1998

While most large producers reported net income in the positivecolumn in the first quarter of 1998, it was not a quarter most willwant to remember, as returns compared to the first quarter of 1999dropped anywhere from Exxon’s relatively conservative 44% to 81%down for Enron Oil and Gas or a drop from $177 million in earningsin 1Q’98 for Occidental Petroleum to a $70 million loss in 1Q’99.

Texaco reported a 60% drop and Phillips registered an 89%decline in first quarter net income, excluding special items,compared to the first quarter of 1998. While the first quarterdecline in crude and natural gas prices was blamed for the earningsfall-off, Texaco Chairman Peter I. Bijur found a positive sign forthe rest of the year in the fact that “prices have strengthenedsignificantly.”

Texaco reported a 60% drop and Phillips registered an 89%decline in first quarter net income, excluding special items,compared to the first quarter of 1998. While the first quarterdecline in crude and natural gas prices was blamed for the earningsfall-off, Texaco Chairman Peter I. Bijur found a positive sign forthe rest of the year in the fact that “prices have strengthenedsignificantly.”

ScottishPower and PacifiCorp jointly announced that their Dec.7, 1998 merger plan gained a large boost Tuesday when the FederalTrade Commission (FTC) waived the 30-day waiting period under theHart-Scott-Rodino antitrust law.

The Commodity Futures Trading Commission (CFTC) approved a NewYork Mercantile Exchange (NYMEX) application to trade electricityfutures and options based on delivery at the Pennsylvania-NewJersey-Maryland (PJM) western hub.

After spiraling down in the last 30 minutes of last Thursday’sabbreviated trading session, the spot January contract gapped lowerand traded in a tight 6-cent trading range Monday as traderscontinued to test the downside of the market. The nearby cashmarket, which was trading 5-10 cents lower on many pipes, had anundeniable affect when the futures market opened at 10 AM EST,traders said. Estimated volume was robust, with 86,466 contractschanging hands.

A major pipeline group last week said there was “much to like”in the notice of proposed rulemaking (NOPR) that would, among otherthings, expand the blanket construction and abandonment authorityfor pipelines under FERC’s Part 157 regulations, but it also had”several major concerns.”

A major pipeline group last week said there was “much to like”in the notice of proposed rulemaking (NOPR) that would, among otherthings, expand the blanket construction and abandonment certificateauthority for pipelines under FERC’s Part 157 regulations, but italso had “several major concerns.”

FERC yesterday played Santa Claus to the natural gas industry bygranting its wish for a second extension of the deadline forcomments on the mega-notice of proposed rulemaking (NOPR)addressing short-term capacity issues and notice of inquiry (NOI)focusing on long-term transportation issues (RM98-10, RM98-12]. Butit did not close the door for those few who might want to filecomments under the current schedule.