Debuts

With a long holiday weekend and increasingly moderate weather looming on the immediate horizon, no one was surprised to see across-the-board declines in double digits Thursday for prices through the end of the month. And despite a surprisingly low storage injection report and the late-afternoon emergence of Tropical Storm Fabian, sources expect softening to continue Friday in trading for the initial September aftermarket.

ChevronTexaco Natural Gas, to be headquartered in Houston and staffed by as many as 100 energy traders, will enter the wholesale energy merchant business in April, backed by a corporate “AA” credit rating, strong finances resources and perhaps as important, no “baggage,” after severing long-term natural gas purchase and sales contracts with Dynegy Inc. on Friday.

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.

In the hodgepodge of trading for split weekend periods Friday,little trend was evident other than the October aftermarket wasstarting out below indexes in nearly all cases. However, a fellownamed Keith could play a large part in reversing the generallysofter market as early as today.

When Texas debuts electricity deregulation in 2002, the statewon’t have the power shortages or high electricity rates likeCalifornia has experienced in the past few months, but some partsof the state may be effectively locked out of competition becauseof an aging transmission and distribution system.

The bullishness that had been a feature of the cash market sincemidweek slowed down considerably Friday. Most eastern points rangedfrom flat to about a nickel higher, while several Northeastcitygates joined the Rockies and Southern California border insmall declines.

Alarmed by the U.S. appetite for foreign oil, key SenateRepublicans last week introduced a broad-based legislative packagethat would open up areas that have been closed to drilling in thepast, as well as offer tax measures and other incentives tostimulate the production of crude oil, natural gas and alternativeenergy in the Lower 48 states and Alaska.

FERC liked what it did with interconnections on the electricside so much that it figured why not try it out on natural gas. Andthat’s exactly what the Commission did last week — it issued anew policy for hooking up to the interstate gas pipeline grid.

FERC liked what it did with interconnections on the electricside so much that it figured why not try it out on natural gas. Andthat’s exactly what the Commission did yesterday — it issued anew policy for hooking up to the interstate gas pipeline grid.