Driving

Soaring natural gas prices and a growing interest in fuel diversity for power generation is driving a major resurgence in plans to develop coal-fired power plants, according to Scott Klara, deputy director for the Department of Energy’s (DOE) Office of Coal and Power at DOE’s National Energy Technology Laboratory (NETL). The latest DOE statistics show about 129 proposed coal-fired power plants (77 GW) will be developed over the next 20 years, a $104 billion investment.

Noting that the economic indicators driving electricity demand growth were all up in the second quarter, an executive with San Jose, CA-based Calpine Corp. told financial analysts Thursday that coal operators are likely to have to buy more power on the open market in the near-term to hedge increased competitive pressures on coal-fired power.

Noting that the economic indicators driving electricity demand growth were all up in the second quarter, an executive with San Jose, CA-based Calpine Corp. told financial analysts Thursday that coal operators are likely to have to buy more power on the open market in the near-term to hedge increased competitive pressures on coal-fired power.

With speculation on potential disruptions in global crude supplies driving spot and futures markets, Fitch Ratings last Monday raised its natural gas price deck to $5.75/Mcf this year and to $4.50 in 2005. Fitch also pushed oil higher, to $34/bbl this year and to $27 in 2005.

The growing presence of hedge funds in the gas and oil markets has been blamed for increasing volatility and driving up prices, but little is known about these private investment groups and their market influence. Two consulting firms, UtiliPoint International Inc. and Global Change Associates (GCA), have announced plans to tackle this mystery in a new study, “Hedge Funds Enter the Energy Trading Space.”

The growing presence of hedge funds in the gas and oil markets has been blamed for increasing volatility and driving up prices, but little is known about these private investment groups and their market influence. Two consulting firms, UtiliPoint International Inc. and Global Change Associates (GCA), have announced plans to tackle this mystery in a new study, “Hedge Funds Enter the Energy Trading Space.”

With speculation on potential disruptions in global crude supplies driving spot and futures markets, Fitch Ratings on Monday raised its natural gas price deck to $5.75/Mcf this year and to $4.50 in 2005. Fitch also pushed oil higher, to $34/bbl this year and to $27 in 2005.

San Diego-based Sempra Energy and its two utilities, Southern California Gas Co. and San Diego Gas and Electric Co., were accused of driving up wholesale natural gas prices, along with several other natural gas companies, in a lawsuit filed in a California Superior Court in San Diego Thursday. Separate suits were filed by the city/county of San Francisco and the county of Santa Clara.

North American land drillers and related services have been some of the biggest beneficiaries of the strong oil and gas prices, and more important, all signs point to a climbing rig count going forward, according to Raymond James’ latest Stat of the Week.