Huge

The deteriorating U.S. economy and uncertainty of what lies ahead have prompted fears of a huge reduction in natural gas demand. However, energy analysts are making the case for both the bears and the bulls in 2009.

The deteriorating U.S. economy and uncertainty of what lies ahead have prompted fears of a huge reduction in natural gas demand. However, energy analysts are making the case for both bears and bulls in 2009.

The drop in natural gas and oil prices in 2008 will force many exploration and production (E&P) companies to write off a “huge” amount of reserves, Raymond James & Associates Inc. energy analysts said last week.

The drop in natural gas and oil prices in 2008 will force many exploration and production (E&P) companies to write off a “huge” amount of reserves, Raymond James & Associates Inc. energy analysts said Tuesday.

Even before Barack Obama was elected, the assumption was that whoever was elected president, renewable energy and the green economy would get a huge boost. That still appears likely, but the results — at least short term — are less clear, according to some early assessments.

U.S. natural gas producers are touting a variety of innovative systems they use to recycle the huge amounts of water needed to hydraulically fracture their unconventional wells in the face of mounting pressure from environmental groups and the threat of more regulation.

EnCana Corp. reported a huge jump in 1Q2008 operating profit and cash flow last week, but the company’s net earnings sank 81% after it lost a big bet on natural gas prices. North American gas output rose 10% to 3.7 Bcf/d, and U.S. production climbed 27% — aided by rising volumes from the Deep Bossier trend in East Texas.

EnCana Corp. reported a huge jump in 1Q2008 operating profit and cash flow on Tuesday, but the company’s net earnings sank 81% after it lost a big bet on natural gas prices. North American gas output rose 10% to 3.7 Bcf/d, and U.S. production climbed 27% — aided by rising volumes from the Deep Bossier trend in East Texas.

A producer was accurate for the most part in predicting a modest rally in the cash market Thursday as a result of the huge recovery from negative territory by May futures the day before (see Daily GPI, April 3). Most points did see gains, with a majority of them in single digits. However, quite a few quotes at scattered locations were flat to down as much as about 20 cents.