Answers

Gas buyers are in panic mode right now and energy service providers are struggling to provide answers to a perfect storm of events that is driving not only natural gas prices into the stratosphere but also the prices of many other fuels.

Gas buyers are in panic mode right now and energy service providers are struggling to provide answers to a perfect storm of events that is driving not only natural gas prices into the stratosphere but also the prices of many other fuels.

Seeking answers for why natural gas prices have spiked so high this winter, Sen. Joe Lieberman (D-CT) concluded 2003 by asking the Commodity Futures Trading Commission (CFTC) and the Federal Energy Regulatory Commission (FERC) to launch an investigation.

With prices remaining high and conventional supply sources drying up, U.S. producers are finding themselves in a tough situation, where a tightening supply crisis might force prices even higher in the next few years, according to Jim Duncan, director of structured products for ConocoPhillips Gas & Power.

Citing a need for answers to protect the public, the Oklahoma Corporation Commission (OCC) on Wednesday questioned the sudden turnaround by officials of Oklahoma Natural Gas (ONG) and its parent company ONEOK after ONEOK Chairman David Kyle offered to turn over documents OCC has requested for months. ONEOK had stalled the request through litigation, and the Oklahoma Supreme Court now has the case before it on whether OCC has the authority to request the company’s internal documents (see NGI, Sept. 10).

Citing a need for answers to protect the public, the Oklahoma Corporation Commission (OCC) on Wednesday questioned the sudden turnaround by officials of Oklahoma Natural Gas (ONG) and its parent company ONEOK after ONEOK Chairman David Kyle offered to turn over documents OCC has requested for months. ONEOK had stalled the request through litigation, and the Oklahoma Supreme Court now has the case before it on whether OCC has the authority to request the company’s internal documents (see Daily GPI, Sept. 6).

In a topsy-turvy session that left both bull and bear searching for answers, natural gas futures slipped lower Thursday as traders took profits following Wednesday’s shocking storage news and resultant 37.4-cent advance. At the closing bell yesterday, the September contract was 10.1 cents lower at $3.367.

The Hewlett Foundation has announced a $10 million energy initiative that will focus on energy supply and conservation issues in California and the Intermountain West and support the development of comprehensive, balanced and practical national energy policy options.

Rep. Peter DeFazio (D-OR) wants answers from the Bonneville Power Administration (BPA) about Morgan Stanley’s purchase of long-term transmission capacity owned by BPA’s transmission line. Among other things, the Oregon lawmaker argues in a recent letter to BPA’s acting administrator that Morgan Stanley’s utilization of only a small fraction of the capacity it purchased could be a sign that the financial services company is attempting to exert market power.