Considerable

The swarm of liquefied natural gas (LNG) shipments that are expected to flow into the United States over the next five years will put considerable downward pressure on currently inflated natural gas prices, the head of the Energy Information Administration (EIA) told a Senate energy panel Thursday.

All of the major global liquefied natural gas (LNG) shippers — mostly large oil and gas production companies — are now “more comfortable” with the longer term wholesale natural gas business in the United States and willing to take the risk of downstream prices once added LNG imports begin flowing in 2007-08, according to San Diego-based Sempra Energy CEO Steve Baum, speaking Tuesday at the Deutsche Bank Electric Power Conference in New York City.

All of the major global liquefied natural gas (LNG) shippers — mostly large oil and gas production companies — are now “more comfortable” with the longer term wholesale natural gas business in the United States and willing to take the risk of downstream prices once added LNG imports begin flowing in 2007-08, according to San Diego-based Sempra Energy CEO Steve Baum, speaking Tuesday at the Deutsche Bank Electric Power Conference in New York City.

Williams Tuesday named Donald R. Chappel as senior vice president and chief financial officer. “Don Chappel brings considerable, relevant experience to Williams as we continue to strengthen our finances and refine our focus on integrated natural gas businesses,” said Steve Malcolm, chairman and CEO. Chappel, 51, most recently founded and served as chief executive officer of a development business in Chicago. His previous experience includes serving twice in the late 1990s as CFO of Waste Management, Inc. during periods before and after its 1998 merger with USA Waste Services. On those occasions, a board-led management team comprised of a former Securities and Exchange Commission chairman, a fund manager/shareholder activist, and a financial-turnaround specialist recruited Chappel as CFO. In that role, Chappel is credited with successfully leading the company’s financial-recovery efforts and building a solid foundation for the future. Prior to Waste Management, Chappel served in financial leadership roles at Beatrice Companies and a major public accounting firm. He earned his bachelor’s degree in accounting from the University of Illinois in Chicago.

Gas well completions are up throughout the Lower 48, but there is still “considerable uncertainty” regarding how much supply will come from the increased drilling, according to the Energy Information Administration. Noting recent price trends and increased drilling activity, EIA found there should be an excess gas supply by the end of 2001, but caveats remain.

Gas well completions are up throughout the Lower 48, but there is still “considerable uncertainty” regarding how much supply will come from the increased drilling, according to the Energy Information Administration. Noting recent price trends and increased drilling activity, EIA found there should be an excess gas supply by the end of 2001, but caveats remain.

Most cash prices were flat to a few cents higher Wednesday, butthere was considerable variation among specific market areas. Heavydrafting of the NOVA system led to increases of a dime or more inintra-Alberta quotes and at such related points as Sumas andStanfield. On the other hand, Appalachia/Northeast points werefalling by about a nickel or more after Northeast citygates haddisplayed the greatest price strength earlier in the week.Temperatures remained above freezing for the most part in theNortheast and Midwest, and warmer weather is predicted to startmoving in today.

Whether the cash market follows the futures screen or vice-versais the source of considerable conjecture and debate in the naturalgas market-almost on a daily basis. Although there have been timeswhen futures have been the driving force in the market, many feelthat cash prices, egged on by solid heating demand, have liftedfutures prices out of the doldrums this month.

Overall movement of cash prices was lower Monday, but there wereconsiderable differences among markets as to the degree ofdownturn. The Gulf Coast, Appalachia and Rockies barely budged withvery few points falling more than a penny or two. TheMidcontinent/Midwest tended to occupy the middle ground-fieldprices were only off 2-3 cents, but declines at marketarea-oriented points such as Northern Natural-demarc, NGPL AmarilloMainline and Chicago citygates were more like a nickel or greater.The biggest losses of around a dime occurred at Northeastcitygates.