Spot prices rode the power generation load-boosting impact of hot weather to further gains Wednesday. With the exception of a couple of flat Midcontinent pipes, quotes were much like the day before in finding a range of about a nickel to nearly 20 cents. The Northeast recorded most of the larger upticks as regional temperatures continued to creep higher.
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Analyst Says Higher Oil Prices, Less Gas from Canada Boost U.S. Gas Prices
Higher distillate prices resulting in less fuel switching is one driver boosting wholesale natural gas prices higher than might be expected, but another may be that the U.S. is no longer getting that extra slug of Canadian gas during extremely cold weather that it did in previous years, analyst Stephen Smith speculated.
Analyst Says Higher Oil Prices, Less Gas from Canada Boost U.S. Gas Prices
Higher distillate prices resulting in less fuel switching is one driver boosting wholesale natural gas prices higher than might be expected, but another may be that the U.S. is no longer getting that extra slug of Canadian gas during extremely cold weather that it did in previous years, analyst Stephen Smith speculated.
E&Ps Boosting Profits in 3Q, but Analyst Sees Gas Production on Decline
Initial third quarter reports from producers are showing huge gains on higher commodity prices, a trend that is expected to continue in the coming days as the largest, including BP plc, Exxon Mobil Corp., ChevronTexaco Corp. and ConocoPhillips, issue their financials. However, oil and gas production has not been as strong — especially in North America — and once the numbers are complete, analysts are forecasting a natural gas sequential decline of 1.5-2% in North America, leading to U.S. supply falling 5% this year.
Chesapeake Shows Production Gains for Eighth Straight Quarter
Chesapeake Energy Corp. showed production gains for the eighth consecutive quarter, boosting its oil and gas 55% year-over-year and 19% more than the first quarter. In the last eight quarters, the Oklahoma City-based independent has seen its production grow 72%, averaging a sequential quarterly growth rate of 7%.
Prize Merger in Hand, Magnum Hunter Ups Proved Reserves 121% in ’02
With its successful merger of Prize Energy boosting proved reserves a year ago, Magnum Hunter Resources Inc. was able to increase total proved reserves 121% last year, the company said. Based on total capital expenditures of approximately $584 million, Magnum Hunter’s unaudited finding and development cost was about 93 cents/Mcfe.
Spreading Frigid Weather Loses Price-Boosting Impact
The cash market failed to derive much new strength Wednesday from a polar air mass continuing to dominate the weather picture in the northern half of the U.S. from the Rockies eastward and starting to spread into parts of the Southeast, not to mention a soaring screen. Instead, most points ranged from a nickel or so higher to down about 20 cents, with considerably greater declines recorded at Northeast citygates.
Harsh Winter Weather Loses Price-Boosting Power
Severe winter-like conditions continued to tighten their icy grip Wednesday, but only San Juan/Rockies points were still experiencing rising prices. Perhaps in anticipation of an approaching easing of the harsh weather blanketing Canada and most of the U.S. from the Rockies eastward, most of the cash market fell between about a nickel and 20 cents. Some Northeast citygates saw losses approaching half a dollar, while others rose a dollar or more.
Domestic Producers Boosting CBM Acquisitions In Rockies
Coalbed methane (CBM) production, which up to now has been mostly centered in the Rocky Mountain Basin, appears to be where it’s at for both large and small domestic producers, with several recent announcements to beef up exploration and production in not only the well known basin in Colorado, Utah and Wyoming, but also in smaller plays around the United States.
FERC Takes Action to Aid CA, Western Energy Markets
FERC yesterday announced a series of actions aimed at boostingenergy supply, reducing demand and eliminating the deliveryconstraints that continue to plague the wholesale electricity andnatural gas markets in California and other western states.