Analysis

Although the nation needs to await the completion of a “full autopsy” on Enron Corp., an initial analysis using public financial documents shows that the Houston energy trading giant was marked by “income that seldom matched its cash flows,” according to Portland, OR-based energy economist Robert McCullough, speaking Friday to an industry conference in Seattle, WA.

An analysis of the Bush administration’s energy plan points up 17 different provisions that would have benefited Enron Corp., Rep. Henry Waxman (D-CA) said Wednesday in asking “once again” for “specific information about the White House contacts with Enron and other energy companies.”

Due to the recent drilling successes in the deepwater play of the Gulf of Mexico, Energy and Environmental Analysis Inc. (EEA) said it expects total deepwater production to grow from the year 2000 rate of 3.6 Bcf/d to 6.1 Bcf/d by 2003, and into the 9-10 Bcf/d range by 2010.

Due to the recent drilling successes in the deepwater play of the Gulf of Mexico, Energy and Environmental Analysis Inc. (EEA) said it expects total deepwater production to grow from the year 2000 rate of 3.6 Bcf/d to 6.1 Bcf/d by 2003, and into the 9-10 Bcf/d range by 2010.

A group representing 32 industrial customers in the Pacific Northwest has asked FERC to conduct a more thorough analysis of Northwest Natural Gas Co.’s planned acquisition of Enron affiliate Portland General Electric (PGE). The group charges that the deal could reduce competition in the region’s natural gas transportation and power markets. Northwest Natural and Enron agreed to the $1.8 billion cash and stock transaction in October two months before Enron declared bankruptcy (see Power Market Today, Oct. 9).

A recent national electricity transmission study conducted by Analysis Group/Economics Inc. found that it generally would be less expensive to locate power generation closer to consumers and build natural gas pipelines when needed, than to build generation near the gas fields and transmit the power to consumers located farther away.

Fitch, the investment ratings and analysis firm, has joined the ranks of investment advisors with lowered expectations for the upstream natural gas and oil business, predicting stagnant prices through 2002 and into 2003.

Fitch, the investment ratings and analysis firm, has joined the ranks of investment advisors with lowered expectations for the upstream natural gas and oil business, predicting stagnant prices through 2002 and into 2003.

After analysis of anomalies discovered during its routine inspection program, NGPL has shut in its #1 line between Compressor Stations 301 and 302 in Segment 22. The #2 line is still flowing at a reduced pressure while repairs commence on the #1 line. Effective today until further notice, gas sourced out of the South Texas Zone for deliveries north or east into the Gulf Coast System will be restricted. AOR, IT and Secondary volumes will not be scheduled, while Primary services will be available at a reduced level.