With spot crude prices rising at a stronger-than-expected pace, actual cooling degree days (CDDs) about 13% higher than a year ago and the natural gas consumption impact per CDD above 2004, the stage is set for continued upward pressure on gas prices for the next few months, according to Stephen Smith Energy Associates.
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DOE Tallies Continuing ‘Explosive’ Import Growth
International trade in natural gas grew at a brisk pace in 2004, when Canadian pipeline exports rebounded and tanker landings of offshore supplies surged at a rate described as “explosive” to serve strong demand for imports in the United States, according to the U.S. Energy Department’s (DOE) annual review of gas trade trends.
DOE Tallies Continuing ‘Explosive’ Import Growth
International trade in natural gas grew at a brisk pace in 2004, when Canadian pipeline exports rebounded and tanker landings of offshore supplies surged at a rate described as “explosive” to serve strong demand for imports in the United States.
CERA Report Urges SEC Revise Reserves Reporting System
The 27-year-old U.S. system to measure and report oil and natural gas reserves has failed to keep pace with a changing, increasingly global energy industry and, as a result, it has fallen short of accurately valuing companies’ performance and strategies, according to a study by Cambridge Energy Research Associates (CERA).
CERA Report Urges SEC Revise Reserves Reporting System
The 27-year-old U.S. system to measure and report oil and natural gas reserves has failed to keep pace with a changing, increasingly global energy industry and, as a result, it has fallen short of accurately valuing companies’ performance and strategies, according to a study by Cambridge Energy Research Associates (CERA).
S&P: Utilities Rest Easier in ’04 After Tumultuous Years of Negative Credit Activity
Electric, gas, pipeline and water utilities finally can rest a little easier after a significant decrease in the pace and scale of negative rating activity by credit rating agencies in 2004, Standard & Poor’s (S&P) said in a new report titled “U.S. Utility Downside Rating Actions Moderated Significantly in 2004.”
Storage Injections Continue at Above-Average Pace
Multiple bearish factors seemed to converge on Thursday and Friday to keep downward pressure on the natural gas cash market. As Gulf production resumed after Tropical Storm Bonnie and Hurricane Charley made landfall, traders were faced with below normal temperatures, cooling rains from the storms and a continuation of higher than expected storage injections. That last item could be the one that has the most lasting impact, according to Thomas Driscoll of Lehman Brothers.
Price Descent Continues, But at a Slower Pace
Cash quotes continued to fall Tuesday, but the declines were notably smaller than on the day before. The slide was remarkably consistent across all geographic areas with nearly every point down between a nickel and about a dime; only a few in the Gulf Coast and Midcontinent/Midwest fell by as much as 13-19 cents.
Chesapeake Sets Record 2Q Production, Buys More Gas-Rich Assets
Oklahoma City-based Chesapeake Energy Corp.’s natural gas and oil production grew at a record pace in the second quarter, 29% over a year ago and 10% sequentially, the company reported Monday. The growth is expected to be even stronger in the coming months after Chesapeake announced it would add 310 Bcfe of estimated proved reserves, 453 Bcfe of estimated probable and possible reserves and 60 MMcfe/d of production through three new acquisitions in the MidContinent and South Texas. For the second quarter, Chesapeake generated net income of $85.8 million (31 cents/per diluted common share), compared with $76.3 million (31 cents) in 2Q2003. Analysts had forecast Chesapeake would earn 29 cents/share.
Prices Still Increasing, But Pace of Ascent Slows
Cash numbers continued to rise at all points Wednesday, but the size of the increases was considerably less than on the day before. Small to sizeable retreats in the Midwest and South from heat levels that had been rising earlier in the week were cited as the key factor in slowing down the post-holiday rally.