Ability

Exploration and production (E&P) companies’ ability to find new oil and natural gas resources has peaked “at least in the short term” because new reserves are in ever-more challenging environments, and the industry is losing a generation of experienced workers, BP plc’s E&P chief said in speech at Rice University in Houston.

Exploration and production (E&P) companies’ ability to find new oil and natural gas resources has peaked “at least in the short term” because new reserves are in ever-more challenging environments, and the industry is losing a generation of experienced workers, BP plc’s E&P chief said in speech at Rice University in Houston.

Rockies Express Pipeline LLC (REX) Tuesday said the final 210 miles of the Rockies Express West pipeline (REX-West) are in service. About 500 miles of REX-West had already begun service Jan. 12, providing the ability for shippers to move gas from the Cheyenne Hub to interconnects in Nebraska and Kansas.

Columbia Gas said Tuesday that until further notice there is zero nonfirm receipt capacity for gas entering lines BM-39 in Martin County, KY; BM-19 in Lawrence County, KY, and Wayne County, WV; and PM-117 in Martin County, KY, and any pipelines feeding into these lines. This is for the purpose of making capacity available for firm services, Columbia said. See the bulletin board for a list of affected meters.

Although cold weather was due to extend into the weekend in the Northeast and Midwest, its price-boosting ability was largely gone Friday. Quotes softened at most points as a warming trend began in the South and the West was fairly moderate for the most part.

The cold snap that is developing across much of the eastern U.S. had only limited ability to keep price firmness going Wednesday. Most points fell in deference to forecasts that the eastern cold may be less severe than previously expected and not last much longer than next week (see futures story). A plethora of excess supply issues in the West also contributed to price drops on the day.

BP Energy Co.’s ability to market natural gas in the western United States has improved with the completion of its acquisition of Salt Lake City-based marketer Wasatch Energy LLC. The acquisition was announced in December (see NGI, Dec. 25, 2006). The deal, for an undisclosed amount, gives BP Energy all of Wasatch’s natural gas business and assets, including commercial and industrial sales contracts and producer services contracts. Wasatch’s 42 employees also were offered the opportunity to transfer to BP Energy. Wasatch has a portfolio of 350,000 MMBtu/d of gas purchase, transportation and sales activity across 10 western states that serve about 500 commercial and industrial customers and 100 producers. Its sales offices are located in New Mexico, Colorado, Washington, and California.

BP Energy Co.’s ability to market natural gas in the western United States has improved with the completion of its acquisition of Salt Lake City-based marketer Wasatch Energy LLC. The acquisition was announced in December (see Daily GPI, Dec. 22, 2006).

Futures strength, which had largely been responsible for cash quotes rising most of last week, had its supportive ability fail Friday as the physical market took double-digit dives at all points. Cash traders also had to contend with a weekend warm-up in the Midwest eliminating some heating load at the same time that falling temperatures were reducing cooling load in the western end of the South.