Looks

After building itself a growing customer base, it looks like the U.S. natural gas industry may not be able to service it all if the economy picks up this year. If the gas-directed rig count ramps up to 1000 by the end of the year — averaging about 900 rigs through 2003 — then supply available in the U.S. will only be down about 2 Bcf/d from 2002 levels, EOG Chairman Mark Papa estimates. He believes drilling will pick up, but if active rigs don’t hit that level “then production is going to fall harder.”

After building itself a growing customer base, it looks like the U.S. natural gas industry may not be able to service it all if the economy picks up this year. If the gas-directed rig count ramps up to 1000 by the end of the year — averaging about 900 rigs through 2003 — then supply available in the U.S. will only be down about 2 Bcf/d from 2002 levels, EOG Chairman Mark Papa estimates. He believes drilling will pick up, but if active rigs don’t hit that level “then production is going to fall harder.”

Central Power & Light (CP&L) last Tuesday filed a plan of divestiture with the Public Utility Commission of Texas (PUCT) proposing to sell all of its power generation assets, which have a nameplate generation capacity of 4,241 MW and a net book value of just under $1.9 billion.

A whale of a natural-gas drilling target — estimated at up to 43.4 Tcf — is closer to coming into the sights of Canadian producers under a new energy policy announced Nov. 25 by the British Columbia government. B.C. Energy Minister Richard Neufeld served notice that the province is serious about attempting to lift a 30-year-old ban against drilling offshore of Canada’s West Coast.

A whale of a natural-gas drilling target — estimated at up to 43.4 Tcf — is closer to coming into the sights of Canadian producers under a new energy policy announced Nov. 25 by the British Columbia government. B.C. Energy Minister Richard Neufeld served notice that the province is serious about attempting to lift a 30-year-old ban against drilling offshore of Canada’s West Coast.

Gas production looks a little thin for the third quarter with 18 companies (22% of total U.S. production) so far reporting volumes (8,865 MMcf/d) down 0.3% from the second quarter and 7.3% from year-ago levels, according to statistics compiled by Thomas Driscoll of Lehman Brothers.

Gas production looks a little thin for the third quarter with 18 companies (22% of total U.S. production) so far reporting volumes (8,865 MMcf/d) down 0.3% from the second quarter and 7.3% from year-ago levels, according to statistics compiled by Thomas Driscoll of Lehman Brothers.

With an expectation that the Western Sedimentary Basin of Canada will continue as a key focus for natural gas exploration and development, Calgary-based EnCana Corp. announced Thursday it will construct a 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.

Centrica subsidiary Energy America said it is offering Georgia retail gas customers a new two-year fixed rate and $50 for switching. The deal is designed to boost Centrica’s presence in the Georgia market, where it currently has only 60,000 customers out of 1.4 million.