Inches

After 60 inches of snowfall so far this winter in the Denver area and sub-zero temperatures in eastern Utah and western Wyoming, Rockies producers have battled wellhead freeze-offs and snow removal in an effort to maintain production.

Taking another step toward reaching its production mix goal of 70% natural gas, Houston-based Mission Resources Corp. reported that the #1 Barry well in DeWitt County, TX has been completed and tested at a gross rate of 10.7 MMcf/d.

Taking another step toward reaching its production mix goal of 70% natural gas, Houston-based Mission Resources Corp. reported Tuesday that the #1 Barry well in DeWitt County, TX has been completed and tested at a gross rate of 10.7 MMcf/d.

After reaching the lowest levels since early March, the gas futures market got a boost last week from a smaller than expected storage injection and a downward revision to prior storage data on Thursday, which provided just enough steam for the September contract to end the week closer to its weekly high of $2.80 than Wednesday’s low of $2.64. However, September only managed to eke out a small 1.6-cent gain on Friday, ending the day at $2.761, just above its daily low of $2.755. Volume was light at 38,527, compared to 95,207 on Thursday.

The Alaska Highway natural gas pipeline project, which was on the fast track about a year ago as natural gas prices rose, got another boost on Thursday with the signing of a memorandum of understanding (MOU) between six major American energy companies and three Canadian firms. The companies plan to “immediately” develop a proposal to transport Alaska’s North Slope gas, with plans to deliver a proposal to North Slope producers within six weeks.

The Alaska Highway natural gas pipeline project, which was on the fast track about a year ago as natural gas prices rose, got another boost on Thursday with the signing of a memorandum of understanding (MOU) between six major American energy companies and three Canadian firms. The companies plan to “immediately” develop a proposal to transport Alaska’s North Slope gas, with plans to deliver a proposal to North Slope producers within six weeks.

PG&E Gas Transmission Northwest (GTN) already has started deliveries through a 21-mile section of its 2002 mainline expansion project, and is making significant progress on proposed future expansions. The new 21-mile pipe section put into service last Friday increases the company’s ability to deliver natural gas to western markets by 42,000 Dth/d a year earlier than expected and in time for the 2001 winter heating season.

Lehman Brothers Analyst Thomas Driscoll said an “exhaustive analysis” of mergers and acquisitions among 47 large producers, who account for about 70% of domestic production, led him to conclude that production rose 1.5-1.6% over the past six months. A continuation of the first-half trends will lead to 3-3.5% year-to-year production growth by the end of the fourth quarter, Driscoll said. However, the significant decline in prices probably will have an impact on drilling in the second half of the year.

Six inches of snow in New York wasn’t enough to convince futurestraders to resume the up-trend the American Gas Association storagereport so thoroughly wiped out last week. The April contract movedsharply lower for the third session in a row, closing down 4.2cents to $1.717. Shortly before the close, the contract broke belowwhat was deemed a key support level at $1.70 to post a low of$1.695 for the day. The $1.755 high was reached just after theopening bell.