Natural gas usage levels are continuing a strong growth trend as more and more consumers are using the commodity to heat their homes. Of the single-family homes constructed in 2000, 70% of them featured natural gas heat, according to the 2000 Residential Natural Gas Market Survey released Friday by the American Gas Association (AGA). Electric heat captured 27%, followed by heating oil at 3%, the survey found.
Commodity
Articles from Commodity
Fuel Conversions Help KeySpan; Prices Hurt Houston Exploration
“Although we have some exposure to commodity prices, we believe we have the opportunity to achieve the upper end of the range by continuing our track record of growth and cost containment, while also prudently managing our risk,” said CEO Robert Catell.
Production Up, Earnings Down for Majors, Independents
Lower commodity prices sent earnings tumbling for both majors and independents in the third quarter, with the newly merged ChevronTexaco reporting that its net income from operations declined 27%. Apache Corp., a Houston-based independent, had record production in the third quarter, but also had its earnings decline. And across town, Anadarko Petroleum Corp. said reduced prices will cause it to slow the pace of its production schedule through this year and into next. “Now is not the time to grow gas production just for the sake of growth,” said Anadarko CEO Robert Allison.
Devon, Mitchell Amend Merger as Devon’s Stock Price Declines
Due to spiraling commodity prices, which have led to a drop in Devon Energy Corp.’s stock price, Devon and Mitchell Energy & Development Corp. said Friday that the board of directors of each company has amended their merger agreement to address certain risks posed by Devon’s falling stock price. The amendment would provide for an alternate structure to mitigate the risks in the event the stock price would prevent the issuance of certain tax opinions, which are a condition to the merger transaction.
AGA Plans Review Storage Data Procedures
The American Gas Association (AGA) said it is undertaking a review of the procedures for performing revisions to its storage data, following an inquiry by the Commodity Futures Trading Commission (CFTC) about the second largest revision ever to its storage data on Aug. 22. The +47 Bcf net revision prompted a sharp drop in futures prices and an angry response from natural gas traders and marketers, who use the information to help determine available supply and to project price changes.
AGA Plans To Review Storage Data Procedures
The American Gas Association (AGA) said it is undertaking a review of the procedures for performing revisions to its storage data, following an inquiry by the Commodity Futures Trading Commission (CFTC) about the second largest revision ever to its storage data last week. The +47 Bcf net revision prompted an angry response from natural gas traders and marketers, who use the information to help determine available supply and to project price changes.
ICE Goes Public With Its Indices
IntercontinentalExchange (ICE), one of the fastest growing electronic commodity marketplaces, is going public with its daily natural gas and power price indices, making them available, free of charge, to anyone that registers at www.intercontinentalexchange.com. The company said its index history is also available.
EnergyClear OTC Registration Approved
EnergyClear Corp., the first industry-sponsored over-the-counter (OTC) energy derivatives clearinghouse, has been approved for registration as a derivatives clearing organization (DCO) by the Commodity Futures Trading Commission. The registration as a DCO allows the Houston-based company to offer multilateral clearance and settlement of OTC energy trades, initially in the electricity and natural gas markets.
EnergyClear OTC Registration Approved
EnergyClear Corp., the first industry-sponsored over-the-counter (OTC) energy derivatives clearinghouse, has been approved for registration as a derivatives clearing organization (DCO) by the Commodity Futures Trading Commission. The registration as a DCO allows the Houston-based company to offer multilateral clearance and settlement of OTC energy trades, initially in the electricity and natural gas markets.
Industry Briefs
Utilities continue to struggle with high commodity prices as evidenced most recently on Friday when the Public Service Electric and Gas Co. (PSE&G) filed a petition with the Board of Public Utilities (BPU) requesting an increase in gas base rates of $171 million for gas delivery service. The requested increase would result in an overall gas revenue increase of 7.06% to reflect current costs. PSE&G last filed for an increase in base rates in November 1991. PSE&G said that present gas rates will remain in effect until new rates are approved by the BPU. PSE&G is New Jersey’s oldest and largest regulated gas and electric delivery utility, serving 3.5 million customers.