Reacting to a string of super-healthy storage refills and forecasts of a cool summer in the eastern and midwestern population centers, July indexes dropped between 25 and nearly 70 cents/MMBtu from the prices recorded by NGI in the June bidweek. The Henry Hub came in at $5.29 in the monthly numbers released last Tuesday, or 67 cents under the June quote of $5.96.
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NGI Reports Bidweek Prices Drop Between 25 and 70 Cents July over June
Reacting to a string of super-healthy storage refills and forecasts of a cool summer in the eastern and midwestern population centers, July indexes dropped between 25 and nearly 70 cents/MMBtu from the prices recorded by NGI in the June bidweek. The Henry Hub came in at $5.29 in the monthly numbers released Tuesday, or 67 cents under the June quote of $5.96.
Super-Bearish Storage Likely to Punish Weekend Prices
With a southeastward-moving cold front starting to wipe out much of the eastern heat that had boosted prices as the week began, the cash market continued to decline Thursday except for some flat to barely higher San Juan/Rockies numbers. In most cases, however, the drops were smaller than those of the day before. Thursday’s losses tended to range from about a nickel to a little more than 30 cents, with the largest ones being recorded in the Northeast.
Editorial: It Takes a Big Market Signal to Build a Big Pipeline
In dismissing the super-high natural gas prices registered at the California border during the western energy crisis, the Federal Energy Regulatory Commission appears to have forgotten all their previous arguments for a competitive market which allocates commodities and signals — through prices — where supplemental supplies are needed.
Editorial: It Takes a Big Market Signal to Build a Big Pipeline
In dismissing the super-high natural gas prices registered at the California border during the western energy crisis, the Federal Energy Regulatory Commission appears to have forgotten all their previous arguments for a competitive market, which allocates commodities and signals — through prices — where supplemental supplies are needed.
Price Rises Get Smaller, But California Still Super-Strong
Except in the Rockies and Southwest, prices kept rising Tuesdaybut not nearly as spectacularly as on the day before. Californiawas still registering triple-digit increases, but otherwise, mostpoints went up between a nickel and 15 cents. The Pacific Northwestand Northeast citygates saw most of the non-California gainsgreater than 20 cents.
Pogo Cuts Back But Wades Deeper in Gulf
In step with the rest of the industry as it deals with supersoft commodity prices, Houston-based Pogo Producing Co. also hascut back spending. In recent years the company’s annual explorationbudgets have been between $230 million and $250 million. Lastyear’s allocation was $230 million and was set to grow to between$260 and $270 million, said CEO Paul Van Wagenen. Instead, thecompany cut back considerably. This year Pogo is planning to spendabout $170 million.
Studies See Super-Low Prices, Followed by Spikes
With weather forecasts producing bearish news at every turn andthe national storage reserves looming ever larger, Raymond James& Associates recently published a report projecting spotwellhead gas prices to drop below the $1.50/Mcf level before thebeginning of summer. The study gives the correlation between gasprices and storage levels, the onslaught of gas production, and theeffects of a third warm winter as reasons for its forecast. Thestudy also warns of a gas “price shock” in early 2000, when gasshortages run rampant and production is unable to keep up.
Super Drillship Begins Service in Gulf
Conoco and R&B Falcon Corp.’s Deepwater Pathfinderultra-deep-water drillship began a five-year work program in theGulf of Mexico. The ship, which is the first new vessel capable ofdrilling in 10,000 feet of water, will fulfill a $400 milliondrilling program for Conoco. The ship is expected to drill up tofour wells in its first year of operation, with the firstexploratory well being drilled at Garden Banks Block 783. Conocohas interests in 295 deep-water leases.
Exxon, Mobil Make It Official With $77B Deal
Continuing super-low oil prices have driven two of the largestoil companies in the world into a friendly merger, with Exxonacquiring Mobil for $77.2 billion in stock, making the deal therichest corporate takeover ever. Exxon Mobil Corp. will be thelargest corporation in the world based on the two companies’combined revenue of $203 billion last year.