Dark

WilliamsEnergyNewsLive.com, Williams’ internet-based live daily energy news report, will sign off the air Dec. 31, a victim of budget cuts.

While California’s electricity market has seen “dramatic improvements” since the dark days of the state’s power crisis in 2000-2001, thanks to the stabilization of prices and adequate supplies, the market remains “fundamentally frail,” an official with the California Independent System Operator (Cal-ISO) told federal regulators last Wednesday.

Before its sudden downfall, Enron remained at the top of the charts in energy trading and marketing, holding the lead for most of the history of NGI’s ranking of the largest gas marketing companies by volumes sold. It held that spot in the third quarter, but that soon will change, and the impact of Enron’s fall probably will reduce transaction volumes among the other top marketers in the near term, according to Ronald Barone of UBS Warburg.

In a story that ran in NGI’s Daily Gas Price Index on Dec. 5, titled “Gas Sales Soar 24% in 3Q, but Enron Casts Dark Cloud Over Future,” NGI noted that BP is expected to expand its trading and marketing activities because of it purchase of TransCanada’s marketing operations in September. However, NGI failed to mention that Mirant actually is buying the larger portion of TransCanada’s marketing and trading business, a book covering about 5.1 Bcf/d of TransCanada’s first quarter sales of 7.9 Bcf/d. In September, BP Gas & Power bought TransCanada’s CanStates Gas Marketing, a contract to manage gas supply assets for SEMCO Energy Gas Co., and its marketing and trading operations in its Omaha, NE office. Mirant, however, will become the largest gas dealer in Canada and the top exporter as well with its TransCanada purchase. The deal raises Mirant’s profile in Canadian gas into the range of 6-7 Bcf/d and boosts its total North American gas sales to about 18.2 Bcf/d, which could put it at the top of the rankings in the fourth quarter. TransCanada, Canada’s largest natural gas transporter, exited the natural gas marketing business to focus on its core natural gas transportation and power businesses in Canada and the northern tier of the United States.

Before its sudden downfall, Enron remained at the top of the charts in energy trading and marketing, holding the lead for most of the history of NGI’s ranking of the largest gas marketing companies by volumes sold. It held that spot in the third quarter, but that soon will change, and the impact of Enron’s fall probably will reduce transaction volumes among the other top marketers in the near term, according to Ronald Barone of UBS Warburg.

With the official start of spring, time began to press California’s wide-ranging efforts to fix past, present and future (short and long-term) energy problems. For every positive last week, there seemed to be greater negative developments to deal with, rolling blackouts being the most dramatic. By last Friday, the prospect for bigger problems ahead seemed unavoidable.

With the official start of spring, time began to pressCalifornia’s wide-ranging efforts to fix past, present and future(short-and long-term) energy problems. For every positive lastweek, there seemed to be greater negative developments to dealwith, rolling blackouts being the most dramatic. By last Friday,the prospect for bigger problems ahead seemed unavoidable.

In what could be called a dark horse choice following weeks ofspeculation that one of several energy heavyweights would be tappedto fill the Energy Department Cabinet seat for President-electGeorge W. Bush, former Michigan Sen. Spencer Abraham (R) wasnominated to serve as energy secretary yesterday. Abraham wasdefeated last November in his first re-election bid.

As California kept its string of Stage One and Two power alertsgoing through most of last week, the plot in its now six-month-olddrama thickened with an endless array of actors and subplots.Without a break for intermission, the spotlight shifted to federalofficials in Washington, DC, late in the week for the second act ofsteps that might bring some order to the chaotic western wholesaleelectricity market covering about a dozen states.