A new report was released on November 20, 2007 from Rice University and its Baker Institute for Public Policy that stated natural gas is already an important fuel in the United States, representing 22 percent of total primary energy use in 2006. About 20 percent of that gas was imported, the vast majority from Canada. Liquefied natural gas (LNG) imports have risen from virtually zero in 1986 to just in excess of 0.5 trillion cubic feet (tcf), or 2.9 percent of total U.S. natural gas consumption in 2006. The United States imports LNG from a variety of countries, including Trinidad and Tobago, Egypt, Nigeria and Algeria.
A new report was released on November 20, 2007 from Rice University and its Baker Institute for Public Policy that stated according to the new study, under a business-as-usual scenario, where U.S. lands are not opened up for drilling, by 2030, U.S. consumers could be relying on LNG imports for as much as 30 percent of total supply. This has strong implications for security of natural gas supply, as the United States becomes more reliant on LNG from the Middle East and Africa. U.S. end-use natural gas demand is expected to climb to 23.9 (tcf) in 2015 and 26.9 tcf by 2025, up from 20.0 tcf in 2006, according to study forecasts. This represents a gain of about 1.3 percent per year.
"Studies of the market outlook show that our high cost domestic production will increasingly have to compete against a swath of more competitively priced imports," said Kenneth Medlock, fellow for energy studies at the Baker Institute and a key author of the study. "In the short term, the net impacts on U.S. supply security are not all that worrisome. But long term, as our demand grows, we will have to worry more about security of supply."
A new report was released on November 20, 2007 from Rice University and its Baker Institute for Public Policy that stated in recent years, environmental and land-use considerations have prompted the United States to remove from energy development significant acreage that was once available for exploration. Twenty years ago, nearly 75 percent of federal lands were available for private lease to oil and gas exploration companies. Since then, the share has fallen to 17 percent.
A new report was released on November 20, 2007 from Rice University and its Baker Institute for Public Policy that stated given the importance of the changing outlook for North American natural gas supply and U.S. oil and natural gas prices, the Baker Institute embarked on a two-year study, "Natural Gas in North America: Markets and Security," to investigate the future development of the North American natural gas market and the factors that will influence security of supply and pricing.
A new report was released on November 20, 2007 from Rice University and its Baker Institute for Public Policy that stated the Baker Institute Energy Forum developed a world gas trade model. The Baker Institute World Gas Trade Model (BIWGTM) simulates future development of North American natural gas trade based on the economics of resource supply, demand and commodity transportation, and it determines a market-clearing price in the process.
A new report was released on November 20, 2007 from Rice University and its Baker Institute for Public Policy that stated to determine whether the United States and its allies will become vulnerable to increasing market power of major international natural gas suppliers, like Russia and countries of the Middle East, and the role that existing drilling restrictions in the United States play in this question, scenario analysis is utilized to determine the possible effects of a complete lifting of restrictions on drilling in the Rocky Mountains and Outer Continental Shelf (OCS). The aim of these scenarios is to examine whether the impact of the increase in natural gas production from these now blocked U.S. regions would reduce the monopoly power of any potential large supplier or group of large suppliers and, similarly, would ameliorate the impact of a major accidental disruption of natural gas supply.
A new report was released on November 20, 2007 from Rice University and its Baker Institute for Public Policy that stated the Baker Institute's scenario analysis shows that opening restricted areas in the OCS and Rocky Mountains to drilling and natural gas resource development will not render the United States energy independent nor will it even lower U.S. dependence on liquefied natural gas (LNG) imports in 2015 by a significant volume. Price impacts are also limited, with U.S. prices only registering marginal reductions.
A new report was released on November 20, 2007 from Rice University and its Baker Institute for Public Policy that stated but longer term, the study concludes, an opening of restricted areas to drilling and the contribution of expanded OCS and Rockies natural gas production could, nonetheless, be geopolitically important in combating the rise of a cartel in the international natural gas market, a so-called "GasOPEC." According to the study,
"Reducing U.S. demand for LNG helps lower global natural gas prices and enhances available supplies for other major buyers in Europe and Northeast Asia. The wider swath of alternative supplies for Europe and Northeast Asia translates into significantly reduced market power of producers in Russia and the Middle East. Furthermore, the higher elasticity of supply from alternative sources as a result of allowing greater access to resources in the United States also reduces market power in the sense that a larger reduction in cartel supply would be needed to achieve any given increase in price." The study also notes that development of alternative energy could play a similar role.
A new report was released on November 20, 2007 from Rice University and its Baker Institute for Public Policy that stated one more surprising key finding of the study is that an opening of restricted areas for drilling for natural gas could have significant impacts on the flow of natural gas from Alaska to the lower 48 states. Under a business as usual scenario, where there is greater access to resources in the lower 48, the study finds that there would be delays in the development of the Alaska gas pipeline, reducing Alaskan production by as much as 0.95 tcf in 2025 (or a 40 percent reduction) relative to the case where access restrictions remain in place.
