at Wood Mackenzie believe prices are poised to fall due to falling competitive fuel prices and resulting gas demand losses. The Wood Mackenzie consultants also are expecting a gas production recovery in the third quarter.

While many gas market forecasters are betting gas prices will match the current Nymex strip for the rest of the year, which is higher than $5.70/MMBtu, consultants at Wood Mackenzie believe prices are poised to fall due to falling competitive fuel prices and resulting gas demand losses. The Wood Mackenzie consultants also are expecting a gas production recovery in the third quarter.

A 32-year veteran of efforts to build an Arctic natural gas pipeline is betting against one being constructed from either Alaska or the Mackenzie Delta. Harvie Andre, chairman of Arctigas Resources Corp., said “it’s just a small bet (C$100, US$66). I hope I’m wrong. But it smells like the 1970s all over again.”

A 32-year veteran of efforts to build an Arctic natural gas pipeline is betting against one being constructed from either Alaska or the Mackenzie Delta. Harvie Andre, chairman of Arctigas Resources Corp., said “it’s just a small bet (C$100, US$66). I hope I’m wrong. But it smells like the 1970s all over again.”

HoustonStreet Exchange, a Web-based exchange and portal fortrading wholesale energy products, got another shot in its capitalarm through an equity investment from Conoco Inc., the country’sfifth largest integrated energy company. The investment marks amajor commitment by Conoco to trade crude oil, refined products(such as heating oil, gasoline and jet fuel) and natural gas onHoustonStreet.com.

HoustonStreet Exchange, a Web-based exchange and portal fortrading wholesale energy products, received an equity investmentfrom Conoco Inc., the country’s fifth largest integrated energycompany. The investment marks a major commitment by Conoco to tradecrude oil, refined products (such as heating oil, gasoline and jetfuel) and natural gas on HoustonStreet.com.