Efforts

Bucking the overall trend in Canada of little to no progress on the electric competition front, Alberta and Ontario earned high marks in a recently released report issued by the Center for the Advancement of Energy Markets (CAEM).

The annual Central Gulf of Mexico lease sale, considered aleading barometer of the energy industry’s exploration andproduction efforts, drew a healthy response Wednesday in NewOrleans, with the Minerals Management Service receiving bidstotaling $505,468,501. The 547 blocks, located off the coasts ofLouisiana, Mississippi and Alabama, drew bids from 90 companies – a60% higher response than last year.

Calgary-based Alaskan Northwest Natural Gas Transportation Co.plans to keep up to-date its 20-year-old application for a pipelineright-of-way on Alaskan lands in its efforts to secure a front rowseat if a natural gas pipeline is ever approved. The originalapplication was filed in 1981 and remains active and in goodstanding, calling for a parallel route to the Alaska Highway.

Even with stepped up state efforts for developing peakingplants, conservation and new power contracts, the key wild card forwhether California survives this summer’s expected supplyshortfalls is fickle hydroelectric power that is tied to anunpredictable, complex set of weather and environmental factors.With the end nearing for the West’s typical rainy season, stateofficials are newly optimistic about California’s hydro resourcesbeing at normal levels this summer, but in the Pacific Northwestthe prospects continued to be dour Monday as Seattle basked insunny, 60-degree weather.

Two bills were introduced in the Senate and House yesterday tofight back efforts to open up the coastal plain region of theArctic National Wildlife Refuge (ANWR) to oil and natural gasexploration and production.

California regulators postponed a growing backlog of pendingactions in deference to ongoing legislative efforts to develop acomprehensive solution to the state’s energy woes. Regulators lastweek put off action on an allocation of utility revenues to thestate water resources department, which is buying electricity forconsumers and attempting to sign long-term power contracts.

California regulators postponed a growing backlog of pendingactions in deference to ongoing legislative efforts to develop acomprehensive solution to the state’s energy woes. Regulatorsyesterday put off action on an allocation of utility revenues tothe state water resources department, which is buying electricityfor consumers and attempting to sign long-term power contracts.

Once considered a problem in their oil exploration efforts, thehigh cost of natural gas is getting another look-see from EmpireEnergy. The Overland Park, KS-based producer said it would beginselling its natural gas reserves — which it used to squeeze off— from the Upper Cumberland Plateau region of north-centralTennessee once a natural gas pipeline is completed there. CoastalHydrocarbons LLC has begun laying a 4-inch line into the area andis expected to begin accepting gas in two to three months, Empiresaid. Pryor Oil Co., which holds a 40% interest in an explorationproject with 60% partner Empire, is now evaluating and high-gradingprogram leases to determine what wells to put into the natural gassales line. “Gas has been a hindrance in our exploration andproduction in that region due to the complexities it presentsduring drilling,” said Bryan S. Ferguson, Empire COO. “Previously,we didn’t have a market in which to sell the gas so while wedrilled oil wells, we either squeezed the gas off or held it information. With gas prices up and the market demand present, wefeel fortunate to now be able to put these assets to work for us.”Because of the fractured nature of the geology in the region,Empire said it was difficult to estimate the total gas reservespresent. However, every well drilled so far has had an “abundant”amount of natural gas.

Once considered a problem in their oil exploration efforts, thehigh cost of natural gas is getting another look-see from EmpireEnergy. The Overland Park, KS-based producer said it would beginselling its natural gas reserves — which it used to squeeze off— from the Upper Cumberland Plateau region of north-centralTennessee once a natural gas pipeline is completed there.