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The Mackenzie Gas Project (MGP) has been ordered by Canadian regulators to try and answer the question hanging over Arctic gas schemes in Canada and the United States alike: can they survive competition from the new generation of southern shale supply sources?

The Mackenzie Gas Project (MGP) has been ordered by Canadian regulators to try and answer the question hanging over Arctic gas schemes in Canada and the United States alike: can they survive competition from the new generation of southern shale supply sources?

Skeptics and supporters alike agree that a key part of California’s latest multi-billion-dollar, three-year energy efficiency initiative will be control of how the money is spent and measurement of verifiable energy savings that result. Both the California Public Utilities Commission (CPUC) and its independent consumer unit raised this issue during the debate leading up to the CPUC decision Sept. 24.

Skeptics and supporters alike agree that a key part of California’s latest multi-billion-dollar, three-year energy efficiency initiative will be control of how the money is spent and measurement of verifiable energy savings that result. Both the California Public Utilities Commission (CPUC) and its independent consumer unit raised this issue during the debate leading up to the CPUC decision last Thursday (see Daily GPI, Sept. 25).

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.

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.

Canadian natural gas drilling is forecast to heat up again in the coming winter field work season as producers and contractors alike anticipate the next surge in prices and vow to be ready to take advantage of it with increased productive capacity.

Northwest Territories Energy Minister Brendan Bell is urging Canadian and American producers alike to get on with arctic pipeline projects, warning them that waiting could make them uneconomic because of overseas imports of liquefied natural gas (LNG).

The New York Mercantile Exchange Inc. said Monday that it will introduce a natural gas look-alike options contract during regular trading hours beginning on Aug. 15. The contract will be listed for 72 consecutive monthly contracts beginning with the September 2005 contract. The options will be European-exercise style and financially settled. The contracts will expire on the second to last business day prior to the underlying futures month. On expiration day, a call option pays out the difference between the settlement price of the underlying futures contract less the strike price multiplied by 10,000 MMBtu, or zero, whichever is greater. Likewise, a put option on expiration day pays out the difference between the strike price and the settlement price of the underlying futures contracts multiplied by 10,000 MMBtu, or zero, whichever is greater. Strike prices will be listed at $0.010 intervals and a minimum price increment of $0.0001/MMBtu.