Ever

With investors and analysts questioning how the U.S. power and natural gas sector can ever recover its credit quality, Fitch Ratings published a special report on Thursday outlining its views and recommendations on the impact and usefulness of mark-to-market (MTM) accounting, as well as how it uses supplemental disclosures on risk management activities, contingent claims and off-balance sheet obligations.

With three hour-plus conference calls over four business days, TXU Corp.’s management team offered assurances that the corporation was liquid and strong. The losses, they kept reminding analysts and investors, were only within its European affiliates. By the end of the week, the Dallas-based corporation appeared to have calmed jittery investors, as management made clear that TXU Europe Ltd. and its entities will always be secondary to the success of the U.S. business.

Gray Davis, California’s ever-persistent governor, last week received a response, but no commitment from FERC Chairman Patrick Wood in answer to two recent letters reinforcing Davis demands for wholesale power cost refunds and extended western wholesale electricity price caps.

Looking to help meet North America’s ever-increasing appetite for natural gas, companies such as El Paso Corp. and Shell have been looking outside the box to find new sources of natural gas, and new methods to deliver it to the continent. El Paso announced that it has finalized LNG agreements with a Norwegian consortium, while Shell has proposed its floating liquefied natural gas technology (FLNG) for Timor Sea production. Shell also announced last week that it will invest in the first LNG export project in Venezuela, which intends to tap 10 Tcf of gas reserves and send them to the U.S. East Coast (see related story).

This could be the first year since the gas marketing business began more than a decade and a half ago that annual marketing volumes decline, said Benjamin Schlesinger, president of Maryland-based consulting firm Schlesinger and Associates, which has been closely tracking the industry since the early 1980s. Schleslinger said in addition to the likely volume declines this year, the number of gas merchants in the business also will fall sharply.

In the first-ever probe of a company’s online trading system or its derivatives trading practices, the Commodity Futures Trading Commission (CFTC) has launched a full investigation into Enron Corp.’s commodities activities, centering on whether the former trading giant committed fraud or manipulated markets through improper trading on commodity exchanges. An Enron spokesman said the company would cooperate with the inquiry.

Finding success not only in Canada, but in its ever-growing international base, Calgary-based Talisman Energy Inc. said Tuesday it increased its proved reserves by 26% in 2001 to 1.5 Bboe, and probable reserves increased by 27% to more than 990 MMboe. The company replaced 304% of production (including acquisitions) at a cost of C$7.08/boe. Excluding acquisitions, the replacement rate was 221%, at a cost of C$5.34/boe.

In the first-ever probe of a company’s online trading system or its derivatives trading practices, the Commodity Futures Trading Commission (CFTC) has launched a full investigation into Enron Corp.’s commodities activities, centering on whether the former trading giant committed fraud or manipulated markets through improper trading on commodity exchanges. An Enron spokesman said the company would cooperate with the inquiry.

Despite a 74% drop in net income in the fourth quarter, Calgary-based PanCanadian Energy Corp. said it had the strongest annual financial results in its history because of higher natural gas prices earlier in the year, increased gas production and favorable price hedges.