Projections

If current bullish projections for adding another 6 Tcf of gasdemand nationally over the next 10 years is going to become areality, the pace of merchant power plant development will have toaccelerate and the gas business will have to catch up with it,according to a Duke Energy executive speaking at GasMart/Power 2000yesterday in Denver. Brad Porlier, vice president for businessdevelopment at Duke Energy North America, said he’s unsure that thecurrent gas industry can meet the challenge, assuming merchantdevelopment can overcome a growing list of hurdles from siting topolitical issues.

Many market prognosticators have realized recently that theirgas price projections are quite a bit too low for the rest of theyear because of declining gas wellhead deliverability, a reducedstorage surplus relative to last year and ever increasing gasdemand. The Energy Information Administration joined that crowdlast week, raising its wellhead price forecast for the fourthquarter 25 cents to $2.41/Mcf.

Many market prognosticators have realized recently that theirgas price projections are quite a bit too low for the rest of theyear because of declining gas wellhead deliverability, a reducedstorage surplus relative to last year and ever increasing gasdemand. The Energy Information Administration joined that crowdyesterday, concluding its wellhead price forecast for the fourthquarter was 25 cents too low. It raised it to $2.41/Mcf in its MayShort Term Energy Outlook.