Although the tight supply/demand situation for gasoline took thespotlight in the Energy Information Administration’s Short-TermEnergy Outlook last week, the EIA was pretty bullish on natural gasas well. The administration has gas demand rising 3.5% this year to22.17 Tcf and 4.1% next year to 23.08 Tcf. It projects a major 22%wellhead price hike this year to an average of $2.56/MMBtu followedby a much smaller rise in 2001 to $2.61. EIA sees dry domestic gasproduction inching up about 1% this year and only about 0.2% in2001. Imports are seen rising 8.3% this year to 3.67 Tcf and 2.7%next year to 3.77 Tcf.

The U.S. Department of the Interior’s Minerals Management Service(MMS) announced last week the fifth sale in the western Gulf of Mexicoslated for August 23. This latest sale (called Sale 177) encompasses3,779 unleased blocks in the western GOM outer continental shelfplanning area offshore Texas and in deep waters offshoreLouisiana. The blocks are located from nine to 200 miles offshore indepths ranging from eight meters to more than 3,000 meters. There are2,152 blocks in depths of 200 meters or more. All blocks less than 800meters deep will be offered for a minimum bid of $25/acre. The minimumbid for blocks in waters deeper than 800 meters is $37.50/acre. Thesale notice will be posted on the MMS website at www.mms.gov. To get moreinformation, call (504) 736-2591.

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