Projection

The Energy Information Administration’s (EIA) projection that consumer natural gas bills will be 14% lower this winter heating season is “cold comfort” because gas costs have nearly doubled over the past five years, said the American Chemistry Council (ACC) Tuesday. The group also cautioned Congress against using the expected lower winter gas costs as an excuse to delay action on legislation to open more of the federal offshore to drilling.

Coming in about 15 Bcf over the industry consensus projection and well above historical figures, the Energy Information Administration (EIA) reported that 230 Bcf — heavily weighted to the East Region — was removed from underground storage for the week ended Jan. 21.

Management consulting firm R. W. Beck Inc. held with its previous projection on natural gas prices, and said Friday that in the second quarter it expects gas prices to average $5.37/MMBtu.

The Energy Information Administration’s (EIA) projection that domestic dry gas production rose by about 2% in 2003 appears to be “overly optimistic,” a top official with Anadarko Petroleum Corp. told a Senate panel last Thursday. If this turns out to be the case, it would be the second consecutive year that the agency has erred on the high side when estimating gas production in the U.S.

The Energy Information Administration’s (EIA) projection that domestic dry gas production rose by about 2% in 2003 appears to be “overly optimistic,” a top official with Anadarko Petroleum Corp. told a Senate panel Thursday. If this turns out to be the case, it would be the second consecutive year that the agency has erred on the high side when estimating gas production in the U.S.

The Energy Information Administration (EIA) issued an even more bullish first-quarter price projection for spot natural gas in its latest monthly outlook, ratcheting up expected prices by 6.9% to $4.45/Mcf over its December forecast of $4.16 for the quarter. This is 90% more ($2.11/Mcf) than the $2.34 average spot price for gas that was seen during the first quarter of last year.

The Energy Information Administration (EIA) issued an even more bullish first-quarter price projection for spot natural gas in its latest monthly outlook, ratcheting up expected prices by 6.9% to $4.45/Mcf over its December forecast of $4.16 for the quarter. This is 90% more ($2.11/Mcf) than the $2.34 average spot price for gas that was seen during the first quarter of last year.

The industrial customer will be the overall loser next year as lagging U.S. and Canadian natural gas production, increased exports to Mexico, increased power generation use and pressure to refill storage is expected to keep the natural gas market tight and prices high, according to a report by Simmons & Co. International.

The industrial customer will be the overall loser next year as lagging U.S. and Canadian natural gas production, increased exports to Mexico, increased power generation use and pressure to refill storage is expected to keep the natural gas market tight and prices high, according to a report by Simmons & Co. International.