Community

A financial community audience hosted by Standard & Poor’s in New York City was told last Wednesday that in the wake of this year’s energy industry credit and credibility crisis, electricity reserves look adequate for North America through 2008, but energy price volatility is expected to continue, particularly in regard to natural gas. On average, however, gas prices should stay in the $2.75-$3.50/MMBtu range, according to a presentation by Boulder, CO-based researcher Douglas Logan, a principal in Platts Research & Consulting/RDI.

Last winter appears to have shaken the meteorological community, most of which — Davis included — predicted a colder than normal winter. It turned out to be the fifth warmest on record. Davis said he’s still trying to determine the causes of the very unusual winter temperatures.

Dynegy CEO Chuck Watson told the investment community Monday that he was “90% sure” that the risk/reward ratio in the planned merger with Enron Corp. made it “clearly worth doing the deal,” because the issues that decimated the former market leader were with its non-core businesses. Explaining that his team had “adequately bracketed the downside,” as the deal fell together over the past few weeks, Watson said he could not be “99% positive,” but noted that the upside was “substantial,” and said he had a “good deal of confidence…that we’ll be absolutely fine here.”

The latest question revolving around Houston and the energy trading community as the week begins is how low can Enron Corp.’s stock go? On Monday, the stock dropped to a low not seen since 1994, failing to boost investor confidence as it lobbied banks for a new credit line. As investors bailed, Moody’s Investor Service cut the energy trader’s long-term debt ratings, and by the time the New York Stock Exchange had closed, Enron had fallen another 10.9%, losing $1.60 to stand at $13.95.

While the trading community continued to stew over what virtually everyone agreed was an outlandishly low AGA storage injection figure, it sent cash prices diving Friday. Declines tended to be between about 15 and 35 cents, with those in the 20s most common. Many points were giving up nearly all the price territory they had gained the day before.

The Canadian natural gas community shows signs of curing itsexcess-capacity headache the easy way — by finding enoughsupplies with a few major wells to fill up the expanded pipelinegrid.

The Canadian natural gas community shows signs of curing itsexcess-capacity headache the easy way — by finding enoughsupplies with a few major wells to fill up the expanded pipelinegrid.

While various market participants and analysts are advising astepped up construction schedule for new power plants, oneCalifornia community may be getting the message.

Amid persistent questions about supplies and sustained high prices, the Canadian natural gas community heard a reassuring word — it is not an issue in the federal election, and its defenders are armed with answers if critics step forward before the Nov. 27 vote. The good word — and the defense arsenal — came from the National Energy Board, in a 61-page market assessment released as the Canadian campaign entered its second week at the same time as falling thermometers signaled the onset of heating season.