Abundant

Abundant supplies have changed the North American natural gas game, and EnCana Corp. said Tuesday that as a low-cost producer with large positions in unconventional gas basins it is poised to double its production in the next five years.

Given robust gas production from unconventional plays and abundant gas in storage, the American Gas Association (AGA) Monday predicted that consumers will enjoy lower gas bills this winter compared with last year.

The convergence of abundant natural gas supplies and weak demand, driven by an 8% decline in industrial-sector consumption, will keep the Henry Hub spot price below $4/Mcf until late this year, but economic growth could boost industrial consumption and prices to an average $5.49/Mcf in 2010, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook for June.

The convergence of abundant natural gas supplies and weak demand, driven by an 8% decline in industrial-sector consumption, will keep the Henry Hub spot price below $4/Mcf until late this year, but economic growth could boost industrial consumption and prices to an average $5.49/Mcf in 2010, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook for June.

An incremental 10-15 Bcf/d of U.S. natural gas supply over the next 10-15 years creates “abundant” opportunities, and Williams’ goal is to be the No. 1 or No. 2 player in every U.S. gas basin in which it operates, CEO Steve Malcolm said last week.

An incremental 10-15 Bcf/d of U.S. natural gas supply over the next 10-15 years creates “abundant” opportunities, and Williams’ goal is to be the No. 1 or No. 2 player in every U.S. gas basin in which it operates, CEO Steve Malcolm said Tuesday.

With its abundant natural gas storage capacity, North America is viewed by many as a sink for liquefied natural gas (LNG) cargoes that can’t be sold in Asia or Europe. But now that new LNG liquefaction capacity is poised to come onstream later this year and next — in the midst of a global economic downturn — the industry is wondering where all the cargoes will go.

Abundant supplies and weakening demand fundamentals have November gas futures trading around $6.70, but U.S. gas would have to get cheaper in order to compete in a liquefied form on the world market, according to Wood Mackenzie’s Ed Kelly.

Abundant supplies and weakening demand fundamentals have November gas futures trading around $6.70, but U.S. gas would have to get cheaper in order to compete in a liquefied form on the world market, according to Wood Mackenzie’s Ed Kelly.