Lehman Brothers is estimating that 2004 U.S. natural gas supply declined 3.2% over 2003, with the 4.8% decline in production partly mitigated by an increase in Canadian and liquefied natural gas (LNG) imports. The estimates are based on a survey of producers responsible for about two-thirds of U.S. volumes.
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Shut Ins Due to Gulf Damage Sit at 2.3 Bcf/d All Week
Hurricance Ivan’s continuing impact on Gulf of Mexico infrastructure and production was at least partly to blame for the huge run up in natural gas prices last week. Crude oil futures shot to a record high of $50.47/bbl on Tuesday in response to unrest in Nigeria, the largest African oil-producing country, and that along with expectations of a lengthy supply outage in the Gulf from hurricane damage sent November gas futures soaring to a high of $7.23 on Wednesday.
NiSource Reverses Year-Ago Quarterly Losses on Warmer Weather
Favorable weather and lower interest rates helped natural gas distributor NiSource Inc. reverse year-ago quarterly losses. The Merrillville, IN-based company, which serves 3.7 million natural gas and electric customers from the Gulf Coast through the Midwest to New England, reported 3Q net income of $23.2 million (11 cents a share), compared with a net loss of $21 million (minus 10 cents) for the same period of 2001.
Dominion Resources’ Production Gains Offset Power Losses
First quarter earnings growth in Dominion Resources Inc.’s energy production unit helped to offset losses from lower power demand, the company reported last week, with operating earnings of $322 million ($1.20 a share) compared to $298 million ($1.20) for the same period of 2001. Dominion acknowledged earlier this month that gas hedges and the mild winter would cut into its earnings expectations, which Wall Street analysts had pegged a cent higher.
AGA Examines Strong Gas Reserve Growth Last Year
Gas reserves grew substantially in 2000 partly because of declines in production, but also because of a turnaround in drilling, according to a new report by the American Gas Association. The AGA report shows that based on the behavior of 30 large reserve holders examined, total domestic gas reserve additions are expected to be 24 Tcf or greater for 2000. Because only 19.2 Tcf is estimated to have been produced, reserves for 2000 are expected to have grown from 164.7 Tcf to more than 170 Tcf — the highest level of reserves since 1987, AGA said. Additions to gas reserves exceeded domestic production by at least 26% in 2000.
Enron Unit Buys Las Vegas Power Facility
Southwest Power LLC, an entity owned partly by Enron bought LasVegas Cogeneration LP and SUNCO Ltd. from The United Co. Las VegasCogeneration owns a 50 MW combined cycle power plant in North LasVegas. Designated as a qualifying facility under the PublicUtilities Regulatory Policy Act of 1978, the plant delivers powerunder contract to Nevada Power while SUNCO serves as the plant’sthermal host.
Poco Petroleums to Drill Hot Chevron Prospects
Thanks partly to decisions in the United States, Canadians areturning up the heat under hot drilling plays along the Albertafoothills of the Rocky Mountains and in northeastern BritishColumbia. Chevron Canada’s western exploration manager, LarryStewart, revealed in a session of financial analysts howAmerican-held hot prospects of filling expanding export pipelinesare being opened up to Canadian-owned firms.
Poco Petroleums to Drill Hot Chevron Prospects in Canada
Thanks partly to decisions in the United States, Canadians areturning up the heat under hot drilling plays along the Albertafoothills of the Rocky Mountains and in northeastern BritishColumbia. Chevron Canada’s western exploration manager, LarryStewart, revealed to a session of financial analysts howAmerican-held hot prospects of filling expanding export pipelinesare being opened up to Canadian-owned firms.