Analysis

A report in Tuesday’s edition of NGI’s Daily Gas Price Index cited a recent analysis of the comprehensive energy bill by the Energy Information Administration (EIA) (see Daily GPI, Aug. 2). In analyzing the impacts of the energy bill, EIA focused on the bill that was passed by the House of Representatives last April rather than the version of energy bill that was approved by Congress last week. The EIA said it would have drawn different conclusions about the final version of the energy bill, which was substantially different that the earlier House version of the legislation.

A new report by consultants at Boston-based Energy Security Analysis Inc. (ESAI) predicts that domestic gas production will grow by only about 0-2% per year over the next 10 years as new production largely offsets declining production from aging fields. As a result, domestic gas production could reach a peak around 2015.

Despite the anxiety over rising commodity prices and a lack of readily available oil and natural gas resources, a detailed analysis shows a “significant” expansion of liquids productive capacity in the next few years, according to Cambridge Energy Research Associates (CERA).

Timely and balanced regulatory decisions have returned to center stage in the assessment of credit ratings for various U.S. utilities, according to the latest analysis by Standard & Poor’s Ratings Services. For the immediate future, upgrades and downgrades of ratings should stay relatively balanced, S&P said in its “Industry Report Card: U.S. Electric/Water/Gas.”

Gas prices are expected to average $6.84/MMBtu this year and $7.08 this summer given normal weather, Energy and Environmental Analysis Inc. (EEA) said in its April Monthly Gas Update. The Arlington, VA-based consulting firm raised its 2005 gas price forecast by 15% this month in part because of the crude oil price spike, the cold weather in March and the impact those two factors had on natural gas.

Energy Security Analysis Inc. (ESAI) is projecting a $38 billion investment in wind generation in the U.S. over the next 10 years, which will be driven by renewable portfolio standards (RPS) that have passed into law in 19 states. The standards require utilities to purchase a designated percentage of their energy from renewable energy resources.

Liquefied natural gas (LNG) will become a larger part of the Northeast energy picture, Energy Security Analysis Inc. (ESAI) said in its latest edition of the “Northeast Energy Watch Quarterly.”

Consultants at Wakefield, MA-based Energy Security Analysis Inc. (ESAI) said last week that the solid month of weakness in the crude oil market (until Friday’s spike) has kept downward pressure on natural gas prices, but fears of a cold snap and recent winter market history are expected to provide market support at around $6.50/MMBtu.

Consultants at Wakefield, MA-based Energy Security Analysis Inc. (ESAI) said Tuesday that continuing weakness in the crude oil market should put downward pressure on natural gas prices, but fears of a cold snap and recent winter market history are expected to provide strong support at around $6.50/MMBtu.