Analysts at Goldman Sachs said Wednesday they expect natural gas prices will remain low this summer, but recommended buying longer-dated natural gas futures on the presumption that slower production, a declining rig count and a return to normal winter weather would boost prices in 2013.
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Southwestern Cutting Fayetteville Drilling for Marcellus
Proving that different shale plays have different economics, Southwestern Energy Co. plans to cut spending in the Fayetteville Shale and increase spending in the Marcellus Shale this year, the company said Tuesday.
ConocoPhillips CEO Urges Energy Policy Overhaul
ConocoPhillips CEO Jim Mulva said last week shale natural gas, tight oil and oilsands no longer are the “pie-in-the-sky future sources” that they were when he entered the energy workforce 38 years ago. Unconventional resources have changed North America’s energy security and thus the rules also need to be changed, he said.
‘Energy Bonanza’ Requires Policy Overhaul, Says ConocoPhillips Chief
ConocoPhillips CEO Jim Mulva said Wednesday shale natural gas, tight oil and oilsands no longer are the “pie-in-the-sky future sources” that they were when he entered the energy workforce 38 years ago. Unconventional resources have changed North America’s energy security and thus the rules also need to be changed, he said.
Another New Futures Low, Yet Traders Question Further Declines
February natural gas posted its fifth consecutive decline for the week and posted a new 28-month low Friday as traders noted greater confidence in longer-term weather models showing a strong warming trend toward the end of the month. At the close February had dropped 2.7 cents to $2.670 and March had fallen 2.4 cents to $2.713. February crude oil retreated 40 cents to $98.70/bbl.
Quicksilver in Hunt for Horn River Upstream Partner
After securing a natural gas midstream partnership in the Horn River Basin with Kohlberg Kravis Roberts & Co. (KKR), Quicksilver Resources Inc. now is pursuing a partnership to develop its upstream leasehold, executives said Thursday.
LNG Export Not Seen Lifting U.S. Prices Much
Liquefaction and export of domestic U.S. gas is no longer a pipe dream but an eventual certainty given the abundance of supplies from shales and thirst for gas in other parts of the world, particularly in Asian markets, said speakers at Deloitte’s annual Oil & Gas Conference in Houston Thursday. True, there are export naysayers; a recent Deloitte study commissioned by BG Group addresses at least some of their concerns.
LNG Export Consumer Impact Is Pennies Per MMBtu, Says Deloitte
Liquefaction and export of domestic U.S. gas is no longer a pipe dream but an eventual certainty given the abundance of supplies from shales and thirst for gas in other parts of the world, particularly in Asian markets, said speakers at Deloitte’s annual Oil & Gas Conference in Houston Thursday. True, there are export naysayers; a recent Deloitte study commissioned by BG Group addresses at least some of their concerns.
Transportation Notes
Southern California Gas did not extend a high-linepack OFO beyond Saturday.
Anadarko Unconcerned About Added Macondo Penalties
Anadarko Petroleum Corp. officials see the Macondo deepwater Gulf of Mexico (GOM) well blowout from last year as no longer a threat to the company’s future earnings results as it was in the recently completed third quarter. A $4 billion settlement with BP plc has resolved all of the major pending litigation involving Anadarko.