Crude

Entering 2008, U.S. gas prices could rebound to a 7:1 or even 6:1 ratio with crude oil, depending on the weather, according to analysts at Raymond James & Associates Inc. So $70 oil could mean $10 gas or better. For this bullishness on prices, thank Raymond James’ pessimism about the exploration and production (E&P) industry’s ability to grow production.

With natural gas futures prices stabilizing in the $7-8/MMBtu region and crude futures hovering around $60/bbl, it appears that North American producers are upping their drilling activity to capture profits from the higher prices. According to Houston-based Baker Hughes Inc., the North American count of rigs actively exploring for or developing oil and natural gas during February increased fairly significantly over both January 2007 and February 2006 tallies.

With natural gas futures prices stabilizing in the $7-8/MMBtu region and crude futures hovering around $60/bbl, it appears that North American producers are upping their drilling activity to capture profits from the higher prices. According to Houston-based Baker Hughes Inc., the North American count of rigs actively exploring for or developing oil and natural gas during February increased fairly significantly over both January 2007 and February 2006 tallies.

U.S. crude oil and natural gas drilling for the first three quarters of this year hit a 21-year high, with gas activity in the third quarter setting an all-time quarterly record, according to the American Petroleum Institute (API).

Houston-based independent Newfield Exploration Co. on Tuesday cut its full-year 2006 production estimate because of crude oil marketing issues in the Rocky Mountains, production downtime offshore Malaysia and continued production deferrals in the Gulf of Mexico (GOM). Expected oil and natural gas output this year will total 242-244 Bcfe; its previous estimate was 250 Bcfe.

Stoked by high crude oil prices, domestic oil and natural gas drilling activity soared to a two-decade high during the second quarter, according to the American Petroleum Institute (API). Most of the drilling was natural gas-focused, with gas activity setting an all-time record pace in the first half of the year, it said.

Stoked by high crude oil prices, domestic oil and natural gas drilling activity soared to a two-decade high during the second quarter, according to the American Petroleum Institute (API). Most of the drilling was natural gas-focused, with gas activity setting an all-time record pace in the first half of the year, it said.

The Interior Department’s Minerals Management Service (MMS) has proposed amending its existing regulations for reporting production and royalties on crude oil, natural gas, coal and geothermal resources produced on federal and Indian leases in order to align the agency’s regulations with its current business practices.

The Interior Department’s Minerals Management Service (MMS) on Friday proposed amending its existing regulations for reporting production and royalties on crude oil, natural gas, coal and geothermal resources produced on federal and Indian leases in order to align the agency’s regulations with its current business practices.