Tuesday, November 20, 2007
Monday, November 19, 2007
Saudi Natural Gas Explosion
A gas pipeline exploded today in Saudi Arabia killing 28 workers.
“The fire broke out while contractor workers were linking a new pipe [to the pipeline during maintenance late Saturday,]" Aramco said in a statement.
The blaze was extinguished early Sunday and occurred on the Haradh-Uthmaniyah pipeline about 18 miles from the Hawiya Gas Plant, Saudi Aramco, the state oil conglomerate.
According to the Wall Street Journal’s web site, “Aramco is building a natural gas liquids, or NGL, plant at Hawiyah, about 170 miles east of Riyadh, which will have the capacity to treat 3.8 billion cubic feet a day of natural gas to produce dry gas, NGL and ethane, all of which will be used to feed nearby industries, notably petrochemicals.”
The Aramco statement also said emergency response teams were immediately mobilized to deal with the explosion and that the lines that were involved have been isolated. Yet it seems gas supply was not interrupted by the incident.
The Reuters web site elaborated on the cause of the incident. “The state oil company said in a statement the fire was caused by a gas leak in the pipeline around 30 km (18 miles) from the natural gas liquids plant.” The site also gave more information on those who perished in the conflagration. “Western diplomats said most of the dead appeared to be Asian workers along with at least one Lebanese national. They said no Western victims had been identified.”
“The fire broke out while contractor workers were linking a new pipe [to the pipeline during maintenance late Saturday,]" Aramco said in a statement.
The blaze was extinguished early Sunday and occurred on the Haradh-Uthmaniyah pipeline about 18 miles from the Hawiya Gas Plant, Saudi Aramco, the state oil conglomerate.
According to the Wall Street Journal’s web site, “Aramco is building a natural gas liquids, or NGL, plant at Hawiyah, about 170 miles east of Riyadh, which will have the capacity to treat 3.8 billion cubic feet a day of natural gas to produce dry gas, NGL and ethane, all of which will be used to feed nearby industries, notably petrochemicals.”
The Aramco statement also said emergency response teams were immediately mobilized to deal with the explosion and that the lines that were involved have been isolated. Yet it seems gas supply was not interrupted by the incident.
The Reuters web site elaborated on the cause of the incident. “The state oil company said in a statement the fire was caused by a gas leak in the pipeline around 30 km (18 miles) from the natural gas liquids plant.” The site also gave more information on those who perished in the conflagration. “Western diplomats said most of the dead appeared to be Asian workers along with at least one Lebanese national. They said no Western victims had been identified.”
Sunday, November 18, 2007
China & Russia Natural Gas Nearing Completion
China's largest oil and gas company CNPC and Russian gas giant Gazprom have reported a major progress in their natural gas negotiations, Gazpom's deputy chairman Alexander Medvedev said here Saturday.
The negotiation, which touched on rising prices of crude oil and gas pipes on the international market, was constructive but the two sides hadn't agreed on specific prices, said Medvedev.
However, big progress was made in the negotiation, which paved the way for a future agreement on specific prices, he said.
"I believe we will finally get a result that is acceptable to both sides."
Medvedev said earlier in the day that the negotiation on the Russian gas prices would not be influenced by the low prices at which China had imported natural gas.
CNPC and Gazprom entered into a strategic partnership in October 2004. The two companies signed a deal in march 2006 to export natural gas to China.
Under the deal, Russia will pipe 68 billion cubic meters of natural gas to China each year by 2020.
The negotiation, which touched on rising prices of crude oil and gas pipes on the international market, was constructive but the two sides hadn't agreed on specific prices, said Medvedev.
However, big progress was made in the negotiation, which paved the way for a future agreement on specific prices, he said.
"I believe we will finally get a result that is acceptable to both sides."
Medvedev said earlier in the day that the negotiation on the Russian gas prices would not be influenced by the low prices at which China had imported natural gas.
CNPC and Gazprom entered into a strategic partnership in October 2004. The two companies signed a deal in march 2006 to export natural gas to China.
Under the deal, Russia will pipe 68 billion cubic meters of natural gas to China each year by 2020.
Saturday, November 17, 2007
Natural Gas China Up 50%
China raised ex-factory natural-gas prices for some industrial users by about 50% to curb growing demand by chemical companies and power generators for the clean fuel, the country's two largest gas producers said Thursday.
The rise in the prices that producers charge buyers of natural gas is in line with government efforts to prioritize use of limited supplies of the gas in order to reduce urban pollution.
It also reflects government efforts to narrow the gap between relatively low domestic gas prices and much higher external gas prices, a task driven by China's growing use of imported liquefied natural gas.
Fertilizer companies, which are heavy users of gas, are excluded from the price increase, possibly because the government wants to protect low-income farmers, who are the main users of fertilizers.
The rise in the prices that producers charge buyers of natural gas is in line with government efforts to prioritize use of limited supplies of the gas in order to reduce urban pollution.
It also reflects government efforts to narrow the gap between relatively low domestic gas prices and much higher external gas prices, a task driven by China's growing use of imported liquefied natural gas.
