Awards

Energy Secretary Spencer Abraham announced this week that the Department of Energy (DOE) will award $89.4 million to 19 states to weatherize the homes of low-income families to save energy as the nation faces a potential natural gas supply shortfall in the months ahead. The weatherization year for the 19 states took effect July 1.

For the second day in a row, the natural gas futures market opened higher but fell lower late in the session as traders elected to take profits on the hunch that all the bullish news available has already been factored into prices. By virtue of losses Friday, Monday, and Tuesday, the November contract becomes the first prompt month since September to notch a string of three down days. It closed at $4.11, down 4.7 cents for the session and a whopping 31 cents beneath Monday’s 18-month high at $4.42.

The Department of Energy’s Office of Fossil Energy announced plans last week to partially fund 20 oil and gas research and development projects with a total contribution reaching more than $22 million.

The Department of Energy’s Office of Fossil Energy announced plans Wednesday to partially fund 20 oil and gas research and development projects with a total contribution reaching more than $22 million.

The Interior Department’s Minerals Management Service completed its two-phase bid evaluation process for Central Gulf of Mexico Lease Sale 178, Part 1 on Friday, awarding 534 leases worth a total of $499.6 million. MMS actually rejected 13 high bids worth $5.7 million, calling them “insufficient for fair market value,” but said the sale indicated a “continued strong showing” by both majors and independents.

The Interior Department’s Minerals Management Service completed its two-phase bid evaluation process for Central Gulf of Mexico Lease Sale 178, Part 1 on Friday, awarding 534 leases worth a total of $499.6 million. MMS actually rejected 13 high bids worth $5.7 million, calling them “insufficient for fair market value,” but said the sale indicated a “continued strong showing” by both majors and independents.

Vancouver-based Westcoast Energy Inc. reported last week that its recent open season on its Southern Mainline was a complete success. In addition to fully subscribing the 200 MMcf/d open season for additional transportation capacity on its Southern Mainline, the company announced that it awarded 50 MMcf/d of additional transportation capacity on its Westcoast Alberta line.

Vancouver-based Westcoast Energy Inc. reported Monday that its recent open season on its Southern Mainline was a complete success. In addition to fully subscribing the 200 MMcf/d open season for additional transportation capacity on its Southern Mainline, the company announced that it awarded 50 MMcf/d of additional transportation capacity on its Westcoast Alberta line.

The Federal Energy Regulatory Commission set its seal, pending environmental review, on another westward-bound pipeline project last Wednesday. The North Baja Pipeline will carry up to 500 MMcf/d from a connection with El Paso Natural Gas near Ehrenberg, AZ, to fuel power plants and gas distribution systems in Northern Mexico and Southern California.