Raises

Natural gas-focused Southwestern Energy Co. said Thursday it would increase its 2004 capital budget by 17% to fund additional drilling in its core operating areas and in new areas in the United States.

Natural gas-focused Southwestern Energy Co. said Thursday it would increase its 2004 capital budget by 17% to fund additional drilling in its core operating areas and in new areas in the United States.

The Energy Information Administration (EIA), in its Short-Term Energy Outlook for April, revised its projection for the average spot price of natural gas this year upwards by 4% to $5.40/Mcf from the $5.19 that it had projected last month.

“Systematically stronger gas demand,” sparked by a 4-5% increase over the same time last year in base (non-weather-related) power demand, should offset this year’s greater end-of-winter storage stocks, and keep mid-summer gas prices above $5, according to analyst Stephen Smith.

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.

UBS analysts raised their gas price forecast last week by 40 cents/MMBtu to $5.05 at the Henry Hub for 2004 and increased their long-term “equilibrium” price for natural gas to $4.65 from $4.15, citing higher than expected first quarter price levels, sharper first year well decline rates, high crude oil prices and an abundance of gas-fired power generation.

UBS analysts raised their gas price forecast Monday by 40 cents/MMBtu to $5.05 at the Henry Hub for 2004 and increased their long-term “equilibrium” price for natural gas to $4.65 from $4.15, citing higher than expected first quarter price levels, sharper first year well decline rates, high crude oil prices and an abundance of gas-fired power generation.

The gas market, particularly in the Northeast, got a little scare last week when striking tugboat workers shut down liquefied natural gas (LNG) shipments from Trinidad, the largest LNG exporter to the United States, for two days.