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Energy Testimony to Congress
The House Committee on Energy and Commerce ^ | June 27, 2003 | Alan Greenspan, et al

Posted on 06/27/2003 8:40:18 AM PDT by BOBTHENAILER

Chairman Tauzin

Prepared Witness Testimony

The House Committee on Energy and Commerce

W.J. "Billy" Tauzin, Chairman

Link to Committee Tip Line:  Fight Waste, Fraud and Abuse

 

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Natural Gas Supply and Demand Issues

Full Committee on Energy and Commerce
June 10, 2003
10:00 AM
2123 Rayburn House Office Building 

 

 

 

Mr. Guy F Caruso
Administrator
Energy Information Administration
1000 Independence Avenue, SW
Washington, DC, 20585

Mr. Chairman and Members of the Committee:

I appreciate the opportunity to appear before you today to discuss EIA's

outlook for the U.S. natural gas market. The source of our short term

projections is the June 2003 release of EIA's monthly Short-Term Energy Outlook;

the long term projections are drawn from the National Energy Modeling System (NEMS).

The EIA is the statutorily chartered statistical and analytical agency within

the Department of Energy. We are charged with providing objective, timely, and

relevant data, analysis, and projections for the use of the Department of

Energy, other Government agencies, the U.S. Congress, and the public. We do not

take positions on policy issues. We produce data and analysis reports that are

meant to help policy makers determine energy policy. Because we have an element

of statutory independence with respect to the analyses that we publish, our

views are strictly those of EIA. They should not be construed as representing

those of the Department of Energy or the Administration.

Summary

Short-Term Natural Gas Market (Through 2004)

Currently, the natural gas market in the United States is tight, with gas

storage levels lagging well behind normal levels. Spot natural gas prices

reflect this deficit and the expectation that demand, while not necessarily

expected to exceed levels seen in 2002 on an annual basis, remains at a high

level relative to domestic natural gas supply capability. The high market prices

and strong drilling efforts are expected to ultimately allow gas storage volumes

to move closer to normal by the beginning of the next heating season. This

expectation, however, is predicated on prices continuing at high levels

($5.50-$6.00 per million Btu) through the next winter.

Longer-Term Natural Gas Market (Through 2025)

By 2025 total natural gas consumption is expected to increase to almost 35

trillion cubic feet (Tcf) or 26 percent of U.S. delivered energy consumption.

Such a demand level represents an increase of about 52 percent from the expected

2003 level. Domestic gas production is expected to increase more slowly than

consumption over the forecast, rising from 19.5 Tcf in 2001 to 26.4 Tcf in 2025.

Growing production reflects increasing natural gas demand and is supported by

rising wellhead gas prices, relatively abundant gas resources, and improvements

in technologies, particularly for unconventional gas.

Short-Term Gas Market Analysis

Overview of U.S. Natural Gas Markets

The natural gas market is tight. The natural gas spot price at the Henry Hub

(the market location used for pricing the New York Mercantile Exchange gas

futures contracts) is high in historical terms for this time of the year. Spot

natural gas prices have fluctuated around $6 per million btu (mmbtu) over the

last several weeks, and levels of natural gas in underground storage remain low

two months into the injection season. At the end of May, working gas in storage

stood about 38 percent below end-of-May 2002 levels and 28 percent below the

previous 5-year average. Spot natural gas prices will likely average $5-$6 per

mmbtu through the rest of this year. The exceptionally low level of natural gas

storage continues to place unusually strong upward pressure on near-term natural

gas prices. In the current environment companies will need to obtain large

amounts of natural gas from other sources to refill storage for the next heating

season. Moreover, if abnormally warm weather prevails this summer the current

market may become highly sensitive to demand, particularly in the Western and

South Central United States, where natural gas is heavily used for power

generation. Such conditions could cause a mid-year run-up in prices well above

current levels (about $6 per mmbtu). However such price run-ups are usually

short lived.

The projections outlined above are made at the national level, but it is

important to emphasize that regional prices can diverge. Regional prices can

also be highly volatile. For example, the average April spot price for natural

gas traded at New York City was $5.94, down considerably from the $8.81 seen in

March, a result of the usual change in seasonal demand levels but also of the

high margins between the New York city gate and the Henry Hub that sometimes

arise during peak demand periods.

Natural Spot Price (Base Case and 95% Confidence Range*)

*The confidence intervals show +/- 2 standard errors based on the properties

of the model. The ranges do not include the effects of major supply

disruptions.Sources: History: Natural Gas Week; Projections: Short-Term Energy

Outlook, June 2003.

