Confident

Kenneth L. Lay told a Houston audience Tuesday that when he stepped down as CEO of Enron in February 2001 “he was confident that Enron was financially strong, highly profitable, growing rapidly….” Yet 10 months later the company filed for bankruptcy.

Caught between the bullish euphoria surrounding gains in the nearby crude oil pit and the bearish reality of its own short-term fundamentals, the natural gas futures market shuffled quietly sideways Friday. On the technical side of the market the bag was similarly mixed as Friday’s closing prices rang bearish on the daily chart, but bullish on the weekly chart.

Mexico’s move early in the month to take back site leases from Marathon Oil Corp.’s proposed liquefied natural gas (LNG) receiving terminal location along the North Baja Pacific Coast did not create any concerns for Sempra Energy’s similar project.

North American exploration and production (E&P) executives now have confidence in sustained higher commodity prices this year, which may lead to larger capital spending increases from those publicly announced as well as more mergers and acquisitions (M&A), according to a report by Raymond James & Associates.

North American exploration and production (E&P) executives now have confidence in sustained higher commodity prices this year, which may lead to larger capital spending increases from those publicly announced as well as more mergers and acquisitions (M&A), according to a report by Raymond James & Associates.

Contrary to the gas supply data and predictions of the federal government, overwhelming evidence supports the view that U.S. natural gas production is falling by more than 2% on a year-over-year basis and is unlikely to reverse itself anytime soon, according to analysts at Raymond James & Associates, who express confidence that gas prices will move back over $5 this winter and remain there into next year.

Contrary to the gas supply data and predictions of the federal government, overwhelming evidence supports the view that U.S. natural gas production is falling by more than 2% on a year-over-year basis and is unlikely to reverse itself anytime soon, according to analysts at Raymond James & Associates, who express confidence that gas prices will move back over $5 this winter and remain there into next year.

Even if oilfield prices go up by 15-20% next year, as Raymond James expects to occur, the negative ramifications on exploration and production returns will be surprisingly small, according to Raymond James analyst J. Marshall Adkins.

Adding to Monday’s 20-cent decline, the September natural gas futures contract continued lower Tuesday amid a mixed bag of fundamental and technical market clues. But while bears were quick to claim the 4.5-cent loss and $5.038 settle in September futures as a victory, bulls took solace in the market’s ability to hold above $5.00 and believe that level of support could be a springboard to higher levels Wednesday. At 89,466, estimated volume was heavy for the session.