History

With a still relatively short history of natural gas use in the region, the Pacific Northwest has limited gas pipeline options, but the situation may change now that several liquefied natural gas (LNG) terminals have been proposed for Oregon’s Pacific Coast and Columbia River banks. Proponents outlined two of the major new pipeline proposals — Palomar and Pacific Connector — at the LDC Forum: Rockies & West conference in Los Angeles Tuesday and Wednesday.

In a state whose political and economic history has been shaped by water more than any other resource, California Public Utilities Commission member Dian Grueneich last week used her power as the regulatory panel’s assigned commissioner on the issue to order the state’s four major private-sector energy utilities to develop one-year pilot programs for stepping up water conservation aimed at cutting the large energy volumes used to produce, transport and treat water.

In a state whose political and economic history has been shaped by water more than any other resource, California Public Utilities Commission member Dian Grueneich Monday used her power as the regulatory panel’s assigned commissioner on the issue to order the state’s four major private-sector energy utilities to develop one-year pilot programs for stepping up water conservation aimed at cutting the large energy volumes used to produce, transport and treat water.

The $6 billion collapse in the value of the Amaranth Advisors LLC fund may go down in history as perhaps the best example of how not to attempt to corner the natural gas market. It also may provide some lawmakers with the ammunition they need to regulate the over-the-counter energy market and gain greater oversight of hedge funds, according to several analysts.

Former Enron Corp. CEO Jeffrey Skilling last week accused the government of trying to “rewrite history” and pin the blame for the company’s collapse on “innocent people.” Skilling, who spent four days on the witness stand defending himself, said he is “absolutely innocent” of the 28 criminal charges against him and will fight to prove his innocence “until the day I die.”

Houston-based independent Pogo Producing Co. on Tuesday reported the strongest earnings in its history, with 4Q2005 profits nearly tripled to $114.5 million ($1.98/share), compared with $38.3 million (60 cents) in 4Q2004. For full-year 2005, Pogo’s net income was $750.7 million ($12.43/share), compared with $261.75 million ($4.10) in 2004. Pogo, which has been on the short list of possible acquisition targets, also reported year-end reserves grew by 15%, its fourteenth consecutive year of growth.

“The overall damage caused by Hurricanes Katrina and Rita has shown them to be the greatest natural disasters to oil and gas development in the history of the Gulf of Mexico,” said MMS Regional Director Chris Oynes.

Only three hurricanes in U.S. recorded history have reached the monstrous Category Five classification (winds greater than 155 mph). Dennis was making a strong bid to become the fourth as it took aim on the Eastern Gulf of Mexico (GOM) on Friday, packing 150 mph winds. It made landfall along the south-central coast of Cuba Friday afternoon and was expected to enter the southeastern Gulf that night.

Looking to reverse the largest punitive damages award in Alabama’s history, ExxonMobil Corp. said it has asked the state’s supreme court to overturn the $3.5 billion award that resulted from a lawsuit regarding payment of Mobile Bay Project royalties to the state. The company asserts that the state “improperly turned a contract dispute into a fraud action.”