Cutbacks

Pennsylvania election results “were a good thing” for natural gas companies operating in the state, Atlas Resources President Richard Weber told a Marcellus Shale conference in Pittsburgh Wednesday.

With gas storage caverns bursting, strong production despite drilling cutbacks, and mild weather expected, “a fragile economic recovery” is the only positive for gas prices this winter, the Natural Gas Supply Association (NGSA) said last Wednesday.

With gas storage caverns bursting, strong production despite drilling cutbacks, and mild weather expected, “a fragile economic recovery” is the only positive for gas prices this winter, the Natural Gas Supply Association (NGSA) said Wednesday.

With big cutbacks in North American natural gas production and new pipeline capacity coming on for the once-captive Midcontinent gas supplies, gas buyers will have to be on their toes to prepare for what may be intense competition later this year, a ConocoPhillips executive said Wednesday.

With big cutbacks in North American natural gas production and new pipeline capacity coming on for the once-captive Midcontinent gas supplies, gas buyers will have to be on their toes to prepare for what may be intense competition later this year, a ConocoPhillips executive said Wednesday.

It is clear that the widespread producer cutbacks that began last fall to combat falling prices have not yet translated into reduced natural gas supplies as production in the Lower 48 states was 63.01 Bcf/d in January, down 0.29 Bcf/d, or half of a percent from December, but up 2.7 Bcf/d, or 4.5% compared with January 2008, according to Energy Information Administration (EIA) estimates released Thursday. In longer-term projections also released last week EIA forecast rapid shale growth but a lesser role for imports of liquefied natural gas (LNG) in coming decades.

It is clear that the widespread producer cutbacks that began last fall to combat falling prices have not yet translated into reduced natural gas supplies as production in the Lower 48 states was 63.01 Bcf/d in January, down 0.29 Bcf/d, or half of a percent from December, but up 2.7 Bcf/d, or 4.5% compared with January 2008, according to Energy Information Administration (EIA) estimates released Thursday.

In acknowledgment of the weak economy and drilling cutbacks by producers, Spectra Energy Corp. executives last Thursday emphasized the insulation from commodity price fluctuations enjoyed by the company’s fee-based processing businesses, and they noted that 80% of Spectra customers have investment-grade credit ratings.

In acknowledgment of the weak economy and drilling cutbacks by producers, Spectra Energy Corp. executives Thursday emphasized the insulation from commodity price fluctuations enjoyed by the company’s fee-based processing businesses, and they noted that 80% of Spectra customers have investment-grade credit ratings.