Natural Gas Supply and Demand

With high natural gas prices, natural gas demand is expected to remain flat in

2003. Flat demand this year is likely despite sharply higher weather-related

demand during the first quarter of 2003. Natural gas demand in 2004 is expected

to remain flat as high prices discourage use enough to offset increases that

might otherwise have accompanied industrial growth. Gas-intensive industrial growth (i.e., a composite index of industrial output,

weighted by industry use of natural gas) is likely to be well below 1 percent

this year, if indeed it is positive.

Natural Gas Demand Trends

Sources: History: EIA; Projections: Short-Term Energy Outlook, June 2003.

Demand for natural gas this summer is expected to fall by about 1 percent from

last summer's level. This is in part due to weaker industrial demand. Under our

assumption of normal weather, cooling degree-days for the season (Q2 2003 and Q3

2003) would be close to 10 percent below year-ago levels, reducing gas usage for

power generation. In the event of a hotter-than-

normal summer this year, natural gas prices could move higher as

cooling-related demand would compete with the need to build storage inventories.

The National Climate Prediction Center currently indicates that above-average

temperatures in the U.S. Southwest and parts of Texas are likely in June and

possibly in the third quarter as well. Such a development could increase gas

demand for power generation and increase pressure on spot prices.

U.S. Working Gas in Underground Storage

NOTE: Colored Band is Minimum & Maximum Values 1998-2002

Sources: History: EIA. Projections: Short-Term Energy Outlook, June 2003.

Working natural gas in storage is estimated to have reached about 1,212

billion cubic feet (bcf) at the end of May, 38 percent below the year-ago level.

This is the second lowest aggregate inventory level for the end of May recorded

by EIA. Eastern and producing regions stocks, in particular, are at very low

levels. Demand for natural gas to refill working gas storage in 2003 will be

higher than average, which means that prices are likely to remain volatile.

Storage is expected to build to about 2,900 billion cubic feet by the end of

October. Under normal weather conditions, this should be enough to allow storage

to be about 1 trillion cubic feet at the end of next winter, near to normal for

that stage of the storage cycle.

Domestic Natural Gas Drilling Activity

Sources: History: Baker-Hughes and EIA. Projections: Short-Term Energy

Outlook, June 2003.

Natural gas production declined in 2002. Part of the loss was due to the

effects of hurricane activity in the Gulf of Mexico in September and October.

The last significant disruption in gas supply prior to the fall of 2002 was

September of 1998. (While hurricanes regularly threaten platforms in the Gulf of

Mexico, actual production impacts that are considered significant are not really

very frequent and, when they do occur they tend to be short-lived.) Production

is expected to increase by 2.2 percent this year. High natural gas prices and

sharply higher oil and natural gas field revenues are expected to drive a

resurgence in natural gas-directed drilling activity this year following a

downturn in 2002. Monthly oil and natural gas field revenues are expected to

continue to average close to

$400 million this year. Domestic production growth should continue in 2004

but, given recent experience, the extra effort might result in increases of less

than 2 percent from 2003 levels. The prospects for significant reductions in

natural gas wellhead prices over the forecast period from the current high

levels hinges in large measure on the productivity of the expected upsurge in

drilling in terms of expected output.

U.S. Oil and Gas Field Revenues

Lower 48 Gas Well Productive Capacity Share By Well Age

Source:EIA

Net Imports

Prospects for sharp increases in net imports in 2003 are limited but we do

expect to see an overall increase in 2003 of about 2 percent. Substantial

increases in LNG imports are possible and we believe that they have made a

noticeable contribution already this year. Canadian exports to the United States

were up 3-4 percent from year ago in early 2003. Any growth in gross imports is

likely to be offset partially by increased exports to Mexico, which have been

rising sharply in recent years.

Prospects for Price Volatility

In light of the current low storage levels, chances of continued price

volatility are great. Let me raise some factors that could contribute to

volatility and analyze their likely impacts, as summarized in the Table below.

To examine these effects, we ran the model under alternative assumptions.

Volatility Factors 

Factor

Assumption

Price

Impact

Weather

10%

Hotter Summer/Colder Winter Relative to Normal

50%-60%

higher peak price this winter

Lower

than expected domestic supply

Productive

capacity continues to weaken, no production growth in 2003

10%-20%

higher peak price this winter

The table shows that a significant tightening of the U.S. natural gas market

and much higher prices than expected in our base case are possible under some

plausible scenarios. One development that could generate more difficult market

conditions than are already in prospect is the weather. An abnormally hot summer

followed by a cold winter could push natural gas deliverability to the limit and

cause record average prices this winter. The severe weather case considered here

is an extreme case but one that merits attention given the lack of storage

cushion. It is also apparent that less robust assumptions about natural gas

productive capacity and near-term production could shift average prices well

above our base case. It appears that for every 1 percent that production falls

below our base case assumptions, we can expect 5-10 percent higher peak prices

this winter. These estimated average impacts mask the potential for much more

dramatic spikes in prices for short periods (a few days to a few weeks). Such

spikes are characteristic of net demand surges in the context of low natural gas

storage. Thus, current and prospective conditions in the U.S. gas market

significantly increase the probability of very sharp short-term spikes on top of

generally high levels of natural gas prices.

