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Mexico’s national oil company, Petroleos Mexicanos SA (Pemex), next year plans to offer more multiple service contracts, similar to one it did this year with a U.S. and Canadian company, to encourage more exploration and production in the country, Pemex Director General Raul Munoz Leos told analysts in New York City on Thursday. Munoz said that even though the Mexican constitution limits foreign investment in the country’s energy industry, he is confident that contracts could be written to improve investments by service companies and integrated energy companies.

Based on data from the first half of the year, Raymond James Energy projects a North American production increase of 3% or 2.25 Bcf/d for 2001, including 1.5 Bcf/d of U.S. production and 0.75 Bcf/d from Canada. Going forward, that’s not likely to be enough and “it is likely that a certain amount of gas demand will need to be removed from the market, thereby setting the stage for higher long-term gas prices.” This bears out the group’s projection for long-term gas prices of between $3.50 and $5.50/MMBtu.

FERC Chief Administrative Law Judge Curtis L. Wagner stunned his courtroom last week when he abruptly ended the affiliate-abuse phase of the hearing exploring charges against El Paso Natural Gas and affiliate El Paso Merchant Energy after attorneys refused to put El Paso Corp. Chairman William Wise and other top corporate executives on the stand to be questioned by California regulators.

FERC Chief Administrative Law Judge Curtis L. Wagner stunned his courtroom yesterday when he abruptly adjourned the affiliate-abuse phase of the hearing exploring charges against El Paso Natural Gas and affiliate El Paso Merchant Energy after the company refused to put El Paso Corp. Chairman William Wise and other top corporate executives on the stand to respond to questions from Wagner.

California Gov. Gray Davis said the the state’s $8.9 billion estimate for refunds owed to its electric customers isn’t negotiable, but he will to consider alternative forms of payment other than straight cash refunds, such as the re-negotiation of long-term power contracts.

Price caps are “much like steroids — they make you look good in the short term, but they kill you in the long run,” warned Rep. J.C. Watts of Oklahoma and chairman of the House Republican Conference during the Natural Gas Roundtable last week.

Price caps are “much like steroids — they make you look good in the short term, but they kill you in the long run,” warned Rep. J.C. Watts of Oklahoma and chairman of the House Republican Conference during the Natural Gas Roundtable yesterday.

With the tight gas supply and demand situation today, some power plants may find themselves stranded unless they’ve already locked up gas supplies — and some of the projected gas-fired generation projects could be delayed, Offshore Technology Conference attendees heard last week. Gas inventories and demand will be tight for two or three years, putting more pressure on the infrastructure to expand.

With the tight gas supply and demand situation today, some power plants may find themselves stranded unless they’ve already locked up gas supplies — and some of the projected gas-fired generation projects could be delayed, Offshore Technology Conference attendees heard this week. Gas inventories and demand will be tight for two or three years, putting more pressure on the infrastructure to expand.