Climb

U.S. exploration and production (E&P) spending is down, costs are down and the natural gas rig count is way down, but sector volumes still may climb in 2Q2009 on acquisitions made in 2008 and because some continue to lay down cash in natural gas shale plays, energy analysts said in previews of quarterly earnings.

Most of the market continued to climb Thursday as cold and snowy conditions were forecast to spread in the north-central section of the U.S. Cash numbers also had a smidgen of support from a screen gain of 3 cents a day earlier.

Prices for natural gas, crude oil and electricity, which already are alarmingly high, are expected to continue their upward climb through the end of the year or longer, according to the Energy Information Administration’s (EIA) Short-Term Energy Outlook for July.

Prices for natural gas, crude oil and electricity, which already are alarmingly high, are expected to continue their upward climb through the end of the year or longer, according to the Energy Information Administration’s (EIA) Short-Term Energy Outlook for July.

The ballyhooed Bakken Shale has taken on renewed interest for its oil reserves as prices continue to climb, but it also holds a considerable amount of natural gas, which has drawn the attention by a growing number of prospectors.

Anadarko Petroleum Corp. executives said Tuesday they expect the company to end 2007 with $12 billion in net debt, which is a steep climb down from the $26 billion of net debt Anadarko had in the third quarter following its acquisition of Kerr-McGee Corp. and Western Gas Resources (see Daily GPI, June 26).

July natural gas futures on Friday finished last week with a steady climb, leaving some to wonder whether the previous week’s $5.750 low by the then-front month June contract might stand as a low for the move. July natural gas ended up reaching a high of $6.690 before closing at $6.623, up 17.5 cents on the day and 46.9 cents higher than the previous Friday’s close.

With natural gas futures continuing to climb higher from a low of $6.45 on March 8, the New York Mercantile Exchange Inc. (Nymex) said Thursday that it is increasing some margins for its natural gas, Nymex miNY natural gas, Henry Hub swing swap, Henry Hub swap, and Henry Hub penultimate swap futures contracts, as of the close of business on Friday. May natural gas futures closed at $8.064 on Thursday.

Coming off of Tuesday’s 13.1-cent climb, April natural gas futures got back to the downward trend Wednesday as it plumbed new lows for the move. After carving out a new low at $6.450 in morning trade, the prompt month rebounded in the afternoon to settle at $6.648, down 3 cents on the day.