Headwinds

Driven by sustained intensity in the U.S. onshore and a slow recovery in the Gulf of Mexico (GOM), the domestic rig count should average 1,850 in 2011, which would be 20% higher than in 2010, Baker Hughes Inc. said Monday.

Relative to crude oil, the long-term outlook for strength in natural gas prices “has some significant headwinds,” according to Tudor, Pickering, Holt & Co. LLC (TPH) Managing Director David Pursell. But while there is plenty to worry about in the gas patch — oversupply, for one — liquefied natural gas (LNG) imports are not among the threats to gas producers, he said.

Relative to crude oil, the long-term outlook for strength in natural gas prices “has some significant headwinds,” according to Tudor, Pickering, Holt & Co. LLC (TPH) Managing Director David Pursell. But while there is plenty to worry about in the gas patch — oversupply, for one — liquefied natural gas (LNG) imports are not among the threats to gas producers, he said.

Producers that have been seeking refuge from low natural gas prices by ramping up production of natural gas liquids (NGL) will likely experience headwinds as NGL prices come under pressure from softer demand and abundant supply, noted analysts at Tudor, Pickering, Holt & Co. Securities Inc. (TPH) Monday.

Producers that have been seeking refuge from low natural gas prices by ramping up production of natural gas liquids (NGL) will likely experience headwinds as NGL prices come under pressure from softer demand and abundant supply, noted analysts at Tudor, Pickering, Holt & Co. Securities Inc. (TPH) Monday.