Assumptions

The shale revolution has demolished market assumptions about natural gas and instituted a new world order, which eventually could allow the “Prince of Hydrocarbons” to inherit the kingdom, according to a report unveiled Wednesday.

Technological advances in unconventional natural gas production and transportation, coupled with a growing liquefied natural gas (LNG) trade, are changing market assumptions around the world, according to a report by IHS Cambridge Energy Research Associates (IHS CERA) and the World Economic Forum (WEF).

Considering a decline in service costs, acreage leasehold expirations, an increase in oil drilling and the anticipation of higher natural gas prices, U.S. rig count assumptions for 2010 weren’t optimistic enough, energy analysts said last week.

Considering a decline in service costs, acreage leasehold expirations, an increase in oil drilling and the anticipation of higher natural gas prices, U.S. rig count assumptions for 2010 weren’t optimistic enough, energy analysts said Tuesday.

The Alberta Royalty Review Panel used flawed data, incorrect costs, misleading activity assumptions and poor international comparisons to put together its oil and natural gas royalty and tax system proposal, according to a technical review by the Canadian Association of Petroleum Producers (CAPP).

The Alberta Royalty Review Panel used flawed data, incorrect costs, misleading activity assumptions and poor international comparisons to put together its oil and natural gas royalty and tax system proposal, according to a technical review by the Canadian Association of Petroleum Producers (CAPP).

Canaccord Adams lowered its price assumptions for Henry Hub gas and WTI crude “to be more in line with our current view of weaker market conditions that are shaping up for 2007,” wrote analyst Irene Haas in a Wednesday note.

Canaccord Adams lowered its price assumptions for Henry Hub gas and WTI crude “to be more in line with our current view of weaker market conditions that are shaping up for 2007,” wrote analyst Irene Haas in a Wednesday note.

California is taking some risks in sprinting out front in setting energy policy based on global warming assumptions and delaying future benefits for utility consumers from some of these efforts, but the longer term costs of not doing anything would be far greater, according to California’s chief regulator, Michael Peevey. He made this point in a speech Monday to the Edison Electric Institute (EEI) Financial Conference in Las Vegas, NV.