Challenges

The biggest challenges facing El Paso Corp. in 2005 will be hitting a $2 billion debt reduction target, getting its cost structure under control after more than $4 billion in asset sales over the last couple of years and turning around its exploration and production (E&P) business, CEO Doug L. Foshee told analysts at the UBS 2005 Natural Gas and Electric Utilities Conference on Wednesday.

The biggest challenges facing El Paso Corp. in 2005 will be hitting a $2 billion debt reduction target, getting its cost structure under control after more than $4 billion in asset sales over the last couple of years and turning around its exploration and production (E&P) business, CEO Doug L. Foshee told analysts at the UBS 2005 Natural Gas and Electric Utilities Conference on Wednesday.

Citing conflicts between federal statutes and challenges from state agencies, an interstate natural gas pipeline group has called on Congress to eliminate regulatory confusion by legislating that the Federal Energy Regulatory Commission is the lead federal agency over the approval and siting of interstate gas pipeline, storage and liquefied natural gas (LNG) projects.

In light of the huge capital expenditures and long lead times for liquefied natural gas (LNG) projects, as well as LNG supply constraints, energy industry experts and analysts told a joint House-Senate panel last Thursday that U.S. gas prices will remain at lofty levels throughout most of the current decade.

In light of the huge capital expenditures and long lead times for liquefied natural gas (LNG) projects, as well as LNG supply constraints, energy industry experts and analysts told a joint House-Senate panel Thursday that U.S. gas prices will remain at lofty levels throughout most of the current decade.

Although political pressure and some editorial writers seem bent on goading California’s governor into action on new energy legislation in the waning days of this year’s legislative session, Gov. Arnold Schwarzenegger remained unmoved on Friday, following a letter from the lower house Assembly Speaker and a consumer group rally on the Capitol steps last Wednesday.

FERC last Wednesday upheld its November 2003 order approving with one change a $1.7 billion settlement of California’s allegations that an El Paso Corp. pipeline drove up natural gas prices in the state by withholding capacity during the state’s energy crisis, and that it gave preferential treatment to its energy merchant affiliate during bidding on transportation capacity.

FERC on Wednesday upheld its November 2003 order approving with one change a $1.7 billion settlement of California’s allegations that an El Paso Corp. pipeline drove up natural gas prices in the state by withholding capacity during the state’s energy crisis, and that it gave preferential treatment to its energy merchant affiliate during bidding on transportation capacity.

Growing reliance on natural gas to produce electricity throughout the West is presenting planning challenges to energy planners in California, a panel of government and utility representatives told an industry workshop in San Francisco Tuesday, the first day of a two-day look at “Natural Gas Market Outlook, 2006-2016.”