Approach

Natural gas futures gapped lower at the open and never looked back Monday as traders digested the latest private and governmental weather forecasts that suggest that the Eastern U.S. will be spared of any extended period of hot weather through at least the next couple of weeks. The July contract took the selling pressure squarely on the chin, dropping 29.6 cents to a new 11-month low at $3.446.

Cooler weather moving into the Midwest and due to approach the Northeast over the weekend, along with a softer screen and the usual dropoff in weekend demand, pushed cash prices lower Friday. However, the downturn was fairly moderate in the East, where most points fell by less than a dime and other drops were between a dime and 15 cents.

Canadian producers traveled to Ottawa last week to try shaking the Canadian capital out of its largely passive approach to the supply “crisis” threatening the continent, and “make energy resource development a national priority.”

Canadian producers traveled to Ottawa last week to try shaking the Canadian capital out of its largely passive approach to the supply “crisis” threatening the continent, and “make energy resource development a national priority.”

Taking a middle of the road approach, the board of directors at the New York Independent System Operator (NYISO) last Tuesday issued a request to market participants to work to develop what the board called a “balanced sanctions” proposal related to market power abuse by the middle of next month.

Taking a middle of the road approach, the board of directors at the New York Independent System Operator (NYISO) yesterday issued a request to market participants to work to develop what the board called a “balanced sanctions” proposal related to market power abuse by the middle of next month.

Despite recent indications that the Bush administration wouldtake a more hands-off approach to the California crisis, EnergySecretary Spencer Abraham late yesterday gave PG&E and SouthernCalifornia Edison another two weeks of breathing room by extendingemergency orders requiring gas and power suppliers to continuesupplying the cash-strapped utilities. The emergency gas order nowexpires at 3 a.m. (EST) Feb. 7.

The one-day “Natural Gas Summit” held yesterday in Coloradoturned out to be quite an eye-open for industrial gas customers andsuppliers alike, according to participants.

Oklahoma’s Republican Sen. Don Nickles has introduced a wholenew approach to the electric restructuring debate, proposing a billthat would strip states of their authority to grant franchises toutilities and open local markets to competition.