Increased

Due to warm winter weather in certain regions last month,increased fuel switching and industrial slowdowns, the countryconsumed 140 Bcf less natural gas than was anticipated in January,which led to much lower spot gas prices towards the end of themonth, according to the Energy Information Administration’s (EIA)Short-term Energy Outlook for February.

Getting in line with the rest of the country that has alreadypassed the increased costs of natural gas through to its customers,Consumers Energy of Michigan has begun warning its customers thatthe three-year price freeze imposed on its voluntary Gas CustomerChoice program instituted in April 1998, will come to an end inMarch 2001.

Due to warm winter weather in certain regions last month,increased fuel switching and industrial slowdowns, the countryconsumed 140 Bcf less natural gas than was anticipated in January,which led to much lower spot gas prices towards the end of themonth, according to the Energy Information Administration’s (EIA)Short-term Energy Outlook for February.

With the cry for increased natural gas production being heardacross the North America, it’s no wonder that exploration andproduction companies such as Calgary-based Talisman Energy areupping their capital expenditure programs to try and meet demand.The company announced last week it will boost its exploration anddevelopment budget by 44% over year 2000 levels to C$1.7 billion.

With the cry for increased natural gas production being heardacross the North America, it’s no wonder that exploration andproduction companies such as Calgary-based Talisman Energy areupping their capital expenditure programs to try and meet demand.The company announced yesterday that it will boost its explorationand development ÿbudget by 44% over year 2000 levels to C$1.7billion.

Building on increased Powder River Basin production, Fort Union Gas Gathering LLC has announced plans for a 200 MMcf/d expansion of capacity on its system.

Building on increased Powder River Basin production, Fort UnionGas Gathering LLC, has announced plans for a 200 MMcf/d expansionof capacity on its system.

Mitchell Energy announced that follow-up drilling in two TexasGulf coast exploratory plays has increased natural gas productionby 30 MMcf/d and oil production by 550 b/d. For November, thecompany’s overall daily production averaged 344 MMcf of gas and5,400 bbl of oil, excluding the effect of a two-day shutdown of itsBridgeport plant to complete connections that will increase theplant’s throughput capacity by 50% in late December. “Discovery ofthe Lower Wilcox and Lake Creek area wells is another example ofour ability to combine 3-D seismic technology with our extensiveknowledge in core field areas to add new reserves,” said CEO GeorgeP. Mitchell. “While the Barnett shale play in North Texas isclearly the driver for much of the company’s volume growth,drilling in our other core areas can also be quite attractive andadd significant production as well.”

FERC has approved a proposal by Tuscarora Gas Transmission toincrease its mainline capacity and construct a new lateral toprovide up to 10,000 Dth/d of FT for Sierra Pacific Power.