Projected

With demand and corresponding infrastructure projected to grow steadily, the outlook for natural gas in the Pacific Northwest is fit and looking at a potentially bright future, according to the latest annual report from the Northwest Gas Association (NWGA). The “2010 Outlook” offers an assessment of demand, supply and capacity in the region through October 2019.

BP plc’s cost-cutting measures, implemented two years ago, are beginning to pay big dividends, the oil major said last week. Costs are projected to fall by $4 billion this year from 2008, which is $1 billion more than the producer forecast in June.

Citing “historically high storage inventory levels and projected high injection requirements for the upcoming weekend,” Southern Natural Gas said Friday it was implementing an OFO Type 6 for long imbalances Saturday until further notice (although it said in another notice that the OFO was unlikely to continue Monday). Tiered imbalance penalties were set for positive imbalances exceeding 2%, or 200 Dth, whichever was greater.

U.S. demand for fossil fuels — natural gas, oil and coal — will remain “exactly flat” to 2020, with only gas projected to grow at a rate of just 0.6% a year, according to a new report by McKinsey Global Institute (MGI).

California regulators Thursday approved modifications that Southern California Edison Co. (SCE) sought in its projected fuel costs for 2009 and specifically regarding the handling of tolling rights under the Sempra Energy utilities’ firm access rights (FAR) to its natural gas transmission pipeline system in the southern half of the state.

Raymond James & Associates Inc. last week once again cut its projected U.S. rig count, predicting a reduction of 41%, or 850, for 2009. However, even if 800 rigs are laid down, gas production shut-ins are likely next summer, analysts said.

Despite a negative outlook for the U.S. economy in which a 1.2% decline in gross domestic product (GDP) is projected for 2009, Fitch Ratings sees relative stability ahead for natural gas pipelines.

Despite a negative outlook for the U.S. economy in which a 1.2% decline in gross domestic product (GDP) is projected for 2009, Fitch Ratings sees relative stability ahead for natural gas pipelines.

Another producer that operates in the Gulf of Mexico (GOM) said Thursday that hurricanes Gustav and Ike cut into its projected 2008 oil and natural gas production forecasts. Meanwhile, the Minerals Management Service (MMS) reported that 56.4% of the GOM’s usual gas output of 7.4 Bcf/d still was shut in, which is a gain of less than 1% in 24 hours.