Lies

The deteriorating U.S. economy and uncertainty of what lies ahead have prompted fears of a huge reduction in natural gas demand. However, energy analysts are making the case for both bears and bulls in 2009.

The bears could be in for a great 2009 if the first natural gas storage withdrawal of the new year is any predictor of what lies ahead. The Energy Information Administration (EIA) reported Thursday morning that an anemic 47 Bcf was withdrawn from underground stores for the week ended Jan. 2, triggering a significant drop in February natural gas, which closed the regular session at $5.583, down 28.9 cents.

Amid the prolific output of gas shales, the lumpiness of liquefied natural gas (LNG) deliveries and the peakiness of gas-fired power generation demand lies the home of numerous high-deliverability gas storage projects coming on-line now and in the coming years. Storage developers in the Gulf Coast region are betting that their services will be in high demand as the market juggles the volatility of the emerging supply-demand landscape.

Amid the prolific output of gas shales, the lumpiness of liquefied natural gas (LNG) deliveries and the peakiness of gas-fired power generation demand lies the home of numerous high-deliverability gas storage projects coming on-line now and in the coming years. Storage developers in the Gulf Coast region are betting that their services will be in high demand as the market juggles the volatility of the emerging supply-demand landscape.

Royal Dutch/Shell Group reportedly came under the increasing scrutiny of federal prosecutors last week following the release of a long-awaited report that confirmed some top-level executives lied about the company’s reserves for nearly two years. The group, responding to the shocking findings in the report, cut its oil and natural gas reserves for the third time in as many months, and announced that Judith Boynton stepped down as chief financial officer.

The Senate Energy and Natural Resources Committee last Wednesday voted out the nomination of New Mexico attorney Suedeen G. Kelly for a seat on the Federal Energy Regulatory Commission, setting the stage for the full Senate to now act on her appointment and that of the Republican FERC nominee, Joseph T. Kelliher.

Sempra Energy shared its vision of the future with industryanalysts last week and said the key to earnings growth lies withunregulated businesses. The company’s goal of growing earnings pershare by 8 to 10% on a compound annual average basis over the nextfour years means it will be looking less and less like a utility.

Sempra Energy shared its vision of the future with industryanalysts last week saying the key to earnings growth lies withunregulated businesses. The company’s goal of growing earnings pershare by 8 to 10% on a compound annual average basis over the nextfour years means it will be looking less and less like a utility.

Growth lies ahead for the North American gas industry as do anumber of risks and challenges, according to the just released”North American Natural Gas Trends 2000,” a joint report of ArthurAndersen and Cambridge Energy Research Associates (CERA).