Forget

Forget previously discussed concerns about 2006, it’s the summer of 2005 that’s worrying California state energy officials who gathered to review an update of the state Energy Action Plan last Tuesday. Dominating their discussions were “what-if” questions and proposed contingencies, including everything from mandatory load-reduction programs to accelerated power plant-building and delayed plant closings for older units.

Forget previously discussed concerns about 2006, it’s the summer of 2005 that’s worrying California state energy officials who gathered to review an update of the state Energy Action Plan Tuesday. Dominating their discussions were “what-if” questions and proposed contingencies, including everything from mandatory load-reduction programs to accelerated power plant-building and delayed plant closings for older units

Forget previously discussed concerns about 2006, it’s the summer of 2005 that’s worrying California state energy officials who gathered to review an update of the state Energy Action Plan Tuesday. Dominating their discussions were “what-if” questions and proposed contingencies, including everything from mandatory load-reduction programs to accelerated power plant-building and delayed plant closings for older units

As natural gas prices continue to stay north of $5.50, industry watchers are not sure whether the market is just reaching the peak of another cycle or whether these levels actually are sustainable over a longer term. Consultants at Arlington, VA-based Energy and Environmental Analysis, Inc. (EEA) believe there has been “fundamental shift in the gas market paradigm that is likely to be with us for the next two years or more.”

As natural gas prices continue to stay north of $5.50, industry watchers are not sure whether the market is just reaching the peak of another cycle or whether these levels actually are sustainable over a longer term. Consultants at Arlington, VA-based Energy and Environmental Analysis, Inc. (EEA) believe there has been “fundamental shift in the gas market paradigm that is likely to be with us for the next two years or more.”

Forget the old nine-to-five, all the action now takes placeafter hours. While that sounds like a seedy radio ad for a happyhour hot spot or club, it is also an apt description of the naturalgas futures market as of late. Wednesday was a perfect example ofthis as prices climbed higher overnight Tuesday and notched a newhigh at $8.80 on the opening of the regular trading sessionWednesday, only to tumble lower for much of the remaining regulartrading session. However, bulls were on the offensive again lastnight as they bid up prices in overnight Access trading once again.As of press time at 7:30 PM (ET), the January contract was at$9.07, 58.5 cents higher than Wednesday’s $8.485 settlement price.

Mitchell Energy & Development Corp.’s view of the future looked so good from the auction block, the company decided to step down and aggressively grow its gas production. Mitchell had put out the ‘for sale’ sign in early October (see NGI Oct. 11).

While Canadian natural-gas producers scramble to find newsupplies to fill their expanding pipeline grid, their leading peerin the electricity sector is laboring to get rid of the stuff – bycurbing flatulence in cattle.

Think anything but gas is the way to go for the energyindustry’s future? Forget about it. Gas is where it’s at and whereit will continue to be for some time, Coastal CEO David Arledgetold a room full of producers in Houston at the Texas IndependentProducers &amp Royalty Owners Association’s (TIPRO) luncheon lastweek.