Strong

All but a few locations retreated Tuesday from the previous day’s overall strong gains despite falling temperature forecasts for much of the Midwest and South. They appeared to be outweighed by significant warming trends in the Northeast, Midcontinent, Rockies and desert Southwest. There was an additional bearish factor in Monday’s 18.9-cent plunge by January futures.

Thanks to strong oil and liquids production growth and its ongoing divestiture strategy of noncore assets, Devon Energy Corp. boosted 3Q2010 net earnings to $2.1 billion, or $4.81 per common share ($4.79 per diluted common share), up from $499 million, or $1.13 per common share ($1.12 per diluted common share) during 3Q2009. Excluding adjusted items, which included the $1.5 billion gain on the sale of assets in Azerbaijan, the company earned $628 million, or $1.44 per diluted common share.

Thanks to strong oil and liquids production growth and its ongoing divestiture strategy of noncore assets, Devon Energy Corp. boosted 3Q2010 net earnings to $2.1 billion, or $4.81 per common share ($4.79 per diluted common share), up from $499 million, or $1.13 per common share ($1.12 per diluted common share) during 3Q2009. Excluding adjusted items, which included the $1.5 billion gain on the sale of assets in Azerbaijan, the company earned $628 million, or $1.44 per diluted common share.

Like many of their U.S. counterparts, Canadian producers are switching exploration and development targets from natural gas to oil. However, natural gas supplies remain strong, a byproduct of increased drilling and improved technology that has raised the output of both commodities.

Like many of their U.S. counterparts, Canadian producers are switching exploration and development targets from natural gas to oil. However, natural gas supplies remain strong, a byproduct of increased drilling and improved technology that has raised the output of both commodities.

Flat numbers at Tennessee Zone 6 and the PG&E citygate and about a nickel loss at Dracut were the only exceptions to fairly strong price gains Wednesday everywhere else in the market. Temperatures were staying fairly mild across the southern third of the United States, but with lows in the 30s and 40s forecast for Thursday north of there into Canada, it was obvious that heating demand is starting to play an increasing role in the gas price equation.

Stung by strong customer and community criticism, San Francisco-based Pacific Gas and Electric Co. on Tuesday announced a five-part, multi-year effort to greatly strengthen the safety and reliability of its natural gas transmission pipeline system. Called Pipeline 2020, the program will augment initiatives implemented by the combination utility in the wake of the Sept. 9 pipeline explosion and fire that killed seven people in San Bruno, CA.

Although not as strong as on the day before when gains across the board were nearly all in double digits, the cash market realized minor advances at a large majority of points Thursday. A small prior-day uptick of 2.8 cents by October futures provided a small amount of support, and there is evidence that recently heavy storage buying may be helping to keep cash quotes afloat.

The strong rise of 18.8 cents by October futures going into the holiday weekend was about the only rationale for higher prices in most of the cash market Tuesday as weather fundamentals were decidedly mild for early September in most areas.