Revising

FERC has issued a proposed rule that seeks to improve the coordination between the natural gas and electric industries by revising the agency’s regulations governing the standards for business practices and electronic communications between the two sectors.

A month after revising its proven oil and natural gas reserves downward, Stone Energy Corp. said Wednesday it will restate financial results between 2001 and 2Q2005 because of possible lapses in reserves bookings. Stone, which expects to file amended reports by Monday (Nov. 14) said an independent review suggests “inadequate training and understanding” of regulatory requirements and “a tone of optimism and aggressiveness set by management regarding reserve booking.”

Revising their predictions on the eve of the official start to hurricane season, Colorado State University’s William M. Gray and Philip J. Klotzbach said the 2005 hurricane activity in the Atlantic Basin is now expected to be “well-above average,” an upgrade from their early April prediction for an “above-average” hurricane season (see NGI, April 4). Hurricane season officially runs from June 1 to November 20.

Revising their predictions on the eve of the official start to hurricane season, Colorado State University’s William M. Gray and Philip J. Klotzbach said the 2005 hurricane activity in the Atlantic Basin is now expected to be “well-above average,” an upgrade from their early April prediction for an “above-average” hurricane season. Hurricane season officially runs from June 1 to November 20.

With May natural gas futures prices comfortably trading above $7/MMBtu, some analysts and investment houses are revising some of their projections for the energy industry in 2005. Last week, analysts with Merrill Lynch released their latest commentary, in which they revised commodity price estimates as well as exploration and production (E&P) company earnings estimates.

With May natural gas futures prices comfortably trading above $7/MMBtu, some analyst and investment houses are revising some of their projections for the energy industry in 2005. On Tuesday, analysts with Merrill Lynch released their latest commentary, in which they revised commodity price estimates as well as exploration and production (E&P) company earnings estimates.

While revising its forecast for natural gas prices in 2005 upward, the R.W. Beck consulting firm still is keeping the target well under $6 at the Henry Hub despite average 2004 prices of $6.13/MMBtu, 30 cents above its forecast. The group moved its annual estimate for 2005 from $5.49 to $5.68/MMBtu.

While revising its forecast for natural gas prices in 2005 upward, the R.W. Beck consulting firm still is keeping the target well under $6 at the Henry Hub despite average 2004 prices of $6.13/MMBtu, 30 cents above its forecast. The group moved its annual estimate for 2005 from $5.49 to $5.68/MMBtu.

The net result of the Energy Information Administration (EIA) revising 16 weeks of previously released gas storage data using its new storage methodology last week was a net 93 Bcf increase in working gas levels from what was reported a week earlier. The EIA said storage now stands at 3,121 Bcf, or 82 Bcf more than the five-year average and only 51 Bcf less than last year.