Wellhead

Liquefied natural gas (LNG) is becoming more economic compared with drilling in many U.S. basins, and by 2009, it could compete with wellhead supply, according to a study by Pickering Energy Partners Inc.

Williams, whose exploration assets are weighted 99% to natural gas, last year saw its U.S. proved reserves grow by 9.5%, and it replaced 216% of its wellhead production of 276 Bcfe. In the final three months of 2006, domestic output jumped 28% to 826 MMcf/d.

CIG declared an OFO Saturday because of the extremely cold weather in its market area, then ended it Sunday. Wellhead freeze-offs in the Rockies limited the amount of supply that CIG could deliver to Xcel Energy’s Public Service Co. of Colorado utility, resulting in rolling power outages of brief duration Saturday (see related story).

Texas Eastern reported Wednesday that wellhead and platform communications were still out for most of the its offshore Cameron System in the West Louisiana zone. As production is being restored and before communication links are reestablished, the pipeline is requiring point operators to notify their operations account manager that their meters are flowing so nominations can be confirmed. Inspection of facilities of the Venice System in the East Louisiana zone was ongoing Wednesday, Texas Eastern said. Meters located upstream of the Larose Compressor Station, including the Main Pass and South Pass systems, are to remain shut in until further notice.

Wellhead freeze-offs and other cold-related delivery problems in Canada in January led to a sharp 562 MMcf/d drop in pipeline receipts from December 2003 levels to 15.419 Bcf/d, according to a survey by UBS analysts.

Wellhead freeze-offs and other cold-related delivery problems in Canada in January led to a sharp 562 MMcf/d drop in pipeline receipts from December 2003 levels to 15.419 Bcf/d, according to a survey by UBS analysts.

El Paso Field Services has scheduled maintenance on El Pasopipeline’s Waha GE turbine for April 22-27. During that periodwellhead nominations on six gathering systems (GGOMEZHI, GTORO,GGOMEZLO, GWAHA,GSIBWAHA and GWAHARC) will be cut to zero. Someshippers on those systems may be able to flow gas to Western GasResources or Koch Pipeline, EPFS said, but must have a prior dealwith those entities for the flow days in question. EPFS must benotified of such arrangements by April 19; otherwise, “the shippersmust instruct their various producers to shut in during theduration of the maintenance.”

Calling 2000 a watershed year for the natural gas market issomewhat akin to saying 1776 was an important time in U.S. history.With only a couple of exceptions, last year began with all spotprice indexes between $2 and $3. It ended with January 2001 indexesranging from $8.56 (Questar) to $18.81 (Transco Zone 6-NYC).

The numbers, it seems, don’t tell the entire story. Even thoughoil and gas industry upstream revenues, profits and cash flow areshowing record profits for 1999 compared with the previous year’scollapse, exploration and development spending dropped and provedreserves spending rose significantly, according to ArthurAndersen’s 21st annual Global E&P Trends survey.