Active

Federal measures exempting oil and natural gas producers active in the prodigious Gulf of Mexico from royalties could deprive the U.S. Treasury of a minimum $20 billion in lost revenues over the next two decades or more, according to information contained in a preliminary government report that was obtained by the New York Times.

In spite of bearish EIA storage figures, natural gas futures turned tail and headed higher in active inventory report-driven trading Thursday on the New York Mercantile Exchange. The EIA reported withdrawals from working gas inventory tallied a miserly 23 Bcf, below the ICAP options auction consensus of 25.5 Bcf, and short of a Reuter’s survey of 22 analysts and traders that predicted a fall of 31 Bcf. Bentek Energy of Colorado calculated a withdrawal of 40.9 Bcf in its Wednesday Daily Market Summary.

With active pursuers from the private and public sectors courting its favor, Sioux Falls, SD-based NorthWestern Corp.’s board Tuesday confirmed that it has entered confidentiality agreements with an unspecified “select number” of suitors. In a terse status report to shareholders, the board confirmed that its assessment of all of its “strategic options,” including the two outstanding public offers, is still incomplete and it needs what it called “formal due diligence.”

Citing the disruptive effect of the active hurricane season on the domestic energy markets, the ranking Democrat on the Senate Energy and Natural Resources Committee has urged the heads of the departments of energy, interior and treasury to take immediate steps to head off a natural gas supply and price crisis this winter.

The most active independent Canadian producer in the Northwest Territories has joined the industry chorus saying the limping Mackenzie Gas Project needs more work, as review of the plan continues before the national Energy Board.

This year is shaping up as another “active” year for mergers and acquisitions (M&A) in the oil and natural gas industry, according to a new report by Standard & Poor’s (S&P). Many large independent and integrated producers face stagnant reserve replacement or falling reserves, and M&A has been a “safer path to bolstering the reserve base and production profile than the drillbit.”

This year is shaping up as another “active” year for mergers and acquisitions (M&A) in the oil and natural gas industry, according to a new report by Standard & Poor’s (S&P). Many large independent and integrated producers face stagnant reserve replacement or falling reserves, and M&A has been a “safer path to bolstering the reserve base and production profile than the drillbit.”

A third natural gas storage cavern has been placed in service at the Keystone Gas Storage Facility, which brings its total active gas storage capacity to 3 Bcf, Unocal Midstream & Trade (UMT) said Friday. Mining operations for the fourth and fifth caverns continue, and total capacity could reach 5 Bcf by early 2006, the Unocal Corp. subsidiary said.

Within days of its decision earlier this month to drop a preliminary proposal for a coastal liquefied natural gas (LNG) receiving terminal in northern California, a Calpine Corp. official indicated the company continues to talk with all of the major LNG proponents in North America.