Demand

It was an easy call to predict lower prices for the low-demand Memorial Day weekend, so nobody got caught by surprise Friday when an across-the-board dive swept the market. No point fell less than 20 cents, and western declines tended to be significantly larger than that.

Citing significant market area demand, Florida Gas Transmission advised shippers Friday to be watchful over the weekend for a potential Overage Alert Day notice.

Noting it had advised shippers earlier in the week about high linepack problems due to overproduction, reduced demand and limited storage injection capacity, Tennessee said Wednesday a systemwide OFO Balancing Alert will take effect with today’s gas day. Positive daily imbalances that exceed 2% (or 500 dekatherms, whichever is greater) over nominated volumes will be charged $15 plus an index price for each dekatherm outside of the designated tolerance. Penalties will not apply to negative imbalances. The OFO is expected to remain in effect until testing of the Bear Creek Storage Field is completed May 1. Tennessee also said that based on current and anticipated future conditions, its ban on 500 Leg receipts with a dew point higher than 20 degrees F. and without proof of processing will remain in effect through the end of May.

Strong energy demand and numerous “fee-based” service transactions led to significant financial earnings growth for Kinder Morgan Inc. (KMI) and solid distribution growth for Kinder Morgan Energy Partners (KMP). CEO Richard D. Kinder forecasts 40% growth this year in earnings per share for KMI and raised the distribution targets set for KMP, which already hit its year-end distribution target in the first quarter.

Phenomenal energy demand and higher prices will lead to one of the best financial quarters ever for the energy industry, according to Raymond James & Associates. Energy companies are expected to post “some of the greatest year-over-year earnings growth rates of any of the 11 S&P groups,” the investment bank said in a equity research report last Monday.

Strong energy demand and numerous “fee-based” service transactions led to significant financial earnings growth for Kinder Morgan Inc. (KMI) and and solid distribution growth for Kinder Morgan Energy Partners (KMP). CEO Richard D. Kinder forecasts 40% growth this year in earnings per share for KMI and raised the distribution targets set for KMP, which already hit its year-end distribution target in the first quarter.

Sonat reported seeing no significant reduction in nominated supply from Thursday’s gas day to the one today. Based on current nominated supply and projected demand, system requirements will exceed storage injection capabilities today, it said. Thus, unless supplies are cut back significantly today, it’s “highly likely” that an OFO Type 6 will be issued for Saturday’s day, Sonat said.

Phenomenal energy demand and higher prices will lead to one of the best financial quarters ever for the energy industry, according to Raymond James & Associates. Energy companies are expected to post “some of the greatest year-over-year earnings growth rates of any of the 11 S&P groups,” the investment bank said in a equity research report yesterday.

In a race to produce increasing amounts of natural gas to keep up with the nation’s growing demand, Anadarko Petroleum Corp. reported last Tuesday that it is continuing its work to find and produce new gas reserves from oil fields. The company announced its Fife Unit #2 well in Central Texas, which just came online, is producing natural gas at a rate of 51 MMcf/d.