Slowdown

The continued slowdown in capital spending by U.S. producers will keep pushing natural gas production down at a rate of 1-1.5% per quarter “for the foreseeable future,” but the decline also will sustain higher gas prices, according to two investment analyst groups.

The continued slowdown in capital spending by U.S. producers will keep pushing natural gas production down at a rate of 1-1.5% per quarter “for the foreseeable future,” but the decline also will sustain higher gas prices, according to two investment analyst groups.

Despite the current nationwide economic slowdown, spending for the development and operation of power generation, transmission facilities and natural gas pipelines in the United States remains strong, according to ENSR International, a worldwide environmental and energy development services firm.

Energy merger and acquisition (M&A) activity in the United States and abroad could face a slowdown in the near term due to the economic and political uncertainty following the Sept. 11 terrorist strikes, according to a report by the Global Energy and Utilities group at PricewaterhouseCoopers.

Energy merger and acquisition (M&A) activity in the United States and abroad could face a slowdown in the near term due to the economic and political uncertainty in the wake of the Sept. 11 terrorist strikes, according to a report by the Global Energy and Utilities group at PricewaterhouseCoopers.

While some experts expect the economic slowdown to shave significant gas demand from the market this winter, Raymond James & Associates believes there will be a substantial shift toward greater year-over-year gas demand comparisons by mid-December. The investment bank said that high prices last winter drove about 8-10 Bcf/d of demand out of the market in the first quarter of 2001. At least half of that demand should be back by the first quarter of 2002, it said.

While some experts expect the economic slowdown to shave significant gas demand from the market this winter, Raymond James & Associates believes there will be a substantial shift toward greater year-over-year gas demand comparisons by mid-December. The investment bank said that high prices last winter drove about 8-10 Bcf/d of demand out of the market in the first quarter of 2001. At least half of that demand should be back by the first quarter of 2002, it said.

High natural gas prices, performance issues and higher thanexpected maintenance costs, a general economic slowdown and severalother key factors will combine to create a “near-term meltdown inthe gas turbine market,” according to a report by WEFA, Inc.

High natural gas prices, performance issues and higher thanexpected maintenance costs, a general economic slowdown and severalother key factors will combine to create a “near-term meltdown inthe gas turbine market,” according to a report by WEFA, Inc.