Prices

The next Alberta oilsands mega-mine, the first to enter construction since energy prices have gone to a new plateau, aims to respond to the expensive new energy market realities by cutting about 40% off the industry average consumption of natural gas to produce synthetic crude oil.

Dallas-based independent Pioneer Natural Resources Co. beat 4Q2004 Wall Street forecasts on higher oil and natural gas prices, and earnings jumped 78% compared with a year ago.

The next Alberta oilsands mega-mine, the first to enter construction since energy prices have gone to a new plateau, aims to respond to the expensive new energy market realities by cutting about 40% off the industry average consumption of natural gas to produce synthetic crude oil.

Dallas-based independent Pioneer Natural Resources Co. beat 4Q2004 Wall Street forecasts on higher oil and natural gas prices, and earnings jumped 78% compared with a year ago.

Royal Dutch Shell Group more than doubled its 4Q earnings on soaring oil and natural gas prices, but the positive news was completely overshadowed with the company’s announcement Thursday that it will reduce its proved reserves for the fifth time in just about one year’s time.

Good upstream operations capitalizing on strong commodity prices catapulted ConocoPhillips’ fourth quarter 2004 earnings to more than twice the level for the same period a year earlier, the company reported Wednesday. It recorded net income of $2.4 billion, or $3.44/share, this past quarter, compared with $1 billion, or $1.48/share, for the fourth quarter of 2003. Revenues were $40.1 billion, compared to $26 billion for the same period the previous year.

The cash market was up strongly at all points Monday, responding to a fair amount of current heating load and the prospect of a lot more arriving before the end of the week. The return of normal industrial demand from the weekend also played a part, and a Monday morning screen spike provided some upward impetus for late cash deals, although natural gas futures later gave back much of its morning gain.

Oil and natural gas prices weren’t quite high enough to help El Paso Corp. overcome a significant production cut earlier this year, and the Houston-based company reported a significant third quarter loss last week. The company posted a loss of $214 million (minus 33 cents/share), compared with a profit of $24 million (4 cents) for the same period of 2003. Reported revenue for 3Q2004 was $1.43 billion, compared with $1.71 billion a year ago.

Oil and natural gas prices weren’t quite high enough to help El Paso overcome a significant production cut. The company posted a 3Q loss of $214 million (minus 33 cents/share), compared with a profit of $24 million (4 cents) for the same period of 2003. Reported revenue for 3Q2004 was $1.43 billion, compared with $1.71 billion a year ago.