Differentials

Pipeline expansions in the Rocky Mountains are a “bullish sign for Rockies producers…that should result in lower differentials going forward and add value” to the region’s natural gas reserves, Gasco Energy Inc. CEO Mark Erickson said Wednesday.

Pipeline expansions in the Rocky Mountains are a “bullish sign for Rockies producers…that should result in lower differentials going forward and add value” to the region’s natural gas reserves, Gasco Energy Inc. CEO Mark Erickson said Wednesday.

Against an industry backdrop of widening oil price differentials and rising operating costs, Calgary-based EnCana Corp. on Wednesday reported a net loss due to mark-to-market accounting, despite a 34% jump in operating earnings and a 46% boost in total cash flow, compared to results in the first quarter last year. Operating earnings were $611 million, or $1.34/share, and total cash flow was $1.41 billion, or $3.11/share. These are U.S. dollar figures, the company said.

Officials at Colorado Interstate Gas (CIG) are expecting extremely depressed gas prices and wide basis differentials in the Rocky Mountain region this year to provide enough of an incentive for producers to finally step up to the plate and support an eastern greenfield pipeline project, and possibly the switching of Wyoming Interstate to westbound flow to support demand from Kern River shippers at the Opal hub.

Officials at Colorado Interstate Gas (CIG) are expecting extremely depressed gas prices and wide basis differentials in the Rocky Mountain region this year to provide enough of an incentive for producers to finally step up to the plate and support an eastern greenfield pipeline project, and possibly the switching of Wyoming Interstate to westbound flow to support demand from Kern River shippers at the Opal hub.