Followed

The New Jersey Board of Public Utilities (BPU) followed its ownprecedent that it had set back in early October with three otherstate utilities by granting South Jersey Gas almost half of theLevelized Gas Adjustment Clause increase it had petitioned for tomeet higher wholesale natural gas prices. The utility hadpetitioned for a 39.7% rate increase, but the board granted thecompany a 19% annual raise.

The Connecticut Department of Public Utility Control (DPUC)followed much of what it included in its draft approval in giving itsfinal approval last week on Consolidated Edison’s (CEI) acquisition ofNortheast Utilities (NU), and just like the draft approval, neithercompany was happy with the department’s findings (see Daily GPI, Sept. 26).

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.

Marathon Oil’s new President Clarence Cazalot yesterday 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. Marathon’s stock fell 75 cents yesterday to $28.19.

Eastern points followed up on Monday’s screen drop of 15-pluscents and subsequent milder softening Tuesday by falling 15 centsor more themselves yesterday. However, the West’s continuing heatwave kept Malin and Rockies pipes generally flat while otherCalifornia points and San Juan Basin were down only a nickel or so.

After gapping lower at the open, natural gas futures followed aslippery downward slope yesterday as traders liquidated positionsamid bearish technicals and ahead of warming temperatures expectedlater this week. In contrast to light selling seen last week,yesterday’s weakness manifested itself across the entire strip ofcontracts, led by the May contract which tumbled 7.6 cents to$2.744. Comparatively, the prompt contract eased 7.1 cents to$2.714 and the 12-month strip gave back 5.4 cents to $2.867.Trading was active, with an estimated 63,810 contracts changinghands.

A failed technical move higher, followed by a brisk liquidationof fresh longs left even veteran traders shaking their heads in thenatural gas pit Friday, as prices plummeted lower amid heavytrading. The January contract was dealt the largest blow, tumbling13 cents lower to close at $2.331. February also experienced doubledigit losses, slipping 10.3 cents to $2.335.

Sparked by the retirement of CEO Ken Derr, Chevron Corp. followed up last week with a list of upper management job changes. The San Francisco, CA-based energy giant’s board of directors selected its current vice chairman and director, Dave O’Reilly, to succeed Derr as CEO effective Jan. 1, 2000.

Sparked by the retirement of CEO Ken Derr, announced yesterday,Chevron Corp. followed up with a list of upper management jobchanges. The San Francisco, CA-based energy giant’s board ofdirectors selected its current vice chairman and director, DaveO’Reilly, to succeed Derr as CEO effective Jan. 1, 2000.