Optimistic

An independent producer group last week was cautiously optimistic as the House and Senate budget panels moved their budget blueprints for fiscal year (FY) 2010, saying it appeared that Congress “was not going to rush to judgment” on President Obama’s proposed $30 billion in tax hikes for oil and natural gas producers.

Initial expectations of a rapid return of Gulf of Mexico (GOM) oil and gas production from the outages caused by hurricanes Gustav and Ike appeared to be overly optimistic by Wednesday, and both the cash and futures markets were firmer in response. And although substantial cooling load is still subpar for mid-September in most areas, some slightly premature heating load is arriving to displace it, especially in the Northeast.

Canadian natural gas exports are holding firm — and even managing to grow — despite persistent, widespread forecasts of decline for the northern supply mainstay on the “continental” natural gas market.

Canadian natural gas exports are holding firm — and even managing to grow — despite persistent, widespread forecasts of decline for the northern supply mainstay on the “continental” natural gas market.

Those who were expecting a flood of LNG imports into the United States last year were sorely disappointed, but the Energy Information Administration (EIA) is optimistic there will be a “substantial” LNG rebound this year and sustained growth thereafter. Not everyone shares EIA’s views, however. Some experts say the market will have to wait until late in 2008 before a noticeable influx of LNG occurs.

Key energy-friendly lawmakers are optimistic that the House will pass Tuesday the Senate’s more limited offshore drilling bill that would open parts of the eastern Gulf of Mexico to oil and gas producers. However, they warned that this would be just a first step, and that efforts already are under way to push for passage of a more expanded Outer Continental Shelf (OCS) drilling bill in the 110th Congress.

The Senate Commerce Committee on Thursday voted out a $353 million pipeline safety reauthorization bill to the Senate floor, but pipeline industry officials aren’t optimistic that legislation will clear both houses of Congress this year.

The Senate Commerce Committee last Thursday voted out a $353 million pipeline safety reauthorization bill to the Senate floor, but pipeline industry officials aren’t optimistic that legislation will clear both houses of Congress this year.

Kenneth Rice, former CEO of Enron Corp.’s broadband unit, testified Thursday that ex-boss Jeffrey Skilling wanted him to offer an optimistic forecast of his unit for the company’s board of directors in mid-2001 to mirror misleading statements Rice made to financial analysts earlier in the year. However, Rice, testifying at the trial of former Enron CEO Skilling and founder Kenneth Lay, never said Skilling lied to investors about the company’s health.