There are no detailed estimates concerning the extent to which industrial output

weakness seen since 2000 is attributable to the recent episodes of natural gas

price strength. It is obvious, however, that many industries dependent upon

natural gas for basic processes and operations have been hurt by high natural

gas prices. Part of the short-term market response to the current imbalance in

supplies may be to let high prices back out industrial activity to insure that

higher-valued demands, such as heating, are met. While the price volatility

described in this section is clearly possible, it is not a foregone conclusion.

Normal weather, improved productivity from newer natural gas wells and other

factors could serve to moderate price increases. It is also important to note

that recent history illustrates that price volatility is usually short-lived.

Spot Natural Gas Price Scenarios

Sources: History: EIA; Projections: Short-Term Energy Outlook, June 2003

Longer-Term Natural Gas Market Analysis

The longer-term natural gas projections provided in this testimony were produced

using the National Energy Modeling System (NEMS), a computer-based,

energy-economy modeling system of U.S. energy markets through 2025. NEMS

projects annual production, imports, consumption, and prices of energy, subject

to assumptions on macroeconomic and financial factors, world energy markets,

resource availability and costs, behavioral and technological choice criteria,

cost and performance characteristics of energy technologies, and demographics.

Two of the key inputs to NEMS are re world oil prices and macroeconomic growth.

World oil prices averaged about $23.43 per barrel in 2002 in 2001 dollars.

Between now and 2025 they are expected to rise to about $26.60 a barrel in 2001

dollars, as world oil demand increases from 78 million barrels per day to 119

million barrels per day. Real gross domestic product (GDP) is projected to grow

at an annual average rate of 3.0 percent between 2001 and 2025.

The natural gas projections discussed in this testimony are based on the most

current NEMS configuration, which EIA recently used in analyzing a 10 percent

renewable portfolio standard, as requested by Senator Bingaman.

Natural Gas Outlook to 2025

By 2025 total natural gas consumption is expected to increase to almost 35

trillion cubic feet (Tcf) or 26 percent of U.S. delivered energy consumption.

 

Domestic gas production is expected to increase more slowly than consumption

over the forecast, rising from 19.5 Tcf in 2001 to 26.4 Tcf in 2025. Growing

production reflects increasing natural gas demand and is supported by rising

wellhead gas prices, relatively abundant gas resources, and improvements in

technologies, particularly for unconventional gas. In this forecast, economic

conditions allow an Alaskan pipeline to begin moving gas to the lower 48 States

in 2020. The national average wellhead price is projected to reach $3.95 per Mcf

in 2001 dollars by 2025.

The difference between consumption and production is made up by increasing

use of imports throughout the forecast, particularly from liquefied natural gas

(LNG), with a 2.1 Tcf increase expected over 2001 levels. By 2025 we expect

expansion at the four existing terminals and construction of three new LNG

terminals.

Consumption. U.S. natural gas consumption is expected to increase by 1.8

percent annually from 2001 through 2025. Gas consumption by electric generators

is expected to double over the forecast, from 5.3 Tcf in 2001 to 10.4 Tcf in

2025, an average annual growth rate of 2.8 percent. Demand by electricity

generators is expected to account for 30 percent of total natural gas

consumption in 2025.

Most new electricity generation capacity is expected to be fueled by natural

gas, so natural gas consumption in the electricity generation sector is

projected to grow rapidly throughout the forecast as electricity consumption

increases. Although average coal prices to electricity generators are projected

to fall throughout the forecast, gas-fired generators are expected to have

advantages over coal-fired generators, including lower capital costs, higher

fuel efficiencies, shorter construction lead times, and lower emissions.

Historically the industrial sector, excluding lease and plant fuel, is the

largest gas-consuming sector, with significant amounts of gas used in the bulk

chemical and refining sectors. Industrial consumption is expected to increase by

3.4 Tcf over the forecast, driven primarily by macroeconomic growth. The

chemical and metal durables sectors show the largest growth.

Combined consumption in the residential and commercial sectors is projected

to increase by 2.5 Tcf from 2001 to 2025, driven by increasing population,

healthy economic growth, and gradually rising prices in real terms. Natural gas

remains the overwhelming choice for home heating throughout the forecast period,

with the number of natural gas furnaces rising nearly 18 million.

Production. The forecast estimate of total technically recoverable natural

gas resources as of January 1, 2002, is 1,289 Tcf. These resource assessments

come primarily from the assessments done by the U.S. Geological Survey for

onshore regions and by the Mineral Management Service for the offshore.

