GPCM News: 12/28/01: AGA Storage Report: Deep Offshore Nova Scotia ,
 From http://www.enerfax.com :
 
AGA Natural Gas Storage Report
 
           Week                                     Prev      
          Ending     Prev                   Prev    Year    
| Region |12/21/01 | Week | Diff | % Full | Year | % Full| 
| Prod   |  865    |  881 | -16  |  91%   |  473 |  50%  |      
| East   | 1689    | 1742 | -53  |  92%   | 1175 |  64%  |  
| West   |  426    |  438 | -12  |  84%   |  290 |  57%  |   
       
| Total  |2980    | 3061 | -81  |  90%   | 1938 |  59%  |  
 
Deep Waters Offshore Nova ScotiaSet for Drilling Boom
  
    The deep waters off of Nova Scotia's coast are likely to see a 
drillingboom next year amid projections that the area could hold 
massivereserves of oil and natural gas. Energy firms spent up to 
C$527.2 million on 9 offshore exploration licenses in Nova Scotia
thisyear. PanCanadian, Murphy Oil, Marathon Oil and NorskHydro are 
someof the companies that put out big bucks to test the waters off 
thecoast of the Canadian province. Sable Island, Nova Scotia's first 
offshorenatural gas development, began producing about 500 MMcfper 
dayfrom shallow waters 2 years ago. Although Nova Scotiadoes not 
currentlyhave a big presence in the Canadian energy sector, its 
offshorefields could prove to be as significant as the Gulf of 
Mexicoin terms of reserves.A recent report by FirstEnergyCapital 
conservativelyput estimates of the province's offshore reserves at 
12 Tcf of natural gas and 522 million barrels of oil.The potential 
hasled El Pasoto consider a proposed C$2.9 billion, 720-mile 
pipelineto transport up to a Bcf per day of natural gas from 
offshoreNova Scotiato New Jerseyand New York. Many in the industry 
arekeeping a close eye on a well called Annapolis, a 19,000 foot 
prospectin 5,500 feet of water, which is scheduled to begin drilling 
earlynext year. Nova Scotiais hoping that the offshore energy 
developmentwill provide a much-needed boost to its economy. The 
provinceexpects an application early next year for a 2nd offshore 
naturalgas project. PanCanadianplans to spend C$1 billion on its 
Deep Panukefield, which is expected to produce 400 MMcfof natural 
gasper day by early 2005 from waters less than 150 feet deep. 
 
Bob Brooks
GPCM Natural Gas Market Forecasting Systemhttp://gpcm.rbac.com
rebrooks@rbac.com