AubreyJ’s Energy Update Report - September 23, 2008

AubreyJ’s Energy Update Report
Oil Prices Exploded Monday Making Biggest Single-Day Price Gain Ever

Tuesday, September 23, 2008

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File Photo by DoE

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* BusinessWeek.com had this bit of news posted on their website yesterday for us concerning Crude Oil Prices... A weak dollar and worries about the Wall Street bailout send investors flooding back into the oil market Monday...
Read this article in full at link below...
Oil Prices Explode
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* AP.Google.com updates us this Tuesday morning with the following report... Oil prices swung lower Tuesday, falling below $107 a barrel as traders cashed in profits a day after crude rocketed to its biggest one-day gain ever - an epic rally apparently triggered in part by a technical fluke... It was crude's first down session in five days. A slightly stronger dollar also weighed on prices as investors who had bought the commodity as a hedge against inflation sold their contracts; the dollar took a steep dive Monday, helping to fuel oil's 16 percent rise that day... Still, oil market watchers say crude is showing early signs that it may be poised for another big climb...
Read the rest at link below...
Oil prices fall on profit-taking after huge rally
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* KHOU.com has the following report on gas shortages and possible higher gasoline prices... Some gasoline stations in parts of the Southeast are out of fuel and shortages could persist for days as refiners continue to recover from the one-two punch of hurricanes Ike and Gustav... Industry officials also say a crush of people topping off tanks or panic buying in some cases—can worsen the problem... “The system is not equipped for that,” said Jeff Lenard, spokesman for the National Association of Convenience Stores, which represents more than 2,200 gasoline retailers. “The system is equipped for people to buy gas once or twice a week.”... Meantime, it’s likely that gasoline will get more expensive following the biggest one-day spike ever in the price of oil Monday...
Read the rest at link below...
Ike blamed for gas shortage that could persist for days
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* The Fort Worth Business Press has this troubling news for us folks in the Ark-La-Tex with larger than norm interest in the Haynesville Shale gas field... Chesapeake Energy Corp. plans to cut 17 drilling rigs by the end of the year and reduce its drilling budget by 17 percent, or $3.2 billion, over the next two years in response to a 50 percent decrease in natural gas prices, according to a press release... The Oklahoma City-based natural gas development company also dropped its fiscal year 2008 production target to 18 percent, from 21 percent, and will continue to seek a 25 percent interest partner in its Marcellus Shale holdings. 2009 and 2010 production targets were reduced to 16 percent, from 19 percent...
Read the rest at link below...
Chesapeake Energy cuts budget, lowers outlook in response to natural gas price drop

> Read the full Chesapeake Energy Corp Press Release HERE

McClendon photo courtesy of Chesapeake
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AubreyJ.........