These resources included 183 Tcf of proved reserves (9 years of consumption

at 20 Tcf per year), 222 Tcf of inferred reserves, and 269 Tcf of undiscovered

nonassociated conventional resources. The largest category was unconventional

resources at 445 Tcf, with most of that in tight sandstones at 71 percent. Other

unconventional natural gas resources include gas shales and coalbed methane.

Alaska gas (32 Tcf) and associated-dissolved natural gas in lower 48 crude oil

reservoirs (137 Tcf) round out the resource.

Increased U.S. natural gas production through 2025 comes primarily from

unconventional sources and from Alaska. Unconventional gas production increases

by 4.2 Tcf over the forecast period-more than any other source, largely because

of expanded tight sands gas production in the Rocky Mountain region. Annual

production from unconventional sources is expected to account for 36 percent of

production in 2025, more than any other source, compared to 28 percent today.

Conventional onshore non-associated production increases by 500 Bcf over the

forecast, driven by technological improvements and rising natural gas prices.

However, its share of total production declines from 34 percent in 2001 to 27

percent by 2025. Non-associated offshore production adds 710 Bcf, with increased

drilling activity in deep waters; however, its share of total U.S. production

declines from 22 percent in 2001 to 19 percent by 2025.

Depletion. A key question facing producers and policymakers today is whether

natural gas resources in the mature onshore lower 48 States have been exploited

to a point at which more rapid depletion rates eliminate the possibility of

increasing-or even maintaining-current production levels at reasonable cost.

Depletion is a natural phenomenon that accompanies the development of all

nonrenewable resources. Physically, depletion is the progressive reduction of

the overall volume of a resource over time as the resource is produced. In the

petroleum industry, depletion may also more narrowly refer to the decline of

production associated with a particular well, reservoir, or field. As existing

wells, reservoirs, and fields are depleted, new resources must be developed to

replace depleted reservoirs.

Depletion has been counterbalanced historically by improvements in technology

that have allowed gas resources to be discovered more efficiently, have extended

the economic life of existing fields, and have allowed natural gas to be

produced less expensively, making available resources that previously were too

costly to develop. In these natural gas projections, technological progress for

both conventional and unconventional recovery is expected to continue to enhance

exploration, reduce costs, and improve production technology.

The depletion of conventional and unconventional natural gas resources is

expected to continue over the projection period as the demand for natural gas

increases significantly, continuing the trend that began in the mid-1990s.

Nevertheless, with sustained wellhead prices generally over $3 per thousand

cubic feet (in 2001 dollars) and continued technological improvements, lower 48

nonassociated gas production is expected to increase above current levels.

Imports. Net imports of natural gas, primarily from Canada, are projected to

increase from 3.7 trillion cubic feet in 2001 to 7.9 trillion cubic feet in

2025. Imports contributed 16 percent to total natural gas supply in 2001,

compared to an expected 23 percent in 2025.

Just over half of the increase in U.S. imports is expected to come from LNG.

Much of the increase comes from expansion at existing sites, but three

additional facilities are also projected. By 2025, LNG imports are expected to

equal 7 percent of total U.S. gas supply.

Growth in pipeline imports from Canada partly depends on the completion of

the MacKenzie Delta pipeline. The initial full flow rate into Alberta is assumed

to be 1.5 Bcf per day. Additional Canadian imports will come from the Scotian

Shelf in the offshore Atlantic. The forecast of Canadian imports largely depends

on the ability of Canadian producers to economically produce and market their

untapped unconventional resources, particularly coalbed methane. Net imports

from Canada are projected to provide 15 percent of total U.S. supply in 2025 in

the reference case, about the same as in 2001.

Wellhead Prices. In the mid-term, gas prices are projected to move higher as

technology improvements and new supply sources prove unable to completely offset

the effects of resource depletion and increased demand.

Natural gas prices through 2025 are projected to increase in an uneven

fashion as major new, large-volume supply projects temporarily depress prices

when initially brought online. Examples include deep and ultra-deep offshore

projects in the Gulf of Mexico, unconventional gas (tight sands, coalbed

methane, shale), liquefied natural gas facilities (both the expansion of

existing and development of new facilities), the MacKenzie Delta pipeline in

Canada, and an Alaskan natural gas pipeline that delivers gas supplies to the

lower 48 States.

In the reference case, average wellhead natural gas prices are expected to be

$3.95 per thousand cubic feet (2001 dollars) in 2025. The increase reflects

rising demand for natural gas and the impact of the progression of discoveries

from larger and more profitable fields to smaller, less economical ones. In

current dollars, natural gas prices reach $7.15 in 2025.

