Region

The Minerals Management Service (MMS) Gulf of Mexico OCS Region on Wednesday introduced an online oil and gas public information database to allow viewing and downloading of public documents on the industry. Available documents will include Well Summary Reports, Sundry Notices, Applications for Permit to Drill, Plans, Pipeline Rights-of-Way Files and Suspensions of Production and Operations.

Severely depressed basis spreads in the Rocky Mountain region “scream the message of shut-in gas,” yet very few pipeline expansions have been put in place to solve the problem, noted energy consultant Mary Menino of Energy Security Analysis Inc. She predicts that export constraints will continue to plague the Rockies market as long as power generators and producers are unwilling or unable to sign firm agreements for pipeline transportation capacity on expansion projects.

Gas storage development in the Gulf Coast region has reached a feverish pace, with multiple new projects planned in Mississippi and Louisiana to serve strong power generation and traditional demand growth in the Southeast and other regions. Gulf South Pipeline announced plans Tuesday to join the frenzy with its proposed Magnolia Gas Storage project, which will be located near Napoleonville, LA.

Strong cash price advances continued Tuesday, but there were signs that this week’s bull market may have just about run its course. The futures screen stayed positive for a while in the morning, but then later settled for a 12.6-cent loss that took it back to exactly where it had ended regular trading Friday. And unlike the previous couple of trading days where late quotes had moved sharply higher, cash prices were coming back off again near deadline Tuesday.

New England natural gas officials and key distributors predict that the region will have ample gas supplies to meet this winter’s heating demand, even if the existing embargo on liquefied natural gas (LNG) tankers into Boston Harbor should remain in effect for a prolonged period.

EOG Resources has started to curtail natural gas production in the Gulf Coast region of Texas and Louisiana because of low gas prices. The company said it is reducing compression at some of its fields to decrease wellhead flows by up to 75 MMcf/d over the next couple months. It plans to reevaluate the market situation this winter before continuing the curtailments into 2002.

EOG Resources has started to curtail natural gas production in the Gulf Coast region of Texas and Louisiana because of low gas prices. The company said it is reducing compression at some of its fields to decrease wellhead flows by up to 75 MMcf/d over the next couple months. It plans to reevaluate the market situation this winter before continuing the curtailments into 2002.

Cabot Oil & Gas Corp. completed its $230 million purchased of Cody Co., the parent company of Cody Energy LLC, doubling its reserves in the Gulf Coast region (see Daily GPI, June 22). Cabot paid Cody shareholders $181 million in cash and two million shares of its common stock with a value per the agreement of $24.497 per share.

Looking to enhance its ability to ensure competitive and efficient wholesale electric power markets in the New England region, ISO New England Inc. last Wednesday unveiled a series of actions that the ISO said will allow it to more effectively identify and deter market-detrimental behavior such as attempts to manipulate wholesale markets and drive up electricity prices.