Depending

Analysts offered a range of estimates for the impact of the Obama administration’s freeze on deepwater drilling in the Gulf of Mexico (GOM), depending on whether it extends beyond the announced six months and what the new rules will be going forward.

Analysts offered a range of estimates for the impact of the Obama administration’s freeze on deepwater drilling in the Gulf of Mexico (GOM), depending on whether it extends beyond the announced six months and what the new rules will be going forward.

Questar Corp., which is preparing for the likely spin-off of its exploration and production (E&P) business later this year, on Wednesday reported a mixed earnings report for the first three months of 2010, in part because of lower natural gas prices.

Depending largely on the previous Friday’s 17.3-cent run-up by June futures and the return of industrial load from its typical weekend time-out, prices were up across the board Monday. One source thought a modestly bullish upturn in general economic developments may have been an additional boon for the spot market.

Depending on their North American natural gas exposure, most of the big exploration and production (E&P) independents will cut their 2009 exploration spending by at least 10-20% this year, IHS analysts estimate.

Depending on their North American natural gas exposure, most of the big exploration and production (E&P) independents will cut their 2009 exploration spending by at least 10-20% this year, IHS analysts estimate.

January natural gas futures prices shot higher on Wednesday and depending on who you talk to, the move was due to: winter storms coming to the Northeast; Tropical Storm Olga (later downgraded to a tropical depression) curving its path towards the Gulf of Mexico; skyrocketing petroleum prices; or the failure of gas to get below $7. Some market experts cited a mixture of the three for the prompt month contract’s 32.3-cent jump on the day to finish at $7.408.

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.

Prices were mixed Thursday, with gains and losses depending on whether a market area could expect to be under attack from winter storms Friday or get a reprieve until the weekend. The Gulf Coast and Northeast saw most of the declines, while quotes generally were flat to stronger in the Midcontinent and West.