Losing

The number of rigs actively exploring for natural gas and oil continues to slow, with the U.S. rig count flat at 1,941 as of Friday after losing a record 51 rigs the week before. Canada operators laid down another 18 rigs last week, Baker Hughes Inc. reported Friday.

Georgia natural gas marketer Catalyst Energy Group and two affiliates have filed for Chapter 11 bankruptcy protection after losing a required credit line and contracted fuel supply.

With the U.S. losing out to foreign countries in the bidding war for liquefied natural gas (LNG), the level of LNG imports this year and next is expected to be well below the 2007 high of 771 Bcf, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook for August. The agency also significantly cut its spot price price projections for this year and 2009, citing increased domestic production and the drop in crude oil prices as factors.

With the U.S. losing out to foreign countries in the bidding war for liquefied natural gas (LNG), the level of LNG imports this year and next is expected to be well below the 2007 high of 771 Bcf, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook for August.

The breaking of a five-day losing streak by August futures Monday did essentially nothing to boost the cash market Tuesday. Four flat to about a dime higher points were the sole exceptions to overall softness. Quotes fell at most points despite forecasts of peak temperatures in the upper 80s or higher in much of the U.S. Wednesday.

July natural gas futures closed higher Wednesday in spite of another losing day for crude oil. Traders also ignored the completion of repairs to the Independence Hub production platform in the Gulf of Mexico and elected to focus on expected warm weather in Midwest and eastern energy markets. At the close of floor trading July futures were up 15.8 cents to $12.379 and August added 14.0 cents to $12.442. July crude oil skidded $2.01 to $122.30/bbl.

Stone Energy Corp., which was on the losing end of two merger attempts in 2006, has trained its sights on acquiring Houston-based Bois d’Arc Energy Inc. in a transaction estimated at $1.8 billion. The combination would give Stone a solid Gulf of Mexico (GOM) exploration portfolio 55% weighted to natural gas, around 300 MMcfe/d in production, 700 Bcfe-plus of estimated proved reserves and 275 Bcfe of estimated probable reserves.

Stone Energy Corp., which was on the losing end of two merger attempts in 2006, has trained its sights on acquiring Houston-based Bois d’Arc Energy Inc. in a transaction estimated at $1.8 billion. The combination would give Stone a solid Gulf of Mexico (GOM) exploration portfolio 55% weighted to natural gas, around 300 MMcfe/d in production, 700 Bcfe-plus of estimated proved reserves and 275 Bcfe of estimated probable reserves.

Pummeled by a prior-day futures plunge and losing both heating and cooling load, cash prices recorded losses at all points Wednesday.