Exporting

North America’s natural gas supply gains are undermining some of the major exporting countries, which could disrupt investments in new infrastructure projects, the chief economist of the International Energy Agency (IEA) said last week.

North America’s natural gas supply gains are undermining some of the major exporting countries, which could disrupt investments in new infrastructure projects, the chief economist of the International Energy Agency (IEA) said Tuesday.

BP plc and partner BHP Billiton Ltd. last week began exporting oil and natural gas from their long-delayed Atlantis project in the deepwater Gulf of Mexico (GOM).

BP plc and partner BHP Billiton Ltd. Tuesday began exporting oil and natural gas from their long-delayed Atlantis project in the deepwater Gulf of Mexico (GOM).

Ben Hollins, head of European gas and power consulting for Wood Mackenzie, said it is not unusual for the Gas Exporting Countries Forum (GECF) to form a committee to look at pricing. “As such, a study of pricing is not in itself inconsistent with the stated remit of the GECF. Nonetheless it begs the question to what extent a gas OPEC might be able to influence the future global gas market and its prices — a question which is addressed in our report.”

A large number of companies want to bring a lot of liquefied natural gas (LNG) to North America over the next few years. However, the reality is not a lot of projects will make it past the drawing board, and world LNG supplies are limited and in demand by other countries. Nevertheless, since its rebirth in the past few years, LNG is now being touted as the “next” energy commodity, the saviour for North America’s dwindling natural gas supplies and growing demand, and companies both large and small are getting in on the act.

In the past three months, the major pipelines exporting natural gas from Canada to the United States have begun to show significant declines in field receipts, and for the near term, Canadian gas production may mirror U.S. rates and could be peaking, according to energy analysts at Raymond James. In fact, analysts predict that Canada may have a difficult time increasing production next year to meet the incremental demand growth in the United States, “lending even more credence to our 2002 gas price forecast of $3.50.”

The recent rise in U.S. crude oil prices due to the announcedproduction cuts by the Organization of Petroleum ExportingCountries (OPEC) shouldn’t stop Congress from pursuing legislativereforms for domestic oil and natural gas producers, the head of anindependent producer association said yesterday.