Offset

A steady increase in production from the burgeoning Haynesville Shale of northwestern Louisiana will be offset by moderating activity in other producing regions, significant midstream bottlenecks and a lower futures curve, making an imminent natural gas supply glut unlikely, according to MorningStar analyst Eric Chenoweth.

Pressured by the previous day’s 19.2-cent drop by July futures and with modest cooling load growth in parts of the Midwest and Northeast being offset to some degree by falling high temperatures in much of the South, cash prices softened at most locations Wednesday. More moderate weather forecasts for the end of June and early July also contributed to the overall bearishness in the physical market.

The Republican-crafted economic stimulus package that was approved by Congress last Thursday was stripped of tax credits for renewable energy and subsidies to offset the heating bills for low-income households.

November natural gas futures fell 15 cents Monday as traders wryly noted that the same strength in the petroleum markets that lifted natural gas 47.1 cents Oct. 15 was offset by weakness in the oil sector that worked to drag natural gas prices down a week later. In the short term, however, elevated petroleum prices are expected to limit the downside of natural gas futures. November natural gas fell 15 cents to settle at $6.891, and the December contract lost 19.9 cents to $7.529.

Spectra Energy, Duke Energy’s natural gas spin-off, is on target to spend more than a billion dollars on key growth projects this year, part of a three-year, $3 billion capital expenditure program designed to spur 5-7% annual earnings growth through 2009, CEO Fred J. Fowler said during the company’s first quarter earnings conference call last week.

Spectra Energy, Duke Energy’s natural gas spin-off, is on target to spend more than a billion dollars on key growth projects this year, part of a three-year, $3 billion capital expenditure program designed to spur 5-7% annual earnings growth through 2009, CEO Fred J. Fowler said during the company’s first quarter earnings conference call Tuesday.

Spectra Energy, Duke Energy’s natural gas spin-off, is on target to spend more than a billion dollars on key growth projects this year, part of a three-year, $3 billion capital expenditure program designed to spur 5-7% annual earnings growth through 2009, CEO Fred J. Fowler said during the company’s first quarter earnings conference call Tuesday.

Natural gas volumes in the first quarter surged 78% to 3.85 Bcf for New Orleans-based independent McMoRan Exploration Co. However, revenue growth was offset by higher production costs.

Oil production may peak around 2030, but the ensuing decline will be offset as high fuel costs accelerate the growth of other energy sources, most notably natural gas, UBS reported in a study released last week.