Blow

The cold north wind certainly helped blow out the price difference, or basis, this winter between the Gulf Coast producing region spot price points and the northeastern gas market, but pipeline capacity constraints to the market region have been known for several years. Unfortunately, there are few projects available that can provide any relief in the near term, according to consultants at Arlington, VA-based Energy and Environmental Analysis Inc. (EEA).

The basis blow-out in the Rockies will narrow in the short term as Kern River pipeline’s 900 MMcf/d expansion goes into service May 1, but the situation may change beyond that as Kern River fills up and Powder River Basin production increases, according to attendees at a recent conference held by the Independent Petroleum Association of the Mountain States (IPAMS).

Justice Department attorneys were dealt another blow on Friday when a federal judge ordered the Bush administration to turn over to two Washington, DC-based public interest groups more documents and records related to Vice President Dick Cheney’s energy task force, which developed the national energy policy last year.

In what would certainly be a blow in at least the short term for UBS Warburg Energy’s push to revive Enron Corp.’s trading arm, some of the former trading powerhouse’s top traders are soon expected to leave. UBS confirmed last week that at least six of Enron’s former key wholesale energy traders, including the leading natural gas trader and the chief of the options desk, have turned down offers to stay, although most who were offered jobs are staying with UBS.

In what would certainly be a blow in at least the short term for UBS Warburg Energy’s push to revive Enron Corp.’s trading arm, some of the former trading powerhouse’s top traders are soon expected to leave. UBS confirmed that at least six of Enron’s former key wholesale energy traders, including the leading natural gas trader and the chief of the options desk, have turned down offers to stay, although most who were offered jobs are staying with UBS.

In what was a major blow for El Paso Corp. last week, the Federal Energy Regulatory Commission granted the request of the Office of General Counsel’s Market Oversight and Enforcement Section (MOE) for an inquiry into whether El Paso Natural Gas withheld transportation capacity from customers last winter in an attempt to drive up prices for natural gas delivered to the Southern California border.

In another blow to the Canada-to-New York Millennium Pipeline project, TransCanada Pipelines Ltd. and St. Clair Pipelines Ltd. — sponsors of the Canadian leg of the proposed line — have withdrawn their applications from the National Energy Board (NEB).

In another blow to the Canada-to-New York Millennium Pipeline project, TransCanada Pipelines Ltd. and St. Clair Pipelines Ltd. — sponsors of the Canadian leg of the proposed line — have withdrawn their applications from the National Energy Board (NEB).

In what would be a major blow to Alaska officials, especially Gov. Tony Knowles who has pinned the remainder of his term toward getting an Alaska Highway natural gas pipeline, major producers indicated this week that because the cost would be less, they now favor a North Slope pipeline that would move north, through the Beaufort Sea, instead of across the state.