Regions

Despite declining well numbers in many offshore regions around the world, drilling services will continue to attract a “flood” of cash, with deepwater expenditures — especially in West Africa and the Gulf of Mexico — nearly doubling in the next five years, according to Douglas-Westwood Ltd.’s latest worldwide offshore drilling forecast.

Mexico’s land and offshore regions are estimated to hold some of the largest oil and gas reserves in the world, but the country still is facing an uphill battle in moving from becoming an importer to a major exporter, according to state-run Petroleos Mexicanos (Pemex), which released preliminary figures on 2001 oil and gas production last week.

Mexico’s land and offshore regions are estimated to hold some of the largest oil and gas reserves in the world, but the country still is facing an uphill battle in moving from becoming an importer to a major exporter, according to state-run Petroleos Mexicanos (Pemex), which released preliminary figures on 2001 oil and gas production this week.

Despite the warmer weather in key consuming regions and the recent drop in wholesale prices, the Energy Information Administration is still projecting that consumers will pay substantially more this winter for their heating needs than they did last winter. In fact, expected increases in winter expenditures for natural gas-heated households were raised slightly to 10% compared to projections in last month’s outlook.

Quite a few points, mostly in the Midcontinent/Midwest and West regions, were moderately higher Wednesday, but except for a few other gains elsewhere, prices failed to see the price rally that some had expected to be generated by an impending bout of severe winter weather in northern market areas.

Despite the warmer weather in key consuming regions and the recent drop in wholesale prices, the Energy Information Administration is still projecting that consumers will pay substantially more this winter for their heating needs than they did last winter. In fact, expected increases in winter expenditures for natural gas-heated households were raised slightly to 10% compared to projections in last month’s outlook.

Impacted by the lack of lasting cold in many regions of the country as well as bearish performances by the petroleum markets, January natural gas futures following the Christmas weekend plummeted lower towards the psychological $6.00 mark.

Denver-based Cimarex Energy Co., whose exploration efforts are centered in the MidContinent and Gulf Coast regions, reported Wednesday that its second quarter aggregate oil and natural gas output handily beat its production guidance, increasing 28% over a year ago on the strength of significant natural gas production.

With prospects of hotter weather in several regions before the workweek begins Tuesday, the market Friday was stronger than one might have expected for a long holiday weekend. Most points were within 2-3 cents up or down, but some locations jumped nearly a dime while others fell as much as 20 cents.