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BP shareholders gave their overwhelming support to the company’smerger with Amoco last week. About 700 shareholders voted toapprove the merger at a general meeting at the Royal Festival Hallin London. Shareholders representing another 3.2 billion sharesvoted by proxy with 92% approving the merger. Chairman PeterSutherland called the vote a “massive endorsement” of the deal. Theall-stock transaction will result in a 60-40 equity split with BPshareholders having the majority.

FERC Chairman James Hoecker earlier this week gave theoft-disputing segments of the energy industry, especially naturalgas, an ultimatum: either play nice and come to agreement with theCommission on the series of major proposed rulemakings now facingthem, or the agency will pull the plug on comprehensive reviews inthe future.

The futures market gave back some ground early in the dayFriday, but then managed to rebound late to trade to either side ofunchanged for the day. That enabled the December contract to settlefor the second day in a row at $2.553. Estimated volume was amoderate 47,537.

The futures market gave an early “head fake” — pointing lowerat the open — but support held and the market picked up momentumthroughout the trading session Monday. The December contract spikeddramatically higher near the close, registering a 11.2 cent advanceto $2.387. Despite the large trading range, volume was a little onthe light side with only 50,263 contracts changing hands.

FERC last week gave conditional approval to a major expansionand upgrade of Jackson Prairie Storage that would add 3.2 Bcf ofworking gas capacity and would boost the firm deliverability rateof the Pacific Northwest storage facility by 300 MMcf/d, both ofwhich would heighten its peak-shaving capabilities.

Energy stocks gave credence to the adage that a high tide raisesall boats as they followed Wednesday’s market rally, generallyrising one to two points. While energy shareholders are surelyenvious of the leap made by the market stars’ – technology stocks -the share price boost was welcome good news in a marketplaceplagued by depressed commodity prices.

The futures market gave back a portion of recent gains on Fridayas traders covered fresh long positions ahead of the weekend. TheOctober contract was dealt the largest losses, slipping 8 cents tosettle at $1.878. November, which has been tracking nearly pennyfor penny with October was somewhat immune to the decline, losingonly 4.6 cents to $2.161.

Nymex futures gave an early “head fake” looking to rebound fromlosses registered on Tuesday, but the move was insubstantial,giving way to minor softening before the close Wednesday. That leftthe market still in limbo without a clear signal whether the bottomhad been reached. The August contract slipped 1.7 cents to settleat $1.934 during relatively high volume of 82,830.

FERC last week gave New York utilities a conditional go-ahead tocreate the New York Independent System Operator (NYISO), making itthe fourth ISO that the Commission has approved so far.