Fertilizer companies, which are heavy users of gas, are excluded from the price increase, possibly because the government wants to protect low-income farmers, who are the main users of fertilizers.
Friday, November 16, 2007
United States Natural Gas Storage Down Today
The amount of natural gas in storage in the U.S. fell last week and is about 8.4 percent above the five-year average for this time of year, a government report said Thursday.
The Energy Department''s Energy Information Administration said in its weekly report that natural gas inventories held in underground storage in the lower 48 states fell by 9 billion cubic feet to about 3.54 trillion cubic feet for the week ending Nov. 9.
The inventory level was well above the five-year average of more than 3.26 trillion cubic feet in underground storage, and ahead of last year''s storage level of 3.45 trillion cubic feet, according to the government data.
In morning trading on the New York Mercantile Exchange, natural gas for December delivery fell 13.8 cents to $7.702 per 1,000 cubic feet.
The Energy Department''s Energy Information Administration said in its weekly report that natural gas inventories held in underground storage in the lower 48 states fell by 9 billion cubic feet to about 3.54 trillion cubic feet for the week ending Nov. 9.
The inventory level was well above the five-year average of more than 3.26 trillion cubic feet in underground storage, and ahead of last year''s storage level of 3.45 trillion cubic feet, according to the government data.
In morning trading on the New York Mercantile Exchange, natural gas for December delivery fell 13.8 cents to $7.702 per 1,000 cubic feet.
Thursday, November 15, 2007
GE Financial Buys Into Natural Gas
Southwestern Energy Co (SWN.N: Quote, Profile, Research) said it agreed to sell its natural gas distribution unit to an affiliate of GE Energy Financial Services and Alinda Investments LLC for $224 million.
The unit, Arkansas Western Gas Co., serves about 151,000 residential, commercial, and industrial customers in northern Arkansas and owns more than 5,700 miles of gathering, distribution and transmission pipelines.
The unit, Arkansas Western Gas Co., serves about 151,000 residential, commercial, and industrial customers in northern Arkansas and owns more than 5,700 miles of gathering, distribution and transmission pipelines.
Wednesday, November 14, 2007
Natural Gas Stocks Up
Some natural-gas stocks received a boost Tuesday as Banc of America initiated coverage of the sector at "Neutral" but highlighted as top picks companies with infrastructure investments, liquefied natural gas assets and master limited partnerships.
"We favor stocks with transparent, low-risk, project-driven growth that can benefit from changing industry dynamics," analyst Elvira Scotto said in a note Monday evening.
Scotto issued "Buy" ratings for Sempra Energy, Spectra Energy Corp., Equitable Resources Inc., Cheniere Energy Inc. and Northwest Natural Gas Co.
Sempra shares rose 25 cents to $59.51 as Spectra rose 50 cents to $24.66; Equitable rose $1.34 to $53.35; and Northwest rose 84 cents to $48.90. However, Cheniere fell 45 cents to $39.25.
Scotto expects Sempra earnings to rise by about 7 to 8 percent through 2011, based on its "fairly predictable" growth catalysts. Spectra has the "right assets in the right locations," Scotto said, with pipelines and storage facilities in high-growth areas across the U.S.
Equitable's drilling program will be a catalyst for its growth as Cheniere, an LNG company, benefits from expansion of the LNG market, Scotto said. Northwest's advantages as a utility are that it has a strong outlook for customer growth and a favorable regulatory environment, she added.
Of "Neutral"-rated companies, Oneok Inc. and Southern Union Co. "face the greatest earnings risk," Scotto said, due to overexposure to volatile commodity prices.
Oneok shares rose 13 cents to $48.82 as Southern Union ended flat at $30.95
"We favor stocks with transparent, low-risk, project-driven growth that can benefit from changing industry dynamics," analyst Elvira Scotto said in a note Monday evening.
Scotto issued "Buy" ratings for Sempra Energy, Spectra Energy Corp., Equitable Resources Inc., Cheniere Energy Inc. and Northwest Natural Gas Co.
Sempra shares rose 25 cents to $59.51 as Spectra rose 50 cents to $24.66; Equitable rose $1.34 to $53.35; and Northwest rose 84 cents to $48.90. However, Cheniere fell 45 cents to $39.25.
Scotto expects Sempra earnings to rise by about 7 to 8 percent through 2011, based on its "fairly predictable" growth catalysts. Spectra has the "right assets in the right locations," Scotto said, with pipelines and storage facilities in high-growth areas across the U.S.
Equitable's drilling program will be a catalyst for its growth as Cheniere, an LNG company, benefits from expansion of the LNG market, Scotto said. Northwest's advantages as a utility are that it has a strong outlook for customer growth and a favorable regulatory environment, she added.
Of "Neutral"-rated companies, Oneok Inc. and Southern Union Co. "face the greatest earnings risk," Scotto said, due to overexposure to volatile commodity prices.
Oneok shares rose 13 cents to $48.82 as Southern Union ended flat at $30.95
Subscribe to:
Posts (Atom)