A 2003 bet of C$80-100 million (US$60-75 million) that TransCanada PipeLines’ entry will win the northern pipeline race is starting to make the nation’s top natural gas transporter nervous.
Optimism
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TransCanada’s Optimism on Northern Pipelines Begins to Fade
A 2003 bet of C$80 million to $100 million (US$60 million to $75 million) that TransCanada PipeLines’ entry will win the northern pipeline race is starting to make the nation’s top natural gas transporter nervous.
Analysts See Continued U.S. Gas Supply Decline; Optimism in Canada
Given a trend of a 2%-2.5% a year decline in U.S. natural gas production and stable Canadian output, North American production overall appears “likely” to deteriorate at least 0.5-0.75 Bcf/d a year for the foreseeable future, according to a survey by Southwest Securities. Meanwhile, the latest rig counts suggest Canadian producers are getting a jump start on winter drilling.
Canadian Gas Drilling Picks Up on Confidence in Higher Prices
With optimism spreading that natural gas prices will stay firm, drilling is on the rise in western Canada, as producers set out to make supplies catch up to expanded export pipeline capacity. A barometer of field activity — periodic forecasts by a group in close touch, the Petroleum Services Association of Canada (PSAC) — has risen 5% as producers telegraph intentions for the forthcoming fall and winter drilling season with orders and contracts.
Natural Gas Competition Continues Uneven Growth
Despite the American Gas Association’s (AGA) optimism regarding the growth of natural gas competition within the United States, the Energy Information Administration (EIA) said that concerns about the high energy prices in 2000 and early 2001 and the crisis in California’s deregulated electricity market continue to slow the move toward increased competition in retail natural gas markets.
Major Support, Market Uncertainty Prompt Cautious Bullish Optimism
After plumbing to a new 29-month prompt month low last week, natural gas futures finished on a neutral note Friday with a modest decline in the front month, contrasted by slight up-ticks in the out months. The October contract closed at $2.103, down 3.4 cents for the session, but off its new life-of-contract low notched Thursday at $2.03. Meanwhile, the 12-month strip posted its second-straight positive close, gaining 0.8 cents to $2.836.
ERCOT Optimistic on Meeting Electric Pilot Deadline
A spokesperson for the Electric Reliability Council of Texas Inc. (ERCOT) yesterday expressed optimism that ERCOT will be able to meet a Friday deadline to complete additional interactive testing with utilities and new market competitors before it begins operating as a single control area, which will in turn clear the way for a full ramp-up of the state’s deregulation pilot. But ERCOT’s Heather Tindall also refused to rule out further delays if the council determines that its systems are not up to snuff by the time the latest deadline rolls around July 20.
New Generation Starts Up in CA; Others Drop Out
Although California officials were gaining optimism from new electric generation plants finally coming on line last week and others expected to come on line in the next two weeks, there were signs that the electron rush of the past few years may peter out if the current uncertainties surrounding the state’s electricity markets continue to fester.
New Generation Starts Up in CA; Others Drop Out
Although California officials are gaining optimism from new electric generation plants finally coming on line today and in the next two weeks, there are signs that the electron rush of the past few years may peter out if the current uncertainties surrounding the state’s electricity markets continue to fester.
Optimism Grows that Cooperation Will Lead to CA Solution
Participants report there is definitely light at the end of thewinding tunnel that has encapsulated California’s troubledelectricity market, but the question Wednesday was whether it wasthe result of a temporary power surge or light from the opening ofbroader, longer term solutions that include fixing the market,persistent supply shortages, beleaguered generators andcash-starved utilities.