Fell

Houston-based Spectra Energy’s earnings fell 24% in the second quarter from a year ago as each of the company’s divisions — pipelines, field services, distribution and Western Canadian operations — turned in lower performances. But this will not deter the company from moving forward with its “solid roster” of energy projects, said CEO Greg Ebel.

Houston-based Spectra Energy’s earnings fell 24% in the second quarter from a year ago as each of the company’s divisions — pipelines, field services, distribution and Western Canadian operations — turned in lower performances. But this will not deter the company from moving forward with its “solid roster” of energy projects, said CEO Greg Ebel.

Physical prices on average fell almost 4 cents Thursday as California locations along with the Rockies were especially hard hit. Some Northeast points managed to rise as constraints and curtailments limited flows.

The cash market Wednesday fell overall on average by about 9 cents and elected to coat-tail on a futures double-digit loss on Tuesday. Gulf and California points were notably weak as were eastern points. Northeast locations managed to hold steady or record modest gains. At the close of futures trading August had gained 11.6 cents to $2.853 and September had risen 10.9 cents to $2.837. August crude oil tacked on $1.90 to settle at $83.91/bbl.

Natural gas storage companies say they are not concerned that Pennsylvania will run out of underground capacity, despite last winter’s mild weather, higher-than-normal amounts of gas already in storage and increased production from the Marcellus Shale.

Although its profits fell while production grew, Southwestern Energy Co. said its drilling programs in both the Fayetteville and Marcellus shales remain profitable. But the Houston-based company also plans to divert $50 million in midstream capital toward ventures in the Brown Dense formation and the Denver-Julesburg (DJ) Basin.

Total exploratory well completions rose during the first three months of this year, but natural gas drilling fell by 28% from a year ago, according to the American Petroleum Institute’s (API) latest well completion report. There were 2,495 natural gas wells completed in the quarter, while oil well completions were pegged at 5,352, down 1% from activity in 1Q2011; dry holes were estimated at 1,116 completions. The Washington, DC-based producer group reported that a total of 8,963 wells — both exploration and development — were completed in the first three months, down 9% from the same period of 2011. Total well completions were 9,877 in 1Q2011, including 5,425 oil well completions, 3,444 gas well completions and 1,008 dry holes. A total of 10,383 total wells — 6,149 oil wells, 3,217 gas wells and 1,017 dry holes — were completed in 4Q2011 (see NGI, Feb. 6). While overall well completions dropped in 1Q2012, exploratory well completions rose 12% from year-ago levels.

Exploratory well completions rose during the first quarter, but oil and natural gas drilling fell 28% from the comparable period last year, according to the American Petroleum Institute’s (API) well completion report for the first quarter.

Gas for Monday delivery fell about 8 cents nationwide in Friday trading as an overall shortage of demand combined with the need to make up ground traversed by the double-digit decline in the May futures on Thursday. Losses were greatest at eastern points as temperature forecasts called for seasonal readings for most of next week. At the close of futures trading May had lost 2.3 cents to $2.126 and June had given up 1.1 cents to $2.259. May crude oil added 24 cents to $102.02/bbl.