Pullback

Energy analysts have been looking for signs in the government’s monthly natural gas production reports about whether the pullback in drilling last year has impacted supplies, and there appears to be more indications that the market is tightening, according to the Energy Information Administration’s (EIA) monthly report for December.

Energy analysts have been looking for signs in the government’s monthly natural gas production reports about whether the pullback in drilling last year has impacted supplies, and there appears to be more indications that the market is tightening, according to the Energy Information Administration’s (EIA) monthly report for December.

A few flat to about a dime higher locations in the Rockies (and ANR ML7 in the Midwest) avoided mostly moderate softness in the rest of the market Wednesday. Some pullback in heat levels across the southern United States and Rockies, along with continuing mildness in the northern market areas, combined with the previous day’s 10.9-cent drop by August futures to depress most cash locations.

While some in the energy business are talking pullback, Enterprise Products Partners (EPP) is looking toward 2009 as potentially offering opportunities for acquisitions with realistic price tags, as rivals struggle with the impact of fallen credit and equity markets, and expected multiples drop.

While some in the energy business are talking pullback, Enterprise Products Partners (EPP) is looking toward 2009 as potentially offering opportunities for acquisitions with realistic price tags, as rivals struggle with the impact of fallen credit and equity markets, and expected multiples drop.

Several indicators in January pointed to a pullback in 2007 natural gas drilling levels, which drove some prognosticators to reduce their drilling activity forecast and lower their expectations. However, the late arrival of cold weather has since driven gas prices higher, and rig permits have begun to rebound, leading Raymond James & Associates to conclude there will be an uptick in drilling activity by midyear that will carry well into 2008.

Several indicators in January pointed to a pullback in 2007 natural gas drilling levels, which drove some prognosticators to reduce their drilling activity forecast and lower their expectations. However, the late arrival of cold weather has since driven gas prices higher, and rig permits have begun to rebound, leading Raymond James & Associates to conclude there will be an uptick in drilling activity by midyear that will carry well into 2008.

After a complete pullback following the energy merchant sector meltdown of two years ago, the power industry’s dramatic earnings and valuation swings in recent years have led many companies to again reset their priorities, according to a study released Thursday at Cambridge Energy Research Associates’ CERAWeek 2004 in Houston.

Amid easing tensions in the Middle East and a price pullback inthe nearby crude oil trading pit, natural gas futures were softerFriday, as traders elected to take profits following last week’salmost 80-cent rally. The November contract finished at $5.537,down 9.3 cents on the day, and 24.3 cents off Thursday’s pricepeak.