Faced

The U.S. exploration and production (E&P) industry last year faced increased costs, a decline in year-end reserves and ultimately lower profits, but capital spending still was more than a third higher than in 2007 and natural gas reserves were up 4%, Ernst & Young LLP reported Thursday.

Independent producers have faced downturns before, but companies that are heavily leveraged — such as those that borrowed to gain entry into the cash-intensive natural gas shales and tight sands — face liquidity problems and “survival risks” without the full support of their lenders, Moody’s Investors Service reported last week.

Independent producers have faced downturns before, but companies that are heavily leveraged — such as those that borrowed to gain entry into the cash-intensive natural gas shales and tight sands — face liquidity problems and “survival risks” without the full support of their lenders, Moody’s Investors Service said in a report Monday.

Anadarko Petroleum Corp. has laid down around 30% of its U.S. onshore rigs since the end of 2008, the company said Tuesday.

The natural gas industry has faced tight credit markets before and lived with low prices, but never so forcefully at the same time. As a result, the outlook for drilling in the coming year is dicey at best, and the pullback in rigs will accelerate through 2009, Barclays Capital analysts noted in a report.

The natural gas industry has faced tight credit markets before and lived with low prices, but never so forcefully at the same time. As a result, the outlook for drilling in the coming year is dicey at best, and the pullback in rigs will accelerate through 2009, Barclays Capital analysts noted in a report.

The country is confronting economic and energy challenges that are similar to those faced three decades ago during the Iranian crisis, said the head of the American Petroleum Institute (API).

The country is confronting economic and energy challenges that are similar to those faced three decades ago during the Iranian revolution and hostage-taking situation, said the head of the American Petroleum Institute (API).

Faced with declines in both heating and cooling load and having negative guidance from the previous day’s 12.6-cent retreat by May gas futures, cash prices fell at a large majority of points Wednesday.