Inched

Legislation to make it easier to build electric power plants in Iowa finally inched its way through the Iowa House this week on a 54-44 vote, but it faces more battles in an uncompromising Senate and opposition from Gov. Tom Vilsack. Supporters argue that the bill (House File 577) would prevent a shortfall in generating capacity, which is expected by 2006.

A close look at the status of the nation’s gas resources lastyear reveals a lethargic industry barely able to build reserves.However, last year was an improvement over the year prior. Dry gasreserve additions reversed the 2% decline in 1998 and grew lastyear by 2.1% to 167,406 Bcf in the United States, according to anAdvance Summary: U.S. Crude Oil, Natural Gas and Natural GasLiquids Reserves 1999 Annual Report by the Energy InformationAdministration. Reserve additions replaced 118% of gas production.It was the fifth time in the past six years that reserves havegrown.

Building on Monday’s gains, natural gas futures inched higheryesterday as bulls received a boost from strength in the nearbycash market. After thwarting an early sell-off, buyers weresuccessful in bidding the February contract up 4.4 cents to closeat $2.26. That made it four for four trading sessions in which theprompt month has posted higher highs and higher lows.

Although the public’s overall awareness of energy deregulationhas inched up over the past three years, a majority of residentialand business customers surveyed say they still know next to nothingabout the issue and its potential effect on them, according to theresults of two major surveys issued last week.

Although the public’s overall awareness of energy deregulationhas inched up over the past three years, a majority of residentialand business customers surveyed say they still know next to nothingabout the issue and its potential effect on them, according to theresults of two major surveys issued this week.

The June Nymex contract inched 2.4 cents higher to $2.159 onThursday, as traders entered a slight buying mode following the 8.0cent decline June turned in the previous session. “Today was a bigday in that the contract held technical support at $2.11,” ananalyst told GPI. Total estimated volume came in at 47,753contracts.

The March Nymex contract inched 3.2 cents higher to $2.270 onThursday, amid a session sources agreed was once again dominated bytechnicals. “This looks like a very strong trading range, sotoday’s result was to be expected,” a trader said. “March drifted afew cents toward the bottom of its range on Wednesday, so it makessense the contract would move higher today. Because the tradingrange is so tight right now, that is limiting how much March can goup,” he said.