Feel

California’s energy woes have taken on the look and feel of a political campaign with the state’s beleaguered governor running a re-election campaign more than 18 months before voters go to the polls. However, if Hollywood were doing a movie on the continuing drama, none of the principal actors — except the governor — would be delivering predictable lines to the camera.

Marathon Oil’s new President Clarence Cazalot last week followedthrough on consolidation plans announced earlier this summer. Hesaid the company will consolidate parts of its U.S. upstreamorganization, resulting in an initial staff reduction of about 200jobs. The changes are expected to save the company about $75million/year.

After etching what some feel could be the range for theremainder of the April contract’s life with Monday’s $1.69 low andTuesday’s $1.825 high, the market stayed pat Wednesday-tradinginside a tight 3-cent range. And while no fresh fundamental forceswere seen to usher the market in either direction, sourcesindentified a host of limiting technical factors in yesterday’sprice action. The April contract finished up 0.5 cents to $1.795.

The gas industry may feel swamped with all the notices ofproposed rulemaking and notices of inquiry that have been comingout of FERC within the last couple of months, but these arenecessary to accomplish restructuring in a comprehensive fashion,said James J. Hoecker.