October natural gas trudged lower Friday as traders see widening differentials auguring further weakness. October fell 6.9 cents to $3.809 and November dropped 5.9 cents to $3.922. October crude oil shed $1.44 to $87.96/bbl.
Articles from Widening
Faced with a widening budget deficit that some analysts place above $20 billion in the new year, California Gov. Arnold Schwarzenegger indicated that he is revisiting a proposal to expand offshore drilling in order to generate more than $200 million of revenues. A proposal to open drilling offshore Santa Barbara County early in 2009 was rejected by the State Lands Commission.
Faced with a widening budget deficit that some analysts place above $20 billion, California Gov. Arnold Schwarzenegger is revisiting a proposal to expand offshore drilling in order to generate more than $200 million of revenues. A proposal to open drilling offshore Santa Barbara County earlier this year was rejected by the State Lands Commission (see Daily GPI, Feb. 2).
Rocky Mountain producers, facing ever-widening basis differentials, are cutting back on natural gas production due to a lack of immediate demand, as well as a deficit of storage facilities and takeaway capacity in the region, according to a veteran energy analyst. But most are seeing it as a short term phenomenum.
Rocky Mountain producers, facing ever-widening basis differentials, are cutting back on natural gas production due to a lack of immediate demand, as well as a deficit of storage facilities and takeaway capacity in the region, a veteran energy analyst says.
Canada will have enough spare natural gas export capacity to cover for another North American natural supply emergency like the 2005 hurricane season in the Gulf of Mexico, even if a proposed pipeline conversion to oil service goes ahead, the National Energy Board (NEB) says.
Producers in the Rocky Mountain region could be facing that age-old problem of inadequate pipeline takeaway capacity and widening basis later this year as production continues to grow at a rapid pace, according to Golden, CO-based consulting firm Bentek Energy.
There are growing market concerns about widening and volatile Midcontinent basis and the likelihood that it will get worse as more gas flows East from the Rockies. The situation was largely created by unexpected production growth (or absence of declines) in Midcontinent producing basins and pipeline constraints downstream of the new Cheyenne Plains pipeline system, according to data from Denver-based consulting firm Bentek Energy. Other events on the horizon could make it even worse.
Against an industry backdrop of widening oil price differentials and rising operating costs, Calgary-based EnCana Corp. on Wednesday reported a net loss due to mark-to-market accounting, despite a 34% jump in operating earnings and a 46% boost in total cash flow, compared to results in the first quarter last year. Operating earnings were $611 million, or $1.34/share, and total cash flow was $1.41 billion, or $3.11/share. These are U.S. dollar figures, the company said.
Wyoming Interstate Co. (WIC), a pipeline subsidiary of El Paso Corp., said Thursday it has received binding bids for 350,000 Dth/d of transportation capacity on its proposed Piceance Lateral expansion project as part of a recent open season, and is seeking to determine whether there is additional shipper interest that would warrant increasing the scope of the project.