Was it a case of deja vu? Friday’s market was close to a carbon copy of the day before. Sizeable declines in the Northeast and plunges in San Juan Basin and the Rockies mingled with moderate upticks at nearly all other points. The gains were around a dime or less in a majority of cases.
Declines
Articles from Declines
Large Declines Mix with Mostly Small Increases
If you look up the dictionary definition of “mixed,” by now the entry might be reading, “See Thursday’s cash gas market.” The number of rising points slightly outweighed the falling ones, but many of the gains were small (in single digits) and most of the losses were large at 30-55 cents or so.
EEA Sees Strong Injection Demand Offsetting Declines in Industrial Load
Industrial gas demand should be down by only about 1-1.5 Bcf/d (out of 22 Bcf/d) this summer — not the 20% drop some analysts predicted — and demand from power generators probably will fall by about 2 Bcf/d to a total for the sector of about 10.4 Bcf/d, according to energy consultants at Energy and Environmental Analysis Inc. (EEA). But those demand losses should be offset by the substantial increase in demand to refill storage inventories.
EEA Sees Strong Injection Demand Offsetting Declines in Industrial Load
Industrial gas demand should be down by only about 1-1.5 Bcf/d (out of 22 Bcf/d) this summer — not the 20% drop some analysts predicted — and demand from power generators probably will fall by about 2 Bcf/d to a total for the sector of about 10.4 Bcf/d, according to energy consultants at Energy and Environmental Analysis Inc. (EEA). But those demand losses should be offset by the substantial increase in demand to refill storage inventories.
April Futures March 14.9 Cents Higher, But Near-Term Weakness May Resume
After four straight days of declines — a total drop of $1.26 — April futures may have begun to stage a reversal on Friday, moving up 14.9 cents to $6.993 on some short covering and additional buying interest. The daily high Friday was $7.110 and the low was $6.870. The increase was just enough to prolong the uncertainty and to keep the record highs of two weeks ago fresh in traders’ minds.
Prices Flat Except for Northeast, San Juan/Rockies Dives
Big declines in Northeast and San Juan/Rockies numbers stood out Friday amid a general market that was flat to slightly lower. Fairly benign weather helped explain the softness in parts of the West, while the Northeast was consolidating from recently sky-high price levels.
S&P Warns Credit Slide May Get Worse Before It Gets Any Better
Standard & Poor’s issued a warning Thursday that more credit rating declines and possible defaults “loom on the horizon” even though the industry already has experienced its sharpest credit slide in decades.
Burlington Posts 8% Hike in Earnings, 10% Increase in Gas Production
Burlington Resources Inc. reported an 8.2% increase in third quarter earnings to $79 million, or $0.39 per diluted share, including a net after-tax gain of $0.12 per diluted share from asset sales and accompanying tax benefits. Higher production, including a 10% increase in gas production to 1.8 Bcf/d, and lower cash operating costs, along with higher oil prices and the asset sale and tax benefits, more than offset lower prices for natural gas and higher interest expenses and production taxes. Realized natural gas prices fell to $2.65/Mcf (Henry Hub) from $2.89 in 3Q2001.
Burlington Posts 8% Hike in Earnings, 10% Increase in Gas Production
Burlington Resources Inc. reported an 8.2% increase in third quarter earnings to $79 million, or $0.39 per diluted share, including a net after-tax gain of $0.12 per diluted share from asset sales and accompanying tax benefits. Higher production, including a 10% increase in gas production to 1.8 Bcf/d, and lower cash operating costs, along with higher oil prices and the asset sale and tax benefits, more than offset lower prices for natural gas and higher interest expenses and production taxes. Realized natural gas prices fell to $2.65/Mcf (Henry Hub) from $2.89 in 3Q2001.
Western Gains Contrast With Overall Mild Softness
Flatness or small declines of about a nickel or less dominated the market Wednesday. Sharply higher San Juan/Rockies numbers, along with mild firmness at Northern California points, constituted the primary exceptions to the overall price trend.