Buoyed

Unconventional natural gas resources — coalbed methane, gas shale and tight sandstone — have buoyed North American production, but on the downside, production per well is lower, thus raising unit costs, which means that continued higher gas prices are needed to maintain output on a flat trajectory, according to a joint study by energy consultants Cambridge Energy Research Associates (CERA) and IHS.

Buoyed by substantive heating load in many areas and the previous Friday’s futures spike of 42.4 cents, cash prices rebounded Monday from weekend weakness by rising at all points. Nearly all of the gains were strong in double digits; only Sumas and Westcoast Station 2 failed to go up by a dime or more.

Buoyed by geopolitical tension-induced strength in the petroleum markets, natural gas futures had no choice Monday but to go along for the ride. May natural gas put in a low of $6.680 in morning trade, but spent the rest of the afternoon exploring higher territory. The prompt month settled at $6.882, up 13.9 cents on the day.

Buoyed by high commodity prices, Calgary-based Nexen Inc. will boost 2006 capital spending 4% to a record C$2.9 billion (US$2.5 billion), with more than half of the increase directed toward unconventional natural gas plays, offshore projects and Canada’s growing oil sands business.

Sparked by continued uncertainty surrounding Hurricane Katrina’s impact on production infrastructure and buoyed by significant petroleum price strength, October natural gas futures in their first day as front-month contract on Tuesday climbed higher to settle at a record $11.659, up 52 cents from Monday’s close.

Buoyed by two previous days of substantial screen strength and also by forecasts of hotter weather returning to northern and western market areas by the time the current workweek has begun, weekend prices moved higher at a large majority of points Friday. Nearly all of the declines — mostly small but reaching a quarter in one case — occurred in the West, but the region also recorded several sizeable advances.

Buoyed by warmer than normal temperatures as well as support from petroleum futures, July natural gas futures on Monday ignored the fizzled impact of Tropical Storm Arlene to climb higher once again, notching a high of $7.28 before settling at $7.26, up 32.8 cents on the session.

Buoyed by Tuesday’s expiration-day screen spike of 32.4 cents and almost nothing else, prices for end-of-March flows saw substantial gains Wednesday. Increases were fairly consistent and spread evenly through all market areas in ranging from a little less than 20 cents to nearly 35 cents in nearly all cases (the exception was a rise of a little more than a dime by OGT in the Midcontinent).

Riding a wave of positive news that has buoyed its share price and improved the long-term outlook, Williams on Thursday reiterated its growing stability from high natural gas prices, which in turn has benefited all of its gas businesses and its rebounding power business.