As shut-in Gulf production barely budged last week, gas industry number crunchers were just beginning to realize the magnitude of the gas supply problem that consumers will face this winter given the damage by Hurricanes Katrina and Rita. Forecasters are predicting that possibly more than 3 Bcf/d of gas production could remain shut in through December, which would put the cumulative total at nearly 500 Bcf of gas by the end of the year.
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Rockies Spikes Lead Overall Cash Price Uprising
The winter of 2002/03 doesn’t seem to realize its time is up. Snow and ice storms scattered from the central Plains through the Midwest and Northeast resulted in gains ranging from about a nickel to 45 cents in non-Rockies/San Juan Basin markets Monday, although a couple of scattered points barely eked out any increase at all.
Consultant: Wellhead Deliverability in Decline; Prices Poised for Large Increases
Natural gas wellhead deliverability is weaker than many observers realize, and the natural gas futures strip is undervalued, according to Kevin Petak, director at Arlington, VA-based consulting firm Energy and Environmental Analysis Inc. (EEA). Petak believes $5 Henry Hub gas prices will arrive very soon — most likely in January or February — and prices should average $5.35 next year.
Consultant: Wellhead Deliverability in Decline; Prices Poised for Large Increases
Natural gas wellhead deliverability is weaker than many observers realize and the natural gas futures strip is undervalued, according to Kevin Petak, director at Arlington, VA-based consulting firm Energy and Environmental Analysis Inc. (EEA).
Screen-Led Rally Is Expected to Be Short-Lived
Prices recorded gains at all points Thursday, with nearly all of them in double digits. Sources cited the previous afternoon’s run-up in energy futures as the chief price booster, since air conditioning demand remained on the relatively mild side for mid-summer in the key Midwest and Northeast market areas. Increases were remarkably consistent across the market spectrum; few were less than a dime, and a majority ranged between about a dime and a little more than 20 cents.
Screen-Led Rally Is Expected to Be Short-Lived
Prices recorded gains at all points Thursday, with nearly all of them in double digits. Sources cited the previous afternoon’s run-up in energy futures as the chief price booster, since air conditioning demand remained on the relatively mild side for mid-summer in the key Midwest and Northeast market areas. Increases were remarkably consistent across the market spectrum; few were less than a dime, and a majority ranged between about a dime and a little more than 20 cents.
Industry Brief
Cinergy Corp. yesterday said that it expects to realize 45% of its 2001 earnings per share target of $2.75 in the first half of the year and the remaining 55% in the latter half of 2001. “Having acquired 1,700 MW of gas-fired electric peaking capacity over the last 18 months, our energy merchant generation portfolio has changed and that is reflected in the timing of our expected profit realization during 2001,” said R. Foster Duncan, excecutive vice-president and CFO at Cinergy.
Plains Resources Contemplates Restructuring
In an effort to realize more value for its shareholders, PlainsResources has decided to evaluate strategic restructuringalternatives to help increase the value, and value-creating abilityof its upstream and midstream business segments.
Williams Seeks Breakup of Energy, Communications
In a move analysts predict will help both companies realizetheir full value, Williams has begun the first steps to separateits energy division from its communications businesses. The boardof directors of the Tulsa, OK-based company voted July 23 to beginthe process, which is expected to take about 18 months.
Williams Seeks Breakup of Energy, Communications
In a move analysts predict will help both companies realizetheir full value, Williams has begun the first steps to separateits energy division from its communications businesses. The boardof directors of the Tulsa, OK-based company voted Sunday to beginthe process, which is expected to take about 18 months.