Growth

Deepwater field development worldwide is forecast to continue its strong growth through 2007, and in 2003, the most — $5.29 billion — will be spent in the U.S. Gulf of Mexico, according to global analysts Douglas-Westwood Ltd. Worldwide, development in the next five years likely will double, provided there are enough trained workers and enough profit for contractors.

Deepwater field development worldwide is forecast to continue its strong growth through 2007, and in 2003, the most — $5.29 billion — will be spent in the U.S. Gulf of Mexico, according to global analysts Douglas-Westwood Ltd. Worldwide, development in the next five years likely will double, provided there are enough trained workers and enough profit for contractors.

Western energy infrastructure is inadequate to handle the significant gas and power demand growth expected to occur over the next five years, according to a study released last week by the staff of the Federal Energy Regulatory Commission.

Although economic growth has resumed, the increase in corporate expenditures wasn’t great enough to stem the rising tide of credit-rating downgrades during the second quarter, said Moody’s Investors Service last week. In fact, it reported that credit-rating downgrades exceeded upgrades by a margin of 4.9-to-1 during the period, the highest ratio since the record 6.3-to-1 in the fourth quarter of 1990.

After a four-month setback, Canadian natural gas exports are back on the growth track that set 14 annual sales records until the “continental market” took a turn downward last winter. Exporters turned the corner in March, according to records kept on the trade with the United States by the National Energy Board.

In the face of restrained capital and wholesale power markets, Calpine Corp., the San Jose, CA-based power plant developer/operator, indicated early this month in financial announcements that its near-term strategy is to transition from an aggressive, highly leveraged developer to a more financially conservative power plant operator, but at the same time seek expansion of its energy trading business through an alliance with more credit-worthy partners.

Adding to the list of energy trading companies that have seen a sizeable jump in business since Enron Corp. filed for bankruptcy earlier this month, Sequent Energy Management, the wholesale marketing and supply arm of Atlanta-based AGL Resources Inc., said that its business volumes have risen nearly 300% since the energy giant announced Chapter 11.

Natural gas reserves in 2001 may have reached their highest level in 14 years, which reflects the growth in gas exploration, production and development efforts, according to a study released Tuesday by the American Gas Association (AGA).

After a 15-year run of unopposed growth, exporters of Canadian natural gas have a fight on their hands on the East Coast. The New Brunswick government, frustrated by industry rejection of a new pipeline for Atlantic and central Canadians, has appealed for federal intervention against dedication of supplies from offshore of Nova Scotia to the northeastern United States.