Razor and all, hello
Sold my XTO and OEI, maybe too soon, eh?
slb.com
This update from our Houston, TX editors 19:50 GMT
Study Says Gas Production in Gulf of Mexico Slipping
WASHINGTON, Mar 14 (energy24.com) - Beacon Energy has reported that a field-by-field study of natural gas production in the Gulf of Mexico shows a 10.2 per cent decline over 18 months. According to Beacon Energy, a Washington-based consulting firm specialising in economic analysis, market assessment, strategic planning and project development production from the federal waters of the Gulf declined to 12.7 billion cubic feet per day (Bcfd) from 14.1 Bcfd between January 1999 and June 2000, the latest month for which reliable data are available.
The Gulf of Mexico provides up to 25 per cent of the natural gas consumed in the United States.
The decline "explains, in part, the run-up in gas prices during the last half of 2000," said Jeff Brown, vice president of Beacon Energy.
"Combined with high gas-fired generation demand during the unseasonably warm summer weather in California and the heating demand in November and December 2000 throughout the country, the coldest two-month period in more than a century, one can see why we have experienced extremely high price levels in the gas market."
Since then, the level of drilling activity, a leading indicator of gas production, has increased significantly, and gas production based the Energy Information Administration’s recent numbers show a 10 per cent increase in December 2000.
"The big question," said Brown, "is whether the supply response is sky-high prices and more drilling is adequate to meet the increasing gas demand."
Brown said, "This summer we expect to see the highest gain in demand for natural gas to fuel power plants seen to date. The combination of 20 gigawatts (GW) of capacity placed in service in 2000 and an additional 30 GW in 2001 could test natural gas production capacity." |
