Load

Most of the increase in domestic onshore natural gas production last year came from some of the smallest producing, or marginal wells, according to a survey by the Interstate Oil and Gas Compact Commission (IOGCC). The survey, scheduled to be released later this month, was previewed Monday at the National Governors Association meeting.

Sources expect Tuesday’s generally mild softness to continue as air conditioning load recedes in the East and there is no near-term tropical storm threat to offshore Gulf of Mexico production. As if to reinforce their outlook, the energy futures complex experienced steep price dives Tuesday, with the August natural gas contract falling nearly a quarter and its crude oil counterpart plunging about $2 in expiration-day profit taking.

Relatively innocuous cold fronts trudging through the major market areas of the East weren’t enough to keep most points from turning south again. Prospects for waning weather-related demand as the week proceeds and weak energy futures caused the overall market to retreat by larger amounts Tuesday than it had advanced Monday, despite a few points recording flat to moderately higher numbers.

Market price projections and the advent of expanded native generation load have the Sacramento Municipal Utility District (SMUD) on the prowl for more of its own natural gas supplies, a muni official heading the effort said last week in an interview with NGI.

Market price projections and the advent of expanded native generation load have the Sacramento Municipal Utility District (SMUD) on the prowl for more of its own natural gas supplies, a muni official heading the effort said Tuesday in an interview with Power Market Today.

Industrial gas demand should be down by only about 1-1.5 Bcf/d (out of 22 Bcf/d) this summer — not the 20% drop some analysts predicted — and demand from power generators probably will fall by about 2 Bcf/d to a total for the sector of about 10.4 Bcf/d, according to energy consultants at Energy and Environmental Analysis Inc. (EEA). But those demand losses should be offset by the substantial increase in demand to refill storage inventories.

Industrial gas demand should be down by only about 1-1.5 Bcf/d (out of 22 Bcf/d) this summer — not the 20% drop some analysts predicted — and demand from power generators probably will fall by about 2 Bcf/d to a total for the sector of about 10.4 Bcf/d, according to energy consultants at Energy and Environmental Analysis Inc. (EEA). But those demand losses should be offset by the substantial increase in demand to refill storage inventories.

Beleaguered CMS Energy Corp. said Friday it will report a major loss for 2002 due to additional write-downs and has suspended payment of dividends indefinitely to bolster its liquidity position.

Focused on efforts to continue its debt load reduction, independent Magnum Hunter Resources Inc. on Thursday said that next month it plans to redeem $30 million of its outstanding 10% senior notes that won’t come due until 2007.