Increasingly

As the deepwater Gulf of Mexico (GOM) matures, it will become increasingly difficult to offset natural gas production declines on the shelf, which “may imply a more severe U.S. gas production decline” than now estimated, according to an analysis by Southwest Securities’ John Gerdes.

With a long holiday weekend and increasingly moderate weather looming on the immediate horizon, no one was surprised to see across-the-board declines in double digits Thursday for prices through the end of the month. And despite a surprisingly low storage injection report and the late-afternoon emergence of Tropical Storm Fabian, sources expect softening to continue Friday in trading for the initial September aftermarket.

Increasingly muddled technicals and fundamentals played to a stalemate Wednesday as natural gas futures traders failed to propel prices very far from the $5.00 mark. At the closing bell, the front months made small advances while the winter 2003/04 strip ebbed slightly. April finished at $5.097, up 2 cents for the session on its penultimate trading day. May, which will take over as prompt month when April goes off the board Thursday, notched a 3-cent gain to close at $5.147.

A lack of skilled manpower, fewer educational opportunities and the increasingly poor image of the oil and gas industry continue to discourage potential job seekers, and it is past time for the producers, educators, associations and state governments to step forward to help build a better image, energy professionals told the Texas Railroad Commission on Wednesday.

A lack of skilled manpower, fewer educational opportunities and the increasingly poor image of the oil and gas industry continue to discourage potential job seekers, and it is past time for the producers, educators, associations and state governments to step forward to help build a better image, energy professionals told the Texas Railroad Commission on Wednesday.

Natural gas-fired generators are going to find it increasingly difficult to be profitable as lower cost coal-fired generators continue to beat them to the market, and overcapacity of low-cost gas generation keeps power prices depressed, a new report looking at Midwest power markets concludes.

Under the weight of an increasingly negative technical outlook and on the heels of new forecasts suggesting moderating weather is ahead, natural gas futures continued lower Friday, as traders liquidated long positions established during the market’s recent run to $4.42.

Becoming increasingly unique in the troubled energy sector, San Diego-based Sempra Energy rode the consistency of its two large utility subsidiaries and solid growth in its merchant energy units, except trading, to increase its net income by 26% to $150 million, or 73 cents/diluted share, for the third quarter, compared to $96 million, or 46 cents/diluted share, the same period last year, which included a 12-cent/share charge for the sale of its Nova Scotia natural gas project. Energy trading, while remaining profitable, was the only business line with substantially decreased earnings.

Taking the offensive in what has become an increasingly stressful time for energy companies, Aquila Inc.’s CEO said last week the company may sell up to $1 billion in assets — twice as much as announced two months ago — in an effort to improve the company’s wobbling credit quality. It also has cut 200 employees from its merchant services and corporate staff and expects the previously announced reduction of 500 positions at its utility companies to be completed by July.