Changes

The Federal Energy Regulatory Commission said that at its nextmeeting Jan. 12 it will consider a final rule on the proposedchanges to its regulations governing short-term natural gastransportation services and interruptible transportation (DocketsRM98-10 and RM98-12).

While nearly all the production-area points held steady withchanges of no more than a penny or two in both directions, it wasdelivered prices in the Northeast, Midwest and California that gavethe cash market a taste of volatility Thursday. Northeast citygatesrepeated as the day’s big losers with declines from about 35-38cents (Transco Zone 6-NYC and Texas Eastern M-3) to more than 50cents (Iroquois Zone 2 and Algonquin citygate) as the regionexperiences a very slow warming trend from its early-week chill.Ranges were very large as prices fell steadily while tradingproceeded, one source said.

Despite failing this summer to deliver several high-profileenergy restructuring corrective laws, California’s statelegislature is expected to be the focal point of future energypolicymaking again next year, with more involvement from thegovernor’s office, according to a variety of energy expertsaddressing a two-day industry workshop in San Francisco.

Sparked by the retirement of CEO Ken Derr, Chevron Corp. followed up last week with a list of upper management job changes. The San Francisco, CA-based energy giant’s board of directors selected its current vice chairman and director, Dave O’Reilly, to succeed Derr as CEO effective Jan. 1, 2000.

Entergy Nuclear grew its nuclear fleet with the first U.S.competitive bid purchase of a nuclear plant. Entergy bought PilgrimStation, a 670-megawatt reactor in Plymouth, MA, from Boston Edisonfor $81 million. The deal closed less than eight months after thecompanies agreed to transfer ownership.

The Energy Information Administration released its Annual EnergyReview this week chronicling 50 years of changes in the U.S. energyindustry. Fifty years ago the nation was nearly self-sufficient inpetroleum and was a net exporter of natural gas, the report notes.Now, on the eve of the new century, America imports more than half ofits petroleum and 15% of its natural gas. Gas supply and demand werein relative balance in the U.S. until the mid-1980s when aproduction-consumption gap developed. In 1998, U.S. production was 19Tcf, consumption was 21 Tcf and imports were 3 Tcf. While the numberof wells producing gas in the U.S. grew 263% over the 50 years, theaverage output per well fell by 55%. The report is available at http://www.eia.doe.gov/emeu/aer/ on EIA’s web site.Printed copes will be available later this month from the U.S.Government Printing Office, (202) 512-1800, or through EIA’s NationalEnergy Information Center, (202) 586-8800.

A decision on the remanded Sea Robin Pipeline case anddiscussion of policy changes in the way the Federal EnergyRegulatory Commission regulates offshore pipelines both are on theagenda for Wednesday’s open meeting, but no one will be surprisedif they’re a no-show once again.

A decision on the remanded Sea Robin Pipeline case anddiscussion of policy changes in the way the Federal EnergyRegulatory Commission regulates offshore pipelines both are on theagenda for Wednesday’s open meeting, but no one will be surprisedif they’re a no-show once again.

Removal of a 4% import tariff on natural gas July 1, new openaccess transportation rates and the likelihood that Mexico willbegin privatization of its electric industry this year are makingthe country a more attractive business target for the U.S. energyindustry, and California-based Sempra Energy is taking immediateadvantage of the opening.