Demand

A combination of above-market priced, long-term contracts and demand-side programs is the best formula for avoiding a return of high prices and power blackouts, the California Consumer Power and Conservation Financing Authority concluded at a recent board meeting in Sacramento. It is pointing the state toward achieving reserve levels of more than 20%, with ideally half coming from the demandside.

While weak shoulder month gas demand minimized the market impact of Hurricane Lili and Tropical Storm Isidore, the two storms did cut substantially volumes of gas and oil production in the Gulf of Mexico and on Friday continued to have an impact, with 670 MMcf/d of gas and 105,000 b/d of crude oil production remaining curtailed, according to the Minerals Management Service.

While weak shoulder month gas demand minimized the market impact of Hurricane Lili and Tropical Storm Isidore, the two storms did cut substantial volumes of gas and oil production in the Gulf of Mexico, and on Friday continued to have an impact, with 670 MMcf/d of gas and 105,000 b/d of crude oil production remaining curtailed, according to the Minerals Management Service (MMS).

El Nino once again is poised to put a damper on winter gas demand across the United States, the National Oceanic and Atmospheric Administration (NOAA) indicated in an update. NOAA said the El Nino influence will be weaker than the very strong 1997-98 version, but will still impact temperature and precipitation patterns. Above normal temperatures are expected across the northern tier of the nation from October through March. NOAA showed no probabilities of below normal temperatures anywhere in the country.

After estimating last month that total Canadian natural gas production would fall or rise by year-end within a margin of -1% or +1%, Lehman Brothers analysts scuttled those predictions and now forecast a “worst-case scenario,” which drops annual production by at least 1% and as much as 3% over 2001. The loss compares to the 6% annual increase experienced in 2001, and is attributed to the striking falloff in production at the once prolific Ladyfern discovery.

El Nino once again is poised to put a damper on winter gas demand across the United States, the National Oceanic and Atmospheric Administration (NOAA) indicated in an update. NOAA said the El Nino influence will be weaker than the very strong 1997-98 version, but will still impact temperature and precipitation patterns. Above normal temperatures are expected across the northern tier of the nation from October through March. NOAA showed no probabilities of below normal temperatures anywhere in the country.

After estimating last month that total Canadian natural gas production would fall or rise by year-end within a margin of -1% or +1%, Lehman Brothers analysts scuttled those predictions and now forecast a “worst-case scenario,” which drops annual production by at least 1% and as much as 3% over 2001. The loss compares to the 6% annual increase experienced in 2001, and is attributed to the striking falloff in production at the once prolific Ladyfern discovery.

The FERC-ordered plan to convert all transportation on El Paso Natural Gas to contract demand (CD) service by the end of the year “has to a large extent been whipsawed” by the fierce tug-of-war for capacity being waged between existing full-requirements (FR) customers and California CD customers, the pipeline told the Commission last week.

The FERC-ordered plan to convert all transportation on El Paso Natural Gas to contract demand (CD) service by the end of the year “has to a large extent been whipsawed” by the fierce tug-of-war for capacity being waged between existing full-requirements (FR) customers and California CD customers, the pipeline told the Commission.