Different

Much of the cash market “followed the screen” essentially nowhere as flatness dominated at a majority of points Thursday. However, there were pockets of price movement here and there. The Northeast and PG&E-related California points weakened by as much as the teens, while San Juan/Rockies/Pacific Northwest quotes rose by a nickel or more. In addition, several scattered Gulf Coast and Midcontinent points defied the overall flat trend with upticks or downticks of up to a dime.

Illustrating two different energy business strategies, KinderMorgan Inc. (KMI) and The Williams Companies were on the oppositesides of a major tolling agreement last week. The deal covers 3,300MW of combined cycle peaking capacity Kinder Morgan is building inthe Midcontinent and in the Southeast regions of the United States.

The coming decade promises to reveal a different utilityindustry than the one today, which already is bursting around theedges from the speed-of-light changes, according to Victor A. Burk,a managing partner in Arthur Andersen’s energy and utilitiesindustry sector. Burk offered what he termed his “megatrends” athis company’s energy symposium last week in Houston.

The coming decade promises to reveal a different utilityindustry than the one today, which already is bursting around theedges from the speed-of-light changes, according to Victor A. Burk,a managing partner in Arthur Andersen’s energy and utilitiesindustry sector. Burk offered what he termed his “megatrends” athis company’s energy symposium this week in Houston.

San Jose, CA-based Calpine Corp. continued its buying/buildingspree last week, acquiring 205 Bcf of natural gas reserves in threedifferent North American locations for $206 million, bringing theaggressive merchant electric generating plantdeveloper/owner/operator’s portfolio of total proved serves to 430Bcf. The move followed Monday’s announcement of Second quarterearnings increase of 176%, compared to 2Q of last year, and a new$2.5 billion revolving credit facility with a consortium of banksto pay for Calpine’s large portfolio of power projects in theUnited States

San Jose, CA-based Calpine Corp. continued its buying/buildingspree Tuesday, acquiring 205 Bcf of natural gas reserves in threedifferent North American locations for $206 million, bringing theaggressive merchant electric generating plantdeveloper/owner/operator’s portfolio of total proved serves to 430Bcf. The move followed Monday’s announcement of Second quarterearnings increase of 176%, compared to 2Q of last year, and a new$2.5 billion revolving credit facility with a consortium of banksto pay for Calpine’s large portfolio of power projects in theUnited States

Despite expectations for further weakening in natural gasfutures yesterday, the market surprised many observers by movingsharply higher after the American Gas Association reported a secondconsecutive weekly 78 Bcf increase in gas storage levels.

Ask two traders about the direction of the natural gas futuresmarket and you will likely get two different opinions, and that wasnever more true than last week when Tom Saal of Miami-based PioneerFutures and Tom Riley of Riley Natural Gas spoke about hedging forproducers at GasMart/Power 2000 in Denver.

Although often on different sides of the fence at FERC and onCapitol Hill, major producers have rallied to defend interstate gaspipelines against allegations that painted them and other pipes asticking “time bombs.”