Expert

Due to the current interdependency of the U.S. economy, an attack at a key point along a pipeline could actually disrupt communications, information technology and power as well as the petroleum and natural gas supplies that run through the pipes, according to Bobby R. Gillham, manager of global security for Conoco Inc. Environmental concerns over the past 20 years have forced interstate pipelines to not only carry natural gas and liquid petroleum products, but also fiber optic cable for communications, and power lines are run in the same rights of way, he said.

Many may want Enron to go down in history as a company that cooked its books with financial witchcraft practiced only by a select few evil doers. But accounting “subterfuge” — often using derivatives in the $95 trillion unregulated over the counter market — is prevalent throughout not only the energy industry but all of corporate America. It is common practice to try and create the perception of financial health rather than report economic reality, law professor Frank Partnoy said recently in shocking testimony before the Senate Committee on Government Affairs.

Many may want Enron to go down in history as a company that cooked its books with financial witchcraft practiced only by a select few evil doers. But accounting “subterfuge” — often using derivatives in the $95 trillion unregulated over the counter market — is prevalent throughout not only the energy industry but all of corporate America. It is common practice to try and create the perception of financial health rather than report economic reality, law professor Frank Partnoy said last week in shocking testimony before the Senate Committee on Government Affairs.

Last week’s sudden jolt upward in spot natural gas prices on anticipation of a cold winter was another indication of the “fickleness” of the market, according to the California Energy Commission’s chief natural gas watcher, Bill Wood, who was dismayed by the latest price swing last Tuesday.

This week’s sudden jolt upward in spot natural gas prices on anticipation of a cold winter is another indication of the “fickleness” of the market, according to the California Energy Commission’s chief natural gas watcher, Bill Wood, who was dismayed by the latest price swing Wednesday.

Claiming that a state-imposed moratorium on divestiture in Nevada would not be in the consumers’ best interest, energy expert Susan Tierney testified before the Public Utility Commission of Nevada (PUC) last week that Nevada Power Co. ratepayers could save up to $281 million over the next five years if the proposed divestiture of certain Nevada Power Co. plants is approved.

The industry almost assuredly will see $4/Mcf gas later thisyear, and on a cold day in Chicago next winter it may even see gasprices “momentarily spike” to as much as $30 or $40 due to anever-tightening supply situation, says a University of Houstonprofessor.

A veteran natural gas reserve and production expert has issued abearish warning to natural gas market observers: 1998 total reserveadditions could jump as much as 3 Tcf from 1997’s figure to between22 and 23 Tcf. That would be well above the range of 14.9 to 20.2Tcf over the last nine years. With 1998 production estimated atabout 19 Tcf the forecast adds up to reserve additions exceedingproduction by 116% to 121%.

A veteran natural gas reserve and production expert has issued abearish warning to natural gas market observers: 1998 total reserveadditions could jump as much as 3 Tcf from 1997’s figure to between22 and 23 Tcf. That would be well above the range of 14.9 to 20.2Tcf over the last nine years. With 1998 production estimated atabout 19 Tcf the forecast adds up to reserve additions exceedingproduction by 116% to 121%.