Dropping

Most prices kept falling Thursday but at a slower rate of decline than on Wednesday. Citing lower weekend load and the prospects for milder weather, a number of traders expect more softness today.

With reserves dropping due mostly to in-state transmissionproblems causing potential shortfalls centered in the northern halfof the state, California’s state-chartered independent systemoperator (Cal-ISO) went after emergency supplies Tuesday byinvoking the federal order issued by DOE Secretary Bill Richardsonlast week as California faced the prospect of rolling blackoutsbecause it reserves dipped below 1.5% at one point (Dec. 13).

Traders correctly assumed prices would keep dropping Thursday,but many likely were surprised by how much the overall downtrendslowed. Except for some sizeable declines in the Rockies/PacificNorthwest, most points fell by about a nickel or less, and a fewregistered flat to up a smidgen.

Even with its natural gas production lagging by more than 100MMcf/d and oil production dropping by more than 15,000 b/d,Burlington Resources was still able to boost its net income from1999’s third quarter of $61 million ($.28 per share) to this year’sthird quarter level of $200 million ($.93 per share) due torealized oil and gas prices rising 47% and 42% respectively fromlast year’s 3Q.

Even with its natural gas production lagging by more than 100MMcf/d and oil production dropping by more than 15,000 b/d,Burlington Resources was still able to boost its net income from1999’s third quarter of $61 million ($.28 per share) to thisyear’s third quarter level of $200 million ($.93 per share) due torealized oil and gas prices rising 47% and 42% respectively fromlast year’s 3Q.

After dropping a quick nickel in Thursday’s after-hours Accesstrading session, natural gas futures did an about-face Friday astraders learned of the first named storm in the 2000 Atlantichurricane season. The September contract was fast out of the chute,notching a gap-higher open on the daily charts and climbingthroughout the morning. However, after reaching fresh five-weekhighs at $4.39, it came under steady profit taking, which trimmedgains into the closing bell.

Prices continued to fall Tuesday, although by lesser amountsthan on Monday in most cases. The majority of Tuesday’s dropsranged from about a nickel to a little more than a dime, withisolated points such as the PG&E and Algonquin citygatesfalling by slightly more than 15 cents.

With temperatures dropping considerably out of theirtriple-digit-heat conditions on Friday, California energy officialsbegan assessing the economic and operating impact of rotatingblackouts in numerous San Francisco Bay Area neighborhoods lastWednesday and the curtailment Thursday of 135 large industrialcustomers in Sacramento and Stockton totaling 300 MW.

With temperatures dropping considerably out of theirtriple-digit-heat conditions on Friday, California energy officialsbegan assessing the economic and operating impact of rotatingblackouts in numerous San Francisco Bay Area neighborhoods lastWednesday and the curtailment Thursday of 135 large industrialcustomers in Sacramento and Stockton totaling 300 MW.