Capital

Canadian Natural Resources Ltd. is blaming Alberta’s new royalty regime for its decision to slash capital spending by one-third in 2008, which ultimately may result in a double-digit drop in forecasted natural gas production.

Canadian Natural Resources Ltd. blamed Alberta’s new royalty regime for its decision to slash capital spending by one-third in 2008, which will result in a double-digit drop in forecasted natural gas production.

Upstream capital spending is pegged to jump a healthy 20% this year versus 2006. However, with most of the money earmarked for international oil projects, North American exploration and production (E&P) companies weighted to natural gas are not expected to deliver over-the-top earnings through the rest of the year, according to several energy analysts.

Upstream capital spending is pegged to jump a healthy 20% this year versus 2006. However, with most of the money earmarked for international oil projects, North American exploration and production (E&P) companies weighted to natural gas are not expected to deliver over-the-top earnings through the rest of the year, according to several energy analysts.

Liquefied natural gas (LNG) cargoes generally do not avoid the U.S. market when gas prices here are low, according to analysts at Barclays Capital, who offer a list of other factors that drive LNG movement to the United States far more than price.

Liquefied natural gas (LNG) cargoes generally do not avoid the U.S. market when gas prices here are low, according to analysts at Barclays Capital, who offer a list of other factors that drive LNG movement to the United States far more than price.

With a five-year, $14 billion capital investment plan in place that is more than 90% covered in its current and future utility rates, San Francisco-based Pacific Gas and Electric Co. is wide-eyed over the potential growth in Pacific Northwest electric and natural gas projects that are not yet included in the current investment plans, CFO Christopher Johns said Wednesday at the Lehman Brothers Energy/Power Conference in New York City.

Worldwide upstream investment of 228 oil and gas producers increased 45% to $401 billion in 2006, more than $1 billion per day, but the record capital spending generated a measly 2% increase in reserves volumes, according to a review by researcher John S. Herold Inc. and upstream adviser Harrison Lovegrove & Co. Ltd.

Buckeye GP LLC, the general partner of Buckeye Partners LP, agreed to acquire a natural gas storage facility in Northern California from an affiliate of ArcLight Capital Partners LLC for $440 million in cash, the company said last week.