Shortfall

The shortfall in funding for total energy infrastructure (electricity, natural gas, petroleum and other fuels) in Arizona is estimated to be a $109 billion issue, according to a report released last month by the Arizona Investment Council. The state faces “important and difficult decisions,” L. William Seidman Research Institute at Arizona State University’s business school wrote in the report.

FERC took a “notable first step” earlier this month when it issued its long-awaited policy statement on natural gas quality and interchangeability, but the agency still needs to provide the industry with more guidance on key policy issues, a producer coalition told the agency last Wednesday.

FERC took a “notable first step” last week when its issued its long-awaited policy statement on natural gas quality and interchangeability, but the agency still needs to provide the industry with more guidance on key issues, a producer coalition told the agency Wednesday.

Given an anticipated growth rate of 1.4% annually, the U.S.-Canadian natural gas market could experience a natural gas supply shortfall of about 6 Bcf/d in 2010 and up to 19 Bcf/d by 2020 absent significant contributions by imported liquefied natural gas (LNG), an official with ExxonMobil Gas & Power Marketing said Friday at NGI’s 19th annual GasMart conference in New Orleans.

Given an anticipated growth rate of 1.4% annually, the U.S.-Canadian natural gas market could experience a natural gas supply shortfall of about 6 Bcf/d in 2010 and up to 19 Bcf/d by 2020 absent significant contributions by imported liquefied natural gas (LNG), said an official with ExxonMobil Gas & Power Marketing Friday.

Chicago-based Peoples Energy said Wednesday it still expects to reach its profit target this year, but second quarter earnings will be down 15-20% from a year ago. Analysts had been forecasting a 10% decline in quarterly earnings.

Concluding that the current natural gas supply chain is “near the breaking point” despite abundant resources in the United States, the House task force on natural gas in a report Tuesday placed much of the blame for restricted supplies on the federal government for its conflicting policies that encourage gas consumption yet deny producers access to gas-rich federal lands.

Faced with a shortfall in natural gas supplies and ever-rising prices, Charles Schwab energy analyst Christine Tezak said she sees Washington possibly interfering in the gas markets over the next year by either capping prices or ordering supply rationing, particularly if market conditions take a turn for the worse.

The emerging first quarter reports show that overall, oil and natural gas production for many North American independents is setting a record pace. However, analysts looking at the deeper picture believe that while earnings are up and production may hit records, overall domestic production continues a slow slide, and no likely near-term solution is at the ready.