Groups

Federal antitrust clearance and an agreement between PNM Resources, the staff of the Public Utility Commission of Texas (PUC) and some consumer groups moves PNM’s proposed $1 billion purchase of Fort Worth-based TNP Enterprises (TNP) and its subsidiaries, Texas-New Mexico Power Co. (TNMP) and First Choice Power, two steps closer to reality.

Key industry groups are divided over whether FERC should grant “blanket” market-based rate authority to independent storage developers to encourage the growth of more natural gas storage. But they all agree that if the Commission relaxes its market power test for new independent storage facilities, it should require greater accountability from them to shield customers from potential abuses.

Key industry groups are divided over whether FERC should grant “blanket” market-based rate authority to independent storage developers to encourage the growth of more natural gas storage. But they all agree that if the Commission relaxes its market power test for new independent storage facilities, it should require greater accountability from them to shield customers from potential abuses.

Nearly mirroring survey results of other energy analyst groups in recent days, Raymond James said last week that U.S. natural gas production fell 4.2% in the first quarter year-over-year, and “as before, we see no significant near-term catalysts to alter the declining supply picture, and therefore, price rationing remains the only viable option to bring the market into equilibrium.”

Nearly mirroring survey results of other energy analyst groups in recent days, Raymond James said Monday that U.S. natural gas production fell 4.2% in the first quarter year-over-year, and “as before, we see no significant near-term catalysts to alter the declining supply picture, and therefore, price rationing remains the only viable option to bring the market into equilibrium.”

Three analyst groups have concluded that first quarter 2004 U.S. natural gas production dropped between 4.9-5.3% from production levels in the first quarter of 2003, led by a sharp declines among the majors. The quarterly figures, according to Lehman Brothers’ analyst Thomas Driscoll, are “both surprising and disappointing given drilling activity,” because “industry appears unable to ‘drill its way out’ of gas market tightness.”

Three analyst groups have concluded that quarterly U.S. natural gas production dropped between 4.9-5.3% compared with a year ago, led by a sharp decline among the majors. The quarterly figures, said Lehman Brothers’ analyst Thomas Driscoll, are “both surprising and disappointing given drilling activity,” because “industry appears unable to ‘drill its way out’ of gas market tightness.”

Trade groups representing major producers and local distribution companies (LDC) have called on FERC to give industry more time to reach a consensus on the hot-button issues involving the energy content of the domestic gas stream and imported liquefied natural gas (LNG), but they did not say how much more time would be needed.

After failing to attract any bids on two Burgos Basin blocks, Petroleos Mexicanos (Pemex) said two international groups are competing to develop non-associated natural gas reserves in the Fronterizo, one of the basin’s smaller blocks.