Predictions

Lehman Brothers on Thursday boosted its outlook on the oil and gas sector, raised its forecast for several individual energy stocks and increased its price predictions for both oil and gas through 2005.

Lehman Brothers on Thursday boosted its outlook on the oil and gas sector, raised its forecast for several individual energy stocks and increased its price predictions for both oil and gas through 2005.

Predictions of a late-winter storm expected to bring snow and sleet (“perhaps a lot in some locations,” according to The Weather Channel) to eastern parts of the South Thursday helped to generate small rallies at most eastern points Wednesday. Virtually all increases were less than a dime, while a few scattered points were flat to barely lower.

Contrary to the gas supply data and predictions of the federal government, overwhelming evidence supports the view that U.S. natural gas production is falling by more than 2% on a year-over-year basis and is unlikely to reverse itself anytime soon, according to analysts at Raymond James & Associates, who express confidence that gas prices will move back over $5 this winter and remain there into next year.

Contrary to the gas supply data and predictions of the federal government, overwhelming evidence supports the view that U.S. natural gas production is falling by more than 2% on a year-over-year basis and is unlikely to reverse itself anytime soon, according to analysts at Raymond James & Associates, who express confidence that gas prices will move back over $5 this winter and remain there into next year.

An EnCana spokesman said it was pure speculation by analysts last week regarding whether the company might decide to connect its stalled $1.1 billion Deep Panuke project offshore Nova Scotia to ExxonMobil’s Sable Offshore Energy Project facilities, which are only about 30 miles away. Such a move would mean the cancelation of EnCana’s previous plan to build its own pipeline to the Nova Scotia shore.

An EnCana spokesman reiterated Thursday that the company is holding off on making any announcements regarding its $1.1 billion Deep Panuke project offshore Nova Scotia, which has been on hold since February, until its previously scheduled update for regulators on Dec. 10. He said it was pure speculation by analysts this week regarding whether the company might decide to connect Deep Panuke to ExxonMobil’s Sable Offshore Energy Project facilities, which are only about 30 miles away, and cancel previous plans to build its own pipeline to the Nova Scotia shore.

The natural gas futures market is back in an uptrend, and despite mostly bearish fundamental factors, is not having a difficult time finding reasons to move higher. On Friday it was hype over a new hurricane forecast, which helped cap last week’s choppy trading action with an impressive, 18.5-cent advance. On Monday, it was technical short-covering, with bulls charging toward at key upside target at $6.52.

Despite predictions in some national general interest news media concerning natural gas rate hikes this winter, Las Vegas, NV-based Southwest Gas Corp. said Tuesday it does not foresee having to raise its retail charges this winter. In fact, a utility spokesperson said the company doesn’t see the need to raise rates for the next year.