Security

Given the bearish forces in the natural gas market, Energy Security Analysis Inc. (ESAI) predicts that gas prices, which are hovering at about $2.40/Mcf for the February 2002 futures contract, will continue on a downward trajectory for the next six months, falling 30 to 50 cents more.

Despite the drop in natural gas prices, the global recession and energy security issues, Canadian and Alaskan officials — on the governing side anyway — remain optimistic that an Arctic natural gas pipeline is in the offing. But — and there are several buts — officials on both sides still have come to no agreement as to what route the pipe should take and whether there should be one pipe or two. About the only agreement that could be had at the Arctic Gas Symposium in Houston Thursday was that an over-the-top route across the Beaufort Sea may be out of the picture.

Despite the drop in natural gas prices, the global recession and energy security issues, Canadian and Alaskan officials — on the governing side anyway — remain optimistic that an Arctic natural gas pipeline is in the offing. But — and there are several buts — officials on both sides still have come to no agreement as to what route the pipe should take and whether there should be one pipe or two. About the only agreement that could be had at the Arctic Gas Symposium in Houston Thursday was that an over-the-top route across the Beaufort Sea may be out of the picture.