Domestic

Domestic third-quarter natural gas production showed yet another sequential decline, and trends suggest gas prices may move up in 2003, energy analysts suggest. However, other analysts maintain a decline in gas prices is more likely because gas isn’t getting any support from higher oil prices, which may be more relevant.

Several initiatives to increase domestic natural gas and oil production are included in the Minerals Management Service (MMS) Final Notice of Sale for Western Gulf of Mexico Sale 184, scheduled for Aug. 21 in New Orleans. The Final Notice was published in Thursday’s Federal Register. Along with the incentives, MMS has included the new required provisions to protect certain endangered and threatened species. The sale will be the first one scheduled under MMS’s current five-year leasing program, which will run through 2007 (see NGI, April 19).

Several initiatives to increase domestic natural gas and oil production are included in the Minerals Management Service (MMS) Final Notice of Sale for Western Gulf of Mexico Sale 184, scheduled for Aug. 21 in New Orleans. The Final Notice was published in Thursday’s Federal Register. Along with the incentives, MMS has included the new required provisions to protect certain endangered and threatened species. The sale will be the first one scheduled under MMS’s current five-year leasing program, which will run through 2007 (see Daily GPI, April 18).

Several initiatives to increase domestic natural gas and oil production are included in the Minerals Management Service (MMS) Final Notice of Sale for Western Gulf of Mexico Sale 184, scheduled for Aug. 21 in New Orleans. The Final Notice was published in Thursday’s Federal Register. Along with the incentives, MMS has included the new required provisions to protect certain endangered and threatened species. The sale will be the first one scheduled under MMS’s current five-year leasing program, which will run through 2007 (see Daily GPI, April 18).

At their height a year ago, the domestic natural gas and electricity trading arms of energy companies across the United States employed between 12,000 and 15,000 in front-, middle- and back-offices, many making well above average college-educated salaries. There were nearly 4,000-5,000 sales and marketing professionals, another 6,000-7,000 accountants and analysts, and 2,000 to 3,000 specialists, focusing on transportation and certain contracts. Today, energy trading units are shrinking rapidly, but they won’t disappear, a veteran energy expert said last week. They can’t, he said.

Natural Gas Pipe Line Co. of America (NGPL) is the most cost-efficient gas pipeline to operate and maintain of the top 23 domestic pipes, according to a benchmarking study by Houston-based Lukens Energy Group. The study analyzed interstate pipeline companies and ranked them in terms of an operating and maintenance (O&M) cost-efficiency index on a scale of 0-10. NGPL, owned by Kinder Morgan Inc. (KMI), scored a 10.

Despite the 35% reduction in domestic drilling activity, drilling service costs have fallen only 15-20% so far because of consolidation in the industry. Today’s drilling and oil field service prices are 20-200% higher than during the same rig utilization in the last industry downturn, analysts at Raymond James & Associates said in an equity research note.

Despite the 35% reduction in domestic drilling activity, drilling service costs have fallen only 15-20% so far because of consolidation in the industry. Today’s drilling and oil field service prices are 20-200% higher than during the same rig utilization in the last industry downturn, analysts at Raymond James & Associates said in an equity research note.

There have been few surprises in domestic producers’ earnings reports for the fourth quarter and all of 2001. Despite record production in the first half– pushed during a high commodity price cycle — U.S. companies saw their fortunes fall along with commodity prices in the last half of the year, and they paid dearly for it in the fourth quarter. Apache Corp. reported Thursday that its fourth quarter earnings fell 70% compared to 2000, and leading independent Anadarko Petroleum Corp., which already had to restate its third quarter earnings to include a $1.1 billion charge, said Thursday its final quarter also saw a sharp earnings decline.