Sizable

Cash market trading yielded a decline of 2 cents overall Friday, but if the sizable losses on Tennessee and Algonquin are factored out, the physical market scored a 2-cent advance.

Foreign buyers up to now have been gaining intelligence about drilling in North America’s prolific unconventional formations through joint ventures (JV) and region-specific acquisitions with willing U.S. natural gas and producers, but that’s about to change, according to an energy expert with industry consultant PwC US.

StatoilHydro has added to its sizable stake in the Gulf of Mexico (GOM) by acquiring a 40% interest from BHP Billiton Ltd. in 50 offshore blocks. The offshore acreage acquired by the Norwegian-based producer is located in the northeastern corner of the deepwater GOM in the under-explored DeSoto Canyon. DeSoto Canyon is located east of the Independence Hub, which serves several natural gas producers in the region, including Statoil (see NGI, Dec. 25, 2006). Statoil, among other things, owns a quarter stake in Walker Ridge Block 758, located in the promising Lower Tertiary of the deepwater GOM. In 2006 Statoil, Chevron Corp. and Devon Energy Corp. completed the deepest extended drill stem test in history at the prospect on Jack No. 2 well (see NGI, Sept. 11, 2006). In the March Central GOM Lease Sale 208, U.S.-based subsidiary Statoil Gulf of Mexico LLC was high bidder at $14.29 million for Keathley Canyon Block 698, which is located in water depths more than 2,000 feet (see NGI, March 23).

StatoilHydro has added to its sizable stake in the Gulf of Mexico (GOM), announcing Tuesday that it has acquired a 40% interest from BHP Billiton Ltd. in 50 offshore blocks. Financial details were not disclosed.

Longer term, analysts at the Federal Reserve Bank of Dallas predict “much higher natural gas prices,” despite a “sizable” inventory of undeveloped domestic resources.

Longer term, analysts at the Federal Reserve Bank of Dallas predict “much higher natural gas prices,” despite a “sizable” inventory of undeveloped domestic resources.

Raymond James & Associates Inc. affirmed recent private and government forecasts that U.S. natural gas production is indeed on the rise, but the ever-bullish energy analyst said the growth’s long-term sustainability is “unlikely.”

Mixed price movement was repeated Wednesday, but this time the bulls were running instead of the bears. Some sizable heating load is starting to emerge as temperatures more seasonal for mid-October replace what had been a fairly mild (or sometimes hot) start to autumn so far. With a major outlet blockage being removed, Rockies prices responded with spikes a day after plunges to as low as 40 cents the day before.

U.S. exploration and production (E&P) companies that use full-cost accounting methods could be facing sizable third quarter write-downs because of lower natural gas prices, an energy analyst said in a note to clients this week.