Dropping

Confronted with a bearish storage situation and a bullish weather outlook, natural gas traders opted to follow the guidance of the latter Thursday as they lifted the market off of a negative close to notch the first positive close for the week. The January contract received the biggest buying boost, shuffling 7 cents higher to close at $2.686. Estimated volume of 90,049 was high considering the extremely-tight, 5-cent trading range.

A sharp decline in shallow drilling in the Gulf of Mexico and declining rig dayrates led to a 3.1% drop in Global Marine’s worldwide SCORE report, or Summary of Current Offshore Rig Economics, for October 2001 from the September SCORE. The SCORE for the Gulf of Mexico plummeted 16% and is down 13.7% from last October and 33.2% from the five-year average

A sharp decline in shallow drilling in the Gulf of Mexico and declining rig dayrates led to a 3.1% drop in Global Marine’s worldwide SCORE report, or Summary of Current Offshore Rig Economics, for October 2001 from the September SCORE. The SCORE for the Gulf of Mexico plummeted 16% and is down 13.7% from last October and 33.2% from the five-year average

Royal Dutch/Shell Group’s third quarter profit fell for the first time in more than two years, dropping 17% on lower energy prices and lower demand for chemicals. Net income, excluding one-time charges, fell to $2.69 billion from $3.25 billion for the third quarter of 2000. Shell hasn’t had a quarterly decline in profit since the first quarter of 1999 and the company said the outlook remains weak because of the economic slowdown, especially in the United States.

Royal Dutch/Shell Group’s third quarter profit fell for the first time in more than two years, dropping 17% on lower energy prices and lower demand for chemicals. Net income, excluding one-time charges, fell to $2.69 billion from $3.25 billion for the third quarter of 2000. Shell hasn’t had a quarterly decline in profit since the first quarter of 1999 and the company said the outlook remains weak because of the economic slowdown, especially in the United States.

Even though experts predicted the energy market would make a U-turn, “it is always painful when reality slaps you in the face,” according to Raymond James Energy’s “Stat of the Week.” As early as April, energy analyst Marshall Adkins predicted mid-$5/Mcf prices were not going to be sustainable with expected large gas injections. Through July, he predicts natural gas prices will continue to fall.

Even though experts predicted the energy market would make a U-turn, “it is always painful when reality slaps you in the face,” according to Raymond James Energy’s “Stat of the Week.” As early as April, energy analyst Marshall Adkins predicted mid-$5/Mcf prices were not going to be sustainable with expected large gas injections. Through July, he predicts natural gas prices will continue to fall.

As gas prices plummeted more than $5/MMBtu last week at the Southern California border, conservation, cool temperatures and more long-term contracts pressured power prices lower in the state to the point where generators “are having to compete for first time in months to sell us energy,” Ray Hart, deputy director of the California Department of Water Resources (DWR) said last Thursday.

Conservation, cool temperatures and more long term contracts have pressured power prices lower in California to the point where generators “are having to compete for first time in months to sell us energy,” Ray Hart, deputy director of the California Department of Water Resources (DWR) said Thursday.