Looking like the readout on an EKG machine gone mad, natural gasfutures soared, dipped then rallied again yesterday as tradersdealt with a bevy of somewhat contradictory but certainly confusingpieces of fundamental news. With Wednesday’s 25.9-cent advance and$4.073 settle, the June contract climbed into the rarified air of$4.05-plus prices, which have been achieved only in seven othertrading sessions during the 10-year history of natural gas futures.
Gone
Articles from Gone
Transportation Notes
Reliant reported its #1 unit at the Amber Compressor Station(Grady County, OK) has gone down with mechanical problems and itcan not estimate the outage’s duration. Until further notice Westof Amber capacity is limited to 360,000 Dth/d.
FERC’s Hoecker Supports Interest in ANGTS Project
The new-found interest in the dormant Alaska Natural GasTransportation System (ANGTS) hasn’t gone unnoticed by FERCChairman James Hoecker.
Transportation Notes
“We were too optimistic,” El Paso admitted in saying that the Belen#1 turbine had gone down again after the pipeline announced Thursdayafternoon it had been repaired (see Daily GPI, March 10). San Juan Crossover capacityremained limited Friday to 630 MMcf/d, 20 MMcf/d below normal. El Pasoexpected to test the Belen turbine for a possible return to serviceSaturday. Maintenance on the Bondad Station’s 2A turbine was completedFriday.
Statoil Energy Almost Gone With Hess Deal
Amerada Hess agreed to buy gas and power marketer Statoil Energy ServicesInc. of Alexandria, VA, for what a Hess spokesman said was less than $25million. Statoil Energy Services serves industrial and commercial customers,mainly in New York, Pennsylvania, Maryland, Virginia and Washington, D.C.
Gas-Directed Drilling Continues to Hold 80% of the Total
The industry’s hunt for natural gas has gone way beyond thesearch for oil and shows no signs of letting up. Gas directeddrilling has held a solid 80% of all U.S. drilling by rotary rigssince mid-July. And last week the number of rotary rigs drillingfor gas leaped to 609 from 579 the week prior, while total rigsrose to 750 from 721, the largest weekly gain since Nov. 28, 1997,according to Baker Hughes. Oil-directed drilling declined duringthe week by one rig to 139.
Gas-Directed Drilling Continues To Hold 80% of the Total
The industry’s hunt for natural gas has gone way beyond thesearch for oil and shows no signs of letting up. Gas directeddrilling has held a solid 80% of all U.S. drilling by rotary rigssince mid-July. And last week the number of rotary rigs drillingfor gas leaped to 609 from 579 the week prior, while total rigsrose to 750 from 721, the largest weekly gain since Nov. 28, 1997,according to Baker Hughes. Oil-directed drilling declined duringthe week by one rig to 139.
KN Targeting IL, WI With New Project
Undeterred by those who have gone before it and failed, KNEnergy jumped into the fray with a pipeline project to servenorthern Illinois and southern Wisconsin.
Oil, Gas Futures, Tighter Supplies Boost Market
“Where has all the gas gone now?” asked a Houston-based marketerTuesday as April numbers turned upward going into the home stretch ofbidweek. He was starting to encounter some tightness of supplies inthe Gulf Coast and Appalachian production areas that caused prices tobe bid higher. Echoing a producer’s Friday observation (see Daily GPI, March 29), the market suspectedthat reduced drilling budgets last year may be reflected now in afirmer gas market.
Colorado Unbundling Bill Awaits House Vote
Legislation prescribing voluntary unbundling of Colorado’s gasdistribution industry has now gone to a state House appropriationscommittee. The sponsor of SB 153, Sen. David T. Owen, said heexpects it to pass with little or no trouble. Unlike legislationthat unbundled Georgia’s gas industry, the Colorado legislationdoes not delve into specifics of unbundling but rather leaves themup to the state Public Utility Commission (PUC).