production

With hurricane-related shut-ins damping down nearly 7% of the Gulf of Mexico’s yearly natural gas production, liquefied natural gas (LNG) may be a “supply of last resort” for the coming winter heating season, according to an analysis by Cambridge Energy Research Associates (CERA). However, additional LNG imports may not be available because of global competition, the Massachusetts-based consultant reported.

As it moves toward a pure play exploration and production company, Kerr-McGee Corp. plans to separate its chemicals business through an initial public offering (IPO) in the fourth quarter.

As a result of further investigations at individual production platforms, Trunkline said Thursday it has added receipt points to a list of those unavailable for nomination due to operational issues on the particular platform (see bulletin board for details). As these issues are resolved, the points will be removed from the list, it said. Field personnel have partially completed pressure testing of the line east of Trunkline’s T-25 platform at Ship Shoal 139. The remaining sections to be testted are the legs east of T-22 at South Timbalier 175 and the 319B-4400 line between T-21 and T-22. All other Terrebonne System sections have sucessfully passed the pressure tests, Trunkline said.

After disrupting and shutting in Gulf of Mexico oil and natural gas production areas, Hurricane Katrina continues to make her impact felt in both physical destruction of property and technical hang-ups in energy markets. The delivery committee of the New York Mercantile Exchange Inc. (NYMEX) convened Monday morning to review deliveries in progress related to the NYMEX Division natural gas futures contract for August 2005.

While the development of Tropical Storm Katrina scared natural gas futures on Wednesday above $10 on concerns over Gulf of Mexico production, one weather forecasting company warned that the industry might be getting a little ahead of itself.

Chesapeake Energy reported a 99% increase in second quarter net income to $163.8 million, or $1.71/share, from $97.2 million, or $1.12/share. The company’s production rose 31% to 1,244 MMcf/d, 89% of which is natural gas. Its average realized gas price rose to $5.95 from $4.87Mcf in 2Q2004. Chesapeake’s proved reserves reached 5.9 Tcfe, with 948 Bcfe added in the first half of the year. The company’s reserve replacement equaled 535% at a drilling and acquisition cost of $1.49/Mcfe.

Sempra LNG on Monday said it signed a 20-year deal to provide Italy’s Eni S.p.A, a world leader in oil and gas production, with approximately 40% of the 1.5 Bcf/d capacity to be created by Sempra LNG’s Cameron liquefied natural gas (LNG) terminal now under development near Lake Charles, LA.

In its continuing effort to pare down debt and shore up its domestic exploration and production program, El Paso Corp. on Monday announced that it has agreed to sell almost all of the rest of its Asian power assets to a subsidiary of Globeleq Ltd. for $109 million.

Canadian natural gas exports continue to defy conventional wisdom by growing instead of living up to consensus forecasts of production tapering off in aging fields, trade records kept by the U.S. Department of Energy show.