Talisman Energy Inc. is slashing dry gas spending again in response to chronically low prices, but the company continues to ramp up production from the liquids-rich shale plays in its portfolio.
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Articles from Note
Eagle Ford Is Centerpiece of Rosetta Spending
Rosetta Resources Inc. will be dropping more than 90% of its $640 million 2012 capital budget in the Eagle Ford Shale of South Texas, the Houston-based company said last week.
EQT Prepping Midstream MLP
As promised, EQT Corp. is restructuring its midstream operations to bring in more money for upstream developments in the Marcellus Shale (see Shale Daily, Nov. 1).
Warming Weather Outlook Wallops Futures; December Dives
December natural gas swan-dived Monday in moderate trading as traders note weather forecasts have turned less supportive than earlier, production continues to outstrip modest demand and buyers remain unmotivated. At the close December had fallen 12.6 cents to $3.458 and January had retreated 9.6 cents to $3.600. December crude oil dropped 85 cents to $98.14/bbl.
November Futures Drop at Expiration; December Seen Weaker Still
November futures expired on a weak note Thursday as traders factored in a greater-than-expected increase in storage inventories. The report by the Energy Information Administration showed an increase of 92 Bcf, about 7 Bcf greater than what traders were looking for. At the end of trading November had shed 6.6 cents to $3.524 and December had lost 1.1 cents to $3.764. December crude followed an ebullient equity market higher and gained a stout $3.76 to $93.96/bbl.
‘Abandon All Hope’ on Natgas Prices
The near-term outlook for U.S. natural gas prices has come into focus — and it’s not a pleasant picture, according to energy analysts.
Tropical System Upgraded; July Expiration Upbeat
July natural gas futures expired on a firm note Tuesday as traders had to factor in a slightly higher weather premium as a tropical system was upgraded and near-term weather forecasts called for warm temperatures. At the close July natural gas rose 10.1 cents to $4.357 and August added 9.0 cents to $4.354. August crude oil surged $2.28 to $92.89/bbl.
Traders Exit Losing Positions; April Rises
Futures rose but traders saw the advance as devoid of any directional factors and noted active spread trading. Trading of outright futures and options was light. At the close April had added 6.6 cents to $3.930 and May futures were up 6.2 cents to $3.986. April crude oil fell 64 cents to $104.38/bbl.
Kinder: Producers Are Spending Big in the Eagle Ford
Given the difference in prices for natural gas liquids (NGL) and dry gas, NGL content in the Eagle Ford Shale “makes for a much more pleasant experience” for producers there, Kinder Morgan Energy Partners LP (KMP) Chief Rich Kinder told financial analysts Wednesday. And burgeoning activity in the South Texas play has filled up a KMP midstream project there.
Analysts: Eagle Ford Profit Is Mostly Wet
Analysts at BMO Capital Markets named the Eagle Ford Shale in South Texas the “play of 2010” in a research note last week. But it could also be called the “now and later” play among North American shale prospects: It offers oil and condensate for now and dry gas for later when prices improve.