Difficult

As the deepwater Gulf of Mexico (GOM) matures, it will become increasingly difficult to offset natural gas production declines on the shelf, which “may imply a more severe U.S. gas production decline” than now estimated, according to an analysis by Southwest Securities’ John Gerdes.

Re-creating the natural gas market through direct producer-consumer connections is going to be difficult for both sides, as they incorporate into their planning the functions once performed by the middle-man trading sector. In addition to price, the term and the credit arrangements tied to a supply contract are key factors a gas buyer needs to consider when negotiating, according to representatives of industrials and local distribution companies (LDCs) who spoke Wednesday at the LDC Forum in Chicago sponsored by Interchange Energy.

Re-creating the natural gas market through direct producer-consumer connections is going to be difficult for both sides, as they incorporate into their planning the functions once performed by the middle-man trading sector. In addition to price, the term and the credit arrangements tied to a supply contract are key factors a gas buyer needs to consider when negotiating, according to representatives of industrials and LDCs who spoke Wednesday at the LDC Forum in Chicago sponsored by Interchange Energy.

It’s been difficult to keep up with the charges and countercharges by the two groups vying to run El Paso Corp. However, as the march toward a June 17 annual meeting in Houston nears, the proxy battle for the board of directors most likely will rest on which group the shareholders find most credible: the current members, who have attempted to remake the company following a blistering two-year stretch, or the proposed board, composed of a group of energy professionals that claims it can do better.

The Williams Cos. warned Tuesday in its annual report with the Securities and Exchange Commission (SEC) that limited access to capital due to its non-investment-grade credit status and insufficient cash flow from operations to pay debt obligations make it imperative that the company sell its previously announced $2.25 billion in additional assets this year.

Looking for a way to turn things around in the difficult energy marketplace, TXU Corp. last week shook up its senior management structure, while at the same time announcing that the company is in the process of reducing officers overall by about 30%. The moves are part of the company’s action plan to cut 2003 costs by a net $250 million from 2002 levels, aimed at streamlining the organization and increasing focus on the operations of its core businesses in North America.

New Brunswick natural gas distributor Enbridge Gas Distribution Inc. has had a difficult time convincing potential customers to switch to natural gas, and the provincial government should consider changes to its provincial rules to ensure its gas program will succeed, a company executive said this week.

Looking for a way to turn things around in the difficult energy marketplace, TXU on Wednesday shook up its senior management structure, while at the same time it announced the company is in the process of reducing officers overall by about 30%. The moves are part of the company’s action plan to cut 2003 costs by a net $250 million from 2002 levels, aimed at streamlining the organization and increasing focus on the operations of its core businesses in North America.

New Brunswick natural gas distributor Enbridge Gas Distribution Inc. has had a difficult time convincing potential customers to switch to natural gas, and the provincial government should consider changes to its provincial rules to ensure its gas program will succeed, a company executive said this week.