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Importing liquefied natural gas is “one part of the solution” to help supply an expected natural gas shortfall of 8 Bcf/d by 2010, according to Houston researcher Industrial Information Resources Inc. (IIR). It noted that by the end of the decade, U.S. consumption will reach 30 Bcf/d, and LNG imports will play an “increasingly important role” to power new natural gas-fired plants now under construction.

Gas reserves grew substantially in 2000 with a little help from declining production and a big turnaround in drilling, according to a new report by the American Gas Association. The AGA report shows that based on the behavior of 30 large reserve holders examined, total domestic gas reserve additions are expected to be 24 Tcf or greater for 2000. Because only 19.2 Tcf is estimated to have been produced, reserves for 2000 are expected to have grown from 164.7 Tcf to more than 170 Tcf — the highest level of reserves since 1987, AGA said. Additions to gas reserves exceeded domestic production by at least 26% in 2000.

High commodity price have sent profits soaring for both major producers and independents. Number one major Exxon Mobil Corp. reported nearly double the profits from a year ago, and fourth-ranked Conoco Inc. also jumped. Independents EOG Resources Inc. and Houston Exploration Co., meanwhile, attributed record earnings to not only prices, but robust domestic gas production.

Several congressional lawmakers from California yesterdayrenewed their pleas for help from the Bush administration to endthe power crisis in their home state, with some urging a Housesubcommittee to direct FERC to install caps on wholesale power inthe short term while others suggested adjusting Daylight SavingsTime in the region to conserve power.

Rep. Tony Hall (D-OH) has introduced legislation to create anatural gas reserve to help stabilize the market during times oflow supply and high prices. The proposed reserve would be modeledafter the Strategic Petroleum Reserve (SPR) and the Northeast HomeHeating Oil reserve, the latter of which allows heating oilsupplies to be drawn down during times of tight supply.

Dow Hydrocarbons and Resources Inc. has renewed its contract touse Planalytic’s Weathernomics Gas Buyer to help manage natural gascosts. The Web-based tool is used for financial risk management tobuy and sell natural gas, suggesting specific buying actions toreduce risk presented by the weather in gas prices for up to oneyear into the future.

Rep. Tony Hall (D-OH) has introduced legislation to create anatural gas reserve to help stabilize the market during times oflow supply and high prices. The proposed reserve would be modeledafter the Strategic Petroleum Reserve (SPR) and the Northeast HomeHeating Oil reserve, the latter of which allows heating oilsupplies to be drawn down during times of tight supply.

“Hope” was the operative four-letter word in California last week if you had anything to do with the energy industry or government as Friday saw the previous day’s specter of rolling blackouts from razor-thin electricity reserves ease.

After halting its fourth quarter dividend and requestingemergency help from the state for gas purchases last week, PacificGas & Electric Co. revealed that it also will lay off 325employees immediately and another 675 over the next several monthsto save $180 million.