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Gold/Mining/Energy : KOB.TO - East Lost Hills & GSJB joint venture -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (4393)	9/2/1999 2:13:00 AM
From: Sam	Read Replies (1) \| Respond to of 15703

here is a bit of reading while we wait ,never thought they would shut these big berthas down .but they have to go sooner or later sam The following is a article from the Daily Oil Bulletin (Aug 31/99). FirstEnergy Sees Gas Story Getting Better by Shaun Polezer "Canadian natural gas fundamental's are shaping up to be the strongest the industry has seen, according to a report by FirstEnergy Capital Corp." A confluence of factors --- ranging from declining U.S. gas output to increased export capacity and strong demand from decommissioning of nuclear power plants in Eastern Canada and the U.S. --- will maintain a steady pace of activity in Western Canada well into the millennium, the report says. FirstEnergy predicted 39,000 successful gas wells will be needed to fill pipeline expansions and satisfy increased export demand between now and 2005. The shortfall between available export capacity and productive limits will stimulate Canadian prices and provide incentive for producers to find and develop new supplies, the study suggested. "Clearly, the economic incentives to drill for and bring on natural gas are at an all time record high and only appear to be getting higher," the report stated. FirstEnergy noted strengthening spot market prices through the summer, and predicted an all-time record average price of $3.15 per mcf in the fourth quarter, with a longer-term outlook of approx. $3 to $3.25. Another factor in rising gas demand is decommissioning of nuclear power plants in Ontario. FirstEnergy estimates each 500 megawatts of nuclear electricity eliminated would require approx. 100mmcf per day of gas to replace it. "We believe that Eastern Canadian consumption will increase by 500 (mmcf) to 600 mmcf per day by the end of 2002 in order to replace nuclear reactors that are being taken out of commission," the report said. FirstEnergy noted a similar trend in the U.S. but said it was unable to quantify the effects it would have on demand south of the border. The bottom line, the report noted, is that there will be continue to be an export shortfall of around 1.7 to 1.9 bcf per day, which will result in further gas price increases across the continent, "The key driver will be Western Canada's productive capacity, which will rise, but will take time, " FirstEnergy said. First Energy Capital Corp. is a brokerage firm in Canada that specializes in oil&gas.