Duncan Energy Competition
Now Viewing Duncan Energy's competition in: Natural Gas Production and Distribution (primary)
Recent Developments
Hurricane Damage Focuses on Independents - Independent natural gas producers, not affiliated with industry leaders such as ConocoPhillips, took much of the hit from Ike and Gustav, the two September 2008 hurricanes that passed through the Gulf of Mexico. These smaller natural gas producers' wells accounted for nearly 90 percent of the platforms damaged in the storm. Industry experts' preliminary estimates exceed $2 billion in industry losses for both storms.
New Interest in Old Finds - In the oil and gas industry, new technology is making production possible in areas once thought unproductive. One such area, off the coast of Labrador in Canada, is experiencing renewed interest, as $186 million (CDN) in investments are planned near-term to explore for new sources of natural gas. Gas companies wrote off the area 25 years ago because of challenging conditions that made transporting gas nearly impossible; now they think that they have a solution, thanks to new pipeline technologies.
Excitement Pushes US Gas Industry - Everyone, from natural gas producers to members of Congress, is excited about the potential of shale, a type of rock formation that new technologies allow gas producers to tap. Shale is located in nearly half of US states, and some experts argue that extracting gas from these deposits is an answer to the US energy crisis. As a result of the excitement, natural gas production and distribution companies are working to secure drilling leases for shale deposits nationwide.
Competitive Landscape
Demand for natural gas depends partly on the health of the US economy and partly on the price of crude oil, a competitive product. The profitability of natural gas companies depends largely on the efficiency of their operations. There are large economies of scale in the production, processing, and distribution of gas, but small companies can effectively compete with large ones in exploration, where technical ability is more important than size.
Full Industry Overview For Natural Gas Production and Distribution
Natural Gas Production and Distribution Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US gas utilities, an indicator of natural gas production and distribution, is forecast to grow at an annual compounded rate of 1.1 percent between 2008 and 2013.
Gas Utility Growth Volatile
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Driven by high energy prices
- High fixed costs
- Risk: Slow economy cuts use
Industries Where Duncan Energy Competes
- Energy & Utilities
- Oil & Gas Transportation & Storage
- Natural Gas Pipelines (primary)
- Natural Gas Gathering & Processing Systems
- Energy Trading & Marketing
- Oil & Gas Refining, Marketing & Distribution
- Oil & Gas Transportation & Storage
