The contribution of exploration in 2007 to the Gulf of Mexico (GOM) deepwater’s reserve base was the lowest in the past decade, according to a new report by consultant Wood Mackenzie. Reserves found amounted to only 553 million boe — less than half the reserves found in 2006.
Articles from Consultant
Is the glass half empty or half full? One energy consultant last week said the end-of-year natural gas price outlook improved “considerably” over the past month following several “hot” weeks, and the falling gas storage levels combined with high fuel oil prices will offer a higher “price umbrella” for gas. Another well-known gas price prognosticator said a weather-driven surge may raise prices toward year’s end but advised investors to stick with an oil-weighted strategy .
Energy efficiency is no longer the “polite” thing to do but rather is “starting to become a cultural imperative,” the COO of Pace Global Energy Services said Tuesday.
The exploration and production (E&P) arm of National Fuel Gas Co. (NFG) is hiring a third-party consultant to analyze the reserve potential of its Appalachian Basin holdings, executives said last week. Seneca Resources Corp.’s current proved reserves total about 83 Bcfe, or 13% of its total consolidated reserves, but the E&P wants to test the potential of its 935,000 net acre play after partnering with EOG Resources Inc. on some horizontal drilling projects.
The exploration and production (E&P) arm of National Fuel Gas Co. (NFG) plans to hire a third-party consultant to analyze the reserve potential of its Appalachian Basin holdings, executives said Tuesday. Seneca Resources Corp.’s current proved reserves total about 83 Bcfe, or 13% of its total consolidated reserves. However, Seneca apparently wants to test the potential of its 935,000 net acre play after partnering with EOG Resources Inc. on some horizontal wells.
The gas storage surplus could have a bite taken out of it this week, according to consultant Stephen Smith, who’s predicting only a 17 Bcf injection in the weekly report by the Energy Information Administration (EIA). Furthermore, Smith believes that this week’s storage report, which he expects will show 3,459 Bcf of working gas in storage as of Oct. 20, may end up being the peak level of working gas for the injection season because of the early cold weather.
Recent weaker market conditions have not changed the underlying tight gas supply/demand balance, energy consultant Kevin Petak of Energy and Environmental Analysis (EEA) said in a presentation to the Natural Gas Council (NGC) on Tuesday. Petak predicts that Henry Hub gas prices will average between $5 and $8/MMBtu for the next few years with longer-term prices in parity with crude oil prices.
Given continued “freakishly” mild winter weather, gas prices are likely to dip to $7 by March, according to energy consultant Stephen Smith of Stephen Smith & Associates. Smith is forecasting a season ending gas storage level of 1,570 Bcf, compared to 10-year norms of about 890 Bcf, and a March 31 Henry Hub gas price of about $6.75-7.50.
Growing energy demand, colliding with oil and natural gas shortages, is pointing to an offshore activity boom, the CEO of UK-based energy consultant Douglas-Westwood said Thursday. However, the energy industry faces “major challenges,” especially in the near term, with a lack of people, rigs and vessels leading the list of woes.