Prospect

Although the prospect for new rains and a renewed snowpack are not that many weeks off, the Pacific Northwest last week continued to grapple with the second worst drought in the region’s history of water level recordings.

The prospect of the first significant voluntary production shut-ins in years is looming for the gas industry in about another month or so, according to an informal sampling of opinions among the trading community (“voluntary” means unrelated to a hurricane, pipeline maintenance or force majeure event). While a majority of sources fully expect to see such shut-ins beginning within a few weeks, it’s not a foregone conclusion, said a few dissenters.

The prospect of a 67.5% increase in gas demand in the state of New York over the next five years has the New York State Energy Research and Development Authority (NYSERDA) and the New York Independent System Operator (NYISO) just a little concerned about a potential overload of the gas transportation system in the state.

The prospect of the first significant voluntary production shut-ins in years may be looming for the gas industry in about another month or so, according to an informal sampling of opinions among the trading community (“voluntary” means unrelated to a hurricane, pipeline maintenance or force majeure event). But although many sources fully expect to see such shut-ins beginning within a few weeks, it’s not a foregone conclusion, according to some dissenters.

With PanCanadian’s Deep Panuke prospect lined up on the supply end and new gas fired generation piling up in New England on the demand side, Maritimes & Northeast Pipeline said last week it is ready to move forward with its plans for a major expansion. The company expects to increase the capacity of its system to 1 Bcf/d and is holding an open season for its Phase IV expansion through Sept. 21.

With the prospect for record supplies in storage and an added almost 400 MMcf/d capacity increase in the south, California’s natural gas prospects are distinctly upbeat this summer, compared with a year ago, according to the California Energy Commission’s chief natural gas expert watching the industry in the West.

With the prospect for record supplies in storage and an added almost 400 MMcf/d capacity increase in the south, California’s natural gas prospects are distinctly upbeat this summer, compared with a year ago, according to the California Energy Commission’s chief natural gas expert watching the industry in the West.

Facing the prospect of Davis administration regulators sacking electric retail competition, an alliance of large and small interests Tuesday urged California officials to consider alternatives that do not require shutting down the last vestiges of its 1996 restructuring law permitting direct access contracts.

Citing the market’s jitters over strapped gas inventory levelsas it faces the prospect of a much colder winter this year, theEnergy Information Administration (EIA) last week projected thatwellhead prices will stay above the $5/Mcf mark throughout thiswinter, fueling price hikes of about 40% for residential gascustomers.