End-Use Prices. End-use natural gas prices are expected to increase gradually

starting in about 2005 as a result of increasing wellhead prices. A portion of

the increase in wellhead prices is expected to be offset by a projected decline

in average transmission and distribution margins as a larger proportion of the

natural gas delivery infrastructure becomes fully depreciated. The average

end-use price is expected to increase by 40 cents per thousand cubic feet

between 2005 and 2025 (in constant 2001 dollars), compared with an increase of

72 cents per thousand cubic feet in the average price of domestic and imported

natural gas supplies over the same period. Part of this difference is

attributable to an increasing share of natural gas sold to electric generators,

the sector with the lowest prices.

 

 

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TOPICS: Breaking News; Business/Economy
KEYWORDS: calpowercrisis; energy; energycrisis
For a reading of all testimony, please hit the following link for each party's contribution. This is long, but please take the time to read as it will directly affect you for the next 2 years at least. Here is the link for the complete testimony. Link to complete testimony
1 posted on 06/27/2003 8:40:19 AM PDT by BOBTHENAILER
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To: SierraWasp; Ernest_at_the_Beach; Grampa Dave; The Hose; Dog Gone
Here's the energy committee testimony for your reading pleasure. Please spread this far and wide.
2 posted on 06/27/2003 8:42:56 AM PDT by BOBTHENAILER (proud member of a fierce, warlike tribe of a fire-breathing conservative band of Internet brothers)
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To: BOBTHENAILER
Hi BTN: I just sent you a note on other thread to ping me when you posted this. But here it is. I look forward to reading it after work.
3 posted on 06/27/2003 8:45:52 AM PDT by PoisedWoman (Fed up with the CORRUPT liberal media)
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To: PoisedWoman
I have you set for a ping on a long comment/rant/essay on my feelings on this matter, which my secretary is now typing. I did not forget you, but wanted to post it as soon as possible. The entire testimony is available through the link provided, with many charts and graphs.
4 posted on 06/27/2003 8:58:49 AM PDT by BOBTHENAILER (proud member of a fierce, warlike tribe of a fire-breathing conservative band of Internet brothers)
[ Post Reply | Private Reply | To 3 | View Replies]

To: BOBTHENAILER
10:53AM Natural-gas, crude prices edge higher by Myra P. Saefong

SAN FRANCISCO (CBS.MW) -- Natural-gas and crude-oil futures are higher in the first hour of trading, with natural-gas up on tight supply concerns and oil trading driven by questions over the full return of Iraqi exports and OPEC's next move on output. August natural gas is up 1.5 cents at $5.425 per million British thermal units in New York. August crude is up 4 cents at $29.05 per barrel. July unleaded gasoline is up 0.68 cent at 84 cents a gallon and July heating oil is trading at 75.2 cents a gallon, up 0.32 cent.

5 posted on 06/27/2003 9:00:50 AM PDT by SierraWasp (The Future... Do Not Enter Without a Written Financial Strategy!!!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: SierraWasp; Admin Moderator
Thanks for the update SW. Admin Moderator, if you would indulge me, I think the RAT pres candidates comments this morning on Bush's enviro record and on Energy, vlaidate this being placed in breaking news.
6 posted on 06/27/2003 9:05:40 AM PDT by BOBTHENAILER (proud member of a fierce, warlike tribe of a fire-breathing conservative band of Internet brothers)
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To: SierraWasp; Ernest_at_the_Beach; Grampa Dave; AAABEST; PhiKapMom; Miss Marple; Howlin; hchutch; ...
Please spread this info far and wide. For at least the next two years, every American will be affected by this.

It is a DIRECT RESULT of pandering, caving and believing the propaganda of Sierra Club, Natural Resources Defense Council Nature Conservancy, Greenpeace and all their hundreds of "local supposed grassroots" subsidiaries, which have been proven to be funded by the Big 4 Enviro-groups.

The reasons for this current crisis, described or not in the Testimony are the following.

1. Years of neglecting to build coal and nuclear power plants due to the fear mongering of Environmentalists.
2. Continued opposition (RAT) to drilling ANWR (which should be a state's issue).
3. Lack of a pipeline to bring re-injected gas from Alaska's North Slope and other existing, massive fields.
4. Opposition to any offshore production other than Gulf of Mexico.
5. Continued opposition in almost every area of exploration in lower 48 states by Big 3 Enviros and their locally created entities.
6. Elimination of millions of potentially productive acres by Federal Regulation.
7. Demonization of Oil & Gas Industry by almost every RAT politician.
8. As to coal, which we have more than enough of for decades, "don't ever forget" the stroke of Clinton's pen which created the multimillion acre Escalante (?) Wilderness area, thereby permanently locking up extraction of the very best Anthracite Coal reserves the US has. All in exchange for Indonesian James Riddy's campaign cash, which by the way, is the largest supplier to the world of that very same coal.
9. GLOBAL WARMING. This false premise has probably been used to create more damage to the industry than anything. Remember three things relative to Global Warming:
A. Clinton Senate voted 99-0 to reject Kyoto Accords.
B. Massive Asia brown cloud last year created by dirty energy practices of India, China and others; all of whom are exempt from Kyoto Accords.
C. Last year France, Germany & England, all Kyoto proponents, exceeded their allowable amounts. How Ironic.
10. Lawsuits, lawsuits and more lawsuits. Maybe some freeper attorney can catalogue a Lexes-Nexes search on the thousands that have been filed.

