Research

The Department of Energy’s (DOE) proposed $88 million in budget cuts for energy efficiency research and development in fiscal 2005 marks a “retreat” from the agency’s prior commitment to tackle escalating natural gas prices, said the American Council for an Energy-Efficient Economy (ACEEE).

After decades as a research project, coalbed methane shows signs of spreading north and maturing into production on an industrial scale in Canada as natural-gas producers scramble at least to maintain current supplies.

After decades as a research project, coalbed methane shows signs of spreading north and maturing into production on an industrial scale in Canada as natural-gas producers scramble at least to maintain current supplies.

In the harshest criticism yet of FERC staff’s final report on Price Manipulation in the Western Markets, Cambridge Energy Research Associates (CERA) said the report “fails to substantiate and support its major premises, conclusions and recommendations,” and could lead the nation “into scarcities and disruptions” (see NGI, March 31).

In the harshest criticism yet of FERC staff’s final report on Price Manipulation in the Western Markets, Cambridge Energy Research Associates (CERA) said the report “fails to substantiate and support its major premises, conclusions and recommendations,” and could lead the nation “into scarcities and disruptions” (see Daily GPI, March 27).

Consultants at Cambridge Energy Research Associates (CERA) are convinced that natural gas production in North America is poised to enter a long-term decline and that imports of liquefied natural gas (LNG) will have to make up the supply gap. But Tom Wood, gas production expert at the Energy Information Administration (EIA), isn’t buying it. Wood said the gas resource is still there, but producers simply have chosen to drill overseas in the short-term.

Consultants at Cambridge Energy Research Associates (CERA) are convinced that natural gas production in North America is poised to enter a long-term decline and that imports of liquefied natural gas (LNG) will have to make up the supply gap. But Tom Wood, gas production expert at the Energy Information Administration (EIA) isn’t buying it. Wood said the gas resource is still there, but producers simply have chosen to drill overseas in the short-term.

Merrill Lynch said in an equity research note that at least 7,000 MW of nearly built power generation has been canceled. In fact, of the 7,000 MW, nearly 75% was more than 20% completed. Another 5,800 MW of already completed plants has been mothballed, and an additional 25,000 MW of proposed generation has been taken off the drawing board.

Morgan Stanley initiated research coverage of Dynegy Wednesday with an “equal weight” rating and a 12-month stock price target of $15. Dynegy shares, it said, have the potential to ratchet up or down in the short term. “At $9 we see $2 to $3 of downside, with $6 to $7 of upside. If Dynegy survives, as we expect it to, the return to investors should be exceptional, in our view.”