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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (88958)	8/8/2007 4:53:48 PM
From: profile_14	Respond to of 206154

Oil-Rig Use Falls for First Time Since 2002, Baker Hughes Says 2007-08-08 05:54 (New York) (Rig utilization has fallen since late 2005 from about 88% to near 74%. We also have another six months of a rig-per-day addition in capacity coming...) By Dinakar Sethuraman Aug. 8 (Bloomberg) -- Global rig use fell for the first time in more than four years in July because of a decline in drilling activities in Canada, Baker Hughes Inc. said. Excluding Canada, the demand for drilling equipment rose 7.4 percent. Oil explorers including Exxon Mobil Corp. reduced rig use by 0.3 percent to 3,144 rigs in July from a year earlier, Baker Hughes, the world's third-largest oilfield contractor, said in a report yesterday. The number of rigs deployed in Canada dropped 37 percent to 349. The use of rigs has been rising since November 2002 after crude prices soared, prompting companies to boost spending on oil and gas exploration. Current high oil prices justify a 10 percent increase in exploration this year, according to a report by Macquarie Research in May. Companies' rig use on onshore and offshore areas rose to 2,795 units in July, Baker Hughes said on its Web site. The number of rigs in use in Asia climbed by about 8 percent to 244. The usage of rigs in Canada dropped because of a decline in conventional oil output as producers shifted to oil-sands projects. Oil produced in the conventional method of extraction from underground accounts for one out of every two barrels produced, and will make up one in five barrels by 2020, the Canadian Association of Petroleum Producers said on its Web site. Crude oil futures in New York have more than doubled in the past three years. Price reached a record $78.77 a barrel Aug. 1. --Editors: J.Lee (ang). To contact the reporter on this story: Dinakar Sethuraman in Singapore at +65-6212-1590 or dinakar@bloomberg.net. -0- Aug/08/2007 09:54 GMT

To: Dennis Roth who wrote (88958)	8/9/2007 4:25:47 PM
From: Dennis Roth	Read Replies (3) \| Respond to of 206154

DJ UPDATE: US GAS: Futures Rally On Storage Data, Weather (Table of Settlement and Cash prices at link) futuresource.quote.com BLOOMBERG: Nymex Natural Gas Advances as Inventory Gain Below Expectations bloomberg.com Excerpts: Energy demand in the U.S. is expected to run 26 percent above normal during the next seven days, according to Belton, Missouri-based Weather Derivatives. ``We're finally getting into the peak electric power season; peak demand for electric power is about four or five weeks late,' said Daniel Lippe, president of Petral Worldwide Inc. in Houston. ``People are pretty negative on gas,' said Lippe, who estimates short-interest trading in the market is even higher than it was following the hurricanes of 2005, when industrial demand plummeted. ``The futures market is pretty oversold; it has recognized the bearishness of the fundamentals for probably three months,' Lippe said. ``Any kind of hurricane activity at all is going to spark a rally in prices primarily because of short-covering.' ``From a fundamental point of view our inventory levels are running above a year-ago level,' said Kenneth Yeasting, director of North American gas for Cambridge Energy Research Associates. ``Now it appears that we could see another short-term price collapse like we saw last year, because we're going to be pushing inventory limits in mid-September through October, and it doesn't appear that even hot weather is going to change that.' === The latest CPC forecasts show that Texas, late to join the heat wave party, is going to be amongst the first to leave. cpc.ncep.noaa.gov cpc.ncep.noaa.gov === The Tropical Atlantic is relatively quiet. nhc.noaa.gov But hey, the season's still young. The best is yet to come.<g>