Conventional

Murphy Oil Corp. is selling off some of its conventional oil and gas properties in western Canada to free up some cash for projects in growth areas outside of North America. The properties for sale have total proved reserves of about 40 MMboe and currently produce 20 Mboe/d. The announcement was light on details, but the El Dorado, AR-based producer holds an interest in more than two million acres in western Canada. Although it did not detail what it would sell, Murphy plans to keep its Hybernia and Terra Nova properties off of Canada’s East Cost. The company also plans to retain its 5% stake in Syncrude Canada Ltd., which is the world’s largest producer of oil from oil sands. A Murphy spokeswoman said the properties for sale have garnered attention, especially by Canadian-based royalty trusts. Following the sale, the company most likely would use the proceeds to invest in “higher growth areas,” including Malaysia, where it is a large lease holder. Earlier this year, Murphy announced a significant discovery in Malaysia, which could contain 100-300 million bbl. In November, Murphy dropped its third quarter earnings profit $4.4 million because of costs from an unsuccessful natural gas well in Alberta. The gas prospect lowered Murphy’s third quarter net income by 5 cents/share.

Murphy Oil Corp. is selling off some of its conventional oil and gas properties in western Canada to free up some cash for projects in growth areas outside of North America. The properties for sale have total proved reserves of about 40 MMboe and currently produce 20 Mboe/d.

The conventional view is that liquefied natural gas (LNG) imports in the coming years will set the price for natural gas, however, even in the most optimistic scenario, LNG imports of 0.5 Bcf/d per year will at best only offset the decline in North American supply, according to an analysis by Southwest Securities’ John Gerdes.

The conventional view is that liquefied natural gas (LNG) imports in the coming years will set the price for natural gas, however, even in the most optimistic scenario, LNG imports of 0.5 Bcf/d per year will at best only offset the decline in North American supply, according to an analysis by Southwest Securities’ John Gerdes.

With prices remaining high and conventional supply sources drying up, U.S. producers are finding themselves in a tough situation, where a tightening supply crisis might force prices even higher in the next few years, according to Jim Duncan, director of structured products for ConocoPhillips Gas & Power.

With prices remaining high and conventional supply sources drying up, U.S. producers are finding themselves in a tough situation, where a tightening supply crisis might force prices even higher in the next few years

Canada’s National Energy Board released fresh evidence that the turning point in conventional western Canadian supplies has arrived. Despite strong prices and spare capacity on the TransCanada system, the board’s monitoring system has registered the third straight monthly decline in deliveries to the United States.

Canada’s National Energy Board released fresh evidence that the turning point in conventional western Canadian supplies has arrived. Despite strong prices and spare capacity on the TransCanada system, the board’s monitoring system has registered the third straight monthly decline in deliveries to the United States.

The New York Mercantile Exchange (Nymex) opened a new 90-minute trading session on Friday for 32 new over-the-counter energy contracts, including multiple natural gas basis contracts and some new 400 MWh power contracts based on delivery in New York. Nymex said it also is providing clearing services for the new contracts.