Pace

Despite some hints of moderating weather in a couple of areas, this week’s heat-based rally in the cash market continued Tuesday with some extra support from a dime-plus futures gain. A slight majority of points registered rises in the teens, but there was a big increase from Monday in the number of upticks between a nickel and a dime, indicating a slowdown of upward momentum.

The energy industry continues to struggle to develop enough natural gas storage capacity to keep pace with the growing U.S. market, and several new gas storage facilities will have to be added each year just to keep up, according to North American gas storage executives.

Gas development is accelerating in Canada, according to two government agencies that report healthy signs for reserves and production. In Alberta, still the source of about four-fifths of Canadian gas, production companies have nearly doubled their performance in the field. In 2000, a record 8,228 gas wells replaced 90% of the year’s production, the Alberta Energy and Utilities Board said in an annual review. In 1999, it took 6,015 wells to replace 56% of the province’s gas output.

Gas development is accelerating in Canada, according to two government agencies reporting healthy signs for reserves and production. In Alberta, still the source of about four-fifths of Canadian gas, production companies have nearly doubled their performance in the field. In 2000, a record 8,228 gas wells replaced 90% of the year’s production, the Alberta Energy and Utilities Board said in an annual review. In 1999, it took 6,015 wells to replace 56% of the province’s gas output.

Surpassing most expectations yet again, the weekly storage injection figure announced yesterday by the American Gas Association sent natural gas futures spiraling lower late in the session yesterday, pressing the expiring contract to fresh 13-month lows. With that selling pressure, July went off the board at $3.182, down 21.5 cents for the session and 62.8 cents below where it was when it began its tenure as prompt month on May 29.

The energy industry continues to struggle to develop enough natural gas storage capacity to keep pace with the growing U.S. market, and several new gas storage facilities will have to be added each year just to keep up, according to North American gas storage executives.

Mergers and acquisitions in the energy industry are continuing at a feverish pace as two more production companies announced that they have decided to tie the knot. Samson Canada, a privately held oil and natural gas company with operations in the United States, Canada, Russia and Venezuela, announced that it will make an offer to acquire all of the outstanding common shares of Courage Energy Inc. at a price of C$5.20/share in cash.

Mergers and acquisitions in the energy industry are continuing at the feverish pace set last year as two more production companies announced that they have decided to tie the knot. Samson Canada, a privately held oil and natural gas company with operations in the United States, Canada, Russia and Venezuela, announced on Monday that it will make an offer to acquire all of the outstanding common shares of Courage Energy Inc. at a price of C$5.20/share in cash.

The frenzied pace of pipeline expansion in the West clearly is not over yet. PG&E Gas Transmission Northwest (GTN) is planning another major expansion, potentially 500 MMcf/d, with a targeted in-service date of November 2003.