There is a way out, drill ANWR, Alaskan pipeline, more nukes, more coal plants, destruction of the myths created by Environmental Groups and opposition to their every move. They want us in the dark ages. Solar & Wind will NEVER be the answer.

As to LNG, anyone ever see what happens when an incendiary round penetrates a propane tank? Magnify that a few thousand times and imagine Al Qaeda drooling over a chance to lay an RPG into a main LNG tank. That is, if the Enviros ever let them be built.

End of my RANT for the day. Be back on this evening.

7 posted on 06/27/2003 9:14:31 AM PDT by BOBTHENAILER (proud member of a fierce, warlike tribe of a fire-breathing conservative band of Internet brothers)
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To: BOBTHENAILER
FYI,  New Mexico Gov wants to send natural gas to OLD Mexico.....
 Gov. Tries To Strengthen Ties With Mexico   (June 23)
 
(snip)  "Richardson's wishes
    The New Mexico governor believes a lot is to be had economically, culturally and otherwise from his wish list.
    There is the potential natural gas pipeline from New Mexico's San Juan basin to the state of Chihuahua. New Mexico officials hope PEMEX, Mexico's national gas company, will back the $450 million-$550 million endeavor.
    The governor wants Mexican airline officials to sign off on direct service from Albuquerque to Mexico City and other cities for speedier transportation of goods and people."  (Emphasis mine)
 
 


8 posted on 06/27/2003 9:20:43 AM PDT by pilgrim
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To: BOBTHENAILER
Thank you. I am going to take the time to read this, because the energy bill is a big thing with me. We are displaced coal people...both my husband ana I used to work for a now-defunct coal corporation, and I know for a fact that the environmentalists overstated both the problems with burning coal and the damage caused by strip mining.

I will comment after I have read this, but it will probably not be till later in the afternoon.

9 posted on 06/27/2003 9:30:48 AM PDT by Miss Marple
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To: BOBTHENAILER; *calpowercrisis; randita; SierraWasp; Carry_Okie; okie01; socal_parrot; snopercod; ...
Thank you, lots to read thru!

Calpowercrisis:

To find all articles tagged or indexed using Calpowercrisis, click below:
  click here >>> Calpowercrisis <<< click here  
(To view all FR Bump Lists, click here)



10 posted on 06/27/2003 9:30:50 AM PDT by Ernest_at_the_Beach (Recall Gray Davis and then start on the other Democrats)
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To: BOBTHENAILER
bttt for later !


11 posted on 06/27/2003 9:45:29 AM PDT by MeekOneGOP (Bu-bye Dixie Chimps! / Check out my Freeper site !: http://home.attbi.com/~freeper/wsb/index.html)
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To: BOBTHENAILER
Saving this for later ping. Thanks Bob, I'm a real catfish where charts
and graphs are concerned.
12 posted on 06/27/2003 10:16:35 AM PDT by DeepDish (Depleted uranium and democrats are a lot alike. They've both been sucked dry of anything useful)
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To: BOBTHENAILER; Grampa Dave
A crude natural-gas THUMP to your thread... evidently others in the futures market are reading this report, too!!!

Do ya spose we're gonna git a natural-gas "bubble?" (will it pass?)

12:58PM Crude, natural-gas prices gain ground by Myra P. Saefong

SAN FRANCISCO (CBS.MW) -- Crude and natural-gas futures are higher in afternoon trading in New York with August crude up 39 cents at $29.40 a barrel and August natural gas at $5.425 per million British thermal units, up 1.5 cents. July unleaded gasoline is also up 1.68 cents at 85 cents a gallon and July heating oil is trading at 75.85 cents a gallon, up 0.97 cent.

13 posted on 06/27/2003 10:29:06 AM PDT by SierraWasp (The Future... Do Not Enter Without a Written Financial Strategy!!!)
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To: BOBTHENAILER
Excellent post. We're working hard in the industry to meet the increased demand.

We're so busy that upper management didn't even notice when I named four coalbed methane wells after my dog two months ago. And they turned out to be great wells. Woof.

14 posted on 06/27/2003 10:33:00 AM PDT by Dog Gone
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To: BOBTHENAILER
Most new electricity generation capacity is expected to be fueled by natural gas, so natural gas consumption in the electricity generation sector is projected to grow rapidly throughout the forecast as electricity consumption increases. Although average coal prices to electricity generators are projected to fall throughout the forecast, gas-fired generators are expected to have advantages over coal-fired generators, including lower capital costs, higher fuel efficiencies, shorter construction lead times, and lower emissions.

