While much of the gas industry is busy preparing for a period of low prices and declining demand due to the weakening economy, Duke Energy is showing great confidence in future gas market growth. The company announced plans late Thursday to buy Westcoast Energy in a cash and stock transaction valued at US$8.5 billion, including $4 billion in debt assumption. The move greatly expands Duke’s North American natural gas pipeline holdings and positions it for a strong role in future gas infrastructure expansions.
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Gas Demand Forecast to Grow 2.3% with 1% Supply Decline in ’03
Assuming a $3.50/Mcf price, demand for natural gas will grow 2.3% in 2003, with total supply declining 1%, according to Mississippi-based natural gas analyst Stephen Smith’s December energy outlook. Overall, the U.S. gas supply and demand picture looks positive in 2003, he said.
Gas Demand Forecast to Grow 2.3% with 1% Supply Decline in ’03
Assuming a $3.50/Mcf price, demand for natural gas will grow 2.3% in 2003, with total supply declining 1%, according to Mississippi-based natural gas analyst Stephen Smith’s December energy outlook. Overall, the U.S. gas supply and demand picture looks positive in 2003, he said.
EOG Predicts 6-7% Growth in ’03 on Higher U.S. Gas Prices, Strong Production
EOG Resources Inc. was hit with declining sales and losses in its hedging program during the third quarter, but the natural gas heavyweight still managed to surpass Wall Street earnings estimates for the period. The Houston-based independent expects the company’s results to jump 6-7% next year, driven by higher natural gas prices and strong production from its growing Trinidad operations.
EOG Predicts 6-7% Growth in ’03 on Higher U.S. Gas Prices, Strong Production
EOG Resources Inc. was hit with declining sales and losses in its hedging program during the third quarter, but the natural gas heavyweight still managed to surpass Wall Street earnings estimates for the period. The Houston-based independent expects the company’s results to jump 6-7% next year, driven by higher natural gas prices and strong production from its growing Trinidad operations.
Without Ladyfern, Canadian Gas Production Declining
Despite the record natural gas well completions experienced last winter, Canada’s natural gas production — minus Ladyfern — appears to be on the decline, according to research by Lehman Brothers’ Oil & Gas unit. Total Canadian gas production year-to-date through April increased 2% above 2001. However, without the prolific Ladyfern find, year-to-date volumes would have been down about 2% from the same period and western Canadian production would be down 3%.
Rush Still on to Build LNG Terminals in Bahamas
Despite falling gas prices, declining demand and increasing production, the rush is still on to bring more liquefied natural gas (LNG) to the United States. Two El Paso Corp. subsidiaries are conducting separate open seasons to determine non-binding customer interest in transportation capacity on pipelines that will transport natural gas from El Paso Global LNG’s planned terminal on Grand Bahama Island to Florida.
EVA: New Gas-Fired Power Generation Projects Declining
While some natural gas-fired power generation projects still in the planning stage are being deferred, those under construction are going ahead, and the battle is moving into the marketing of new online power supplies, according to Arlington, VA-based Energy Ventures Analysis (EVA).
Price Declines Expected to Get Steeper Today
This week’s price rally ran out of steam Thursday with nearly all points declining in double digits. Traders anticipated a moderation of the blast of winter that had invaded most of the nation except for the Southeast and Mid-Atlantic states, and also noted considerable weakness in the natural gas, crude oil and heating oil futures contracts.
Global Marine Sees Gulf Drilling, Dayrates Dropping Sharply
A sharp decline in shallow drilling in the Gulf of Mexico and declining rig dayrates led to a 3.1% drop in Global Marine’s worldwide SCORE report, or Summary of Current Offshore Rig Economics, for October 2001 from the September SCORE. The SCORE for the Gulf of Mexico plummeted 16% and is down 13.7% from last October and 33.2% from the five-year average