From http://www.enerfaxgold.com <http://www.enerfaxgold.com/> :

 

Williams Starts Up New Deepwater Pipelines in Gulf of Mexico

  

    Williams has begun receiving oil and natural gas into recently 

completed deepwater pipelines in the western Gulf of Mexico. First 

deliveries of oil were received January 28th and first deliveries of 

natural gas were received January 30th from the Nansen Field in the 

East Breaks area, located about 150 miles south of Houston in 3,700 

feet of water. The pipelines have a capacity of up to 80,000 bpd of 

oil and up to 360 MMcf per day of natural gas. Initially, deliveries 

into the line are expected to average about 20,000 bpd of oil and 

about 10 - 15 MMcf per day of natural gas. Production will continue 

to increase as new wells are tied in during the 1st and 2nd quarters. 

The pipelines will also serve a neighboring development in the 

Boomvang Field. Production from Boomvang is expected to start flowing 

into the pipelines in May. Williams' $200 million East Breaks project 

is made up of a 56-mile oil gathering system, a 114-mile gas 

gathering system, a new state-of-the-art 300 MMcf per day natural gas 

processing plant in Markham, TX, and a shallow-water platform at 

Galveston Block A244. The new Markham natural gas plant has been 

fully operational since the 4th quarter 2001. 

 

From http://www.enerfax.com <http://www.enerfax.com/> :

 

Nuclear Power Plants Set Reliability and Output Records 

 

    Invigorated by another year of record operating performance, the 

US nuclear energy industry believes its prospects for future growth 

are as good or better than ever. Estimates for 2001 show that the 

nation's 103 nuclear power plants set an electricity production 

record for the 3rd straight year, increasing their output to about 

762 billion kWh.  The plants' average capacity factor--a measure of 

efficiency--reached a record high for the fourth straight year, 

climbing 1% to 91%. Other than their ability to reliably produce 

large amounts of competitively priced electricity, nuclear power 

plants have several other desirable, valuable attributes, such as 

providing a high degree of forward price stability, an attribute with 

significant value in a volatile commodity market. Nuclear plants also 

have clean-air compliance value. With support from the Bush 

Administration and nuclear-related provisions included in major 

energy bills introduced in Congress, nuclear energy is receiving 

strong bipartisan political support. Nuclear power plants supply 20% 

of the electricity in the US. 

 

EIA Says Natural Gas Prices to Drop Through this Summer 

 

 

    Natural gas prices will fall throughout the latter part of winter 

and continue to decline through the spring and early summer, 

according to the EIA. But the resulting decline in drilling would 

likely prompt a price recovery late this year or early next year. 

Assuming normal weather and barring any major supply disruptions, the 

average 2002 wellhead price should come be about $1.86 per MMBtu, the 

EIA reports in its latest short-term energy outlook. That estimate is 

down $0.19 from last month's  forecast and less than half of last 

year's average. The mild winter and subsequent high storage levels 

have combined to keep prices down. Spot prices have remained in the 

$2.30 - $3.00 range. But all that is likely to change later this 

year, the EIA predictes. Weak industrial demand and excess 

underground storage levels should keep a lid on spot prices until 

next fall. Next year as economic growth accelerates and as world oil 

prices rise, natural gas prices will also rise, averaging $2.39 per 

MMBtu in 2003. 

 

Although, EIA forecasts seem to always be a bit late in responding to
market changes and then seem to hang on to the current trend too long.

Also, today's Gas Daily has an article discussing EEA's recent natural
gas price forecast for the next two years.

 

Bob Brooks

GPCM Natural Gas Market Forecasting System

http://gpcm.rbac.com <http://gpcm.rbac.com/>