Hurt

Because natural gas demand still is being hurt by weak U.S. gross domestic product (GDP) growth, industrial output and “uncommonly warm weather,” Deutsche Bank on Friday reduced its gas price forecast for the second time in less than a month.

When Rex Energy Corp. announced in August that it acquired the rights to lease about 11,000 net acres in Carroll County, OH, for $40 million, the company said it was doing so to develop a prospect in the Utica Shale play and expand its acreage position there.

The excessively wet hydroelectric season in the West continues to hurt Calpine Corp.’s large fleet of natural gas-fired generation plants, Calpine senior executives told financial analysts Friday during a second quarter earnings conference call in which the large independent power company reported losses for the second quarter.

Texas lawmakers are not yet into the meat of their current legislative session, but as with the last session two years ago, the Barnett Shale seems to be drawing the most attention, at least judging by potential legislation, Texas Independent Producers and Royalty Owners Association (TIPRO) President Justin Furnace told NGI’s Shale Daily.

At least until the Environmental Protection Agency completes its 2010-2012 study on hydraulic fracturing.

Saying that imposing a severance tax on growing natural gas production in the Marcellus Shale could hurt his state’s natural gas industry, Pennsylvania Gov. Ed Rendell last week announced that he was dropping the proposed 5% tax plan until at least next year. A key supporter of the severance tax in the state’s legislature said he will continue to push to have it implemented as soon as next spring.

Saying that imposing a severance tax on growing natural gas production in the Marcellus Shale could hurt his state’s natural gas industry, Pennsylvania Gov. Ed Rendell on Monday announced that he was dropping the proposed 5% tax plan until at least next year.

Major producer groups Tuesday warned Washington policymakers that a windfall profits tax or other punitive taxes on producers would hurt the financial health of the industry, reduce domestic oil and natural gas production and result in significant job losses.

Baker Hughes Inc. warned Friday that the significant drop-off in Canadian drilling this year compared with a year ago will hurt its quarterly earnings.