Impacted

After a quiet 2008, the U.S. liquefied natural gas (LNG) market could be significantly impacted by new imports in 2009 with about 2,868 Bcf of new LNG hitting global markets between November 2008 and December 2009, according to Houston-based consultancy Waterborne Energy Inc.

After a quiet 2008, the U.S. liquefied natural gas (LNG) market could be significantly impacted by new imports in 2009 with about 2,868 Bcf of new LNG hitting global markets between November 2008 and December 2009, according to Houston-based consultancy Waterborne Energy Inc.

Increasing global demand for energy and high prices have created a robust environment for oil and gas producers, but high prices have also driven up the cost of raw materials and impacted refining margins in the downstream sector, Ernst & Young said in a new report.

Increasing global demand for energy and high prices have created a robust environment for oil and gas producers, but high prices have also driven up the cost of raw materials and impacted refining margins in the downstream sector, according to Ernst & Young.

Oil and natural gas producers and drilling contractors were processing good and bad news as they continued evacuations and production shut-ins over the weekend ahead of Hurricane Dean’s arrival in the Gulf of Mexico (GOM). While the Category 4 hurricane was threatening to strengthen to Category 5 strength (155 mph-plus winds), a Bermuda high-pressure system was working to keep Dean on a mostly western track into Mexico, likely sparing most U.S. Gulf infrastructure and the Texas coast from direct hits.

NGPL reported a force majeure event that occurred Monday between Stations 106 and 196 in Gage County, NE, and impacted both of NGPL’s mainlines through the area. Due to heavy rains in the area, an ongoing maintenance project’s excavation has been flooded, NGPL said, and for safety reasons it immediately reduced the pressure and flows through the affected lines. In an update Tuesday, the pipeline said work is ongoing at the site to remove the water surrounding the pipelines, and inspections will take place once the water is removed. NGPL did not make any intraday scheduling reductions Monday, but said effective Tuesday until further notice, ITS/AOR and Secondary out-of-path transports through the area will not be available. Additionally, firm Primary and Secondary in-path transports are at risk of not being fully scheduled. See the bulletin board for further details.

Chevron Corp. late Tuesday warned that its 4Q2006 results will be adversely impacted by lower commodity prices and lower downstream margins. The second-largest U.S. major reported that in the first two months of the final quarter, U.S. liquids and natural gas production fell nearly 1% sequentially from 3Q2006, and international liquids and gas production was off more than 3%.

Gas production of Houston-based W&T Offshore Inc. was still impacted by the effects of Hurricane Katrina in the second quarter with volumes down from the year-ago period. Realized gas prices also were down in the second quarter from a year ago, but W&T made up for some of the gas weakness with increased oil production and much stronger realized prices for the liquid hydrocarbon.

Gas production of Houston-based W&T Offshore Inc. was still impacted by the effects of Hurricane Katrina in the second quarter with volumes down from the year-ago period. Realized gas prices also were down in the second quarter from a year ago, but W&T made up for some of the gas weakness with increased oil production and much stronger realized prices for the liquid hydrocarbon.