Marginal

After falling 30% between 2014 and 2015 as oil prices plunged, the marginal cost to produce a barrel of oil could fall again in 2016, but operators overall still need higher commodity prices to breakeven, according to an analysis by Sanford C. Bernstein & Co. of the Top 50 global operators.

A marginal increase in natural gas sales by BP plc and significant increases by Tenaska Inc., Chevron Corp. and J.Aron & Co. were overshadowed by declines at ConocoPhillips, Shell Energy NA and Macquarie Energy, resulting in a 5% (7.53 Bcf/d) overall decline in gas sales transactions in 1Q2013 compared with 1Q2012, according to NGI’s 1Q2013 Top North American Gas Marketers Ranking.

A marginal increase in natural gas sales by BP plc and significant increases by Tenaska, Chevron and J.Aron & Co. were overshadowed by declines at ConocoPhillips, Shell Energy NA and Macquarie, resulting in a 5% (7.53 Bcf/d) overall decline in gas sales transactions in 1Q2013 compared with 1Q2012, according to NGI’s 1Q2013 Top North American Gas Marketers Ranking.

Morningstar Inc. has revised its marginal cost estimate for U.S. natural gas down to $5.40/Mcf from a prior projection of $6.50, but analysts said they remain bullish about prices over the long term.

Morningstar Inc. on Thursday revised its marginal cost estimate for domestic natural gas down to $5.40/Mcf from a prior projection of $6.50, but analysts said they remain bullish about prices over the long term.

Industry officials were disappointed in President Obama’s jobs speech Thursday, saying their pleas for him to make oil and natural gas the “centerpiece” of his jobs-creation effort fell largely on deaf ears.

Marginal increases in temperature forecasts in several regions kept prices rising at nearly all points Tuesday. Otherwise, fundamentals such as slight prior-day futures weakness and the lack of any Atlantic tropical activity argued against any continued market firmness.

The market could claim marginal increases in cooling load in the South as more sections of the region were forecast to start recording highs in the mid 80s or so Thursday. Nevertheless, fundamental underpinnings of this week’s rally were still difficult to detect Wednesday even as overall firmness remained prevalent.

Still finding only marginal heating or cooling load in various areas, most of the cash market was still able to realize small gains Monday on the basis of a 27.4-cent spike in June futures on the preceding Friday and the return of industrial load from its typical weekend decline. However, major transportation constraints in the West resulted in a combination of big gains and big losses in the region.