2006

Despite price weakness at the end of 2006, cold weather in early 2007 depleted gas storage levels more than expected, and Schlumberger Ltd. CEO Andrew Gould told analysts Monday that the company believes “fundamentals are clearly in place for reinforced natural gas activity later this year.”

With the 2006-2007 winter now mostly in the rear-view mirror, traders and meteorologists alike are turning their attention to what kind of temperatures spring will bring to the United States. According to Andover, MA-based WSI Corp., the April through June forecast is expected to average warmer than normal in all locations except for the Pacific Coast states, which could start the natural gas storage injection season sooner than normal, but push electricity loads high enough in June to be bullish for power prices in the Midwest markets.

The Chicago Mercantile Exchange (CME) reported Tuesday that it will acquire cross-town competitor Chicago Board of Trade (CBOT) in an $8 billion transaction that will form a $25 billion global derivatives exchange. The combined company, to be named CME Group Inc., a CME/Chicago Board of Trade company, could transform global derivatives markets and put pressure on competing exchanges. The CME said corporate headquarters of the combined organization will remain in Chicago.

With the 2006-2007 winter now mostly in the rear-view mirror, traders and meteorologists alike are turning their attention to what kind of temperatures spring will bring to the United States. According to Andover, MA-based WSI Corp., the April through June forecast is expected to average warmer than normal in all locations except for the Pacific Coast states, which could start the natural gas storage injection season sooner than normal, but push electricity loads high enough in June to be bullish for power prices in the Midwest markets.

El Paso Corp. on Friday sold its prized ANR Pipeline Co., Michigan storage assets and its 50% interest in Great Lakes Gas Transmission to TransCanada Corp. and TC PipeLines LP for $4.135 billion, which includes $744 million in debt. The sale, rumored after El Paso’s proposed Continental Connector pipeline project fell through, is expected to close early next year.

El Paso Corp. on Friday sold its prized ANR Pipeline Co., Michigan storage assets and its 50% interest in Great Lakes Gas Transmission to TransCanada Corp. and TC PipeLines LP for $4.135 billion, which includes $744 million in debt. The sale, rumored after El Paso’s proposed Continental Connector pipeline project fell through, is expected to close early next year.

Declining natural gas prices in the last three months of 2006 took a big bite out of Chevron Corp.’s net income, the San Ramon, CA-based major said Friday. Chevron recorded a 9% boost to its U.S. gas output in 4Q2006, but nearly all of it was gas recovered following restorations to Gulf of Mexico (GOM) infrastructure damaged by hurricanes Katrina and Rita in 2005.

Since its blockbuster acquisitions of Kerr-McGee Corp. and Western Gas Resources Inc. (see Daily GPI, June 26, 2006), Anadarko Petroleum Corp. has been on a divestiture tear, cutting down acquisition debt through multiple asset sales. So far, the company’s plan to end 2007 with $12 billion of debt is on track, according to analysts.

Sen. Mary Landrieu (D-LA) and Rep. John Peterson (R-PA) said they plan to introduce legislation this year that would build on a 2006 bill that will open up an additional 8.3 million acres in the Central Gulf of Mexico to oil and natural gas drilling.