Glut

Independent exploration and production (E&P) companies remain under pressure in the near term from an ongoing natural gas supply glut, which will pinch cash flow and returns in 2010, Moody’s Investors Service said in its annual outlook on the industry.

Power generation and Alberta oilsands development are poised to make strong Canadian contributions toward reducing the natural gas supply glut, said the vice-chairman and a member of the National Energy Board (NEB).

Power generation and Alberta oilsands development are poised to make strong Canadian contributions toward reducing the natural gas supply glut, said the vice-chairman and a member of the National Energy Board (NEB).

Setbacks inflicted on Canadian exporters by the North American gas glut keep going from bad to worse, confirm the latest trade data compiled by the National Energy Board (NEB).

Setbacks inflicted on Canadian exporters by the North American gas glut keep going from bad to worse, confirm the latest trade data compiled by the National Energy Board (NEB).

If so much coal-fired power generation hadn’t been bowing out to make room for gas-fired plants so far this year, the current gas supply glut would be a lot worse, according to analysts at Barclays Capital. They conceded in a research note Tuesday that coal-fired generation displacement has been much greater than they had thought it would be.

Milder than normal weather for early June, futures weakness and continuing concerns about a glut of storage kept cash prices on a downhill run Wednesday. Double-digit declines occurred at all points for the second day in a row.

For most of the Midwest, regional oversupply and stagnant demand growth is expected to continue at least through 2007, according to a new regional power market forecast by Fitch Ratings.

Don’t let the high wholesale power prices seen in U.S. merchant power markets last year fool you. Those high power prices “by no means imply that there is a shortage of generation capacity,” Standard & Poor’s (S&P) said in a report issued Thursday.