By Steve Gelsi, MarketWatch
U.S. State Department delays decision on Keystone pipeline
NEW YORK (MarketWatch) — Energy stocks bounced back Thursday from steep losses in the previous session, with Cabot Oil & Gas Corp. and Pioneer Natural Resources Co. moving smartly into positive territory.
In commodity futures, crude oil strengthened by 2.1% to settle at $97.78 a barrel, creating an updraft for energy stocks.
Notable upside movers included Cabot Oil & Gas COG +1.74% , shares of which advanced 7.7%. The independent energy firm added to its lead among components of the Standard & Poor’s 500 Index in gains so far in 2011.
In a closely-watched development in the energy sector, the U.S. State Department delayed its decision on the Keystone XL pipeline, a $7 billion project proposed by TransCanada Corp. TRP -1.14% to bring crude oil from the Canadian oil sands into the U.S.
The pipeline has drawn protests in Washington and in Nebraska, where lawmakers have expressed concern about protecting groundwater supplies near the proposed path of the pipeline.
A TransCanada spokesman did not immediately answer an email from MarketWatch requesting a comment.
Among energy-sector benchmarks, the NYSE Arca Natural Gas Index XX:XNG +2.07% gained 1.7%, the NYSE Arca Oil Index XX:XOI +1.53% added 2.2% and the Philadelphia Oil Service Index OSX +2.69% rose 1.7%.
Also in Thursday’s spotlight, Dow Jones Industrial Average component Chevron Corp. CVX +1.47% rose 1.2%.
A spokeswoman for Chevron Brasil Petroleo said the company is grappling with an oil leak caused by a “natural phenomenon” at its offshore Frade field, according to a Dow Jones Newswires report.
The U.S. State Department delayed its decision on the Keystone XL pipeline, a $7 billion project proposed by TransCanada Corp. TRP -1.14% to bring crude oil from the Canadian oil sands into the U.S.. The pipeline has drawn protests in Washington and in Nebraska, where lawmakers have expressed concern about protecting groundwater supplies near the proposed path of the pipeline.
A TransCanada spokesman did not immediately answer an email from MarketWatch requesting a comment.
Kosmos Energy KOS -0.33% , the Dallas-based oil producer that held its IPO earlier this year, said it swung to a third-quarter profit of $52 million, or 13 cents a share, from a loss of $99 million in the year-ago period.
Kosmos said that production at the Jubilee field in Africa hasn’t ramped up as quickly as planned but that “the ultimate resources recoverable from this giant field are unchanged.”
The company also said it recently added to its holdings in the Essaouira Block in waters off Morocco. Kosmos will be the operator of the block with a 37.5% working interest. Kosmos’ total offshore acreage position in Morocco has grown to about 12 million acres, including the latest transaction.
Shares of Kosmos rose 0.1%.
