Optimism

Although Canadian producers have been displaying theirtraditional optimism with expectations of steady growth in gasdeliverability and production, a new survey of 40 producers by theCanadian Energy Research Institute (CERI) shows that their capitalspending plans tell a different story.

Although Canadian producers have been displaying theirtraditional optimism with expectations of steady growth in gasdeliverability and production, a new survey of 40 producers by theCanadian Energy Research Institute (CERI) shows that their capitalspending plans tell a different story.

Canadian producers, inspired by optimism about continued growthin exports to the United States, have staked new claims on northernnatural gas drilling prospects and taken a step into Alaska. TenCalgary-based gas developers secured 2,950 square miles of resourcerights in the central Mackenzie Valley district of the NorthwestTerritories.

Increases of more than a nickel dominated the cash marketyesterday as strong demand and chilly weather in core populationareas mixed with a surging futures screen to produce bullishresults. While many traders were surprised to see prices at theircurrent levels, they also agreed that this bull run does not appearlikely to go away any time soon.

Storage overhang isn’t enough to temper the optimism of EnronOil &amp Gas Chairman Forrest Hoglund when it comes to the outlookfor gas this year and next. With demand expected to grow andproduction expected to fall – 3% according to Hoglund – on softdrilling activity, the coming months are shaping up to be good onesfor producers.

Storage overhang isn’t enough to temper the optimism of EnronOil & Gas Chairman Forrest Hoglund when it comes to the outlookfor gas this year and next. With demand expected to grow andproduction expected to fall – 3% by Hoglund’s count – on softdrilling activity, the coming months are shaping up to be good onesfor producers.