Strength

The national economy and the energy industry are both gathering strength overall and face an optimistic future in the near term despite some lingering uncertainties, according to a report released Wednesday by the Federal Reserve Board.

The spot market showed some signs of returning strength as advances that were concentrated occurred in the West and Northeast outnumbered losses Tuesday, with flat numbers again in vogue. This came a day after a large majority of points softened.

Although most of the market continued to soften Wednesday in trading for the last day of March, there were a couple of hints of latent strength in nearly all of the declines being smaller than the day before and quite a few points, primarily in the Northeast and Rockies but also in a few other scattered locations, were flat to slightly higher.

Prices continued to spike at Northeast citygates Tuesday, and they were joined by lesser displays of strength at some locations in the Midcontinent and West Texas. However, softer numbers again ruled in a moderate majority of the cash market despite a new winter storm moving into the South and lows around zero or lower being forecast for much of the Midwest.

The strength of U.S. shale plays was a key driver for increased merger and acquisition (M&A) activity in 2010, and will continue to fuel the industry’s movement towards upstream assets, according to a report issued by PricewaterhouseCoopers USA (PwC).

The strength of U.S. shale plays was a key driver for increased merger and acquisition (M&A) activity in 2010, and will continue to fuel the industry’s movement toward upstream assets, according to a report issued by PricewaterhouseCoopers USA (PwC).

Onshore natural gas plays that are able to generate profits even when gas prices are below $4/Mcf, including the Marcellus Shale, should see rig activity up by 18% in 2011 over this year, according to analysts with Raymond James & Associates Inc.

An uncertain environment exists for North America’s oil and gas industry because of “sharp differences” in the economic strength between regions, development opportunities, a changing environmental landscape and the upcoming midterm elections, Ernst & Young LLP said in a report Friday.

An uncertain environment exists for North America’s oil and gas industry because of “sharp differences” in the economic strength between regions, development opportunities, a changing environmental landscape and the upcoming midterm elections, Ernst & Young LLP said in a report Friday.