Healthy

Talisman Energy Inc.’s North American production from ongoing operations experienced a healthy increase in 3Q2012, but weak natural gas prices have the company and its new CEO, Hal N. Kvisle, trimming capital expenses (capex) as part of a plan to run a more streamlined operation in 2013.

Talisman Energy Inc.’s North American production from ongoing operations experienced a healthy increase in 3Q2012, but weak natural gas prices have the company and its new CEO, Hal N. Kvisle, trimming capital expenses (capex) as part of a plan to run a more streamlined operation in 2013.

Talisman Energy Inc.’s North American production from ongoing operations experienced a healthy increase in 3Q2012, but weak natural gas prices have the company and its new CEO, Hal N. Kvisle, trimming capital expenses (capex) as part of a plan to run a more streamlined operation in 2013.

Cash markets out West and at most points throughout the country posted healthy gains as an early announcement by Chesapeake Energy that they would shut in wells and cut back drilling (see related story) boosted quotes across the board with the exception of a few New England and Eastern Seaboard points. Futures responded in kind on heavy trading volume, yet traders were circumspect about whether the market was ready to completely put the brakes on its pervasive downtrend.

A healthy slice of Marathon Oil Corp.’s $4.8 billion capital, investment and exploration budget for next year is targeted at the Eagle Ford Shale play in South Texas as the company continues to focus on liquids-rich assets in the United States.

October natural gas tacked on another healthy gain Wednesday and settled above $4 as traders noted considerable angst among holders of short positions feeling that they did not want to get caught on the wrong side of any market move higher. At the close October had risen 5.9 cents to $4.039 and November had gained 6.3 cents to $4.117. October crude oil dropped for the day by $1.30 to $88.91/bbl.

August natural gas fell in light, pre-holiday trading as traders still maintained an upward bias but noted that healthy production levels still remain a formidable force for the bulls to counter. At the close August had fallen 6.3 cents to $4.311 and September had slipped 6.3 cents as well to $4.330. August crude oil softened 48 cents to $94.94/bbl.

May natural gas futures staged a healthy late-session rally Thursday to close in positive territory after surviving what could have been a damaging blow to the bullish cause after the release of government inventory data. At the end of the day May futures were 3.4 cents higher at $4.389 and June rose 3.2 cents to settle at $4.458. May crude oil vaulted $2.45 to $106.72/bbl.

Upstream mergers and acquisitions (M&A) staged a strong recovery by the end of 2009 and a “healthy” transaction level is on course to continue through 2010, according to a new review by energy consultant Wood Mackenzie.