Industry

Energy Firms Join Cooperative Marketing Effort

Prosper Business Development Corp., along with Energy.com Corp.,has launched the energy industry’s first cooperative marketingcampaign aimed at eliminating the confusion about gas retail choiceat the small commercial and residential level, and at making itaffordable for gas marketing companies to target these two customerclasses.

August 17, 1998

Storage Operators Confirm Rapid Injection Pace

Storage statistics show the industry is heavily into squirrelingaway its nuts for the winter. Some traders watching robust storageinjections have questioned the validity of AGA-reported figures,but storage operators say, “Yes, Virginia, there really is thatmuch gas in the ground.”

July 28, 1998

July Futures Hone in on $2.40

“The bear market is over, the bull market has begun.” That’s howone industry broker succinctly summarised the recent developmentsin the natural gas futures market yesterday. The July contractadded to its latest fortunes by climbing another 7.8 cents tosettle Monday at $2.362. In so doing, July is now “well above anypossible downtrend line you can realistically draw,” a source toldGPI.

June 23, 1998

GISB Gets Three-Year Lease on Life

The sun likely won’t set on the Gas Industry Standards Boarduntil at least the end of 2001. After about an hour of debateThursday, the GISB board of directors voted to extend GISB’s sunsetclause from Dec. 31, 1998 to Dec. 31, 2001. Had the board notextended the clause, GISB would have ceased to exist at year-end.The original resolution called for extending the clause to Dec. 31,2000. Some on the board wanted to do away with the clause. Hadthere been enough support for that, future disbanding of GISB couldresult only from a majority vote by the board. Others wanted thesunset clause not to come up again for four or five years. GISBExecutive Director Rae McQuade said she was happy with the boarddecision.

June 19, 1998

Customer Coalition Blasts AGA/INGAA Proposal

If there was ever any indication there was industry consensus onthe need for negotiated terms and conditions of pipelinetransportation service, it was soundly dispelled in a letter beingmailed to FERC today by a group of producers, end users, marketers,and municipal distributors. The Pipeline Transportation CustomerCoalition, which is being led by the Natural Gas Supply Associationand the Independent Petroleum Association of America, blasted therecent FERC policy proposal (filed May 4) by the American GasAssociation and the Interstate Natural Gas Association of Americaas “seriously flawed as to undercut any purported value.” A filingmade by Columbia Energy’s pipeline subsidiaries last week also canbe grouped with the AGA-INGAA proposal. An NGSA spokeswoman said ittoo falls under this protest.

June 17, 1998

Commissioner Massey Serves and Stands and Waits

Some in the natural gas industry are growing increasingly uneasythat the re-appointment of William Massey to a second term at theFederal Energy Regulatory Commission appears to be stalled at theWhite House.

June 8, 1998

Major Marketer Bemoans Pace, Lack of Competition

In the battle between marketers and LDCs to restructure the gasindustry, commercial customers are being overlooked, according toKathleen Magruder, vice president of rates and tariffs for EnronEnergy Services (EES). “I had a regulator. say to me, ‘Well, ‘I’venever heard a commercial customer say they really want somechoice.’ So the next meeting I brought in 15 commercial customers.He was real unhappy.

May 29, 1998

Baker Hughes, Western Atlas to Merge

Consolidation in the drilling/oilfield services industrycontinued this week, with the announcement that Baker Hughes andWestern Atlas plan to merge in a tax-free, stock-for-stocktransaction valued at $5.5 billion. It will create a company with$6.5 billion in annual revenues and 36,000 employees.

May 12, 1998

Nuclear Plant Closings Up Pipe Capacity Demand

While the natural gas industry generally believes the multiplepipeline projects planned for the Midwest and New England areoverkill, Roger Gale of the Washington International Energy Groupwould disagree.

May 7, 1998

May Futures Tumble Below Major Support at $2.43

It has been argued the emergence of storage facilities in thenatural gas industry has robbed cash prices of some of theirvolatility during summers and winters and replaced it duringshoulder months. Perhaps a similar affect has happened this pastyear because of mother nature. The El Ni¤o winter, which helpedkeep volatility in check this weekend, may very well be behind theextremely high volatility seen at the New York Mercantile Exchangethis past week.

April 23, 1998