Down

The $6 billion NiSource-Columbia merger is on its way down the homestretch, with only the Securities and Exchange Commission’s approvalleft in its path on the way to its predicted end of the yearcompletion date (see Daily GPI, July27). To ensure that the combined company moves through thetransition process smoothly, NiSource announced more post-mergerleadership positions for its lengthy list of business units.

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.

Avista Corp. subsidiary Avista Advantage completed a painstakingevaluation of 30 retail energy e-commerce sites and narrowed downthe list to three top power exchanges that can handle aggregatedcustomer loads: Usource via Enermetrix, Excelergy and AMDAX. Avistasaid it intends to conduct a pilot program to evaluate the benefitsof buying power online for end-users using three of its largecustomers with multiple sites.

The numbers, it seems, don’t tell the entire story. Even thoughoil and gas industry upstream revenues, profits and cash flow areshowing record profits for 1999 compared with the previous year’scollapse, exploration and development spending dropped and provedreserves spending rose significantly, according to ArthurAndersen’s 21st annual Global E&P Trends survey.

The numbers, it seems, don’t tell the entire story. Even thoughoil and gas industry upstream revenues, profits and cash flow areshowing record profits for 1999 compared with the previous year’scollapse, exploration and development spending dropped and provedreserves spending rose significantly, according to ArthurAndersen’s 21st annual Global E&P Trends survey.

The cash market appears to have decided to take it easy at leasttemporarily. Tuesday’s activity remained relatively subdued, andfew points strayed much further than 2-3 cents to either side offlat.

Reliant said the #2 compressor unit at Chandler Station (LatimerCounty, OK) is down with a cylinder problem. As of Monday theestimated downtime was two weeks.

Further fueling concerns that there may not be enough domesticgas supply to meet a 30 Tcf demand market down the road, a newstudy warns the industry likely will face a shortage of productionpersonnel to explore and drill for natural gas if the current trendtowards consolidation, divestiture and downsizing continues.

This week’s climb in the cash market slowed down Wednesday, butwatch out for the fireworks that are virtually a certainty today.