Particularly

Lehman Brothers analyst Thomas Driscoll is looking for exploration and production company shares, particularly the “gassier” ones, to have a solid year in 2003 because of an expected market “squeeze,” which he predicts could be similar to one in 2000 when storage injections were “woefully inadequate” and gas shortage fears caused prices to skyrocket to $10 by December.

Last year was particularly brutal on The Williams Companies, which reported massive net and recurring losses on Thursday and another $2.5 billion in anticipated asset sales, excluding the $1.9 billion that were previously initiated or announced. However, investor confidence in its liquidity and the performance of its core operations going forward was enough to lift its share price by 27% to $3.67 Thursday afternoon.

Sempra Energy’s merchant unit pushed the San Diego-based utility’s earnings up 14% last year, with particularly strong trading gains in natural gas, metals and oil. Sempra, which used a strong balance sheet and creditworthy status to its advantage, reported 2002 earnings of $591 million ($2.87 per diluted share), compared with $518 million ($2.52) for 2001.

Industrial demand, particularly for those industries where fuel is an important cost component, is the “wild card” in the natural gas demand picture, according to Energy and Environmental Analysis (EEA), which points out that given the variety of industries using natural gas for different purposes, their reaction to high prices is difficult to summarize. Especially now, when high natural gas prices could prevail for several years, industrial strategy during short-term price spikes in the past may not apply.

Industrial demand, particularly for those industries where fuel is an important cost component, is the “wild card” in the natural gas demand picture, according to Energy and Environmental Analysis (EEA), which points out that given the variety of industries using natural gas for different purposes, their reaction to high prices is difficult to summarize. Especially now, when high natural gas prices could prevail for several years, industrial strategy during short-term price spikes in the past may not apply.

Oil and natural gas producers, particularly independents, are paying a heavy price in a bonding market that has grown increasingly tight in the wake of the Sept. 11 terrorist attacks and the major bankruptcies of Enron Corp. and K-Mart, six major producer groups told the Interior Department last week. They called on the agency to ease up on some of its bonding requirements for producers in light of market conditions.

Oil and gas producers, particularly independents, are paying a heavy price in a bonding market that has grown increasingly tight in the wake of the Sept. 11 terrorist attacks and the bankruptcies of Enron Corp. and K-Mart, six major producer groups told the Interior Department Monday. They called on the agency to ease up on some of its bonding requirements for producers in light of market conditions.

Buoyed by the one-two combination of hot weather forecasts and higher cash market prices, particularly in the Northeast, natural gas futures prices moved higher Wednesday on fresh commercial buying mixed with light speculative short covering. After trudging methodically to a $3.04 high at 1 p.m. EDT, the September contract fell in the last 90 minutes of the session as traders positioned themselves ahead of this mornings release of the weekly gas storage report. The prompt month closed at $2.954, up 6.3 cents for the day, but 8.6 cents off its daily high.

The first full week of debate on the Senate omnibus energy bill wasn’t particularly favorable for the natural gas industry, as lawmakers adopted amendments that mandated the Alaska Highway as the route for a proposed North Slope gas pipeline, folded a controversial pipeline-safety measure into the energy bill that mandates pipeline inspections every five years, and ordered a study of whether the federal government should expand controls on hydraulic fracturing as a means to produce gas.