Following

Following the lead of numerous other oil and gas companies whoare trimming staff this year because of low commodity prices, UnionPacific Resources Group announced it will reduce headquarters staffby 14%, or about 140 positions. Combined with attrition, UPR’sheadquarters staff will have been reduced by about 20% since thebeginning of the year.

Following the lead of numerous other oil and gas companies whoare trimming staff this year because of low commodity prices, UnionPacific Resources Group announced it will reduce headquarters staffby 14%, or about 140 positions. UPR has significantly cut back itsU.S. operations this year, divesting an estimated $600 million inexploration and production properties. It also acquired NorcenEnergy, with its strong Latin American focus, and recently sold itsdomestic midstream business to Duke Energy.

Following the lead of Central Illinois Light Co. (CILCO),Peoples Energy’s Chicago gas utilities, Peoples Gas and North ShoreGas, last week took advantage of a state law passed last year thatallows the LDCs to request approval of fixed annual gas rates.

The perception that there is no need to “rush” natural gasunbundling and customer choice has prevailed in Californiafollowing actions by the state legislature and energy regulators.That allows the major investor-owned gas utilities to prepare formore competition and gain more experience in wide-rangingsettlements that they negotiated with their major suppliers,shippers and marketers.

Change in the electric industry will mirror what took place inthe gas industry following deregulation and the introduction ofcompetition, particularly with regard to trading, Enron PresidentJeffrey K. Skilling told attendees at Ernst &amp Young LLP’s ninthannual Energy Conference last week in Houston.

Change in the electric industry will mirror what took place inthe gas industry following deregulation and the introduction ofcompetition, particularly with regard to trading, Enron PresidentJeffrey K. Skilling told attendees at Ernst & Young LLP’s ninthannual Energy Conference in Houston Tuesday.

Canadian price spikes last week following a supply/demandforecast released by Nova Corp. indicate the market north of theborder could be in for a wild ride this winter. While marketobservers have long expected supply to fall short of new exportcapacity, marketers acted as if surprised when Nova forecast 13.8Bcf/d of throughput this winter, 700 MMcf/d more than winter1997/98 but far short of the 1.1 Bcf/d increase in export capacityplanned by Northern Border (700 MMcf/d) and TransCanada (417MMcf/d).

Southern California has become the latest hot spot for gaspipeline competition. Following the successful $50,000 bid twoweeks ago for Southern California Gas’ option to purchase (in 2012)the California portion of the Kern River Pipeline, Williams wastedno time in drawing up plans for Kern River’s first major extensionproject since going into operation in 1992.

The October contract began its reign as the prompt month byfollowing in the footsteps of the freshly expired Septembercontract, and in doing so, added to the declines that have markedthe futures market since the downtrend began on April 8th. Thatleft October down 5.2 cents to $1.664 on Friday, capping a 31.7cent decline for the week.