Associates

Analysts at Raymond James & Associates predicted last week in a research note that “the U.S. will be in the midst of another full-blown natural gas crisis within the next 12 months” because of an economic recovery and a decline in gas drilling. Several prominent industry consultants, however, quickly labeled the remarks sensationalism designed to grab headlines and sell energy stocks.

Once again reducing its near-term oil and natural gas activity forecast, Raymond James & Associates Inc. said that the deteriorating oil and gas prices from two months ago still appear to be “weighing on the minds” of exploration and production companies.

Once again reducing its near-term oil and natural gas activity forecast, Raymond James & Associates Inc. said on Dec. 24 that the deteriorating oil and gas prices from two months ago still appear to be “weighing on the minds” of exploration and production companies.

Raymond James & Associates expects another wave of mergers and acquisitions in the wake of the Enron catastrophe, as marketing and trading companies come to the realization that hard physical assets are much more desirable than heavily leveraging a balance sheet to a trading desk.

Given the current sub-$2 natural gas prices and lower crude oil prices, Raymond James & Associates last week lowered its forecast for North American oil and gas drilling activity in the first quarter of 2002, but the consulting firm anticipates activity to quickly rebound in the second quarter, fueled by stronger gas prices.

Given the current sub-$2 natural gas prices and lower crude oil prices, Raymond James & Associates has lowered its forecast for North American oil and gas drilling activity in the first quarter of 2002, but the consulting firm anticipates activity to quickly rebound in the second quarter, fueled by stronger gas prices.

Charles River Associates Inc. (CRA) has been chosen by the New York State Energy Research and Development Authority (NYSERDA) and the New York Independent System Operator (NYISO) to analyze the interactions between natural gas and electricity systems within the state. Among other things, CRA will examine whether existing pipelines will be able to handle the increased flow of gas required by proposed power plants in the state.

Quest Resource Corp., a Kansas-based independent, has retained Carl Thompson Associates to implement a national investor relations program in the next 12 months. Quest Resource is primarily involved in the exploration, production and transportation of natural gas in a 500-square-mile area of southeast Kansas, operating a 150-mile natural gas pipeline network to serve local and interstate markets. Currently, Quest is producing approximately 2,000 Mcf/d from 40 wells. It plans to drill between 40 and 50 more wells a year in the next several years.

Following a stream of industry announcements, Cambridge Energy Research Associates has now put its stamp on liquefied natural gas growth, predicting that the “fundamental” changes worldwide in natural gas availability and potential shifts in pricing, downstream markets and available capital will position LNG to become a “major global energy player over the coming 20 years,” with demand as much as tripling by 2020.