Everyone

While the trading community continued to stew over what virtually everyone agreed was an outlandishly low AGA storage injection figure, it sent cash prices diving Friday. Declines tended to be between about 15 and 35 cents, with those in the 20s most common. Many points were giving up nearly all the price territory they had gained the day before.

“What we have is basically a two-lane road, and the marketers and everyone else want to use it as a six-lane highway,” Edward Tirello, analyst for Deutsche Banc Alex. Brown, said describing the U.S. power grid. “But someone is going to have to spend a enormous amount of money to [make it happen], and no one is spending any money right now.”

The rapid pace of development in the Powder River Basin ofWyoming and Montana has surprised everyone, and regulators arehaving a little trouble keeping up with the demands of productiongrowth. A period of regulatory catch-up could hinder short-termdevelopment and production growth, but observers believe thelong-term outlook on this prolific basin is extremely positive.

Like a politician in an election year, the natural gas futuremarket had something for everyone yesterday as prices spiraledhigher early in the session on storm hype and short covering onlyto crumble at the end on slightly bearish storage numbers.

Rather than “blaming just about everyone and everything” for thereliability problems on the electric transmission grid, SenateEnergy Chairman Frank Murkowski (R-AK) last week urged EnergySecretary Bill Richardson to take “immediate and meaningful action”to address the situation in the short term, while Congress tries towork out a longer term solution.

Rather than “blaming just about everyone and everything” for thereliability problems of the electric transmission grid, SenateEnergy Chairman Frank Murkowski (R-AK) urged Energy Secretary BillRichardson to take “immediate and meaningful action” to address thesituation in the short term, while Congress tries to work out alonger term solution.

It’s about time everyone realized Coral Energy is a Shellaffiliate. The company initiated a corporate identity and brandingprogram yesterday supported by direct mail, Web-basedcommunications and advertisements in the Wall Street Journal, theHouston Chronicle and some trade magazines. It also has adopted anew logo design to signify its expanded commercial business andtransition from a joint venture company to a 100% affiliate ofShell’s global natural gas and power business. The logo nowincludes the Shell logo and says Coral is an affiliate of Shell.

With the ink barely dry on the contract accord, El Paso Natural Gas stunned everyone last week when it announced that it and Enron North America Corp. were parting ways. El Paso said the companies had reached a “mutual agreement” to annul their $38 million negotiated arrangement under which the marketer had agreed to acquire 1.2 Bcf/d of westbound firm capacity on the pipeline. (See NGI, Jan. 31).

Williams share prices dipped nearly 5% to $40.88/share yesterdayfollowing an announcement that the company expects third quarterearnings per share to be “substantially below” current Wall Streetestimates of 20 cents/share. The company said a change inaccounting standards and cooler than normal temperatures inSouthern California, its major power sales area, were to blame. Theannouncement was made partly in preparation for WilliamsCommunications’ initial public offering next month.