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The upcoming natural gas supply/demand balance likely will continue to be “very tight” through the winter, and if the next few months prove to be colder than normal, gas prices could spike as high as $15-20/Mcf, Raymond James analysts said in the latest “Stat of the Week.”

Consumers are likely to see very little price relief next year, according to two industry prognosticators. Arlington, VA-based consulting firm Energy and Environmental Analysis Inc. (EEA) is predicting gas prices will average $9/MMBtu in 2006, while analysts at Raymond James & Associates say extremely bullish underlying fundamentals will keep prices between $9.50 and $10 next year.

Natural gas customers in the Southeast and the East Coast generally face “a very challenging dynamic,” in the wake of hurricane Katrina. “We have all our eggs in the Gulf Coast basket,” said AGL Resources CEO Paula Rosput Reynolds, who suggested Georgia has another coast with potential.

The exploration and production (E&P) sector will continue to benefit from “very favorable” industry fundaments as the year progresses because of two factors: strong earnings because of high commodity prices that have far outpaced service costs and “attractive” stock valuations, according to a report by Raymond James’ energy analysts.

Florida Gas Transmission allowed an Overage Alert Day notice that was issued Tuesday to lapse Wednesday.

Despite high natural gas prices, which in turn encouraged “very high” levels of drilling, production in Canada last year was flat, growing only 0.5% over 2003, according to Canada’s National Energy Board (NEB) in its 2004 Annual Report. The NEB said the numbers reflect the maturing state of exploration within the once prolific Western Canadian Sedimentary Basin.

The C$7 billion (US$5.6 billion) Mackenzie Gas Project has put out a message that discoveries have to be big — or very near its route — to qualify for connection to its proposed pipeline for Canadian arctic production.

The C$7 billion (US$5.6 billion) Mackenzie Gas Project has put out a message that discoveries have to be big – or else very near its route – to qualify for connection to its proposed pipeline for Canadian arctic production.

Despite high natural gas prices, which in turn encouraged “very high” levels of drilling, production in Canada last year was flat, growing only 0.5% over 2003, according to Canada’s National Energy Board (NEB) in its 2004 Annual Report. The NEB said the numbers reflect the maturing state of exploration within the once prolific Western Canadian Sedimentary Basin.