Blames

Confirming what the state’s energy crisis made abundantly clear months ago, the California Energy Commission (CEC) staff last week released its final draft report on the state’s natural gas infrastructure, concluding that it is constrained and has caused higher-than-average wholesale gas prices, particularly in the southern half of the state. But the report did not totally rule out market manipulation as a culprit.

Kerr-McGee Corp. cited the “continued slowdown in the U.S. and worldwide economies” and lower oil and gas production as reasons that its second quarter net income was down 19%, standing at $175 million, or $1.71 per diluted share, compared with $217 million, or $2.13 per share for the same period of 2000. Last year’s second quarter included $107 million, or $1.02 per share, in special charges. No special charges were recorded for this year’s second quarter.

With politicians and economists pointing fingers in various directions to attach responsibility for California’s electricity problems, the quarterly UCLA business school economic forecast last Thursday predicted a recession for the state, particularly in the north, driven largely by the electricity crisis. A separate analysis by the university and Cambridge Energy Research Associates (CERA) looked at two scenarios, advocating perhaps a different course than the one charted currently by the state.

With politicians and economists pointing fingers in various directions to attach responsibility for California’s electricity problems, the quarterly UCLA business school economic forecast last Thursday predicted a recession for the state, particularly in the north, driven largely by the electricity crisis. A separate analysis by the university and Cambridge Energy Research Associates (CERA) looked at two scenarios, advocating perhaps a different course than the one charted currently by the state.

Portland, OR-based Northwest Natural Gas Co. said its first quarter earnings will be lower than expected, blaming the decline on rate increases last fall, which appeared to have sent a message to its 525,000 customers in Oregon and southwest Washington to conserve.

Portland, OR-based Northwest Natural Gas Co. said this week that its first quarter earnings will be lower than expected, blaming the decline on rate increases last fall, which appeared to have sent a message to its 525,000 customers in Oregon and southwest Washington to conserve.

Despite the conventional wisdom that there has been a decouplingof natural gas and crude oil prices, ICF Consulting says it isprimarily the close tie between the two commodities under thecurrent circumstances that has been responsible for high naturalgas prices this year.

Despite the conventional wisdom that there has been a decouplingof natural gas and crude oil prices, ICF Consulting says it isprimarily the close tie between the two commodities under thecurrent circumstances that has been responsible for high naturalgas prices this year.

El Paso Natural Gas openly concedes it has had to curtaildeliveries on the East End of its system between the San Juan Basinand Texas in recent months, but it said it wasn’t because it hasoversold capacity on that section of its system, as KN MarketingL.P. has alleged. Rather it’s been due to the schedulingflexibility El Paso affords shippers that allows them to use anyreceipt point on the system, up to the volume limit of theircontract.