Power plant planned

Sadly, this is yet another natural gas fired power plant.

Yes, natural gas burns very cleanly. It is also used for home heating and cooking. Not to mention myriad industrial and commercial uses. And to top it off, it's a leading candidate for powering fuel cells that'll supposed replace the combustion engine in future automobiles.

Anybody else see the problem with EVERYBODY wanting to go to natural gas at the same time?

Electric power plants should be built using nuclear or clean-coal technologies. Centralized generating plants are appropriate for a trained workforce to properly handle these fuels.

We shouldn't be "wasting" natural gas on centralized electric generation. Keep it available for widespread, safe distribution for all its other uses.

1 posted on 02/04/2002 5:25 PM PST by Willie Green (Go Pat Go!!!)

Greenspan: US should explore nuclear, coal options
Green light for new city nuke plant

15 posted on 06/27/2003 10:50:47 AM PDT by Willie Green (Go Pat Go!!!)
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To: Dog Gone
We're so busy that upper management didn't even notice when I named four coalbed methane wells after my dog two months ago. And they turned out to be great wells. Woof.

ROFLMAO. I've participated in more than my fair share of "dog" wells, You've now shown me the key to success, name the friggin' well after Bowser, and it'll be good.

Everybody I know is working their tails off to rectify the current situation and it will be done IMHO.

16 posted on 06/27/2003 3:19:26 PM PDT by BOBTHENAILER (proud member of a fierce, warlike tribe of a fire-breathing conservative band of Internet brothers)
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To: BOBTHENAILER
There was a small field in southeast New Mexico where a company, Read & Stephens had drilled a series of decent wells. They were naming them after famous Indians, like Geronimo and Crazy Horse. They had about eight of them as I recall.

My company had some offset acreage and management approved drilling a well. Even knowing that they had no sense of humor at all, I told them that the well had to be named the Gandhi #1.

They never caught on, but a geologist from Read & Stephens called me up nearly doubled up in laughter.

17 posted on 06/27/2003 3:48:15 PM PDT by Dog Gone
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To: Dog Gone; Willie Green
"nearly doubled up in laughter."

My goodness... He musta struck Laughing Gas at Gandhi#1!!!

I see Willie Green dun posted his I tole ya so. (along with his "grunt Pat grunt," wait... oh yeah, it's "go Pat go!" For a minute there, I got all cornfused... musta been some kinda gas leak, er sumthin.

18 posted on 06/27/2003 4:22:20 PM PDT by SierraWasp (The Future... Do Not Enter Without a Written Financial Strategy!!!)
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To: SierraWasp
Willie likes trains that run on nukes.

I've asked him if he's a model train enthusiast, but he hasn't responded.

I'm a little worried about what might be found in his basement.

19 posted on 06/27/2003 4:30:33 PM PDT by Dog Gone
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To: Dog Gone
I've asked him if he's a model train enthusiast, but he hasn't responded.

Whenever the Christmas catalogs start showing up in the mail, I sometimes get the urge to do a little N-scale or Z-scale layout. Those tiny scales are quite a bit more expensive than O or HO gage, but you can construct quite an elaborate layout in a much smaller space, and they also take up much less space in storage as well. Just one of those things that I haven't gotten around to doing yet, but maybe one of these days (when I find the time). I think it'd make a really slick little Christmas display. Maybe put it on the coffee table or one of the end tables in my living room.

20 posted on 06/27/2003 5:27:04 PM PDT by Willie Green (Go Pat Go!!!)
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To: Dog Gone
They never caught on, but a geologist from Read & Stephens called me up nearly doubled up in laughter.

Indian names are popular there, then and now, but Ghandi #1, that, my man is a classic.

I was there doing landwork for Depco from 79-82 thru the heart of the Abo formation play, which at the time was huge, with the 800 lb Tiger, Yates Pet., controlling most of it. I remember Read & Stevens well, McClellan Oil and a few others. They are not as active now, as back then. Yates, however, is as active as ever.

21 posted on 06/27/2003 6:12:09 PM PDT by BOBTHENAILER (proud member of a fierce, warlike tribe of a fire-breathing conservative band of Internet brothers)
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To: Willie Green; SierraWasp
Anybody else see the problem with EVERYBODY wanting to go to natural gas at the same time?

The bigger problem is the enviros, who would kill every coal and nuke plant you want built. FACE IT. Then help deal with it.

22 posted on 06/27/2003 6:51:53 PM PDT by BOBTHENAILER (proud member of a fierce, warlike tribe of a fire-breathing conservative band of Internet brothers)
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To: BOBTHENAILER; Dog Gone; Grampa Dave; Carry_Okie; eldoradude; The CA Duke; ScottinSacto; ...
"FACE IT. Then help deal with it."

