Economic

Spot natural gas prices are expected to remain in the range of $6.50/Mcf to $7/Mcf through the summer despite the high level of gas in storage, according to the Energy Information Administration’s (EIA) Short-Term Energy Outlook for June.

Acknowledging concerns about China’s global economic ambitions, the CEO of China National Offshore Oil Corp. (CNOOC) said Friday that the company was “fully prepared” to participate in a U.S. government security review of the unsolicited offer to buy Unocal Corp. for $18.5 billion cash. CEO Fu Chengyu also said CNOOC would discuss selling some Unocal pipeline and storage assets, and consider putting some assets not involved in exploration and production “under American management.”

Acknowledging concerns about China’s global economic ambitions, the CEO of China National Offshore Oil Corp. (CNOOC) said the unsolicited $18.5 billion cash offer for Unocal Corp. is “friendly,” and said he hopes it will lead to a “consensual transaction.” Meanwhile, financial analysts appear to believe that Chevron Corp., which already has an offer on the table for Unocal, will prevail.

Natural gas is the fastest growing primary energy source in the world and gas demand is projected to grow by 2.4% per year through 2020 as its share of worldwide energy use shoots up to 25% of the total from its current level of about 20%, said Scott Nauman, gas marketing manager for the Americas at ExxonMobil.

Canada’s increasing population, economic growth and increased use of electrical equipment will increase the demand for power nearly 40% in the next 20 years, according to a new report by the National Energy Board (NEB).

A ten-year snapshot of California’s natural gas future could re-touched or rendered out of focus in the months ahead, depending on more current residential/commercial demand data and whether or not the state’s sagging economy rebounds, according to one of the principal authors of the California Energy Commission’s (CEC’s) last staff gas assessment.

A ten-year snapshot of California’s natural gas future could re-touched or rendered out of focus in the months ahead, depending on more current residential/commercial demand data and whether or not the state’s sagging economy rebounds, according to one of the principal authors of the California Energy Commission’s (CEC’s) last staff gas assessment.

“If economic activity does not rebound and we have a warm winter, perhaps a price spike can be averted one more year, thanks to the storage overhang,” Peoples Energy Chairman Thomas Patrick predicted, but the overall trend is toward greater demand and declining supply.

“If economic activity does not rebound and we have a warm winter, perhaps a price spike can be averted one more year, thanks to the storage overhang,” Peoples Energy Chairman Thomas Patrick predicted, but the overall trend is toward greater demand and declining supply.