Slack

With the federal government restricting access to traditional oil and natural gas plays, resources from emerging shale plays are picking up some of the slack, said the head of the American Petroleum Institute (API).

With the federal government restricting access to traditional oil and natural gas plays, resources from emerging shale plays are picking up some of the slack, said the head of the American Petroleum Institute (API).

As gas-fired plants take up the slack for a substantial amount of retiring coal-fired generation and gas producers are able to back off from drilling merely to hold production, gas prices will get a lift, Credit Suisse Commodity Research Director Teri Viswanath told NGI last week.

As gas-fired power plants take up the slack for substantial retiring coal-fired generation and gas producers are able to back off from drilling merely to hold production, gas prices will get a lift, Credit Suisse Commodity Research Director Teri Viswanath told NGI Tuesday.

Propelled by slack production and growing demand from the power generation market, Energy and Environmental Analysis Inc. (EEA) last week said it sees natural gas prices at the Henry Hub averaging near $6.20/MMBtu for the year, and believes there is a good possibility that prices will reach a “sustained” level of $7/MMBtu in 2005.

Propelled by slack production and growing demand from the power generation market, Energy and Environmental Analysis Inc. (EEA) said its sees natural gas prices at the Henry Hub averaging near $6.20/MMBtu for the year, and believes there is a good possibility that prices will reach a “sustained” level of $7/MMBtu in 2005.

As the output from many of the natural gas producing basins in the United States declines and energy players focus overseas, the industry remains short on answers as to how North America will continue to feed its voracious appetite for gas.

As the output from many of the natural gas producing basins in the United States declines and energy players focus overseas, the industry remains short on answers as to how North America will continue to feed its voracious appetite for gas.

Retail markets and the energy service sector aren’t dead by a long shot, despite perceptions by many energy industry observers to the contrary, according to a couple of industry participants in the West. Although its year-end 2002 financial report is still a month away, San Diego-based Sempra Energy’s retail energy services company is expecting to announce a year of solid growth, according to Bob Dickerman, president of Sempra Energy Solutions, who is unabashedly bullish on the retail sector.