Beyond

Despite continuing setbacks with Texas properties, PG&ECorp. officials last week expressed continued support for theirnational energy strategy, which when broken down is a largelyelectricity-based with key gas assets to enhance power assetvalues.

Despite continuing setbacks with Texas properties, PG&ECorp. officials this week expressed continued support for theirnational energy strategy, which when broken down is a largelyelectricity-based with key gas assets to enhance power assetvalues.

Florida Gas Transmission did not extend an Overage Alert Day notice(see Daily GPI, Dec. 6) beyond Friday.

Pacific Gas & Electric did not extend a high-inventory OFObeyond Friday.

Florida Gas Transmission extended maintenance at Station 14 in theFlorida Panhandle through Dec. 4, three days beyond the originallyprojected end date (see Daily GPI,Nov. 29). As previously posted, the work limits FGT’s market areato about 1.3 Bcf/d. Due to significant demand, the pipeline Wednesdayissued an Overage Alert Day notice for the system east of Station12. It carries a 6% tolerance for negative daily imbalances.

The industry’s hunt for natural gas has gone way beyond thesearch for oil and shows no signs of letting up. Gas directeddrilling has held a solid 80% of all U.S. drilling by rotary rigssince mid-July. And last week the number of rotary rigs drillingfor gas leaped to 609 from 579 the week prior, while total rigsrose to 750 from 721, the largest weekly gain since Nov. 28, 1997,according to Baker Hughes. Oil-directed drilling declined duringthe week by one rig to 139.

The industry’s hunt for natural gas has gone way beyond thesearch for oil and shows no signs of letting up. Gas directeddrilling has held a solid 80% of all U.S. drilling by rotary rigssince mid-July. And last week the number of rotary rigs drillingfor gas leaped to 609 from 579 the week prior, while total rigsrose to 750 from 721, the largest weekly gain since Nov. 28, 1997,according to Baker Hughes. Oil-directed drilling declined duringthe week by one rig to 139.

A 270 MMcf/d reduction in San Juan Basin supply persisted intothe weekend-and possibly beyond-as El Paso reported it had founddamage to internal rotating components in its Blanco Plant’s “D”turbine that would require removal and inspection. The plant hadbeen scheduled to resume full operation Thursday. If the parts canbe repaired and reused, the turbine should return to service May31, El Paso said. But if the parts must be replaced, the projectedreturn date is June 5.

Beyond the currently tumultuous financing markets and depressedcommodity prices there is a good deal of potential energy in themergers and acquisitions arena, according to Eric Mullins, vicepresident of Goldman Sachs.