Conservative exploration and development strategies andacquisitions, coupled with a growing demand for energy, enabled theworld’s largest oil and gas companies to reduce reserve replacementcosts 14% from a year ago, and dramatically increase net profits— by as much as 900%, according to an analysis by energyresearch firm John S. Herold Inc.
Demand
Articles from Demand
Southern Constructing New Plant in Michigan
To assist in the growing demand for electricity in the upperMidwest, Southern Energy Inc. plans to begin construction thismonth of a natural gas-fired plant in Zeeland, MI that will useadvanced natural gas combined-cycle technology and state-of-the-artemission control equipment. Commercial operations are expected tobegin in June 2001, with an initial 300 MW of capacity. Anadditional 530 MW will begin commercial operation by June 2003.
Transportation notes
Citing significant demand, Florida Gas Transmission issued anOverage Alert Day notice Tuesday for its market area. The noticehad a 10% tolerance for negative daily imbalances, but FGTsaid itmay reduce the percentage if conditions do not improve. Thepipeline, which previously re-evaluated system operations eachmorning before announcing whether an OAD would be extended, nowsays the notices will remain in effect “until further notice.”
Transportation Notes
Citing “significant” market area demand, Florida GasTransmission issued an Overage Alert Day notice, with a 6%tolerance for daily negative imbalances, Wednesday for its segmenteast of Station 12 in north-central Florida. The pipeline willreevaluate conditions this morning before deciding whether toextend the notice.
Marketers Demand More Interconnection Fixes
Although FERC’s recent effort to clarify its interconnectionpolicy was a “major step” in the right direction, the ElectricPower Supply Association (EPSA) said greater reforms are needed toprotect new generators seeking to interconnect to the power grid.It has asked the Commission to issue a policy statement that would”comprehensively” spell out “the rights, obligations andexpectations” of interconnecting generators and providers ofinterconnection/transmission services.
Prices Can’t Avoid Weekend Softness a Third Time
The third time was not the charm. After avoiding the usualsoftness associated with lower weekend demand for two weeks in arow, prices finally bowed to the inevitable Friday and dropped bysmall amounts of a nickel or less nearly across the board.
New York’s PSC Alters State Billing Methods
Sparked by demand to simplify the billing procedures in itsderegulated electricity and gas industries, the New York StatePublic Service Commission (NYPSC) approved a recommendationyesterday allowing customers who choose an alternative supplier theoption to receive a single, combined bill for each utility service.
Transportation Notes
Based on weather forecasts and projected demand, Sonat isimplementing an OFO Type 3 today for seven system groups:Birmingham Group, South Main Zone 2, Atlanta Group, South Main Zone3, East of Wrens, Brunswick Line and Savannah Line.
Cold Weather Supports Prices in Weekend Market
For the second Friday in a row the cash market largely managedto beat the usual lower-demand weekend jinx on spot prices. Exceptfor a wee bit of softness in the relatively mild-weather markets ofCalifornia, the Pacific Northwest and intra-Alberta, quotes wereflat to 3-4 cents up elsewhere and ranging a little higher thanthat at New England citygates (Algonquin and Tennessee Zone 6).
Weekend Prices Flat Except for Northeast Drops
For a lower-demand weekend period preceded by a falling screenand expected to continue the unseasonably warm weather pattern thatdominated nearly all of November, there was surprising firmness inmost of the cash market Friday. Except for further Northeastcitygate declines, essentially flat quotes prevailed elsewhere. Onetrader suggested the moderate gain in futures Thursday may haveprovided a modicum of psychological support for cash traders Fridaymorning.