Generates

FERC Thursday approved Tennessee Gas Pipeline’s and Dominion Transmission Inc.’s proposed system expansions to deliver gas from the Marcellus Shale/Appalachian Basin to existing markets in New England and to the Niagara Falls area of New York.

The oil and gas industry generates more than $7.1 billion a year for Pennsylvania, according to an economic impact study performed by the Pennsylvania Economy League of Southwestern Pennsylvania (PELSP). According to the study — requested by the Marcellus Shale Committee, an organization of oil and gas companies engaged in developing the Marcellus Shale — Pennsylvania’s economy benefits from the direct employment, compensation and output of the industry as well as from the impacts of the industry’s supply and distribution chain. For each of the 26,500 full- and part-time jobs the industry provides, another 1.52 jobs are generated, according to the study. The number of new oil and gas wells drilled in Pennsylvania was 4,148 in 2007, more than triple the 2000 total of 1,354, an increase the PELSP said translates into estimated spending of $1.2 billion on new drilling activity. The study found that approximately 2,000 companies operated a 79,000 active wells in Pennsylvania in 2007, with more than 200 companies each operating 100 wells or more.

Occidental Petroleum Corp. generated its highest reported earnings ever in the second quarter on robust energy prices and record oil and natural gas production. The Los Angeles-based producer earned $581 million ($1.48/share), compared with $374 million (98 cents/share) in 2Q2003. Production averaged 574,000 boe/d in the quarter, 6% higher than a year ago.

Drawing support from a bit of post-winter chill lingering across the northern tier of states and moderate increases in air conditioning in parts of the southern tier, cash prices recorded mild advances at the great majority of points Wednesday.

Wednesday’s biggest price gains of up to 20 cents or so were concentrated in the West, but most of the market was limited to performances of flat to up a little more than a dime. Traders were looking beyond current mild conditions expected to prevail into Thursday in most areas, a marketer said, and instead focused on forecasts of significantly colder weather going into the weekend.

A moderate advance in weather load got a market response of equally moderate price increases Wednesday. With quite a few points registering close to flat again, a preponderance of the gains were 7 cents or less.

The Minerals Management Service’s Gulf of Mexico OuterContinental Shelf Region sale today has generated more interestthan a similar one held last year. MMS has received 780 bids on 547tracts offered in the Central GOM Lease Sale 178, Part 1. Lastyear’s Central Gulf Sale 175 generated 469 bids on 344 tracts andattracted $300,567,675 in high bids.

The price plunge that had seemed to be gearing up Wednesday cameto a quick halt Thursday as cash quotes were “up a ‘smidge,’ maybea penny or two,” according to a trader doing business in theMidcontinent and Southwest. Sources dragged out the old refrain of”following the screen,” although the tiny upticks in cash laggedfar behind the near-dime increase in the Henry Hub futures contractfor June. Essentially the screen strength arrested a developingbearish trend for cash.