Consulting

Management consulting firm R.W. Beck reduced its calendar 2006 forecast for the Henry Hub price of natural gas to $7.60/MMBtu. The new price is $1.40 lower than the $9/MMBtu price R.W. Beck predicted during the first two quarters of 2006.

After consulting with the agency’s ethics official, FERC Chairman Joseph Kelliher has signaled that he will not recuse himself from voting on the proposed Broadwater Energy LLC liquefied natural gas (LNG) import project and associated pipeline facilities, despite calls by three congressional Democrats from New York to do so.

Cumulative gas production shut-ins onshore and offshore Texas and Louisiana are nearly 300 Bcf since hurricanes Katrina and Rita struck, Colorado-based consulting firm Bentek Energy reported Thursday. However, gas production from the Gulf Coast finally has risen to nearly 8 Bcf/d compared to about 13.8 Bcf/d prior to the hurricanes.

Consumers are likely to see very little price relief next year, according to two industry prognosticators. Arlington, VA-based consulting firm Energy and Environmental Analysis Inc. (EEA) is predicting gas prices will average $9/MMBtu in 2006, while analysts at Raymond James & Associates say extremely bullish underlying fundamentals will keep prices between $9.50 and $10 next year.

Gas production onshore and offshore Louisiana and Texas is beginning to rise slowly, Golden, CO-based consulting firm Bentek Energy reported Wednesday. Total Gulf production, judging from scheduled gas pipeline nominations, as of Wednesday morning rose to 4,785 MMcf/d compared to a revised total for Tuesday of 4,529 MMcf/d and pre-Katrina levels of 13,820 MMcf/d, Bentek said in a Hurricane 2005 update.

Gulf Coast gas production barely budged Tuesday, according to scheduled gas flows on the region’s major pipelines, Golden, CO-based consulting firm Bentek Energy reported. Scheduled gas production onshore and offshore Texas and Louisiana was even slightly lower on Tuesday than on Monday — 3,749 MMcf/d compared to 3,888 MMcf/d. That’s down from a pre-Katrina level of 13,820 MMcf/d, Bentek said.

Management consulting and engineering firm R.W. Beck Inc. raised its Henry Hub natural gas price forecast for the year to $6.40/MMBtu, a 13% increase over its forecast during the first quarter of $5.68. Higher prices are driven by high oil prices and lower-than-expected production, the firm said.

Management consulting and engineering firm R.W. Beck Inc. raised its Henry Hub natural gas price forecast for the year to $6.40/MMBtu, a 13% increase over its forecast during the first quarter of $5.68. Higher prices are driven by high oil prices and lower-than-expected production, the firm said.

The gas market this year is shaping up to be a lot like the market last year and observers should expect a pretty big dip in prices this summer, according to Steve Thumb of consulting firm Energy Ventures Analysis Inc. (EVA) in Arlington, VA. Thumb said rising domestic supply will be the biggest difference in the market this year.