Impact

Diversity of supply adds up to security of supply, Tim Bullock, president of BP Gas and Power North America, told about 1,200 Rocky Mountain producers gathered in Denver last week. “We’re going to need all of it, all sources of supply, including Alaskan gas and LNG, if we’re going to keep the price of natural gas at a level that allows demand to continue to grow,” he said.

Diversity of supply adds up to security of supply, Tim Bullock, president of BP Gas and Power North America, told about 1,200 Rocky Mountain producers gathered in Denver Tuesday. “We’re going to need all of it, all sources of supply, including Alaskan gas and LNG, if we’re going to keep the price of natural gas at a level that allows demand to continue to grow,” he said.

Prices surprised more than a few traders Friday by staging a moderate rally in the face of weakening weather fundamentals and the industrial demand slump that accompanies a weekend period. A few scattered points were essentially flat, while increases ranged from as little as 2-3 cents to about a dime.

North American natural gas drilling is up 30% from the beginning of the year and is on course to reach its 2001 peak by the fourth quarter, Merrill Lynch said in a new report on the oilfield service sector. Canadian drilling activity, which often is a good indicator of upstream spending going forward, is heading for a near record level this year.

North American natural gas drilling is up 30% from the beginning of the year and is on course to reach its 2001 peak by the fourth quarter, Merrill Lynch said in a new report on the oilfield service sector. Canadian drilling activity, which often is a good indicator of upstream spending going forward, is heading for a near record level this year.

As Canada continues its own struggle to refill gas storage, the country’s southern neighbor is feeling the brunt of the impact in the form of severely reduced imports, according to Jefferies & Co. analyst Frank Bracken. For the first week of June, Canadian exports logged their lowest weekly level in six-years.

As Canada continues its own struggle to refill gas storage, the country’s southern neighbor is feeling the brunt of the impact in the form of severely reduced imports, according to Jefferies & Co. analyst Frank Bracken. For the first week of June, Canadian exports logged their lowest weekly level in six-years.

Nuclear and cyber attacks have the potential for the “greatest impact” on an energy firms’ operations and the general welfare of the public, according to a new Utilis Energy report. The Energy Infrastructure Security 2003 report is designed to point out vulnerabilities and offer recommendations on how to protect employees, assets, operations and the public. The report includes the following: information on security in the oil, gas and power sectors and methods to quantify risks; potential threats such as vulnerabilities from explosives and sabotage; the consideration of new, high-tech cyber threats and their potential to seriously harm a firm’s operations, including vulnerabilities and suggested fixes; the exploration of legal issues and constraints to energy infrastructure and security issues; and the nuclear energy sector due to the potentially catastrophic effects of an attack on atomic facilities. The report also provides human resource issues for creating and implementing policies relating to sabotage and bomb threats. It includes several case studies that address the costs and potential impacts of terrorist attacks, their possible effects on energy markets, staff and civilians. To obtain a copy of the report, visit www.utilisenergy.com.

After dropping to a new two-week low on the heels of another in a string of bearish storage figures (95 Bcf injection), the natural gas futures market rebounded vigorously Thursday as traders continued to take a bullish view on the technical outlook. On its first day as prompt contract at Nymex, July futures finished 5 cents higher $6.066.