Grow

North America’s unquenchable thirst for natural gas could grow to 89 Bcf/d by 2015 (from about 59.4 Bcf/d last year), necessitating a push to expand existing liquefied natural gas (LNG) facilities and begin development of two northern natural gas pipelines, energy executives said in Houston last week.

North America’s unquenchable thirst for natural gas could grow to 89 Bcf/d by 2015 (from about 59.4 Bcf/d last year), necessitating a push to expand existing liquefied natural gas (LNG) facilities and begin development of two northern natural gas pipelines, energy executives said in Houston Wednesday.

XTO Energy Inc. expects to grow its natural gas-heavy production base about 12% more than last year, with more than half of its development budget directed to East Texas activities. Meanwhile, Magnum Hunter Resources Inc. raised its week-old fourth quarter forecast, calling the previous estimate too conservative. And for smaller independent Remington Oil & Gas Co., recent exploratory successes have convinced the company to add more to its capital budget.

XTO Energy Inc. said Monday it expects to grow its natural gas-heavy production base about 12% more than last year, with more than half of its development budget directed to East Texas activities. Meanwhile, Magnum Hunter Resources Inc. raised its week-old fourth quarter forecast, calling the previous estimate too conservative.

The post-Christmas cash market saw a mix of price movement that was largely weighted toward moderate declines. A few small upticks were scattered here and there, but a majority of points ranged from flat to down a little more than 20 cents (Northwest-Sumas).

As long as TXU Corp. can deleverage itself and lower its debt-to-capital ratio in a “fairly rapid fashion,” Standard & Poor’s Ratings Services (S&P) analyst Judith Waite believes the company shows strong support for an investment-grade rating.

Houston’s office space and unemployed energy professionals may grow if Williams Cos. decides to consolidate and move its Texas operations to its Tulsa headquarters. The company, which wants to trim at least $200 million more in costs a year, confirmed that consolidation and relocation discussions have begun, but no final decision has been announced.

After posting a negative open, natural gas futures rebounded strongly Tuesday to notch its fourth-straight higher close, as both speculative and commercial traders loaded up on long positions in anticipation of the formation of Tropical Storm Isidore in the Caribbean. As it turns out, that buying was enough to press prices to a new four-month high at $3.695. Slipping only slightly to close at $3.679, the October contract finished 24.9 cents above its earlier low and 17.2 cents above Monday’s settle. Estimated at 113,063, volume in the gas pit was extremely heavy.

When a portion of Mexico’s gas-rich Burgos Basin opens to foreign investment as expected later this year, the progress of investment and development will be a critical test case for both foreign industry and the Mexican government, according to the authors of a new research report by Cambridge Energy Research Associates (CERA).