Decline

A comeback by Canadian natural gas exporters shows signs of accelerating fast, sharply reversing a decline in 2002 that broke a 14-year winning streak of consecutive annual record sales to the United States.

Natural gas markets across North America last week were warned for the second time this heating season against taking for granted any further growth in Canadian gas supplies, for most of this decade. The Canadian Energy Research Institute (CERI) said its latest industry survey will confirm a report by the National Energy Board (NEB) in December that gas field productivity has peaked and stands poised to drop in western Canada (see NGI, Jan. 13; Jan. 20).

Natural gas markets across North America this week were warned for the second time this heating season against taking for granted any further growth in Canadian gas supplies, at least for most of this decade. The Canadian Energy Research Institute (CERI) said its latest industry survey will confirm a report by the National Energy Board in December that gas field productivity has peaked and stands poised to drop in western Canada (see Daily GPI, Jan. 13; Jan. 21).

In what could be the most bullish 2-cent decline in recent memory, natural gas futures rebounded from early lows Wednesday as buyers continued to bet heavily on storage and weather holding the market up. After failing to extend down to a key downside objective at $6.70, the April contract rallied in the afternoon in light, pre-storage report short-covering. It closed at $7.021, down 2 cents on the day, but more than 27 cents above its morning low of $6.75.

With its Ladyfern field showing a sharp decline last year, Canadian Natural Resources Inc. plans to step up its exploration and production program in a recently acquired region of Alberta, sticking with a strategy to keep its natural gas production in North America on an equal pace with oil.

With its Ladyfern field showing a sharp decline last year, Canadian Natural Resources Inc. plans to step up its exploration and production program in a recently acquired region of Alberta, sticking with a strategy to keep its natural gas production in North America on an equal pace with oil.

El Paso Corp. was in the unenviable position of being the most traded common stock on the New York Stock Exchange Wednesday because investors were continuing a sell-off. The company’s stock dropped a little over 22% to $3.65. The market overall was down on war fears, and other energy companies took a hit, but not in the same league as El Paso.

In response to the sharp decline in market liquidity due to credit issues and heavy collateral requirements, the Federal Energy Regulatory Commission and the Commodity Futures Trading Commission (CFTC) will for the first time hold a joint agency conference to address potential solutions.

In response to the sharp decline in market liquidity due to credit issues and heavy collateral requirements, the Federal Energy Regulatory Commission and the Commodity Futures Trading Commission (CFTC) will for the first time hold a joint agency conference to address potential solutions.