Warns

The natural gas storage deficit compared to last year continuesto grow at an alarming rate, prompting Salomon Smith Barney (SSB)to warn yesterday of potential gas shortages by the end of thewinter heating season.

If new natural gas production does not come on-stream in Mexicoin the next two to three years, the country will have to importmore than half of its gas needs, according to a new report from thecountry’s energy regulator Comision Reguladora de Energia. Thecountry now imports about 7% of its gas, mostly from South Texas.

The current framework of regulation and legislation may beinadequate to ensure there is 30 Tcf of gas demand in 2010 and thatcould have dire environmental and economic consequences, the INGAAFoundation said last week in releasing a new report titledImplications of Reduced Gas Use on Emissions from Power Generation.

The Natural Gas Council on Friday warned the ClintonAdministration and Congress of abnormally high natural gas pricesthis winter and requested additional funding for the Low-IncomeHome Energy Assistance Program (LIHEAP) for low-income households.

The Natural Gas Council on Friday warned the ClintonAdministration and Congress of abnormally high natural gas pricesthis winter and requested additional funding for the Low-IncomeHome Energy Assistance Program (LIHEAP) for low-income households.

For the most part, the annual State of the Oil and Gas Industrymeeting of the Texas Railroad Commission in Austin yesterday was alove fest, as producers, operators, association representatives andvarious others lauded the good times and high profits the industryis having.

Department of Energy Secretary Bill Richardson last week likenedthe power industry to an old jalopy in desperate need of repair.

Department of Energy Secretary Bill Richardson likened the powerindustry to an old jalopy in desperate need of repair yesterday atan energy conference in Washington, D.C. sponsored by the NationalEnergy Marketers Association. He expressed concern that Congresshas not been too interested in moving power restructuringlegislation and said if legislation isn’t completed soon there willbe dire consequences. “My main message is that unless there isrestructuring soon there are going to be power outages in thiscountry,” Richardson said.

Chevron Corp. warned investors last week that its second quarterearnings will take a hit from severance costs related to 2,500 jobcuts and a recent fire at its Richmond, CA, refinery.