Predicting

Producer, Consultant Disagree on Outlook

Producers predicting gloom and doom for gas supply based on 1997reserve replacement estimates are being way too pessimistic,according to Tom Woods, Ziff Energy Group vice president for U.S.gas services. He told attendees at GasMart/Power ’98 Wednesday inNew Orleans the reason gas prices have been so high is that themarket is spooked. “How much of what we are seeing is the substanceof what is occurring and how much of what we are seeing is reallythe form it is taking because of some change maybe in industrybooking practices? I would suggest to you that industry bookingpractices are beginning to resemble a more traditional inventoryapproach to life rather than the very long-term reserve toproduction ratios that we traditionally used to have in terms ofrecovery…”

May 7, 1998

AGA Predicting Strong 1997 Reserve Numbers

The American Gas Association(AGA) predicts additions to domesticproved gas reserves last year will come out between 96% and 120% ofproduction. “The indication of strong 1997 reserves replacementcomes at a time when long-term natural gas growth is expected toreach 30 Tcf by 2015,” said Chris McGill, director of gas supplyand statistics at AGA. “To meet the requirements of robust growthin gas markets, annual additions to gas reserves through drillingmust also remain strong, balancing new sources of natural gas withdomestic production each year.”

May 6, 1998
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