Cost

Over-the-counter (OTC) energy derivatives trading was spared the recent round of cost-cutting among capital-starved financial institutions because it “was generating significant revenues and represented a rare opportunity for continued profits and growth,” according to a study by consultancy Greenwich Associates.

Devon Energy plans to combine the company’s International and Gulf divisions into a newly formed Offshore division in a cost-cutting move that will also involve a small reduction to its workforce, the largest U.S.-based independent oil and gas producer said Thursday.

Shale gas production in the United States with some output from Canada is expected to more than triple by 2020, according to a new report released by Calgary-based Ziff Energy Group last Thursday.

Shale gas production in the United States with some output from Canada is expected to more than triple by 2020, according to a new report released by Calgary-based Ziff Energy Group Thursday.

Savvy energy purchases, tighter cost controls and higher power sales lifted Sempra Energy’s profits by 10% in the last three months of 2008, easily surpassing Wall Street’s expectations.

Savvy energy purchases, tighter cost controls and higher power sales lifted Sempra Energy’s profits by 10% in the last three months of 2008, easily surpassing Wall Street’s expectations.

President Bush handed the incoming Obama administration a political conundrum Friday as the U.S. Minerals Management Service (MMS) issued a draft five-year plan to allow oil and natural gas leasing in long-banned areas offshore. Obama, who previously voiced support for “responsible drilling” now has to decide whether to allow the draft plan to move forward, or explain how reinstating a decades-old moratorium would help the United States gain its independence from foreign energy supplies.

Saying wholesale gas prices have fallen considerably in the past two months, Spokane, WA-based Avista Utilities Monday refiled its gas cost offset rate adjustment with Oregon regulators, seeking a 4.1% decrease effective Nov. 1 in place of an overall 2% increase it had originally sought last August.

Spokane, WA-based Avista Utilities told the Idaho Public Utilities Commission (PUC) that it was lowering its pending purchased gas cost adjustment (PGA) rate increase request from 14% to 4% for its 72,000 natural gas utility customers in the northern part of the state. In August Avista asked the PUC for the rate increase to cover its current and future wholesale costs of gas, effective Oct. 1 (see Daily GPI, Aug. 20). The revised request lowers Avista’s requested increase in annual revenues to $3.3 million from the original $11.6 million in its filing. The PUC said that its public comment period ends Monday (Sept. 23). Under the Idaho PUC PGA process, the utilities file annually to reflect changes in purchased gas costs. A portion of the PGA is a projection of what costs will be during the next year, but since the projections are never exact, the PGA is adjusted every 12 months to match projected and actual costs. For the average Avista gas customer using about 65 therms monthly, the lowered PGA increase would add about $3/month to bills.