Dropped

Pioneer Natural Resources Co. said production delays on the start-up of its Canyon Express project dropped predicted fourth quarter production results, which now are expected to average 117 Mboe/d. Year-ago fourth-quarter production averaged 110 Mboe/d. The Dallas-based independent said operational issues had delayed production from one of its six wells in the project, but net production is currently reaching expected levels, averaging more than 100 MMcf/d with five of six wells producing. The sixth well is expected to begin production in the first quarter. Fourth quarter realized prices for natural gas liquids are expected to range between $16-$16.20/bbl, while oil prices should range between $22.90-$23.10/bbl. Pioneer’s fourth quarter realized price for gas, including the effects of hedges, is expected to average approximately $2.65-$2.85/Mcf. Total exploration and abandonment expense is expected to be approximately $27 million after taxes, including charges related to an unsuccessful well on its Lightning prospect, the first of three prospects Pioneer is drilling near its Falcon field in the deepwater Gulf of Mexico.

The outlook for water available for hydroelectric generation in the Pacific Northwest this summer was dropped in late December by U.S. government forecasters, who indicated that water available at the Dalles Hydroelectric Dam on the Columbia River between January and July will likely be 75% of normal. However, the day the report was issued (Dec. 27), a heavy rain and snow storm was pounding the area.

Following a Christmas Day storm that dropped as much as three feet of snow across parts of central New York and despite higher crude oil prices, natural gas futures funneled lower Thursday as traders alleviated overbought conditions and pressured the market to its lowest level in more than two weeks. With that the January contract completed its penultimate trading day at $4.962, down 18.4 cents for the session. January will expire Friday at 2:30 p.m. EST.

Now that ISO New England and the New York Independent System Operator (NYISO) have dropped their plans to create a Northeast regional transmission organization (RTO), the two regions will compete directly “for the few investment dollars left on the table,” Energy Security Analysis Inc. (ESAI) concludes in a research memo issued this week.

In a market practically mandated by the weather forecasts, non-Rockies prices dropped by double-digit amounts in nearly all cases Friday. A winter storm approaching the upper Rocky Mountains from Northern California and the Pacific Northwest boosted area load enough to keep most Rockies points flat to mildly lower and even raise numbers at the highly temperature-sensitive Cheyenne Hub.

A Senate committee investigation has concluded a “systemic and catastrophic failure” by the Securities and Exchange Commission (SEC) and other industry watchdogs allowed Enron Corp. to get away with its fraudulent activities for as long as it did.

A Senate committee investigation has concluded a “systemic and catastrophic failure” by the Securities and Exchange Commission (SEC) and other industry watchdogs allowed Enron Corp. to get away with its fraudulent activities for as long as it did.

PG&E Corp.’s stock price plunged nearly 30% last Thursday to $9.76 and dropped 10% more Friday to end the week at $8.81, following a downgrade of its National Energy Group (NEG) merchant and trading subsidiary to junk by Standard & Poor’s. The downgrade set off ratings triggers in $1.6 billion of NEG obligations.

Despite an impressive opening trade, natural gas futures dropped lower Thursday morning in knee-jerk reaction to data showing a healthy 60 Bcf was injected into underground storage facilities last week. At 11:10 a.m. EDT, the September contract was 3.9 cents lower at $2.915, but as it turns out, that was only the beginning. With many traders taking an extended lunch break following an especially trying bidweek, a lone speculative fund trader was able to push prices lower in a second wave of selling. The September contract finished at $2.842, down 11.2 cents for the session.