Sempra Energy’s San Diego Gas and Electric Co. (SDG&E) and the California Independent System Operator (CAISO) jointly released a positive outlook for summer energy supplies even with the continued outage of the 2,200 MW San Onofre Nuclear Generating Station (Songs). Earlier in the spring there were concerns about strained natural gas supplies and other energy infrastructure due to the absence of Songs’ baseload power in Southern California (see Daily GPI, May 7). Besides bringing back in service two mothballed natural gas-fired generation units along the Southern California coast at Huntington Beach, SDG&E’s high-voltage Sunrise Powerlink transmission line is expected to be in service soon, as well as a 230kV transmission loop in southern Orange County, Barre-Del Amo and Barre-Ellis No. 2 lines. SDG&E and CAISO still characterized this summer as “challenging” from a power supply perspective, noting that if the region experiences a prolonged heat wave, calls for conservation will be inevitable. More than 283 MW of new generation capacity came online the second half of 2011, and CAISO expects another 923 MW to be added this year by July 1, but most of its if renewable-based wind and solar projects that are intermittent and require backup from gas-fired and hydroelectric sources.
Outlook
Articles from Outlook
REX Ratings Cut on Marcellus/Utica Shale Cloud
Fitch Ratings last week cut the debt ratings on Rockies Express Pipeline LLC (REX) and revised its outlook on the pipeline’s debt to “negative” from “stable” due to pushback from Marcellus and Utica shale gas supplies, which have cut the value of long-haul transportation capacity on REX from the Rockies to the East.
Fitch Cuts REX Rating on Marcellus/Utica Shale Cloud
Fitch Ratings Tuesday cut ratings on Rockies Express Pipeline LLC (REX) and revised its outlook on the pipeline’s debt to “negative” from “stable” due to pushback from Marcellus and Utica shale gas supplies, which have cut the value of long-haul transportation capacity on REX from the Rockies to the East.
Trio of Marcellus Takeaway Projects Approved to Begin Construction
The outlook for takeaway capacity from the Marcellus Shale continued to brighten this week, with FERC approving three pipeline expansion projects — two requested by National Fuel Gas Supply Corp. and another by Texas Eastern Transmission — designed to feed Marcellus gas to Northeast markets.
Liquids Focus in Onshore, Offshore Gives E&Ps an Edge, Says Credit Suisse
Given the continued weak outlook for U.S. natural gas, explorers with exposure to high rates of return (ROR) in liquids-focused plays, both in the onshore, as well as the shallow waters of Gulf of Mexico’s Outer Continental Shelf, provide the best upside going forward, according to the energy team at Credit Suisse.
Oil, Gas Reshape U.S. Energy, Inspire Envy Abroad
The coming to prominence of natural gas and oil resource plays in the United States has reshaped the outlook for the country’s energy future and reconfigured the view for producers and capital markets as well, speakers at a Houston energy conference said last week.
Oil, Gas Lead U.S. Energy, Inspire Envy Abroad
The coming to prominence of natural gas and oil resource plays in the United States has reshaped the outlook for the country’s energy future and reconfigured the view for producers and capital markets as well, speakers at a Houston energy conference said.
Haynesville Gas Drilling Dries Up, Says Nabors
Thirty-two of the dry natural gas rigs operated by Nabors Industries Ltd. in the Haynesville Shale have been redeployed to liquids areas “and we expect more of the remaining 26 to be diverted” soon, CEO Tony Petrello said late Tuesday.
Shell to Focus on Liquids-Rich Assets, Leverage Gas
Royal Dutch Shell plc is joining its brethren in staking out liquids-rich shale development in North America while at the same time it works to leverage value from its extensive natural gas portfolio, executives said last week.
California Expects Abundant, Cheap Gas to Continue
Natural gas, bring it on! That captures the current outlook of California’s energy planners, who are counting on gas supplies to continue to be plentiful and low-priced in North America.
