Dragged

June natural gas futures suffered only minor bumps and bruises Wednesday as concerns over European debt levels dragged stock markets and petroleum markets down further.

Following precedent set by a hotly contested case that dragged on through the late 1990s and the first half of this decade, three Alberta natural gas producers were ordered Thursday to shut in 158 wells deemed to jeopardize future oilsands production.

Following precedent set by a hotly contested case that dragged on through the late 1990s and the first half of this decade, three Alberta natural gas producers were ordered last Thursday to shut in 158 wells deemed to jeopardize future oilsands production.

While some believe natural gas prices have been dragged higher by $100/bbl oil or pushed up by supply shortfalls, these factors don’t explain the step-change gas prices have experienced. Higher full-cycle gas production costs — due particularly to greater reliance on unconventional supply basins — have driven the prices all gas consumers pay to a new level, one where they’re bound to stay, a ConocoPhillips executive told NGI.

While some believe natural gas prices have been dragged higher by $100/bbl oil or pushed up by supply shortfalls, these factors don’t explain the step-change gas prices have experienced. Higher full-cycle gas production costs — due particularly to greater reliance on unconventional supply basins — have driven the prices all gas consumers pay to a new level, one where they’re bound to stay, a ConocoPhillips executive told NGI.

Disappointing trading results dragged Oneok Inc.’s quarterly earnings down 45%, to $35.2 million (31 cents/share) in 2Q2007, compared to $77.8 million (65 cents/share) in 2Q2006, but the company reaffirmed its earnings guidance for the year.

Disappointing trading results dragged Oneok Inc.’s quarterly earnings down 45%, to $35.2 million (31 cents/share) in 2Q2007, compared to $77.8 million (65 cents/share) in 2Q2006, but the company reaffirmed its earnings guidance for the year.

Cash prices rode the Nymex higher again on Friday with the help of continued colder temperatures across most of the Midwest and East and little change in the forecast for most of the country. Nymex soared 60 cents to $7.22 and many cash points were up 10-20 cents.

Despite unanswered questions about whether the holding company will be dragged into some part of its former merchant unit’s Chapter 11 bankruptcy and the timely completion of its utility company’s bankruptcy emergence, San Francisco-based PG&E Corp.’s CEO told an industry financial audience in Orlando, FL, last Tuesday that his utility company is on a “clear path” to clearing the final hurdles with state regulators and the federal bankruptcy court.