Dire

The dry natural gas market is in a “dire state,” according to Tulsa-based contract driller Helmerich & Payne Inc. (H&P). However, it and competitor Patterson-UTI Energy Inc. are making the most of the industry’s migration to liquids-rich and oil plays.

The natural gas market may be in a “dire state,” but Tulsa-based contract driller Helmerich & Payne Inc. is poised to benefit as customers migrate to oil and liquids-rich shale plays where its high-performance AC-drive rigs are well suited to the more complicated work, CEO Hans Helmerich said Tuesday.

The natural gas market may be in a “dire state,” but Tulsa-based contract driller Helmerich & Payne Inc. is poised to benefit as customers migrate to oil and liquids-rich shale plays where its high-performance AC-drive rigs are well suited to the more complicated work, CEO Hans Helmerich said Tuesday.

Rumors of a possible Securities and Exchange Commission (SEC) inquiry, credit ratings downgrades and dire analyst forecasts pummeled El Paso Corp.’s share price last week, after the Houston-based company revised its proved oil and gas reserves downward by 41%. After beginning the week at $8.81, El Paso shares were hovering just above $7 a share on Friday.

Despite the brouhaha in both Washington, DC and Wall Street on the dire outlook for natural gas in North America, a potential shortage — as in an inability to refill storage — is “extremely unlikely” for the coming winter heating season, said Credit Suisse First Boston (CSFB) analysts in a new report.

Although some analysts are posting dire warnings for falling natural gas production in Canada, first quarter reports from some of the leading producers are proving a conundrum. Talisman Energy Inc. drilled six successful wells in the first three months of the year, and its production is up 6% from a year ago. Oil-heavy Husky Energy also came through production wise in its upstream operations, up 4%. Meanwhile, Shell Canada Ltd. and Imperial Oil Ltd. both saw production declines.

Although some analysts are posting dire warnings for falling natural gas production in Canada, first quarter reports from some of the leading producers are proving a conundrum. Talisman Energy Inc. drilled six successful wells in the first three months of the year, and its production is up 6% from a year ago. Oil-heavy Husky Energy also came through production wise in its upstream operations, up 4%. Meanwhile, Shell Canada Ltd. and Imperial Oil Ltd. both saw production declines.

In light of the dire predictions for the New York electricity market this summer, the Federal Energy Regulatory Commission has requested emergency clearance of a proposal to collect data from generators on “total or partial” outages, both planned and unplanned, in the state over the next few months.

In light of the dire predictions for the New York electricity market this summer, the Federal Energy Regulatory Commission has requested emergency clearance of a proposal to collect data from generators on “total or partial” outages, both planned and unplanned, in the state over the next few months.