Indication

In another indication that California’s new top regulator wants his own team, the California Public Utilities Commission (CPUC) Thursday replaced its civil service executive director with an outsider who is a long-term consumer/environmental activist, Bill Ahern, a former state government manager who has been a senior policy analyst in the Consumers Union San Francisco office.

American Electric Power’s (AEP) announcement last week that it plans to mothball several power plants in Texas by the end of this year is likely to be just the start of what is expected to be a “sizable economic displacement” of incumbent utility generation, a new report by a Williams Capital Group analyst concludes.

In yet another indication that Enron Corp.’s bankruptcy is continuing to wreak havoc in the energy business, Houston-based junior independent Contour Energy said Tuesday that a bankruptcy filing is likely after a trustee for its senior notes called for the immediate and full payment of $105 million in principal and interest of its debt in an acceleration notice. In April, Contour began to evaluate its options after losing its natural gas price hedges as a result of Enron’s bankruptcy.

As another indication that it is still not “politically correct” to be associated with an out-of-state energy giant in California, one of the state’s three Republican candidates for governor, William Simon, Jr., drew political news media coverage last week for his disclosure that he and his family own about $16,750 of stock in El Paso Natural Gas Co.

As another indication that it is still not ‘politically correct’ to be associated with an out-of-state energy giant in California, one of the state’s three Republican candidates for governor, William Simon Jr., drew political news coverage this week for his disclosure that he and his family own about $16,750 of stock in El Paso Natural Gas Co.

In another indication that liquefied natural gas could becomemore than a niche fuel in North America, San Francisco-basedChevron said yesterday it is “reviewing options” for importing LNGto serve the West Coast. If the project proves economically viable,Chevron said its first supplies could arrive by 2005.

In an indication that Mexico may be headed toward privatizing its monopoly-run energy industry, Mexican President-elect Vicente Fox, who takes office Dec. 1 under a vow to make the government more professional and less political, is hearing calls from friends and foes alike to restructure the energy industry and allow more private investment.

In an indication that Mexico may be headed toward privatizingits monopoly-run energy industry, Mexican President-elect VicenteFox, who takes office Dec. 1 under a vow to make the governmentmore professional and less political, has asked for and obtainedthe resignation of a top official of the country’s regulatoryenergy commission.

Producers are in for a very profitable year if recent thirdquarter earnings reports are any indication. Occidental Petroleumreported a three-fold increase in third quarter earnings comparedto the same period last year, going from $126 million ($0.35 pershare) in 3Q99 to $402 million ($1.09 per share) in 3Q2000. Thesuccessful performance is mainly the result of higher commodityprices. Oxy’s earnings before special items for the third quarterwere $370 million ($1.00 per share) as opposed to last year for thesame time period when the company posted $125 million ($.35 ashare). Oxy’s oil and gas division earned $690 million beforespecial items, compared to $279 million in 3Q99. Although commoditycosts played a large part in the increase, the company also citedan increase in production volumes due to its acquisition of AlturaEnergy from Shell Exploration & Production Co. and BP duringthe second quarter of 2000. Its domestic gas production levels rosefrom 673 MMcf/d during 3Q99 to 687MMcf/d for 3Q2000, while domesticliquids (mostly crude) rose from 71,000 b/d to 210,000 b/d.