Overcome

Government support to develop renewable energy sources is paramount to overcome an irreversible decline in oil and natural gas reserves, according to a survey of energy executives by KPMG LLP.

Government support to develop renewable energy sources is paramount to overcome an irreversible decline in oil and natural gas reserves, according to a survey of energy executives by KPMG LLP.

TransCanada appears to have finally overcome its bad luck in getting towns to approve proposed liquefied natural gas (LNG) import terminals. However, it wasn’t exactly a landslide decision. After having LNG projects rejected by two towns in Maine last year, the company’s Cacouna Energy project, which TransCanada and partner Petro-Canada plan to build in Cacouna, PQ, squeaked by with a 57% approval by voters in a nearby Quebec village.

Oil and natural gas prices weren’t quite high enough to help El Paso Corp. overcome a significant production cut earlier this year, and the Houston-based company reported a significant third quarter loss last week. The company posted a loss of $214 million (minus 33 cents/share), compared with a profit of $24 million (4 cents) for the same period of 2003. Reported revenue for 3Q2004 was $1.43 billion, compared with $1.71 billion a year ago.

Oil and natural gas prices weren’t quite high enough to help El Paso overcome a significant production cut. The company posted a 3Q loss of $214 million (minus 33 cents/share), compared with a profit of $24 million (4 cents) for the same period of 2003. Reported revenue for 3Q2004 was $1.43 billion, compared with $1.71 billion a year ago.

Although hot weather fundamentals continued to get a little stronger Friday, they were unable to overcome the negative market influences of the usual slump in industrial load over a weekend combined with the previous day’s bearish storage report and large screen decline.

Steady buying in the last 30 minutes of trading was not enough to overcome a massive sell-off on the opening bell and the January natural gas futures contract was left with a 22.9 cent decline on its last day as prompt contract at Nymex Monday. At $6.15, January’s final resting place is almost equidistant between its $7.55 spike high from earlier in the month and the December 2003 contract’s $4.86 closing price.

Denver-based Tom Brown Inc. scored well earnings-wise in the second quarter, but production-wise, the independent’s natural gas numbers were off about 8% compared with a year ago. Oil and gas production overall this year is forecast to be down from 2002 levels, but recent drilling success in the Rocky Mountains and a new acquisition should result in 14% growth from the first quarter through the end of the year, management said Friday.

Higher oil and natural gas prices have not overcome market volatility enough to help energy companies improve their rates of investment through 2010, according to a new study by Cambridge Energy Research Associates (CERA).