Fell

Gas and winter power demand records fell throughout the eastern United States during the week ending Jan. 24, according to multiple local gas distribution companies, power utilities, electric grid operators and pipeline companies. Williams subsidiary Transcontinental Gas Pipe Line (Transco), which serves the entire East Coast region, said last week that it set a new peak gas transportation record on seven out of 10 days from Jan. 15-24.

Triple-digit losses at Northeast citygates were the most spectacular in a day of general price plunges. Most non-Northeast points fell by anywhere from about 20 cents to 60 cents or so. Only Rockies/San Juan quotes saw flat to small declines.

Merchant energy earnings fell 89% at Duke Energy last year and international results were equally bad. The company reported a fourth quarter net loss of 6 cents/share (net loss of $52 million) compared to earnings of 28 cents/share (net income of $225 million) in 4Q2001.

Puget Energy Inc. shares fell more than $2 last week to near $20/share on Friday after the company warned in an 8-K filing with the Securities and Exchange Commission that drought conditions and low hydroelectric production in the Pacific Northwest would force it to buy high-cost replacement power, which probably would have a negative impact on 2003 earnings.

Taking back gains achieved in Monday’s rally, natural gas futures fell Tuesday amid waves of fund and local selling. The February contract was hit hardest by the selling, dropping 14.4 cents to finish at $5.107. While natural gas remains in an uptrend — both on the intermediate and long-term charts, traders feel that the longer the market remains range-bound, the greater the potential for a significant downdraft when prices finally break lower.

Aquila shares plummeted 35% last Thursday to $2.16/share and fell another 3% Friday to $2.09 by mid afternoon after the company suspended its dividend and announced a loss of $332 million, or $1.85 per share, for the 2002 third quarter, compared to diluted earnings of $69 million, or $0.58/share, in the third quarter of 2001.

For the second day in a row, the natural gas futures market opened higher but fell lower late in the session as traders elected to take profits on the hunch that all the bullish news available has already been factored into prices. By virtue of losses Friday, Monday, and Tuesday, the November contract becomes the first prompt month since September to notch a string of three down days. It closed at $4.11, down 4.7 cents for the session and a whopping 31 cents beneath Monday’s 18-month high at $4.42.

The Energy Information Administration (EIA) reported that total foreign direct investment in acquisitions of U.S. energy assets reached $11 billion last year, only about 25% of what was invested in 2000 and the lowest level since 1997. The major difference in 2001 was the absence of a major purchase, such as BP’s acquisition of ARCO in 2000.

The Energy Information Administration (EIA) reported that total foreign direct investment in acquisitions of U.S. energy assets reached $11 billion last year, only about 25% of what was invested in 2000 and the lowest level since 1997. The major difference in 2001 was the absence of a major purchase, such as BP’s acquisition of ARCO in 2000.