Clouds

With tight U.S. energy markets keeping prices at historically high levels, “several storm clouds are on the horizon” for the industry unless the supply burden is eased, according to former U.S. Secretary of Energy Spencer Abraham. He noted that another spike in energy prices could bring a backlash from the general public, which in turn could spark U.S. government intervention.

Costs are up by 40% and an aboriginal lawsuit clouds the outlook for the regulatory process, but strong supply needs and prices convinced the Mackenzie Gas Project to press ahead by filing construction applications last week.

Costs are up by 40% and an aboriginal lawsuit clouds the outlook for the regulatory process, but strong supply needs and prices convinced the Mackenzie Gas Project to press ahead by filing construction applications (see Daily GPI, Oct. 8).

The expected softening materialized at nearly all points Wednesday. But although mild to cool weather in most regions argued for price slides to continue Thursday, a big screen rally threw some doubt on upcoming cash market movement.

Standard and Poor’s Rating Service explained the reasons for assigning a “B” rating and negative outlook on both El Paso Corp. and The Williams Cos. Inc. in a new report released on Friday. The two companies have “consistently underperformed in terms of meeting financial target expectations” mainly because of the poor performance of their marketing and trading divisions, which despite being either significantly reduced, as in Williams’ case, or on the fast track toward being completely dissolved, as in El Paso’s case, could continue to be a draw on cash, S&P said.

Doubt still clouds the scale that will be attained, but development of coalbed methane shows signs of beginning in earnest in Canada as natural gas producers seek substitutes for aging conventional supplies.

Doubt still clouds the scale that will be attained, but development of coalbed methane shows signs of beginning in earnest in Canada as natural gas producers seek substitutes for aging conventional supplies.

Although Avista Corp. has revised its earnings projections for 2001 upward in the wake of positive second quarter earnings results, company executives said that the political and regulatory uncertainty that continues to swirl around western energy markets muddles its ability to forecast how its energy trading and marketing arm will perform over the next year or so.