Convinced

While convinced the oil price is a bubble ready to burst at any time, Canadians see a firm floor holding up under natural gas — and not least because it is a struggle to maintain their contribution to the North American “continental market.” Consensus forecasts north of the border draw a sharp contrast between the oil and gas markets.

Government observers in Ottawa, convinced the North American market has entered an era of tight supplies and high prices, anticipate a steady rise in the value of Canadian natural gas as far ahead as their computer projections can see.

Government observers in Ottawa, convinced the North American market has entered an era of tight supplies and high prices, anticipate a steady rise in the value of Canadian natural gas as far ahead as their computer projections can see.

Consultants at Cambridge Energy Research Associates (CERA) are convinced that natural gas production in North America is poised to enter a long-term decline and that imports of liquefied natural gas (LNG) will have to make up the supply gap. But Tom Wood, gas production expert at the Energy Information Administration (EIA) isn’t buying it. Wood said the gas resource is still there, but producers simply have chosen to drill overseas in the short-term.

Consultants at Cambridge Energy Research Associates (CERA) are convinced that natural gas production in North America is poised to enter a long-term decline and that imports of liquefied natural gas (LNG) will have to make up the supply gap. But Tom Wood, gas production expert at the Energy Information Administration (EIA), isn’t buying it. Wood said the gas resource is still there, but producers simply have chosen to drill overseas in the short-term.

Recent exploratory successes in the Gulf of Mexico (GOM) convinced small Dallas-based independent Remington Oil and Gas Corp. to increase its 2003 capital budget by $10 million, which now is set at $96 million for new completions, facilities and development drilling. The increase will be funded through available cash flows.

El Paso Corp. Chairman William Wise said Wednesday he was “absolutely convinced” FERC will overturn the ALJ ruling that found El Paso Natural Gas guilty of skirting the Commission’s affiliate standards when awarding transportation capacity on its system. But even if the agency doesn’t do this, he said it was unlikely that the company would be slapped with a major penalty.

Utility watchdog group The Utility Reform Network (TURN) isn’tquite convinced that California’s two major utilities are hurtingfinancially from this summer’s wholesale power price spikes.

Utility watchdog group The Utility Reform Network (TURN) isn’tquite convinced that California’s two major utilities are hurtingfinancially from this summer’s wholesale power price spikes.