Message-ID: <6868194.1075862450969.JavaMail.evans@thyme> Date: Mon, 26 Nov 2001 09:06:36 -0800 (PST) From: rebrooks@earthlink.net To: rebrooks@rbac.com Subject: GPCM News: 11/26/01: AGA Storage Report: Arctic Drilling Affected by Lower Natural Gas Prices Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "Robert E. Brooks" @ENRON X-To: 'GPCM Distribution' X-cc: X-bcc: X-Folder: \VKAMINS (Non-Privileged)\Kaminski, Vince J\Deleted Items X-Origin: Kaminski-V X-FileName: VKAMINS (Non-Privileged).pst From http://www.enerfax.com : AGA Natural Gas Storage Report Week Prev Ending Prev Prev Year | Region |11/16/01 | Week | Diff | % Full | Year | % Full| | Prod | 863 | 850 | 13 | 91% | 664 | 70% | | East | 1783 | 1783 | 0 | 98% | 1643 | 92% | | West | 476 | 474 | 2 | 94% | 341 | 68% | | Total |3122 | 3107 | 15 | 95% | 2648 | 81% | From http://www.enerfaxgold.com : Arctic Drilling Affected by Lower Natural Gas Prices The drilling industry ready for an active winter season on the tundraof Canada's far north, but low natural gas prices and a weak economyhave lowered expectations of a boom time. Most companies such asPetro-Canada and Paramount Resources are pressing ahead with explorationin the rugged Northwest Territories. Due to marshy conditionsfor the rest of the year, wells are drilled in winter when theground freezes. Petro-Canada plans to drill three 9,840-footdeep wellsin the Mackenzie Delta and Paramountintends to drill two wells farthersouth, near FortLiard, below the Arctic Circle. The region couldhold trillions of cubic feet of natural gas. In recent federallysupervised land sales, producers committed to spending C$650 million on exploration over the next few years just in the Mackenzie Delta. But some wells in theYukon and the Northwest Territories' central MackenzieValleyhave been canceled or delayed byCanadian Natural Resources. But the troubled economy and the drop inprices from $10 per MMBtu last January are having an impact. Akita Drilling is keeping two new rigs in Albertathis winter and delaying themove of the C$18 million units to the Mackenzie Delta until later in2002. Imperial Oil, Shell Canada and Conoco are studying building aC$3 billion pipeline to transport about a Bcf per day of Arctic volumesto southern Canadaand the US. Bob Brooks GPCM Natural Gas Market Forecasting System http://gpcm.rbac.com