Fallen

Natural gas production appears to have fallen slightly in the second quarter — dropping more than 8% from the same period a year ago, according to Lehman Brothers analyst Thomas Driscoll. A report issued Friday,on the quarterly results of 24 producers that account for 28% of the gas supplies in the Lower 48 has so far found a sequential decline from the first quarter of 0.6%, with gas volumes by the 24 totaling 11,391 MMcf/d.

A major new pipeline project to serve the California market has fallen by the wayside, the victim of lower demand, according to sponsors Kinder Morgan Energy Partners LP (KMP) and Calpine Corp. The two companies said they were dropping their $1.7 billion, 1,030 mile proposed pipeline that would have run from the San Juan Basin in New Mexico to Needles and Topock near the California border.

A major new pipeline project to serve the California market has fallen by the wayside, the victim of lower demand, according to sponsors Kinder Morgan Energy Partners LP (KMP) and Calpine Corp. The two companies said Friday they were dropping their $1.7 billion, 1,030 mile proposed pipeline that would have run from the San Juan Basin in New Mexico to Needles and Topock near the California border.

Lehman Brothers Analyst Thomas Driscoll said an “exhaustive analysis” of mergers and acquisitions among 47 large producers, who account for about 70% of domestic production, led him to conclude that production rose 1.5-1.6% over the past six months. A continuation of the first-half trends will lead to 3-3.5% year-to-year production growth by the end of the fourth quarter, Driscoll said. However, the significant decline in prices probably will have an impact on drilling in the second half of the year.

Atlanta’s natural gas utility holding company, AGL ResourcesInc., whose stock prices have fallen nearly 14% in the past year,said last week that cost cutting and more customers will pushthird-quarter profits ahead of analysts’ estimates. AGL wasexpected to earn 21 cents a share in the three months ending lastFriday (June 30), the average estimate of several analysts polledby First Call/Thomson Financial.

Atlanta’s natural gas utility holding company, AGL ResourcesInc., whose stock prices have fallen nearly 14% in the past year,said yesterday that cost cutting and more customers will pushthird-quarter profits ahead of analysts’ estimates. AGL wasexpected to earn 21 cents a share in the three months ending today,the average estimate of several analysts polled by FirstCall/Thomson Financial.

The first fruit has fallen from the new Canadian tree ofcompetition among natural gas transporters, as TransCanadaPipeLines prepares to auction spare capacity that is developing onits system.

The first fruit has fallen from the new Canadian tree ofcompetition among natural gas transporters, as TransCanadaPipeLines prepares to auction spare capacity that is developing onits system.

The Rocky Mountain Oil &amp Gas Association (RMOGA) has fallenprey to low commodity prices and industry belt-tightening justshort of its 80th anniversary. The trade group plans to shut itsdoors permanently June 1.