Changes

The chairman of the Securities and Exchange Commission (SEC) on Wednesday said that the agency is reviewing oil and gas reserves accounting after Royal Dutch/Shell Group recategorized its reserves last week (see Daily GPI, Jan. 13).

EOG Chairman Mark Papa said he expects U.S. gas production to be down 1-3% this year and another 1-2% in 2004, while Canadian supply has been even weaker than expected, down about 600 MMcf/d so far this year. Meanwhile, Mexico continues to draw about 1 Bcf/d from the United States. Despite the supply concerns and continuing high gas prices, however, Papa said E&P competition in several traditional areas has fallen dramatically.

EOG Chairman Mark Papa said he expects U.S. gas production to be down 1-3% this year and another 1-2% in 2004, while Canadian supply has been even weaker than expected, down about 600 MMcf/d so far this year. Meanwhile, Mexico continues to draw about 1 Bcf/d from the United States. Despite the supply concerns and continuing high gas prices, however, Papa said E&P competition in several traditional areas has fallen dramatically.

In the North Baja California LNG race, which has lead changes almost weekly, Marathon Oil Corp. pulled ahead Wednesday with a memorandum of understanding (MOU) for newly developed Indonesian liquefied natural gas (LNG) supplies for its proposed receiving terminal along the Pacific Coast of Mexico. This is the first supply deal of several competing LNG proposals for the Baja peninsula.

In the North Baja California LNG race, which has lead changes almost weekly, Marathon Oil Corp. pulled ahead Wednesday with a memorandum of understanding (MOU) for newly developed Indonesian liquefied natural gas (LNG) supplies for its proposed receiving terminal along the Pacific Coast of Mexico. This is the first supply deal of several competing LNG proposals for the Baja peninsula.

Stating that it was “inappropriate at this time to implement procedures that would unduly interfere with the normal operation of the natural gas market,” the National Energy Board (NEB) said late last week that it has denied the Province of New Brunswick’s application that would have put local interests first in line for offshore Nova Scotia supplies, potentially jeopardizing millions of dollars in investments for supply development and transportation. While it found no evidence of companies favoring U.S. export markets and discriminating against Canadian buyers, the NEB said it would organize a monitoring team and gather price and supply data.

Stating that it was “inappropriate at this time to implement procedures that would unduly interfere with the normal operation of the natural gas market,” the National Energy Board (NEB) said Thursday that it has denied the Province of New Brunswick’s application that would have put local interests first in line for offshore Nova Scotia supplies, potentially jeopardizing millions of dollars in investments for supply development and transportation. While it found no evidence of companies favoring U.S. export markets and discriminating against Canadian buyers, the NEB said it would organize a monitoring team and gather price and supply data.

With the sale of several assets and by adjusting its accounting methods, Williams reported Tuesday a loss in the first quarter from continuing operations of $57.7 million (minus 13 cents per share), compared with restated income from continuing operations of $98.4 million (5 cents) for the same period last year.

In response to a recent FERC order for proof of significant changes to its gas price dissemination methods, Sempra Energy said it instituted provisions last year to protect against wholesale natural gas price manipulation and one employee was disciplined for providing inaccurate data to trade publications.