Poised

The downtrodden energy markets are setting up for a meaningful improvement in the next few weeks, driven by several fundamental factors, including smaller natural gas injections and the potential for winter gas shortages, according to Raymond James analysts.

Only a much colder than normal winter would stop gas prices from falling below $4 in the next few months, according to consultant Stephen Smith, who sees a significant supply surplus built into the market because of lasting demand destruction and new supply from non-traditional resources.

Only a much colder than normal winter would stop gas prices from falling below $4 in the next few months, according to consultant Stephen Smith, who sees a significant supply surplus built into the market because of lasting demand destruction and new supply from non-traditional resources.

Subsea processing is poised to grow into an important new business sector because it can substantially reduce offshore platform expenditures and in some cases, eliminate the need for platforms completely, according to a joint study by energy analysts Douglas-Westwood and technology specialists OTM Consulting.

Subsea processing is poised to grow into an important new business sector because it can substantially reduce offshore platform expenditures and in cases, eliminate the need for platforms completely, according to a joint study by energy analysts Douglas-Westwood and technology specialists OTM Consulting.

Once the holder of one of the largest electricity supply deals with California, Allegheny Energy Supply said last week it has filed claims with the state’s Board of Control for what it alleges are “monetary damages” inflicted on it by the state’s “bad-faith actions” abrogating a long-term supply deal. State actions, which still have not terminated the deal, nevertheless have caused the company “significant negative financial” problems, Allegheny said.

The oil and gas industry, led by exploration and production (E&P), will be one of the stronger investments in 2003, according to Standard & Poor’s Ratings Service (S&P), which published its year-end equity market wrap-up and outlook on Wednesday. S&P expects the strengthening momentum as the year ends to carry into the coming year.

Natural gas and oil producers are resting at ease as natural gas prices are poised to end 2002 near $5.00/MMBtu and oil prices are clinging to $26/bbl, noted a new report by Standard & Poor’s Ratings Services (S&P). The rating agency raised its gas price forecast last week to $2.75-3.00 (Nymex equivalent), which may appear conservative compared to other forecasts in the $3.60s or higher (EIA) and Nymex highs last week in the $5.30s.

Natural gas and oil production companies are sitting rather comfortably as natural gas prices are poised to end 2002 near $5.00/MMBtu and oil prices are clinging to $26/bbl, according to a new report issued by Standard & Poor’s Ratings Services (S&P). The rating agency also said it will increase its 2003 Nymex natural gas pricing estimate from $2.75/MMBtu to $3.00/MMBtu.