The U.S. chemical industry “feels overwhelmingly upbeat” these days in part because of abundant, low-cost natural gas supplies from shale resources, but operators need to prepare for a big transformation of their businesses before chemical supply outstrips demand, according to a new report by KPMG LLP.
Articles from Upbeat
General Electric views the future of energy globally as upbeat, citing several “positive trends in energy” in reporting a 58% hike in its operating earnings to $3.5 billion in the first quarter this year, compared to the same period in 2010. Both CEO Jeffrey Immelt and CFO Keith Sherin talked bullishly about GE’s various energy plays, particularly global turbine orders, during a conference call with financial analysts Thursday.
Amid generally upbeat financial results reported for the third quarter San Diego-based Sempra Energy divulged that its Liberty Gas Storage Project in Louisiana may have to be shelved if it can’t find an engineering solution to cavern development problems. Separately, cost increases and delays are plaguing two other major gas and power projects.
Amid generally upbeat financial results reported for the third quarter Monday (see related story), Sempra Energy divulged that its Liberty Gas Storage Project in Louisiana may have to be shelved if it can’t find an engineering solution to cavern development problems. Separately, cost increases and delays are plaguing two other major gas and power projects. CEO Don Felsinger said Liberty in a worst case scenario might have to be written off at about $65 million to cover Sempra’s share of the salt dome storage project.
Calling it a “positive milestone” in what is now a three-year permitting process, Sempra Energy’s San Diego Gas and Electric Co. (SDG&E) early in the new year reacted upbeat and confident that its proposed 150-mile, $1.3 billion high-voltage transmission project, Sunrise Powerlink, ultimately will be built. The utility insists it is the most “cost-effective and reliable” means of tapping large new renewable-produced electricity from neighboring Imperial County.
The PJM Interconnection LLC this month completed its third auction using the new Reliability Pricing Model (RMP) capacity construct, and while PJM officials are upbeat about the trio of results, critics argue that it will take more than a few auctions to determine whether the model is a success or a failure.
Prudential Equity Group has raised natural gas and oil price forecasts for this year and through 2005, and analysts also expressed enthusiasm for exploration and production companies in a new report. Merrill Lynch also warmed to integrated oil and natural gas producers, noting that the rally in commodity prices should encourage long-term investments.
An initial trio of first quarter earnings reports Wednesday from Western energy players were mixed, but mostly upbeat, with Las Vegas, NV-based Southwest Gas Corp. leading the positive news with a 56% jump in earnings. Minneapolis-based Xcel Energy reported increased earnings quarter-over-quarter, and Spokane, WA-based Avista Corp. saw first-quarter profits dip, compared to the same period in 2003, although its core utility business showed improved profits.