As on the preceding Friday, price movement divided roughly on geographical lines again Monday. But this time it was western points seeing mostly strength, while the East turned in a mixed performance with only few points varying much more than a nickel up or down from flat.
Roughly
Articles from Roughly
Gas Production Declines ‘Going to Get a Bit Uglier,’ Says EOG Chief
U.S. natural gas production will fall more this year than it has in 16 years, roughly 5-6%, and it’s “going to get a bit uglier” in the years to come, warned Mark Papa, CEO of EOG Resources Inc. last Thursday. Even with a more ambitious drilling program next year, the decline will only be slightly contained, which will lead to “huge consequences” for the future, he told attendees at Lehman Brothers 2002 CEO Energy/Power Conference in New York City.
Gas Production Declines ‘Going to Get a Bit Uglier,’ Says EOG Chief
U.S. natural gas production will fall more this year than it has in 16 years, roughly 5-6%, and it’s “going to get a bit uglier” in the years to come, warned Mark Papa, CEO of EOG Resources Inc. on Thursday. Even with a more ambitious drilling program next year, the decline will only be slightly contained, which will lead to “huge consequences” for the future, he told attendees at Lehman Brothers 2002 CEO Energy/Power Conference in New York City.
Weekend Prices Up on Better Fundamental Support
Prices were still moving higher Friday, but at roughly half the pace of Thursday’s uprising. Overall, Friday’s increases ranged from about 8 to 20 cents. Gulf Coast numbers generally rose on either side of a dime, with moderately larger gains in the teens prevailing in other market areas. Most of the upticks above 15 cents were in the West.
Baker Hughes Earnings Off, Cutting Jobs
Baker Hughes said operating earnings before one-time charges forthe third calendar quarter will be roughly half of the 36cents/share Wall Street consensus. Baker Hughes, which merged withWestern Atlas last month , said continuing declines in activity inthe Western Hemisphere, emerging softness in several EasternHemisphere markets and modest price erosion due to activitydeclines are the reason.
Weak Margins Prompt Mitchell to Cut NGLs
Weak gas processing margins prompted Mitchell Energy &Development to cut its natural gas liquids (NGL) production by morethan 20% – roughly 10,000 barrels/d. “With the collapse in thecrude oil market, gas processing margins are pretty ugly rightnow,” said George P. Mitchell, CEO. “NGLs have tracked the slide incrude prices due to weak demand and higher imports. Strong gasprices are adding to the squeeze in processing margins since makingup the volume shrinkage that occurs when we extract the liquids isa cost. With NGL inventories in the U.S. running at 10-year highs,we decided to cut back where it makes economic sense.