Drained

Gas-to-coal switching, which has drained some of the excess domestic gas stores, will tell the tale about 2013 natural gas prices, with gas expected to continue to gain in the first six months, while coal regains some of its losses in the second half of the year, according to Raymond James & Associates Inc.

In an effort to shield jurisdictional companies from having their cash funds drained by parent firms facing financial troubles, FERC last Wednesday issued an interim final rule in which it proposes that regulated natural gas and oil pipelines and public utilities who participate in cash-management arrangements with their parents file written agreements at the agency. A second proposal called for additional financial reports from jurisdictional companies.

In an effort to shield jurisdictional companies from having their cash funds drained by parent firms facing financial troubles, FERC on Wednesday issued an interim final rule in which it is seeking comments on whether regulated natural gas and oil pipelines and public utilities who participate in cash-management arrangement with their parents should file written agreements at the agency. A second proposal called for additional financial reports from jurisdictional companies.

With end-of-March storage at the lowest level since it began keeping records in 1976, the Energy Information Administration (EIA) in its short-term energy outlook for April said the gas markets will require a combination of high spot prices during the spring and summer, strong gas drilling and development activity and normal summer weather in order to achieve normal inventories by next winter. Absent these conditions, it believes the market could see a new round of gas price spikes during the 2003-2004 heating season.

With end-of-March storage at the lowest level since it began keeping records in 1976, the Energy Information Administration (EIA) in its short-term energy outlook for April said the gas markets will require a combination of high spot prices during the spring and summer, strong gas drilling and development activity and normal summer weather in order to achieve normal inventories by next winter. Absent these conditions, it believes the market could see a new round of gas price spikes during the 2003-2004 heating season.

MCN Energy Group’s plan to shed exploration and productionoperations drained gallons of red ink from its 1998 bottom line,about $273 million worth. Still the company finished the year witha net loss. MCN reported a net loss of $6.2 million, compared withearnings of $112.2 million in 1997. Including results from theE&P unit – discontinued in anticipation of sale – MCN reporteda net loss for 1998 of $279 million, compared with earnings of$142.3 million in 1997. All figures include special charges.