Hopeful

The Obama administration fully supports a cumulative study of the effects of natural gas drilling in the Marcellus Shale, but it also supports the Delaware River Basin Commission’s (DRBC) decision to release proposed rules that would allow some natural gas development projects before that study is completed, according to a letter written by Brigadier Gen. Peter A. DeLuca.

Anadarko Petroleum Corp. CEO Jim Hackett said last week the oil spill in the Gulf of Mexico has “complicated” the passage of an energy bill, but he’s still hopeful for passage of the delayed climate legislation, which would give a big boost to the natural gas industry.

Presidential hopeful Sen Joseph Lieberman (D-CT) last week called on the Interior Department inspector general to conduct a broad review of potential conflicts of interest between Deputy Secretary J. Steven Griles and oil and natural gas companies.

Richard Riordan, a leading Republican candidate for governor and former mayor of Los Angeles, last week lashed out at Calfironia’s Gov. Gray Davis for allegedly mishandling the state’s ongoing energy crisis and injecting the state into too strong a role within the electricity industry.

Noting new federal energy regulators offered a “refreshing, problem-solving approach,” California Gov. Gray Davis said his 90-minute meeting in Sacramento Monday with FERC Commissioners Pat Wood and Nora M. Brownell was “both constructive and informative,” although there was no apparent resolution to the state’s nagging wholesale natural gas and electricity pricing problems.

Democratic presidential hopeful Al Gore’s proposed long-termenergy policy has elicited a ho-hum response from independent oiland natural gas producers, who contend it “falls far short” oninitiatives needed to boost domestic energy production.

Democratic presidential hopeful Al Gore’s proposed long-termenergy policy has elicited a ho-hum response from independent oiland natural gas producers, who contend it “falls far short” oninitiatives needed to boost domestic energy production.

The Kansas City Board of Trade (KCBT) had an estimated volumefor the first time this month yesterday, but the Board’s managementis not concerned about the overall lack of trading. The KCBT hasrecognized the problem and is in discussions with its customers onhow it can bring its trading floor more to life, a spokespersonsaid, but others openly wonder if there will be a gas pit at theKCBT much longer.

The futures market again came under heavy selling pressure onWednesday as new bearish technical factors added to the alreadynegative fundamental outlook. The September contract never had achance, managing to post a high yesterday that matched Tuesday’slow, while slipping 6.6 cents to settle at $1.762. Estimated volumesubstantiated the price move, with a whopping 93,150 contractschanging hands.