Concluded

Three analyst groups have concluded that quarterly U.S. natural gas production dropped between 4.9-5.3% compared with a year ago, led by a sharp decline among the majors. The quarterly figures, said Lehman Brothers’ analyst Thomas Driscoll, are “both surprising and disappointing given drilling activity,” because “industry appears unable to ‘drill its way out’ of gas market tightness.”

Canada’s National Energy Board concluded in a new report that the gas market in British Columbia is working well and both consumers and producers are making appropriate adjustments to higher gas prices. The Energy Market Assessment (EMA) found that natural gas prices in the province are now integrated with the North American gas market. In response to recent price increases, provincial consumers have reduced demand. Industries such as the forest products industry improved energy efficiency and increased their use of other fuels. Residential consumers reduced household consumption by improving energy conservation. In northeast British Columbia, producers have responded to higher prices by increasing exploration activity. However, the small size of the British Columbia natural gas market and the lack of a major storage facility near the Lower Mainland limit market flexibility in comparison with other major market centers, such as Alberta. Looking ahead, the potential exists to increase gas supply from northeast British Columbia and there is potential to find natural gas in other provincial supply basins, the NEB said. The EMA is available on the NEB’s website at www.neb-one.gc.ca.

In a post-mortem on 2003 U.S. natural gas production, Southwest Securities analysts concluded last week that production fell 1.1% sequentially in the fourth quarter and dropped 2.9% year-over-year. Analysts forecast a slight uptick in first quarter production, attributed to incremental high-impact gas production from deepwater Gulf of Mexico projects, but overall, 2004 production should decline 3% over last year.

In a post-mortem on 2003 U.S. natural gas production, Southwest Securities analysts have concluded that production fell 1.1% sequentially in the fourth quarter and dropped 2.9% year-over-year. Analysts are forecasting a slight uptick in first quarter production, attributed to incremental high-impact gas production from deepwater Gulf of Mexico projects, but overall, 2004 production should decline 3% over last year.

Seeking answers for why natural gas prices have spiked so high this winter, Sen. Joe Lieberman (D-CT) concluded 2003 by asking the Commodity Futures Trading Commission (CFTC) and the Federal Energy Regulatory Commission (FERC) to launch an investigation.

FERC staff concluded in a new report that construction of additional gas pipeline and liquefied natural gas (LNG) import capacity will be necessary for New England to meet its growing gas supply needs through 2010.

FERC staff concluded in a new report that construction of additional gas pipeline and liquefied natural gas (LNG) import capacity will be necessary for New England to meet its growing gas supply needs through 2010.

FPL Energy last week concluded that small boron deposits on the reactor vessel head of the 1,161 MW Seabrook nuclear power plant in New Hampshire resulted from a leaking weld, the Nuclear Regulatory Commission (NRC) said last Wednesday.

At the end of its first year of operation, a federal watchdog agency last week concluded that FERC’s Office of Market Oversight and Investigations (OMOI) is severely hamstrung in its ability to effectively monitor the wholesale natural gas and electricity markets.