Energy Sector Roundup: Another day, another record

Following is a summary of top stories in the energy sector Tuesday afternoon.

Higher oil, Higher gas

Crude prices spiked to a yet another trading high, as supply concerns mounted and traders poured in for a last-minute buying binge before June contracts expired. At filling stations across the country, the national average price for a gallon of regular gasoline approached $4, touching $3.80 for the first time.

The June contract for light, sweet crude traded as high as $129.60 on the New York Mercantile Exchange before settling at $129.07, up $2.02. The imminent expiration of that contract, which ended with the close of Tuesday trading, created additional volatility in the market.

In other Nymex trading, heating oil futures rose 9.99 cents to settle at $3.7750 a gallon, while gasoline futures gained 6.78 cents to settle at $3.3044 a gallon. Natural gas futures jumped 41.1 cents to settle at $11.365 per 1,000 cubic feet.

Gasoline Demand Falls as Price Climbs

A survey by MasterCard SpendingPulse finds gasoline demand at the pump last week fell 6.8 percent compared with the same week last year.

Study author Michael McNamara said in a phone interview the seasonal lift in gasoline demand that normally happens around this time of year continues to be stalled, possibly due to record high gasoline prices and a sluggish U.S. economy.

The average retail price for a gallon of regular gasoline is up 70 cents since the beginning of the year.

McNamara said gasoline purchases account for about 15 percent of total retail spending so far this year compared with 11.3 percent in 2003. "In dollar terms, through April, consumers spent $158 billion on gas," he said. "That compares with $88 billion in 2003."

SpendingPulse is a macroeconomic indicator of national retail sales based on aggregate sales activity in the MasterCard payments network, together with estimates for all other payment forms, including cash and check. MasterCard SpendingPulse does not represent MasterCard financial performance.

Greenhouse Gas Emissions Rose Last Year

The Energy Department's Energy Information Administration says carbon dioxide emissions in the U.S. increased last year, compared with emission levels in 2006.

EIA says 5.98 million tons of carbon dioxide went into the air in 2007, a 1.6 percent increase from the year before. EIA blames greater demand for heating and cooling, as well as "higher carbon intensity of electricity supply."

The electric power sector is the largest single source of carbon dioxide emission, accounting for 40 percent of the total, according to EIA. Emissions from the electric power sector rose 3 percent last year as power generation increased 2.5 percent.

EIA says the emissions increase is due to a decline in non-fossil-fueled generation, as hydro generation fell off.

Total energy-related carbon dioxide emissions in the U.S. are up 19.4 percent since 1990. They make up more than 80 percent of greenhouse gas emissions.

Pickens Says Oil Could Hit $150 This Year

In an interview with CNBC, billionaire Texas oilman T. Boone Pickens said he thinks crude oil could go as high as $150 a barrel this year.

Pickens said only natural gas is plentiful enough to offset dwindling supplies of oil, particularly for the U.S., and only a global recession would cause oil to fall.

Pickens said high oil prices are tied to depletion of supplies around the world and are not driven by speculators.

Lehman Raises Oil Services Price Targets

A Lehman Brothers analyst raised his price targets on 37 companies in the oil services and drilling sector, seeing a strong recovery in 2008 and 2009 for North American natural gas drilling along with significant international growth over the next few years.

Analyst James Crandell's top picks in the sector are Weatherford International Ltd., Halliburton Co., Schlumberger Ltd., Tidewater Inc., Nabors Industries Ltd., Hercules Offshore Inc., Core Laboratories NV and ION Geophysical Corp.

"Our long-standing investment opinion on the group remains positive, and we continue to recommend an overweight position on the group," Crandell said in a note to investors.

Quantum's German Partner to Increase Solar Capacity

Alternative energy company Quantum Fuel Systems Technologies Worldwide Inc. says its German partner will boost solar module manufacturing capacity for its European systems to meet growing demand.

Asola Advanced and Automotive Solar Systems GmbH will lift its capacity to 45 megawatts peak power annually and will build a new plant.

Quantum said it is in talks to build on its Asola partnership, and said the two companies signed a new long-term solar cell supply agreement with Ersol Solar Energy AG. Quantum and Asola will provide Ersol with 155 megawatts in solar cells this year.

The deal, combined with existing agreements, is expected to provide Quantum and Asola with more than $600 million in combined sales.

Quantum holds a 25 percent stake in Asola.

Quantum shares rose 19 cents, or 10.8 percent, to $1.94 in afternoon trading.

--Compiled by AP Business Writer Greg Stec. Questions or comments can be directed to gstec@ap.org.