Absent

Without another large storage injection to pull the rug out from under the market (AGA delayed its report until Thursday), technical factors and a short-term cold front that’s expected to move across the Midwest and Northeast later in the week enabled November gas futures on the New York Mercantile Exchange to continue climbing Wednesday. The near-month contract reached a high of $2.360 and settled at $2.320, which was a 5.2-cent daily increase. The daily low was $2.270.

Continuing for September and until further notice, absent mitigating actions acceptable to the pipeline, any gas received into NGPL’s Louisiana Line (Segments 23, 24 and 25) that contains liquefiable hydrocarbons that might condense in the gas stream and cause the line’s gas quality blend to exceed 1,050 Btus per cubic foot will not be confirmed. Due to a continuing unusually low level of upstream processing, NGPL said, it continues to receive very high deliveries of non-conforming gas. Ten receipt points currently exceeding the quality specification were posted on NGPL’s bulletin board.

With summer 2001 only a week away, all eyes are turning toward California to see how the embattled state handles itself through the three-month period when air conditioning usage reaches its peak and MW supply becomes scarce. With the California Energy Commission (CEC) and the California Independent System Operator (Cal-ISO) already on record expecting rotating power outages during peak afternoon demand hours in the state, the key issue is how will the outages impact petroleum product and natural gas supply in the state.

With summer 2001 only a week away, all eyes are turning toward California to see how the embattled state handles itself through the three-month period when air conditioning usage reaches its peak and MW supply becomes scarce. With the California Energy Commission (CEC) and the California Independent System Operator (Cal-ISO) already on record expecting rotating power outages during peak afternoon demand hours in the state, the a key issue is how will the outages impact petroleum product and natural gas supply in the state.

House Democrats made clear last week that they favor some of the same actions as the Republicans to resolve the current energy crisis — improving the energy transmission/transportation infrastructure, increased drilling on public lands, expedited permitting for pipelines and production tax credits — but they insist these can be accomplished without compromising the environment.

A principle that was the cornerstone of FERC’s landmark gasrestructuring rule, Order 636, is absent from Order 888 and is atthe root of many of the reliability problems in the bulk powermarket, say industrial power customers and a utility/marketer.

Absent a showing of market support, the Federal EnergyRegulatory Commission staff last week threatened to dismiss PetalGas Storage L.L.C.’s amended proposal in which it seeks to expandthe deliverability of its storage facilities in Mississippi.

Absent a reliable grid and “vibrant” wholesale power market, themovement towards open electric competition at the retail levelcould literally collapse, FERC Chairman James Hoecker told statelawmakers and energy producers yesterday.

Absent anything in the way of new influences from weather orfutures, most of the market went into a holding pattern Thursday.Mild softness permeated much of the general flatness as what wasconsidered a bullish storage injection report Wednesday afternoonfailed to provide support for cash prices. Northeast citygates fellabout a nickel, resuming their decline after a brief respite fromthe softness that had prevailed since the first of the month.