Domestic

Lehman Brothers Analyst Thomas Driscoll said in a third quarter update that domestic gas production from 34 companies that have reported (representing about 60% of total U.S. production) was down about 1.8% from the second quarter, which was nearly 2% below the analyst’s expectations. Production from the group was down 0.6% from the same quarter last year. However, Driscoll expects a slight rebound in the fourth and first quarters because of seasonal trends.

Lehman Brothers Analyst Thomas Driscoll said in a third quarter update that domestic gas production from 34 companies that have reported (representing about 60% of total U.S. production) is down about 1.8% from the second quarter, which was nearly 2% below the analyst’s expectations. Production from the group is down 0.6% from the same quarter last year. However, Driscoll expects a slight rebound in the fourth and first quarters because of seasonal trends.

The number of domestic natural gas wells drilled during the third quarter of this year rose a whopping 24%, while oil wells drilled climbed at a slower pace — 8%, according to the American Petroleum Institute’s (API) Quarterly Well Completion Report.

U.S. natural gas production and the nation’s vociferous demand could make it a little more dependent on imported gas if a recent long term forecast by a committee of the Independent Petroleum Association of America (IPAA) holds up. Natural gas demand is expected to increase to 30.7 Tcf by 2015, while U.S. production is only expected to get up to 24.8 Tcf over the same time period.

Making himself a domestic energy diplomat moving betweenmeetings in Washington, DC, and the West, Energy Secretary BillRichardson last week supported the need for a western regionalwholesale power price cap as he extended for another week hisearlier emergency order requiring generators and marketers to makepower available to the continuing tight California market to avoidthe threat of rolling blackouts. The order, which was first issuedon Dec. 14, expired Tuesday at midnight. The new order will remainin effect until Dec. 27, unless modified.

Following a four-year upswing in spending between 1995 and 1998,domestic oil and natural gas industry expenditures for drilling inthe U.S. fell 15.2% in 1999, the American Petroleum Institute (API)reported last week.

Following a four-year upswing in spending between 1995 and 1998,domestic oil and natural gas industry expenditures for drilling inthe U.S. fell 15.2% last year, the American Petroleum Institute(API) reported.

Further fueling concerns that there may not be enough domesticgas supply to meet a 30 Tcf demand market down the road, a newstudy warns the industry likely will face a shortage of productionpersonnel to explore and drill for natural gas if the current trendtowards consolidation, divestiture and downsizing continues.

Further fueling concerns that there may not be enough domesticgas supply to meet a 30 Tcf demand market down the road, a newstudy warns the industry likely will face a shortage of productionpersonnel to explore and drill for natural gas if the current trendtowards consolidation, divestiture and downsizing continues.