Economic

The cash market again seemingly defied some of the laws of economic gravity Tuesday by rising about 20 cents or more at most points. And once again several traders were baffled at the continuing price strength in the face of pitifully few visible means of physical support.

Economic recovery and lower energy prices are expected in the future, but energy industry executives also have a high concern for the security of oil and natural gas supplies, according to a survey conducted last week at Andersen’s 22nd Annual Energy Symposium in Houston.

Economic recovery and lower energy prices are expected in the future, but energy industry executives also have a high concern for the security of oil and natural gas supplies, according to a survey conducted this week at Andersen’s 22nd Annual Energy Symposium in Houston.

With the political and economic sensitivities that have built up over the past 18 months in the state toward Texas-based energy giants, California officials are expected to put in their own two cents regarding the proposed $23-24 billion buyout of Enron Corp. by Dynegy Corp. The two are among the half-dozen prominent national energy firms selling energy in California that the state’s political leaders have openly criticized as alleged “price gougers” and “market power abusers.”

Congressional passage of President Bush’s energy initiatives, as well as expanded free trade authority, will have a “great bearing” on the nation’s economy this year and beyond, Vice President Dick Cheney said in a speech Monday to the Southern Governors’ Association (SGA).

Mexican President Vicente Fox, elected last year on a promise to improve the country’s economic future, has begun actively courting “out-of-towners” in the hopes of encouraging capital investments in his country. With several productive global trade missions completed, Fox now is turning his attention further north, courting Canadian oil and gas producers in his plan to develop Mexico’s untapped oil and gas reserves.

Mexican President Vicente Fox, elected last year on a promise to improve the country’s economic future, has begun actively courting “out-of-towners” in the hopes of encouraging capital investments in his country. With several productive global trade missions completed, Fox now is turning his attention further north, courting Canadian oil and gas producers in his plan to develop Mexico’s untapped oil and gas reserves.

Canadians are cheering on the tight “continental” natural gas market in growing numbers, as gains owed to high sales volumes and prices — driven by expanding exports to the United States — spread and multiply. The seller’s market for gas is behind Alberta government projections of a stunning budget surplus in the range of C$10-$12 billion (US$6.8-$8.2 billion) for the fiscal year that ended March 31 — or about C$4,000 (US$2,750) each for every man, woman and child living in the province. Virtually all the surplus is owed to oil and gas royalties, and the gas share of them is about 70%.

Strong gas-fired power generation and economic growth in California prompted Transwestern Pipeline last week to propose a $93 million emergency expansion project and announce plans for a much larger project going forward.