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North America’s onshore natural gas markets continue to show signs of improving, and the rig count is forecast to be strong in the near term — all positive factors for the oilfield services market, Barclays Capital analysts said last week.

North America’s onshore natural gas markets continue to show signs of improving, and the rig count is forecast to be strong in the near term — all positive factors for the oilfield services market, Barclays Capital analysts said Tuesday.

Don’t count the cash market out quite yet. Despite the previous day’s 9-cent drop by April futures and warming trends returning spring temperatures to much of the South, prices were up at virtually all points Tuesday — in most cases by larger amounts than on Monday.

Don’t count the cash market out quite yet. Despite the previous day’s 9-cent drop by April futures and warming trends returning spring temperatures to much of the South, prices were up at virtually all points Tuesday — in most cases by larger amounts than on Monday.

A year has passed since the natural gas rig count peaked in October 2008, but “normalized” estimated quarterly gas supply from publicly traded producers didn’t cross into negative territory until July from the 1Q2009 peak, which points to “substantial uncertainties” for supply and demand drivers in 2010, energy analysts with Raymond James & Associates Inc. said Monday.

Kevin Howard, the former vice president of finance for Enron Corp.’s broadband unit, has pleaded guilty in U.S. District Court in Houston to one count of falsifying books and records. Under the plea agreement, Howard would serve four to 12 months of probation or home confinement, or a combination of both. U.S. District Judge Vanessa Gilmore accepted the plea and will formally sentence Howard later this year. The former Enron executive was scheduled to go to trial for a third time on fraud and conspiracy charges, similar to the charges he faced when he first was indicted in 2003 (see Daily GPI, March 13, 2003). Howard’s first trial ended in a mistrial (see Daily GPI, June 1, 2006). In the second trial Howard was found guilty on five counts, but the convictions later were dismissed by Gilmore (see Daily GPI, Feb. 2, 2007).

The swift drop in the natural gas drilling rig count across the Rocky Mountains has led to double-digit declines for some drilling services, and more are expected in the months ahead, Bill Barrett Corp. officials said Tuesday. Lower service costs will help the independent keep its costs in line, but it also is preparing for what may be “radical” changes in gas prices through the year, said CEO Fred Barrett.

The swift drop in the natural gas drilling rig count across the Rocky Mountains has led to double-digit declines for some drilling services, and more are expected in the months ahead, Bill Barrett Corp. officials said Tuesday. Lower service costs will help the independent keep its costs in line, but it also is preparing for what may be “radical” changes in gas prices through the year, said CEO Fred Barrett.

Denver-based St. Mary Land & Exploration Co. plans to reduce its onshore U.S. rig count to seven by the end of February, down from a peak of 16 in mid-2008. Two operated rigs will focus on drilling horizontal wells in the Woodford, Arkoma and Anadarko basins, and one rig will be used in the Rocky Mountains. In the Permian Basin, one operated rig will run intermittently throughout the year. In its emerging shale plays, St. Mary plans to have one to two operated rigs that will be shared through the year at its Haynesville, Eagle Ford and Marcellus shale programs. Full-year 2009 production is forecast to be 101-104 Bcfe, down from the 115 Bcfe produced in 2008. The company posted a 4Q2008 loss of $126 million (minus $2.01/share), compared with earnings of $32.9 million (51 cents) in the same period of 2007. Excluding one-time charges, St. Mary reported a quarterly profit of $27.1 million (43 cents/share). Revenue fell 6% to $258 million from $275 million a year earlier.