Constraints

Global energy “demand shock,” compounded by tight oil supplies, constraints on U.S. natural gas production and geopolitical turmoil, has put the United States’ energy situation at a critical juncture, according to Daniel Yergin, chairman of Cambridge Energy Research Associates (CERA).

Expected tight power supplies and transmission constraints in California, New York City, Long Island and southern Connecticut, and high and volatile energy prices across the board highlighted a summer assessment by FERC’s Office of Market Oversight and Investigation (OMOI) at a regular Commission meeting on Thursday.

Global energy “demand shock,” compounded by tight oil supplies, constraints on U.S. natural gas production and geopolitical turmoil, has put the United States’ energy situation at a critical juncture, according to Daniel Yergin, chairman of Cambridge Energy Research Associates (CERA).

Excelerate Energy CEO Kathleen Eisbrenner said last week that she expects deliveries to the company’s offshore Louisiana LNG terminal to begin sometime in 2005 but the company still has not lined up any long-term supply or market agreements. The Gulf of Mexico Energy Bridge project will be the first new LNG terminal built in the United States in 20 years and the first offshore LNG terminal in the world.

Excelerate Energy CEO Kathleen Eisbrenner said this week that she expects LNG deliveries to begin sometime in 2005 to the first new LNG terminal in the United States in 20 years and the first offshore LNG terminal in the world. However, the company still has not lined up any long-term supply or market agreements.

Northern Natural Gas and Florida Gas Transmission have ended OFO-like constraints. FGT extended an Overage Alert Day notice for its market area, indicating low linepack, through Saturday while loosening the tolerance for negative daily imbalances from 20% to 25%, then canceled the measure Sunday. NNG, which had a System Underrun Limitation in effect Saturday and Sunday because of projected above-target linepack levels, ended the SUL Monday.

Pipeline constraints and balancing requirements/penalties had something to do with the record high gas prices this winter in the Northeast, but energy consultant Ben Schlesinger also believes inadequate gas market information, particularly regarding peak shaving liquefied natural gas (LNG) capacity, was part of the cause.

Pipeline constraints and balancing requirements/penalties had something to do with the record high gas prices this winter in the Northeast, but energy consultant Ben Schlesinger also believes inadequate gas market information, particularly regarding peak shaving liquefied natural gas (LNG) capacity, was part of the cause.

Constraints on supplies of natural gas, crude oil and coal are unlikely to occur worldwide before 2025, but in the next 20 years, the energy industry will be challenged to design sustainable technology that can replace depleted fossil fuels, the chairman of the Royal Dutch/Shell Group told a Houston audience.