Leading

Deepwater field development worldwide is forecast to continue its strong growth through 2007, and in 2003, the most — $5.29 billion — will be spent in the U.S. Gulf of Mexico, according to global analysts Douglas-Westwood Ltd. Worldwide, development in the next five years likely will double, provided there are enough trained workers and enough profit for contractors.

Deepwater field development worldwide is forecast to continue its strong growth through 2007, and in 2003, the most — $5.29 billion — will be spent in the U.S. Gulf of Mexico, according to global analysts Douglas-Westwood Ltd. Worldwide, development in the next five years likely will double, provided there are enough trained workers and enough profit for contractors.

Andrew S. Fastow, the 40-year-old former CFO of Enron, was indicted Thursday on 78 counts that accuse him of leading the effort to conceal the company’s losses and debts, as well as inflate the former energy merchant’s trading profits. The indictment accuses Fastow of securities fraud and other criminal charges. Federal prosecutors previously had filed a criminal complaint, charging him with fraud, conspiracy and money laundering.

North America’s leading independent producer EnCana Corp. is on track to also become the largest independent gas storage owner and operator on the continent, after announcing plans Thursday to develop a new 40 Bcf natural gas storage facility in southeastern Alberta. The Countess development, once completed, is expected to increase EnCana’s Western Canadian gas storage by almost 40%, totaling approximately 135 Bcf. Once Countess is complete, EnCana will own and operate about 180 Bcf of gas storage capacity across North America, with facilities in Alberta, California and Oklahoma.

Rep. W.J. “Billy” Tauzin (R-LA), who is leading the effort to reconcile the Senate and House energy bills, said last Tuesday he expects congressional negotiators to issue a conference report on omnibus energy legislation within two weeks, but others — such as chief Senate negotiator, Sen. Jeff Bingaman (D-NM) — think the projection may be overly optimistic. Bingaman said while he hoped the conference report can be finished before Congress recesses next month, “I don’t want to be held to two weeks.”

Rep. W.J. “Billy” Tauzin (R-LA), who is leading the effort to reconcile the Senate and House energy bills, said Tuesday congressional negotiators expect to issue a conference report on omnibus energy legislation within two weeks. But the chief Senate negotiator, Sen. Jeff Bingaman (D-NM), said while he hoped the conference report can be finished before Congress recesses next month, “I don’t want to be held to two weeks.”

Gas prices will face upward pressure this winter despite high storage levels, according to the Natural Gas Supply Association, which represents the nation’s largest gas producers. The major factors contributing to the upward pressure include an improving economy, growing demand, particularly from gas-fired power generation, declining production, and a 23-27% drop in well completions.

Gas prices will face upward pressure this winter despite high storage levels, according to the Natural Gas Supply Association, which represents the nation’s largest gas producers. The major factors contributing to the upward pressure include an improving economy, growing demand, particularly from gas-fired power generation, declining production, and a 23-27% drop in well completions.

If the assessment of a leading industry observer is correct, natural gas prices have fallen to the point where the potential for upside price movement is sufficiently greater than the risk of further declines.