Driven

Driven by a vision of Nova Scotian production more doublingwithin four years, an ambitious junior Canadian natural-gas hunterhas set out to prove that offshore targets are no longer just theplayground of the industry majors.

El Paso Energy Corp. saw its fourth quarter profit lifted 55%last week, driven by strong growth in unregulated businesses, whilemerger partner Coastal also outperformed expectations, with fourthquarter earnings up 21%.

El Paso Energy Corp. saw its fourth quarter profit lifted 55%,driven by strong growth in unregulated businesses, while mergerpartner Coastal also outperformed expectations, with fourth quarterearnings up 21%.

The North American natural gas market’s success is in the handsof the independents, and some of the leaders — private companiesnot driven by the need for outside investment — will be names notwidely recognized.

In what traders called a purely screen-driven cash market,prices achieved double-digit increases at virtually every pointexcept for PG&E citygates, which rose by a little less than adime.

In reporting record third quarter improvements, including an 88%increase in earnings per share and a 16% increase in net income,Dynegy CEO Chuck Watson yesterday highlighted an aggressive powergeneration plan that will become the “engine for the growth of ourearnings for the future.”

A very divided FERC last week proposed a rulemaking that seeksto create a uniform, complaint-driven system for regulating nearlyall offshore gas pipelines based on its authority under thelighter-handed Outer Continental Shelf Lands Act (OCSLA).

California’s experimental nonprofit electric transmission gridand wholesale spot power market operations – the Independent SystemOperator (ISO) and Power Exchange (PX), respectively – are clearlyworking toward becoming larger, multi-state regional operations,according to officials who marked the one-year anniversaries ofboth organizations March 31. A proposed new California law (SB 96)would make it easier for the state to enter compacts with otherwestern states to begin to form the regional power operations.

Low commodity prices have driven Bartlesville, OK-based PhillipsPetroleum Co. to cut 1,400 jobs and costs and increase availablecash flow in 1999. “We don’t anticipate margin improvements in thenear term, therefore we are adjusting our plans accordingly,” saidCEO Wayne Allen. “The changes will impact our level of operatingcosts, staffing requirements and capital spending. We are takingthese steps to improve our financial performance and create valuefor our shareholders.”