Correction

The U.S. natural gas rig count has peaked and is now in the early weeks of a downward correction that is likely to extend through all of 2009 and perhaps most of 2010, an energy analyst said Wednesday.

The Department of Transportation (DOT) has issued a correction action order against Tennessee Gas Pipeline in the wake of a July 22 rupture and fire on a segment of its Line 100-1 natural gas pipeline system in Kentucky.

Energy stocks have undergone a “very sharp, technically driven correction” in the past couple of weeks, but there should be a strong move upward through the end of the year because of higher natural gas prices this winter and upward earnings guidance for 2006, Raymond James’ energy analysts predicted in a new report.

Continuing to retreat from the prior Wednesday’s rally, January natural gas futures on Tuesday continued probing lower in search of meaningful support. The prompt month seemed to find it soon after noon (EST) when it bounced after notching $7.41. January natural gas has not been that low since Sept. 28, when the contract recorded a $7.18 low on the day.

Continuing to retreat from the prior Wednesday’s rally, January natural gas futures on Tuesday continued probing lower in search of meaningful support. The prompt month seemed to find it soon after noon (EST) when it bounced after notching $7.41. January natural gas has not been that low since Sept. 28, when the contract recorded a $7.18 low on the day.

A story, titled Michigan ALJ Rules Against Consumers Energy Rate Hike, that ran in Daily GPI on March 15 contained an error in the second paragraph. Contrary to what the story said, on Dec. 18, 2003 Consumers Energy Chairman Ken Whipple sent a letter to the executive secretary of the Michigan Public Service Commission voluntarily agreeing to limit the utility company’s annual dividend payment to its parent company, CMS Energy, to $190 million in exchange for receiving the interim rate relief requested. NGI regrets the error.

Call it a turnaround or call it a market correction, but whatever it is, the energy trading industry has pulled itself out of the mud and now is scrubbing off the dirt — but it may take a long soak in the tub, a panel of energy merchant veterans said Thursday.

Call it a turnaround or call it a market correction, but whatever it is, the energy trading industry has pulled itself out of the mud and now is scrubbing off the dirt — but it may take a long soak in the tub, a panel of energy merchant veterans said Thursday.

In a story that ran in today’s Daily Gas Price Index. It was incorrectly stated that FERC informed El Paso Natural Gas this week that it should have a written agreement governing money pool arrangements with its parent company. The story should have said that although El Paso Natural Gas already does have a written agreement with its parent related to its cash management program, the agreement is outdated and does not identify the current name of the parent company. FERC Chief Accountant John Delaware also told the pipeline company that it should update its cash management agreement to include missing information, such as the duties and responsibilities of both the pipeline and its parent company, the specific interest rate, when the interest is to be paid and the method for calculating and allocating expenses (see Daily GPI, Sept. 12).