Producers’ upstream capital expenditures have nearly tripled in the past four years due to increased drilling activity and a significant hike in the costs for finding and developing resources, a top official of the Natural Gas Supply Association (NGSA) said Thursday. But despite their efforts and big bucks, domestic production remains flat.
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In passing up an authorized 6% rate hike for some of its customers to begin the new year, Southern California Edison Co. said its latest forecasts call for lower and stabilized wholesale natural gas costs, and that is the main driver in its assessment that its retail power rates will remain unchanged in 2007. Edison’s revenue/tariffs vice president, Akbar Jazayeri, outlined the utility’s assessment for Daily GPI in a brief interview Wednesday.
Chevron Corp., readying for its first major oil and natural gas production expansion in years, last week announced a 20% hike to its exploration and development spending for the coming year. In contrast, ConocoPhillips slashed its capital budget for 2007, and it warned that if service costs continue to escalate, its medium-term oil and natural gas production likely will be impacted.
The Connecticut Department of Public Utility Control (DPUC) on Wednesday approved, with modifications, an amended request for an 8.4% rate hike for Southern Connecticut Gas Co. (SGC) to begin Jan. 1. SGC serves about 170,000 customers in the Greater New Haven and Bridgeport areas of the state.
In the first third quarter earnings report by a major producer, BP plc on Tuesday reported a 34% hike in 3Q2005 net profit, but it blamed a 2% production loss on the devastating hurricanes that struck the Gulf of Mexico. In the storms’ aftermath, the London-based major warned that its deepwater Thunder Horse platform may not ramp up until the second half of 2006 — a year later than scheduled — and the producer cut its production forecast for 2005 by 100,000-200,000 boe/d.
New Jersey Natural Gas (NJNG), a subsidiary of New Jersey Resources, last Wednesday asked the state’s regulators for a 4.2% hike in the price for basic gas supply service (BGSS).
New Jersey Natural Gas (NJNG), a subsidiary of New Jersey Resources, on Wednesday asked the state’s regulators for a 4.2% hike in the price for basic gas supply service (BGSS).
Alliant Energy Corp. subsidiary Interstate Power and Light Co. (IP&L) said it will request a rate hike from the Iowa Utilities Board (IUB) in mid-April for its natural gas services in the state. The increase would recover the costs of improvements IP&L has made to its natural gas delivery system infrastructure in Iowa over the last three years.
After a one-day price hike, natural gas futures slid back down to early week levels Wednesday as traders chose to ignore a rally in crude oil and sided instead with bearish intermediate-term weather forecasts. The March contract closed at $6.109, down 6.6 cents for the session and well within the market’s recent $5.95-6.48 trading range. By comparison, March crude notched new three-week contract highs and settled at $48.33 per barrel, up $1.07 on the day.