Upping

Upping its earlier prediction, the Colorado State University (CSU) hurricane forecast team, led by Phil Klotzbach and William Gray, said last week the U.S. Atlantic basin will likely experience a very active hurricane season in 2007 with an increased probability of a major hurricane making U.S. landfall. The news surprised many within the energy industry who had expected that the team’s April forecast would simply be a rehash of its December 2006 outlook (see NGI, April 2).

Upping its earlier prediction, the Colorado State University (CSU) hurricane forecast team, led by Phil Klotzbach and William Gray, said Tuesday the U.S. Atlantic basin will likely experience a very active hurricane season in 2007 with an increased probability of a major hurricane making U.S. landfall. The news surprised many within the energy industry who had expected that the team’s April forecast would simply be a rehash of its December 2006 outlook (see Daily GPI, March 29).

With natural gas futures prices stabilizing in the $7-8/MMBtu region and crude futures hovering around $60/bbl, it appears that North American producers are upping their drilling activity to capture profits from the higher prices. According to Houston-based Baker Hughes Inc., the North American count of rigs actively exploring for or developing oil and natural gas during February increased fairly significantly over both January 2007 and February 2006 tallies.

With natural gas futures prices stabilizing in the $7-8/MMBtu region and crude futures hovering around $60/bbl, it appears that North American producers are upping their drilling activity to capture profits from the higher prices. According to Houston-based Baker Hughes Inc., the North American count of rigs actively exploring for or developing oil and natural gas during February increased fairly significantly over both January 2007 and February 2006 tallies.

Houston-based independent Ultra Petroleum Inc. scored once again in improving its proved reserves last year, upping its stake in its gas-rich Wyoming assets 53% to 1.073 Tcfe from 2002’s total of 700.5 Bcfe. Year-end audited proved reserves included 1.02 Tcf and 8.34 million bbl, while proved-plus-probable totaled 2.1 Tcfe.

Upping its guidance slightly above 2003 expectations, Oneok Inc. on Friday announced earnings guidance for 2004 in the range of $2.12 to $2.18 per share of common stock. The company noted that its guidance includes the Wagner & Brown Ltd. reserve acquisition announced in late October and expected to close on Dec. 22 (see Daily GPI, Oct. 30).

Burlington Resources Inc. said Thursday that it is upping its first quarter production guidance from the outlook provided earlier in the year. The company also reported that it has resumed repurchasing shares of its common stock under an existing $1 billion repurchase authorization.