Exceeded

The actual cost to build the western leg of the Rockies Express Pipeline (REX-West) exceeded estimated costs by 20%, REX told the Federal Energy Regulatory Commission Monday.

Because Primary firm nomination requests through the Cisco Compressor Station have exceeded the available capacity of 276,000 Dth/d, Northwest notified shippers of a Declared Deficiency Period that began Tuesday. The station is undergoing a turbine changeout that reduces its capacity from the normal 359,000 Dth/d (see Daily GPI, March 4). Based on the design capacity of 359,000 Dth/d, the Daily Deficiency Volume is 83,000 Dth, Northwest said. The Declared Deficiency Period is expected to last through the end of Thursday’s gas day.

With a sharper focus on its North American operations, Devon Energy Corp. exceeded Wall Street forecasts, increasing its natural gas-directed production by 16% and upping its profits by 5.2% from a year ago.

With a sharper focus on its North American operations, Devon Energy Corp. exceeded Wall Street forecasts Wednesday, increasing its natural gas-directed production by 16% and upping its profits by 5.2% from a year ago.

Mixed price movement continued in the cash market Thursday, but unlike the day before when gains exceeded losses, this time declines were in the majority. Heating load is dwindling in northern market areas and so far there’s precious little cooling load developing across the southern U.S. to replace it. Atlanta temperatures were due to peak around 70 Friday.

Producers exceeded their initial exploration and production (E&P) spending plans this year in every region of the United States, resulting in a 38% jump in spending compared to levels in 2005, according to a survey by Citigroup analyst Geoff Kieburtz. Producers also overspent in Canada (15.6% growth) and overseas (24.2% growth), resulting in about 26.4% total spending growth compared to an initial expectation of 14.1% growth.

Producers exceeded their initial exploration and production (E&P) spending plans this year in every region of the United States, resulting in a 38% jump in spending compared to levels in 2005, according to a survey by Citigroup analyst Geoff Kieburtz. Producers also overspent in Canada (15.6% growth) and overseas (24.2% growth), resulting in about 26.4% total spending growth compared to an initial expectation of 14.1% growth.

Consulting firm Global Insight has exceeded many other forecasters in predicting that Henry Hub gas prices will average more than $12/MMBtu this winter (November-March) as a consequence of massive cumulative supply losses totaling 8% of U.S. gas supply during the fourth quarter due to damage from hurricanes Katrina and Rita.

Saying it has experienced declining linepack as a result of customer takes that exceeded their scheduled receipt volumes, particularly on its southern system, El Paso declared a Strained Operating Condition (SOC) with an imbalance threshold of 4% Tuesday. The Washington Ranch Storage facility has been operating at maximum withdrawal capacity recently and linepack continues to drop, the pipeline said. It added that the SOC applies to the smallest possible area of its system and includes the following parties with takes on the South Mainline: Arizona Public Service, Salt River Project, Duke Energy Arlington Valley and El Paso Electric (not affiliated with the pipeline). In an earlier posting Tuesday warning of the SOC possibility, El Paso urged shippers to match their demand requirements with current supplies and to schedule payback of existing imbalances to the pipeline, if possible. It also said shippers can obtain supplies at Waha where capacity is operationally available, and that limited amounts of capacity may be available at the Keystone pool and from San Juan Basin.