Shows

The industry’s hunt for natural gas has gone way beyond thesearch for oil and shows no signs of letting up. Gas directeddrilling has held a solid 80% of all U.S. drilling by rotary rigssince mid-July. And last week the number of rotary rigs drillingfor gas leaped to 609 from 579 the week prior, while total rigsrose to 750 from 721, the largest weekly gain since Nov. 28, 1997,according to Baker Hughes. Oil-directed drilling declined duringthe week by one rig to 139.

The industry’s hunt for natural gas has gone way beyond thesearch for oil and shows no signs of letting up. Gas directeddrilling has held a solid 80% of all U.S. drilling by rotary rigssince mid-July. And last week the number of rotary rigs drillingfor gas leaped to 609 from 579 the week prior, while total rigsrose to 750 from 721, the largest weekly gain since Nov. 28, 1997,according to Baker Hughes. Oil-directed drilling declined duringthe week by one rig to 139.

Canada’s National Energy Board has sent a message toparticipants in the international natural gas trade: Stay cool andgreet predictions of Canadian supply shortages with healthyskepticism.

A study of 10 of the largest U.S. natural gas pipelines showsthey can expect to collectively derive a total of $42.5 millionannually in savings from Gas Research Institute technologies over afour-year period from 1997 to 2000, GRI said.

New Jerseyites – by a margin of more than two-to-one – favorexpanding an existing natural gas pipeline to serve residents,according to a new public opinion poll that has been dropped intothe controversy over Williams-Transco’s proposed MarketLinkproject.

A preliminary look at the Canadian supply situation prior to thewinter heating season shows a greater amount of field gas availablethis year compared to last but less gas in storage and less gas onthe way, according to officials at TransCanada Pipelines.Meanwhile, market demand continues to be strong. The bottom line,said Al Jamal, manager of TransCanada’s Western CanadianSedimentary Basin Strategic Assessment, is “the supply-demandbalance is still tightening up” and will continue to do so given anormal or colder than normal winter and a continuation of flatdrilling activity.

A preliminary look at the Canadian supply situation prior to thewinter heating season shows a greater amount of field gas availablethis year compared to last, but less gas in storage and less gas onthe way, according to officials at TransCanada Pipelines.Meanwhile, market demand continues to be strong. The bottom line,said Al Jamal, manager of TransCanada’s Western CanadianSedimentary Basin Strategic Assessment, is “the supply-demandbalance is still tightening up” and will continue to do so given anormal or colder than normal winter and a continuation of flatdrilling activity.

Don’t put your duct tape and plywood away just yet. The lull inthe Atlantic hurricane season finally broke last week with TropicalStorm Bret and Tropical Depression Four throwing a one-two punch tothe gas market and triggering a more than 30-cent jump in NymexHenry Hub futures prices, which broke $3 early on Friday.Meanwhile, the National Oceanic and Atmospheric Administration(NOAA) and renowned Colorado State University forecaster Dr.William M. Gray both recently reiterated their predictions that thehurricane season will be a whopper despite the early lull.

For the first time in the last eight quarters, Chesapeake EnergyCorp. of Oklahoma City, OK, turned a profit. The improvement was inspite of decreased production.