Floor

When economists at the Energy Information Administration (EIA) early this year pondered what might put a floor under falling natural gas prices, their first thought was supply curtailments. But attention soon turned to the demand side and the growing economic advantage of gas-fired generation relative to coal-fired plants.

When economists at the Energy Information Administration (EIA) early this year pondered what might put a floor under falling natural gas prices, their first thought was supply curtailments. But attention soon turned to the demand side and the growing economic advantage of gas-fired generation relative to coal-fired plants.

Sen. Lisa Murkowski (R-AK) signaled she would oppose any attempt by the Democratic leadership to possibly merge energy legislation and a cap-and-trade bill on the Senate floor this year. Lumping two very controversial pieces of legislation into a single-bill strategy will make final passage very difficult, said the ranking Republican on the Senate Energy and Natural Resources Committee. The energy bill is expected to address a number of contentious issues, including federal siting of electric transmission facilities, drilling in the previously banned areas of the Outer Continental Shelf and a renewable energy standard (see NGI, March 9). Committee Chairman Jeff Bingaman (D-NM) has indicated that energy and cap-and-trade legislation should be dealt with separately. Cap-and-trade “[is] not as ready for prime time in my opinion,” he said. Murkowski said she and her staff are working in a bipartisan fashion with Bingaman and his staff on a comprehensive energy bill that they hope to mark up by the end of March.

March natural gas futures retreated in lackluster trading Friday on the New York Mercantile Exchange. Prior to the open of floor trading the March contract did breach the $4.00 level, trading as low as $3.921 in early Globex trading. Traders cited continued worries of a pervasive supply overhang, although others see factors in play working to contract the surplus. At the close March futures had fallen 7.2 cents to $4.006 and the April contract was down 7.5 cents to $4.036. March crude oil dropped 54 cents to $38.94/bbl.

After easily breezing through the House, the multi-billion economic stimulus package was headed to the Senate floor this week where it could run into a Republican wall and fall shy of the 60 votes needed to overcome a filibuster.

Natural gas futures had enough in the tank Tuesday to shrug off some unfavorable economic news and close higher on the day. Prior to the open of floor trading the government released inflation figures and housing data showing declines much greater than the market expected. Natural gas futures, nonetheless, opened higher and were able to post modest gains on the day. January futures rose 10.6 cents to $5.751 and February added 10.6 cents as well to $5.781. January crude oil lost 91 cents to $43.60.

Senators Tuesday night defeated 56-37 a floor amendment to the Clean Energy Act (HR 6) that would have given states veto power over liquefied natural gas (LNG) terminals sited within their borders or within 15 miles of their borders.

The Senate Commerce Committee last Thursday voted out a $353 million pipeline safety reauthorization bill to the Senate floor, but pipeline industry officials aren’t optimistic that legislation will clear both houses of Congress this year.

The Senate Commerce Committee on Thursday voted out a $353 million pipeline safety reauthorization bill to the Senate floor, but pipeline industry officials aren’t optimistic that legislation will clear both houses of Congress this year.