Predictions

In its latest energy forecast, the Energy Information Administration (EIA) slightly lowered its predictions for gas supply this year mainly due to expectations of lower imports. It marginally raised its gas demand forecast and added a penny/Mcf to its outlook for expected average wellhead prices this year, which are now at $2.79/Mcf compared to $4.12 last year.

Despite predictions from the Energy Information Administration (EIA) and energy industry analysts that gas production probably will be flat to slightly higher in the fourth quarter compared to the third quarter, analysts from Raymond James & Associates said a recent survey shows domestic natural gas production actually may be down 1.5-2% from the third quarter.

Despite predictions from the Energy Information Administration (EIA) and energy industry analysts that gas production probably will be flat to slightly higher in the fourth quarter compared to the third quarter, analysts from Raymond James & Associates said a recent survey shows domestic natural gas production actually may be down 1.5-2% from the third quarter.

Defying the predictions of political pundits, the Republican-led House yesterday passed landmark energy legislation that gives small producers multi-billion dollar tax breaks and lays the foundation for oil and natural gas exploration and production to begin in Alaska’s Arctic National Wildlife Refuge (ANWR) within the next decade. The House bill was a major victory for President Bush, who has backed drilling in ANWR as part of his national energy policy.

DTE Energy Co. clarified its 2001 earnings predictions on Friday to include restructuring impacts and goodwill amortization related to its recently completed merger with MCN Energy Group. Despite “significant variations in quarterly earnings” because Michigan’s electric restructuring and its acquisition of a seasonally-oriented gas business, it expects overall earnings to remain on track.

DTE Energy Co. clarified its 2001 earnings predictions on Friday to include restructuring impacts and goodwill amortization related to its recently completed merger with MCN Energy Group, saying it expected “significant variations in quarterly earnings” because of the suspension of fuel and purchased-power cost recovery as part of Michigan’s restructuring legislation in 2000, but expected earnings to remain on track.

In light of the dire predictions for the New York electricity market this summer, the Federal Energy Regulatory Commission has requested emergency clearance of a proposal to collect data from generators on “total or partial” outages, both planned and unplanned, in the state over the next few months.

In light of the dire predictions for the New York electricity market this summer, the Federal Energy Regulatory Commission has requested emergency clearance of a proposal to collect data from generators on “total or partial” outages, both planned and unplanned, in the state over the next few months.

Discounting recent short-term predictions for warmer weather,Salomon Smith Barney added another 75 cents to its gas priceforecast for this year. The prediction now totals $5/MMBtu at thewellhead or about $5.15 at the Henry Hub, but SSB still fears itmay be too low given the storage and gas production situation.