Global

Most of the world’s attention has been directed toward the security and availability of crude oil supplies, but a global energy consultant told a Senate committee this month that domestic pressure on natural gas supplies and prices “poses a greater threat to energy security and to the U.S. economy.”

In a reprise of action two months ago, PG&E Corp.’s financially struggling National Energy Group (NEG) announced late last Thursday that it agreed with lenders to provide funding for two of the merchant energy developer’s new electric generating plants — the 840 MW natural gas/fuel oil-fired Lake Road plant in Connecticut and 1,121 MW gas-fired, combined cycle La Paloma unit in California.

California’s attorney general announced Friday the state has made final an amended version of its previously announced $417 million settlement with Tulsa-based Williams Companies regarding a renegotiated 10-year power contract that is reduced by $1.4 billion in terms of the state’s obligations.

Platts Global Energy said it has received a subpoena from the Commodity Futures Trading Commission (CFTC) for documents, employee information, policies and customer lists for price reports it publishes in its energy publications. The subpoena is part of a broad investigation of energy trading practices the CFTC is conducting, that was sparked by disclosures about Enron. A number of energy companies already have provided information to the CFTC. Two companies, Dynegy and AEP have admitted they provided false data to some price reporting publications. The companies have not publicly identified the false reports by time or location, nor is there any information as to whether the false reports were used by the publications, which have screening methods to eliminate suspect information. The subpoena seeks a list of current and former Platts employees “responsible for gathering, editing, verifying and publishing the information” and policies and training manuals for new price reporters. It also demands notes and other records of third-party services used in price gathering, and any information that “indicates any person’s knowledge of false, inaccurate or otherwise incorrect pricing and volume information,” Platts said.

BP’s oil and natural gas reserves in Alaska approach 7 billion boe — the largest single item within its global portfolio — and with those types of numbers, the company will remain a major North Slope player for at least 40 years, and probably longer than that, an executive affirmed last week.

With its known Alaska oil and natural gas reserves approaching 7 billion boe — its largest single source in its global portfolio, BP plc will be a major player on the North Slope for at least 40 years and most likely, longer, the company’s Alaska chief affirmed this week.

The managing director of Fitch Ratings Global Power Group said Friday that the U.S. wholesale gas and power marketers have a “heady cocktail” in front of them, in light of regulatory investigations, accounting irregularities and, for most anyway, a massive flight of investors. Those under the most scrutiny, said Richard Hunter, have “undermined the stronger companies.” And he added that a more liquid market “will not happen anytime soon.”

The managing director of Fitch Ratings Global Power Group said Friday that the U.S. wholesale gas and power marketers have a “heady cocktail” in front of them, in light of regulatory investigations, accounting irregularities and, for most anyway, a massive flight of investors. Those under the most scrutiny, said Richard Hunter, have “undermined the stronger companies.” And he added that a more liquid market “will not happen anytime soon.”

Phillips Petroleum Co. and Conoco have named the initial members of the ConocoPhillips global management team that will take office after the completion of their proposed merger of equals that was announced last November (see Daily GPI, Nov. 20, 2001). As previously reported, James J. Mulva, currently chairman and CEO of Phillips, will become president and CEO of ConocoPhillips. Robert E. McKee III will become executive vice president, exploration and production (E&P). He currently is executive vice president, E&P, for Conoco, a position he has held since 1996. Jim W. Nokes will become executive vice president, refining, marketing, supply and transportation (RMS&T). He currently is executive vice president, RMS&T, for Conoco. John A. Carrig will become executive vice president, finance, and CFO. He currently is senior vice president and CFO for Phillips. John E. Lowe will become executive vice president, planning and strategic transactions. He currently is senior vice president, corporate strategy and development, for Phillips. Rick A. Harrington will become senior vice president, legal, and general counsel. He currently is senior vice president, legal, and general counsel for Conoco. All five will report directly to Mulva. “The selection process was difficult, given the proven leadership of the top executives of both companies,” said Conoco Chairman and CEO Archie W. Dunham, who will serve as chairman of ConocoPhillips. The companies said that special meetings of stockholders of both Phillips and Conoco have been called for March 12, when a final vote on the merger will be tallied. The merger also remains subject to receipt of necessary regulatory approvals and is expected to be completed in the second half of 2002.