Steady

North American natural gas marketing showed steady growth in 3Q2006, with several of the perennial top performers posting double-digit gains in wholesale gas sales volumes, compared with a year ago. Wholesale gas sales reported to NGI for the period by the top 20 marketers were up 10% over a year ago to reach 120.42 Bcf/d, nearly 11 Bcf/d more than the 109.67 Bcf/d reported in 3Q2005.

The steady earnings master limited partnerships (MLPs) have traditionally made by acquiring oil and natural gas pipeline and midstream assets will continue to be the backbone of the tax-advantaged entities, but more organic and commodity-driven partnerships are expected going forward, executives predicted last week.

The steady earnings from oil and natural gas pipeline and midstream assets will continue to be the backbone of energy-based master limited partnerships (MLP), but expect more organic, risker growth and commodity-driven partnerships in the future, an RBC Capital Markets energy analyst said Thursday.

July natural gas futures on Friday finished last week with a steady climb, leaving some to wonder whether the previous week’s $5.750 low by the then-front month June contract might stand as a low for the move. July natural gas ended up reaching a high of $6.690 before closing at $6.623, up 17.5 cents on the day and 46.9 cents higher than the previous Friday’s close.

Former Enron Corp. treasurer Ben Glisan Jr. remained steady in his last day of testimony Monday, as defense lawyers for Enron founder Kenneth Lay and ex-CEO Jeffrey Skilling attempted to distance their clients from any wrongdoing.

The old cliche “If it’s not broken, don’t fix it” could double as the motto of ExxonMobil Corp., which plans to keep its proven long-term approach of steady growth with disciplined investment in large energy projects going forward. Who could blame the energy Goliath, which posted more than $36 billion in profit for 2005 — the largest profit for a U.S. company in history (see Daily GPI, Jan. 31).

Following Thursday’s wild down day, June natural gas futures used Friday to steady the ship by trading within a fairly narrow 11.5-cent range. However, the prompt month was able to maintain most of its work lower, reaching only a $6.55 high on the day.

Shut in natural gas production in the Gulf of Mexico because of damage from Hurricane Ivan has remained at about 1.5 Bcf/d for about a week. The Minerals Management Service reported Monday that a cumulative 98.7 Bcf of gas was deferred because of damage from the hurricane and shut-ins remain at 1,517 MMcf/d, or about 12% of total daily Gulf gas production.

Shut in natural gas production in the Gulf of Mexico because of damage from Hurricane Ivan has remained at about 1.5 Bcf/d for about a week. The Minerals Management Service reported Monday that a cumulative 98.7 Bcf of gas was deferred because of damage from the hurricane and shut-ins remain at 1,517 MMcf/d, or about 12% of total daily Gulf gas production.