Full Nat Gas Storage Won't Materially Impact Anadarko -CEO
19 August 2009 - 4:05AM
Dow Jones News
U.S. natural gas storage is expected to reach full capacity this
autumn, forcing some producers to shut-in output, but Anadarko
Petroleum Corp. (APC) won't suffer significant harm, Chief
Executive Jim Hackett said Tuesday.
"I don't think it will be material to us," Hackett told Dow
Jones Newswires on the sidelines of a rally protesting climate
legislation.
Anadarko, one of the country's largest producers of natural gas,
is performing maintenance at its Independence Hub field in the
offshore Gulf of Mexico. By the time the company restores full
production there, inventories will have begun to shrink due to the
seasonal demand uptick that usually occurs in the winter, Hackett
said.
While some natural gas producers may suffer, "consumers will be
happy" at the low prices that result from the glut in gas, Hackett
said.
An ever-increasing supply of natural gas from shale and
depressed demand due to the recession have combined to create a
major glut in the natural gas market. Analysts expect inventories
to reach their maximum capacity sometime in September.
-By Angel Gonzalez, Dow Jones Newswires,
angel.gonzalez@dowjones.com; 713-547-9214