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With gas prices soaring over $5 this month, Cabot Oil & Gas Corp. has locked in prices for more of its 2003 and 2004 natural gas production. It also added to its 2003 oil hedge position during the first two weeks of December.

BP started producing about 15,000 b/d of oil and 12 MMcf/d of gas from a single well at its Horn Mountain development in the Gulf of Mexico. Production from the facility, which is located in 5,400 feet of water 100 miles southeast of New Orleans, is expected to reach a peak rate next year of more than 65,000 b/d of oil and 68 MMcf/d of gas after a total of seven production wells are completed. BP started exploration on the field in July 1999 after acquiring leases in 1997 and 1998. The first discovery was announced in August 1999, and BP and partner Occidental Petroleum began delineation drilling immediately after that. The $600 million project, which includes the deepest free-floating dry tree drilling system in the world, went from discovery to production in about 40 months. It is expected to result in ultimate recovery of an estimated 150 million boe. BP is the operator and holds a 67% equity interest. Occidental Petroleum holds the remaining 33%.

BP’s oil and natural gas reserves in Alaska approach 7 billion boe — the largest single item within its global portfolio — and with those types of numbers, the company will remain a major North Slope player for at least 40 years, and probably longer than that, an executive affirmed last week.

With its known Alaska oil and natural gas reserves approaching 7 billion boe — its largest single source in its global portfolio, BP plc will be a major player on the North Slope for at least 40 years and most likely, longer, the company’s Alaska chief affirmed this week.

In sympathy with the largest single-day drop in crude oil prices since the Gulf War, and amid continued fears that a global recession is inevitable, natural gas futures funneled to new 30-month lows Monday, as non-commercial traders extended their short holdings in a market notably devoid of buyers. The October contract was the hardest hit, tumbling 9% or 19.3 cents to close at $1.91. The October contract is set to expire at 2:45 p.m. (EDT) Wednesday, an hour later than other daily settlements this week, in an effort to accommodate the 2:00 p.m. (EDT) release of fresh storage data.

Most eastern markets drifted mildly lower Monday, with most declines in single digits and only a few barely surpassing a dime. The West tended to range from flat to moderately higher in the Rockies and Southwest basins, accompanied by larger California gains. It wasn’t that the West was so strong, sources said, but rather that the region was climbing back out of the deep price holes it had dug for itself Friday.

IntercontinentalExchange (ICE) reported a new single-day gas trading record on its electronic exchange for over-the-counter (OTC) energy and metals products. On Tuesday, a total of 142 Bcf of gas changed hands on ICE. Physical gas trades contributed over 30 Bcf to the total. So far, ICE has averaged 80 Bcf/d in April, which is more than four times the average daily volume in the first quarter 2001. About 300 traders have traded physical and financial gas on the exchange, completing about 35,000 transactions in 2001, ICE said, adding that it has become a “dominant force in electronic trading for OTC commodity products with current market share of North American natural gas and derivatives approximating 14%.” The exchange was founded in March 2000 by leading U.S. and European financial institutions and energy and natural resource firms. Based in Atlanta, the exchange’s partners include, American Electric Power, Aquila Energy, BP, Deutsche Bank AG, Duke Energy, El Paso Energy, Goldman Sachs, Morgan Stanley, Reliant Energy, Royal Dutch/Shell Group, SG Investment Banking, Mirant (formerly Southern Energy), Totalfina Elf, and Continental Power Exchange.

Feeding off losses achieved during the largest single day dropin Nymex history Tuesday, natural gas prices continued loweryesterday as bear traders looked past supportive storage numbers tofocus on a warming trend expected later this week. The Februarycontract was dealt the most severe blow, tumbling 17.5 cents to$8.189. Losses were far less pronounced in the out-months asevidenced by the 12-month strip, which only slipped 5.1 cents to5.716.

A Panda Energy International affiliate is seeking a green lightto build one of the biggest “single-project” gas pipelines in termsof capacity to supply what will be the largest combined-cyclegas-fired power generation plant in the United States.