Front

In an effort to keep the energy bill on the front burner, Sen. Pete Domenici (R-NM), chairman of the Senate Energy and Natural Resources Committee, reminded gas consumers and the media what he said late last month: “I hope and pray that during the ensuing months without an energy bill we don’t have high spikes in natural gas prices and the people of our country asking: What have we done about it? Our answer is nothing. I hope that doesn’t happen. But I think there is a chance it will happen.”

In an effort to keep the energy bill on the front burner, Sen. Pete Domenici (R-NM), chairman of the Senate Energy and Natural Resources Committee, reminded gas consumers and the media what he said late last month: “I hope and pray that during the ensuing months without an energy bill we don’t have high spikes in natural gas prices and the people of our country asking: What have we done about it? Our answer is nothing. I hope that doesn’t happen. But I think there is a chance it will happen.”

Buoyed by the coldest air thus far this season, the natural gas futures market turned higher Wednesday as weak shorts covered their positions. Cash prices, which were up nearly 75 cents at some locations, were also seen as a price supportive factor, traders agreed. The December contract received the biggest buying boost, up 17 cents at $4.897. At 59,166, estimated volume was very light considering the size of the price hike.

Some Midcontinent/Midwest points stayed flat Friday as a cold front was in the process of greatly enlarging its presence in the region, but the rest of the market saw varying degrees of decline ranging from less than a nickel to more than 40 cents.

Fitch Ratings last week upped its natural gas and crude oil price forecast for the current year, but it still kept projected prices at a conservative level. The credit rating agency believes gas prices may soften down the road due to near-term industrial demand destruction brought on by the current high prices, and that oil prices may relax by the end of the year if there is a quick resolution to a conflict with Iraq .

While water levels in the Pacific Northwest, remaining winter weather in the East and even the advent of war with Iraq all could impact this summer’s natural gas and electricity prices in Nevada, Las Vegas-based Southwest Gas Corp. officials indicated Monday they are not overly concerned. They do admit the short-term future is unclear because of the many widely diverse variables involved.

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.

Any skepticism over a “Siberian Express” arctic cold front making a stop in the Lower 48 was quickly wiped away last week as temperatures plummeted into the teens, 20s and low 30s across much of the Northeast, Midwest and Midcontinent. The only question left was just how long it would be parked over the central and eastern regions of the United States.

About 40 angry union workers blasted El Paso Corp.’s safety and financial record last Wednesday morning in front of the Federal Energy Regulatory Commission, where commissioners were holding their regular bi-weekly meeting. The AFL-CIO affiliated Pipeline Workers of America (PWOA) handed out flyers that said, “Say No to Blue Atlantic,” El Paso’s proposed 1,000-mile, 36-inch diameter Atlantic pipeline system that would bring gas to New York and New Jersey from offshore Nova Scotia.