Profits

Joint ventures (JV) in its domestic natural gas division helped Consol Energy Inc. to achieve record fourth quarter profits, but it said Thursday sustained low gas prices will require scaling back spending and drilling plans in 2012.

While reporting a big increase in 4Q2011 and full-year profits, Occidental Petroleum Corp. (Oxy) CEO Stephen Chazen on Wednesday said the permitting process for drilling in California had been streamlined, and he credited Gov. Jerry Brown for the turnaround.

January natural gas managed a small gain Wednesday as traders saw an ongoing tussle between algorithmic traders taking profits on short positions matched up against a cadre of willing sellers. At the close January natural gas had risen 2.7 cents to $3.155 and February had gained 2.8 cents to $3.198. February crude oil gained $1.43 to $98.67/bbl.

Expecting continued growth in production and profits, Houston-based Ultra Petroleum Corp. is projecting that its realized natural gas prices will rise to the $5 range this year and hit that level again in 2013, Ultra CEO Mike Watford told the Jefferies Global Energy Conference last Wednesday.

Expecting continued growth in production and profits, Houston-based Ultra Petroleum Corp. is projecting that its realized natural gas prices will rise to the $5 range this year and hit that level again in 2013, Ultra CEO Mike Watford told the Jefferies Global Energy Conference Wednesday.

With oil production from domestic shale plays growing, a Royal Dutch Shell plc subsidiary is considering a plan to reverse flows on its Houma-to-Houston (Ho-Ho) system, which now runs from Houma, LA, to oil processing facilities east of Houston. Reversing the 22-inch diameter pipeline would enable more than 300,000 b/d of crude to be distributed across the Gulf Coast region, the company said.

Rex Energy Corp. is joining the ranks of companies pursuing the Utica Shale of eastern Ohio. The State College, PA-based company recently acquired 11,000 net acres in Carroll County, OH, for an estimated $40 million and plans to continue acquiring acreage in preparation for a drilling program in 2012.

National Oilwell Varco Inc. (NOV), the largest U.S. oilfield equipment manufacturer, on Tuesday posted higher than expected quarterly profits, in part on rig technology orders, which jumped 26% in the period.

North America’s onshore drilling activity continued to lift Halliburton in the second quarter, with profits up by 54% from a year earlier, the company reported Monday.