However

New Orleans-based independent McMoRan Exploration Co. last week said its natural gas volumes in the first quarter surged 78% to 3.85 Bcf. However, the producer’s revenue growth was offset by higher production costs, which weighed on profits.

Natural gas volumes in the first quarter surged 78% to 3.85 Bcf for New Orleans-based independent McMoRan Exploration Co. However, revenue growth was offset by higher production costs.

The frenzy over gas-fired power generation is well off the boil as developers turn their attention to coal-fired and nuclear plants as well as renewables. However, the specter of carbon dioxide regulation casts doubt on coal-fired generation economics, potentially favoring alternatives, including gas.

The surplus of gas in storage this winter will serve as a significant safety net for gas markets if there are colder-than-normal temperatures. However, without the surplus, gas rationing might be required in the Northeast during a cold snap, according to FERC Commissioner Suedeen Kelly.

New Orleans-based Energy Partners Ltd. (EPL) terminated an agreement to buy Stone Energy Corp. on Thursday and is exploring other alternatives, including a sale. However, EPL continued to advise shareholders to reject a takeover bid by Australia’s Woodside Petroleum Ltd., calling it too low.

Hefty litigation costs and accounting adjustments pushed Williams Cos. to a loss in the second quarter. However, with natural gas production jumping 20% from a year ago to 786 MMcf/d and a strong performance from its midstream business, the Tulsa-based gas producer and distributor raised its profit and capital expenditure guidance through 2008.

Hefty litigation costs and accounting adjustments pushed Williams Cos. to a loss in the second quarter. However, with natural gas production jumping 20% from a year ago to 786 MMcf/d and a strong performance from its midstream business, the Tulsa-based gas producer and distributor raised its profit and capital expenditure guidance through 2008.

FERC took a “notable first step” last week when its issued its long-awaited policy statement on natural gas quality and interchangeability, but the agency still needs to provide the industry with more guidance on key issues, a producer coalition told the agency Wednesday.

ConocoPhillips on Friday boosted its capital budget by $3.6 billion for 2006 to $10.5 billion, with 63% allocated for exploration and production (E&P). Most of the E&P budget is focused on international projects; however, about $900 million is earmarked for developments in the Lower 48 and Latin America, while $800 million will be spent in Alaska and another $800 million in Canada.