Predicts

The Energy Information Administration (EIA) in its Short-Term Energy Outlook for June predicts that natural gas consumption for the year will rise 4%, while overall domestic production will be nearly flat, causing prices to inch upward. At the same time the agency expects hurricanes in the Gulf of Mexico will cause little disruption in the supply/demand balance.

The Energy Information Administration (EIA) in its Short-Term Energy Outlook for June predicts that natural gas consumption for the year will rise 4%, while overall domestic production will be nearly flat.

U.S. generation capacity additions in 2005 totaled 17 GW, down 25% from 2004 and 75% from 2002, and FERC staff predicts additions of new capacity will fall again this year. In a presentation to the full Commission Thursday, Stephen Harvey, deputy director of FERC’s Office of Market Oversight and Investigations, said current plans indicate that additions in 2006 are likely to be roughly half the 2005 level.

The Natural Gas Supply Association’s (NGSA) latest winter outlook predicts that there will be no gas “shortages” for firm customers this winter despite supply concerns given the damage from two major hurricanes.

A new report by consultants at Boston-based Energy Security Analysis Inc. (ESAI) predicts that domestic gas production will grow by only about 0-2% per year over the next 10 years as new production largely offsets declining production from aging fields. As a result, domestic gas production could reach a peak around 2015.

Despite high oil and gas prices and a significant increase in drilling in recent years, a new report by Lehman Brothers predicts that independent producers are likely to follow the majors in reducing spending on North American exploration and production in future years. Not only have drilling returns been disappointing, but investors also are beginning to frown on large domestic drilling budgets.

Despite high oil and gas prices and a significant increase in drilling in recent years, a new report by Lehman Brothers predicts that independent producers are likely to follow the majors in reducing spending on North American exploration and production in future years. Not only have drilling returns been disappointing, but investors also are beginning to frown on large domestic drilling budgets.

For the next three months, seasonal forecaster WSI Corp. predicts temperatures that are cooler than normal in the Pacific Northwest, northern Rockies and northern and central Plains, with warmer than normal temperatures elsewhere. The three-month seasonal outlook, which references a standard 30-year norm between 1971-2000, was issued Aug. 24.

For the next three months, seasonal forecaster WSI Corp. predicts temperatures that are cooler than normal in the Pacific Northwest, northern Rockies and northern and central Plains, with warmer than normal temperatures elsewhere. The three-month seasonal outlook, which references a standard 30-year norm between 1971-2000, was issued Tuesday.