Crowd

As natural gas production falls and prices remain high, U.S. chemical producers may be “crowded out” by price-insensitive customers that bid up the prices to a level that manufacturers cannot afford to pay, according to a comprehensive analysis unveiled Friday by two Lehman Brothers analysts.

As natural gas production falls and prices remain high, U.S. chemical producers will be “crowded out” by price-insensitive customers that bid up the prices to a level that manufacturers cannot afford to pay, according to a comprehensive analysis unveiled Thursday by two Lehman Brothers analysts.

Potential storage customers apparently are scrambling for capacity in NUI Corp.’s proposed 7.6 Bcf Richton salt cavern, which the company plans to develop in Perry County, MS. NUI said it received expressions of interest for 18 Bcf of storage space in the facility in a non-binding open season it held between May 29 and July 3.

Potential storage customers apparently are scrambling for capacity in NUI Corp.’s proposed 7.6 Bcf Richton salt cavern, which the company plans to develop in Perry County, MS. NUI said it received expressions of interest for 18 Bcf of storage space in the facility in a non-binding open season it held between May 29 and July 3.

Potential storage customers apparently are scrambling for capacity in NUI Corp.’s proposed 7.6 Bcf Richton salt cavern, which the company plans to develop in Perry County, MS. NUI said it received expressions of interest for 18 Bcf of storage space in the facility in a non-binding open season it held between May 29 and July 3.

Officials of Florida Gas Transmission faced a tougher crowd than usual at its customer meeting in Key Biscayne, FL late in the week ending May 10, according to reports from attendees. The shippers were upset about two force majeures declared by the pipe in the days leading up to the meeting, and that was before a third force majeure in just over a week occurred on the meeting’s last day. Disagreements about curtailment priorities were also on the customers’ agenda.

Before a packed crowd of the Who’s Who in Washington, D.C.energy circles, Sen. Frank Murkowski (R-AK) and other SenateRepublicans last week touted their omnibus energy legislation asboth “sound” and “well balanced.” The mix of tax credits,incentives, royalty relief and other measures offered in the bill,they vowed, will reduce the nation’s dependence on foreign oil toless than 50% by 2010 by increasing domestic production ofconventional energy fuels and improving energy efficiency andconservation.

Before a packed crowd of the Who’s Who in Washington, D.C.energy circles, Senate leaders yesterday formally introduced theirlong-awaited comprehensive legislation aimed at boosting domesticsupplies of conventional energy fuels and improving energyefficiency and conservation efforts in the nation.

Chevron announced last Thursday it lost 35% of its profitscompared to the same period in 1998. The company reported a netincome of $329 million or $0.50/diluted share versus $507 millionor $0.77/diluted share in 1998’s first quarter. The oil and gascompany sold oil at an average of under $10/barrel (a 20% drop form1Q98 prices) and gas at an average of $1.63/Mcf (a 22% drop from 1Q98).