I did already, but all the brave volunteers ran away an hid when the pushing and shoving got too nerve wracking for 'em! Taking a principled stand on a consistent basis was just too embarrassing for the Country Club, checked pants Repellicans who really never understood why they were supposed to be for limiting the power of government anyway... oh well...

I swear, they'll never understand what a power struggle the people that love the traditional American culture are in! It's hideous!!!

They say in one breath they can't understand why they can't control their own property or business, then in the next breath, they say they really appreciate what government central planning does for them and that they cannot trust their local government to handle something that important to them.

They go through life with no personal mission statement, or written personal strategy and then freak-out at the inadequacy of the government program that is all that is left to take care of their neglect and dependence on government.

Independence Day seems to me to be a good time for everyone to reconsider what it will mean to our futures as individuals if we just rely on happenstance and the political whims of shallow politicians to secure our futures.

23 posted on 06/27/2003 9:59:26 PM PDT by SierraWasp (The Future... Do Not Enter Without a Written Financial Strategy!!!)
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To: SierraWasp; BOBTHENAILER
I thought this thread was about natural gas, LOL!

I still haven't read the long treatise, but it is clear from the graphs that there is a problem coming at us fast!

24 posted on 06/27/2003 10:39:48 PM PDT by Ernest_at_the_Beach (Iran Mullahs will feel the heat from our Iraq victory!)
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To: Ernest_at_the_Beach
It is about nat-gas. I was just responding to Bob's throwing down the gauntlet that we should do something, even if it was wrong, about the undue influence of GANG-GREEN!!!

Actually, I was just crudely passing gas! Phhhht!!! (grin)

25 posted on 06/27/2003 11:00:32 PM PDT by SierraWasp (The Future... Do Not Enter Without a Written Financial Strategy!!!)
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To: SierraWasp
Let's research ways to tap into the new sources of natural gas entering our country every day. Lots of legumes....thtppppp!!! Oops, my bad, that's bad for the ozone layer. Nevermind.
26 posted on 06/27/2003 11:52:05 PM PDT by eldoradude
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To: SierraWasp
They go through life with no personal mission statement, or written personal strategy and then freak-out at the inadequacy of the government program that is all that is left to take care of their neglect and dependence on government.

Independence Day seems to me to be a good time for everyone to reconsider what it will mean to our futures as individuals if we just rely on happenstance and the political whims of shallow politicians to secure our futures.

Wow, couldn't have summarized the reason I posted this vital info better than those paragraphs. Great job and thank you.

27 posted on 06/28/2003 5:39:27 AM PDT by BOBTHENAILER (proud member of a fierce, warlike tribe of a fire-breathing conservative band of Internet brothers)
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To: Ernest_at_the_Beach
I still haven't read the long treatise, but it is clear from the graphs that there is a problem coming at us fast!

Keep it handy in case it gets extra hot in CA this summer. Use it then to counter Grayout's attack dogs when he starts to claim price manipulation like 2001.

28 posted on 06/28/2003 5:45:54 AM PDT by BOBTHENAILER (proud member of a fierce, warlike tribe of a fire-breathing conservative band of Internet brothers)
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To: eldoradude; BOBTHENAILER
Hay! Eldoradude!!! Peanuts are legumes! Are you putin the blame on Jimma Caarter? Maybe it's alla that NV weed-free hay I see bein trucked over here to CA?

No, seriously, I'm personally concerned what might happen to the price of my Propane supply as Nat-Gas is part of it's makeup. Kinda makes me pucker a little harder!!!

Hay! BOBTHENAILER, thanks for the kind words and say "Hay" to my good friend Eldoradude who just got brave enough to post one of his first replies on FR!!! He's a good dude with lots on his mind. (and I don't mean real estate lots, either)

29 posted on 06/28/2003 7:13:28 AM PDT by SierraWasp (The Future... Do Not Enter Without a Written Financial Strategy!!!)
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To: eldoradude; SierraWasp
Oops, my bad, that's bad for the ozone layer. Nevermind.

Did you all see that England is going to start taxing cattle ranchers for the flatulence added to the Global Warming problem?

I am NOT kidding, I saw it on FOX. This is getting surreal.

Welcome aboard eldoradodude, you'll have fun here and say hello to two of my recent converts, big buck and The Hose. It's taking them a while to figure out how to post, they're sssssllllloooow.

30 posted on 06/28/2003 7:28:13 AM PDT by BOBTHENAILER (proud member of a fierce, warlike tribe of a fire-breathing conservative band of Internet brothers)
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To: blam
Ping.
31 posted on 06/28/2003 2:43:00 PM PDT by Graewoulf
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To: Graewoulf; Dog Gone
Some of the gas wells just down the street from me.

Gas Wells.

32 posted on 06/28/2003 3:19:56 PM PDT by blam
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