Outpaced

Oil well drilling significantly outpaced natural gas activity in the third quarter, the American Petroleum Institute (API) reported Wednesday. For every two oil wells that were completed during the period, only one gas well was completed.

U.S. natural gas consumption significantly outpaced domestic production in 2007, keeping Henry Hub spot prices on average north of $7 for the year, the Energy Information Administration (EIA) said last Tuesday in its Short-Term Energy Outlook for January.

U.S. natural gas consumption significantly outpaced domestic production in 2007, keeping Henry Hub spot prices on average north of $7 for the year, the Energy Information Administration (EIA) said Tuesday in its Short-Term Energy Outlook for January.

Oil and natural gas price increases have “far outpaced” acquisition cost increases because margins matter, not the “per Mcfe sticker price,” Chesapeake Energy Corp. CEO Aubrey McClendon said last week. Holding to that strategy, the Oklahoma City-based independent plans to continue to acquire more domestic onshore assets to increase its ever-growing gas reserves.

Oil and natural gas price increases have “far outpaced” acquisition cost increases because margins matter, not the “per Mcfe sticker price,” Chesapeake Energy Corp. CEO Aubrey McClendon said Tuesday. Holding to that strategy, the Oklahoma City-based independent plans to continue to acquire more domestic onshore assets to increase its ever-growing gas reserves.

Although it was eventually far outpaced by a soaring screen, the cash market did make some effort to keep up Monday. Nearly all points rose between 2-3 cents and about 15 cents, with gains on either side of a dime being most prevalent. Sources in several areas, however, reported lower numbers in late deals. A Northeast buyer said Transco Zone 6-NYC started in the mid $3.20s but was about a dime lower at the end.