An unplanned outage occurred Wednesday at Northern Border’sCompressor Station No. 4. No capacity cuts were necessary, aspokesman said, and the station was functioning normally againThursday.
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Articles from Cuts
Large SoCalGas Customers May See Rate Cuts
Large commercial and industrial customers in Southern Californiashould experience further rate relief on their natural gas billsnext year, but the declines will be modest, according to aCalifornia Public Utilities Commission staff manager in charge oftwo pending rate cases for Southern California Gas Co., whichcontinues to keep a wary eye on new proposed interstate pipelinesthat would like to hook up directly to some of its largestcustomers.
Large SoCalGas Customers May See Rate Cuts
Large commercial and industrial customers in Southern Californiashould experience further rate relief on their natural gas billsnext year, but the declines will be modest, according to aCalifornia Public Utilities Commission staff manager following twopending rate cases for Southern California Gas Co., which continuesto keep a wary eye on new proposed interstate pipelines that wouldlike to hook up directly to some of its largest customers.
Pogo Cuts Back While Wading Deeper Into The Gulf
Although like the rest of the industry, Houston-based PogoProducing Co. has been wrangling with super soft commodity prices,the company is wading deeper into the Gulf of Mexico with a focuson future growth.
Pogo Cuts Back But Wades Deeper in Gulf
In step with the rest of the industry as it deals with supersoft commodity prices, Houston-based Pogo Producing Co. also hascut back spending. In recent years the company’s annual explorationbudgets have been between $230 million and $250 million. Lastyear’s allocation was $230 million and was set to grow to between$260 and $270 million, said CEO Paul Van Wagenen. Instead, thecompany cut back considerably. This year Pogo is planning to spendabout $170 million.
AGA: Choice Cuts Gas Prices
While the real price of other goods and services in the U.S.increased by 34% since 1987, the price of natural gas to consumershas decreased by an average 14%, from 1987 to 1997, according to areport used by the American Gas Association to show FERC thatretail unbundling is working. The distributors’ group told afederal/state regulatory policy conference Thursday the price toconsumers went from an average $4.47/Mcf in 1987 to $3.85 in 1997(all in 1997 $). Of that delivered price the total transportationand distribution cost to consumers went from $2.23 to $1.53, a 31%decline, AGA said, citing surveys by the Energy InformationAdministration. During the same period the wellhead price wentfrom $2.24 (in 1997 $) to $2.32 in 1997.
BP Amoco Sets Reorganization, Job Cuts
Continuing to work through the monstrous merger completed amonth ago, BP Amoco centralized its power last week by choosing theWestlake complex in Houston as its exploration and productionheadquarters, then revealing a 1,400 person job cut at the complex.Company officials said the jobs were lost due to duplication andcommodity price reasons. Overall, BP Amoco plans to lay off 1,600workers in Texas by the end of the first quarter.
Cost Cuts Help Majors Temper Low Prices
Chevron and Arco both said yesterday they will be chopping $500million from their costs for 1999. “To successfully weather thebusiness conditions of low crude oil, natural gas and commoditychemicals prices, we have to continue to find ways to minimize thecost of operating our business,” said Ken Derr, Chevron’s CEO.
PGW Exits Electricity, Cuts Marketing Dept.
Saying it wants to focus on its core gas business, PhiladelphiaGas Works (PGW) has abandoned its entry into electricity marketingand several other retail marketing ventures and will reduce thesize of its marketing staff. PGW is the nation’s largestmunicipally owned utility.
Analysts: Price Woes in 1999?…Maybe
Will production declines expected to stem from the recent rashof producer spending cuts (see related story) lend support to gasprices this year? Well that’s just one of several questions on theminds of analysts as they speculate on what the market will grantproducers this year. While there’s not a consensus, the generalmood seems to be pessimistic.