Cuts

Enron Corp. on Thursday had good news, announcing that two of its banks, JPMorgan, the investment banking arm of JP Morgan Chase & Co., and Salomon Smith Barney Inc., the investment banking arm of Citicorp Inc., had agreed to provide incremental credit lines totaling $1 billion, secured by Enron’s Northern Natural Gas Co. and Transwestern Pipeline Co. assets. The funds will be used to supplement short-term liquidity and to refinance maturing obligations. However, analysts and credit rating services remained dubious about Enron’s long-term ability to secure cash to operate.

Joining some of its peers, most notably EOG Resources, Newfield Exploration announced it is curtailing a small portion of its fourth quarter natural gas production in response to low gas prices. The company also reported that the action will allow it to take advantage of a likely further decline in service sector costs.

Joining some of its peers, most notably EOG Resources, Newfield Exploration announced it is curtailing a small portion of its fourth quarter natural gas production in response to low gas prices. The company also reported that the action will allow it to take advantage of a likely further decline in service sector costs.

Houston-based KCS Energy Inc. said late last week that its third quarter 2001 drilling program was successful in the Mississippi Salt Basin, South Texas and Mid-Continent regions. However, the company warned that because of currently weak commodity prices it plans to scale back drilling in the fourth quarter.

Houston-based KCS Energy Inc. said on Wednesday that its third quarter 2001 drilling program was successful in the Mississippi Salt Basin, South Texas and Mid-Continent regions. However, the company warned that because of currently weak commodity prices it plans to scale back drilling in the fourth quarter.

The Philadelphia Gas Works (PGW) has filed a settlement proposal with the Pennsylvania Public Utility Commission, including a gas cost reduction of 20%, that adds up to about $171 million.

An attempt to score a quick tax-cut coup is stretching out into a federal case for TransCanada PipeLines Ltd., with governments that stand to lose the money being offered a chance to put up a fight. The National Energy Board has put off deciding even whether it has to approve the action until TransCanada explains itself much more fully. At the same time, the NEB is working on a procedure for collecting reactions by the provincial governments which stand to lose money as a result of the scheme. All have been officially informed by the board.

There was a divergence of opinion last week within the gasindustry on President Bush’s broken campaign promise to press forrestrictions on carbon dioxide (CO2) emissions from powergeneration. Several energy officials, some within the same industryassociations, had different positions on the matter.

On a strictly partisan 3-2 vote, California regulators Thursdayblocked attempts by the state’s two near-bankrupt investor-ownedutilities to cut their work forces and services in order toconserve cash while awaiting a settlement with the state on theirfuture financial viability. Responding to an emergency request froma coalition of utility workers’ unions, the California PublicUtilities Commission’s (CPUC) action means proposed staffinglayoffs of several thousand regular and contract workers, totalinghundreds of millions of dollars in operating costs, will nothappen.