Intact

The controversial provision in the financial regulatory reform legislation that requires major banks to spin off their swap desks appeared to be intact at the end of last week, although pressure was mounting to strip the provision from the bill.

The controversial provision in the financial regulatory reform legislation that requires major banks to spin off their swap desks appears to be intact (see Daily GPI, June 16), although pressure is mounting to strip the provision from the bill.

Although the energy infrastructure remained intact, California Gov. Arnold Schwarzenegger last Tuesday declared a state of emergency for Humboldt County in the wake of the 6.5-magnitude earthquake offshore Eureka, CA, Jan. 9. Schwarzenegger cited damage along the Northern California coast, including utilities and 175 structures.

Although the energy infrastructure remains intact, California Gov. Arnold Schwarzenegger on Tuesday declared a state of emergency for Humboldt County in the wake of the 6.5-magnitude earthquake offshore Eureka, CA, last Saturday. Schwarzenegger cited damage along the Northern California coast, including utilities and 175 structures.

Keeping the week’s streak of lower closes intact, August natural gas futures — still faced with abysmal fundamentals — pushed lower on Wednesday to close at $3.795, down 4 cents on the day and 31 cents on the week.

While the composition of the three-member Idaho Public Utilities Commission (PUC) remains intact, by state legislative mandate, on Monday the regulators had to name a new president, so they elected a former state lawmaker, Jim Kempton, to a two-year term heading the regulatory body. Kempton replaces Mack Redford, who remains on the regulatory panel. Gov. C. L. “Butch” Otter appointed Kempton, from Albion, ID, to the PUC in October 2007 to fill an unexpired term of then-Commissioner Paul Kjellander, who was selected by the governor to head up a newly created state Office of Energy Resources. Before joining the PUC, Kempton was one of two Idaho representatives on the Northwest Power and Conservation Council, to which he had been appointed by former Gov. Dirk Kempthorne. In this capacity he acted as the state’s cabinet-level representative for natural resources. Kempton served in the Idaho House of Representatives from 1991 to 2000, where his committee assignments included those on the environment, taxation and transportation among others. Kempton holds two degree in physics and is a former faculty member at the U.S. Air Force Academy. He once served as a fighter pilot in the U.S. Air Force.

As it became more evident Wednesday that Hurricane Gustav left the energy infrastructure in the Gulf of Mexico intact (see related story), October natural gas futures continued to press the downside, coming within a couple of pennies of breaking below $7. The prompt-month contract recorded a low of $7.028 before rebounding to close out Wednesday’s regular session at $7.264, up less than a penny from Tuesday’s finish.

Keeping the theme intact of moving mostly as a whole on a daily basis, a vast majority of cash points finished out the week with gains on Friday, recording hikes that ranged mostly from a few pennies to a quarter. A few El Paso points out West were some of the only losers on the day, shedding a couple of pennies apiece. It was an up and down week. Friday’s gains built on increases Thursday. Monday and Wednesday showed overall declines offset by widespread increases Tuesday.

Proving that resistance up at $7.500 is still very much intact, November natural gas futures on Friday put in a significant retreat. After breaching but failing to settle above $7.500 during the three previous regular trading sessions, the prompt-month contract Friday put in a $7.035 low before finishing the week at $7.041, down 33.3 cents from Thursday but 6.7 cents higher than the previous week’s close.