Drive

While exports to the United States drive the expanding natural gas sector on Canada’s East Coast, it remains unclear whether there will be a domestic distribution grid in Nova Scotia. The Nova Scotia utility commission has set a deadline of Jan. 14, 2002, to receive applications for a second run at building a gas distribution system in the province. A hearing has been called for Nov. 19 on issues raised by the withdrawal of Sempra Atlantic Gas from the project, including what to do with C$50 million (US$30 million) in installations that the company was able to construct in the Halifax-Dartmouth area.

Louis Dreyfus Natural Gas Corp. Tuesday announced record financial results for the second quarter 2001, with net income of $47.8 million, or $1.07 per share, on revenues of $157.4 million. This compares to net income of $9.1 million, or $0.22 per share, on revenues of $88.0 million for the second quarter of 2000. Net income excluding the non- cash impact of SFAS 133 derivative accounting was $47.9 million, or $1.07 per share, for the second quarter of 2001 and $16.5 million, or $0.39 per share, for the second quarter of 2000.

Burlington Resources’ second quarter earnings spiked 145% to $231 million, or $1.10/share, while its discretionary cash flow grew 65% to $557 million on strong natural gas prices. During the quarter, the company’s gas production was basically flat at 1,945 MMcf/d. Oil production declined to 69,600 b/d from 79,300 b/d in 2Q2000. However, realized gas prices soared. Natural gas price realizations rose to $4.10/Mcf from only $2.75 in 2Q2000, while oil prices were only about a dime stronger at $24.92/bbl.

Burlington Resources’ second quarter earnings spiked 145% to $231 million, or $1.10/share, while its discretionary cash flow grew 65% to $557 million on strong natural gas prices. During the quarter, the company’s gas production was basically flat at 1,945 MMcf/d. Oil production declined to 69,600 b/d from 79,300 b/d in 2Q2000. However, realized gas prices soared. Natural gas price realizations rose to $4.10/Mcf from only $2.75 in 2Q2000, while oil prices were only about a dime stronger at $24.92/bbl.

Spot prices rebounded a quarter or more from weekend levels at most locations yesterday with many points exceeding bidweek levels in response to the futures increase on Nymex and some heating load in East Texas and California.

Every region of the United States this year “will likely beshort generating capacity,” which will drive margins and fuelprofits higher for generators, according to a report by DeutscheBanc Alex. Brown energy analyst Jay Dobson.

Smaller producers were the driving force behind a 1 Bcf/d increase in production during the fourth quarter of 2000 over the same period in 1999 according to Arlington, VA-based Energy and Environmental Analysis, Inc. (EEA). While many large producers reported smaller production results for the fourth quarter 2000 when compared to 1999, smaller companies were actually reporting increases.

Smaller producers were the driving force behind a 1 Bcf/dincrease in production during the fourth quarter of 2000 over thesame period in 1999 according to Arlington, VA-based Energy andEnvironmental Analysis, Inc. (EEA). While many large producersreported smaller production results for the fourth quarter 2000when compared to 1999, smaller companies were actually reportingincreases.

Tennessee Gas Pipeline contends its tariff limitation onupstream capacity releases “neither frustrates nor hinders” thedrive towards competition in the retail natural gas market inMassachusetts, as a small LDC has claimed.