Irony

In somewhat of an irony, Enron Corp. this week filed a complaint against six of its former banks and investment institutions, claiming that they gave the bankrupt company bad financial advice, which in turn contributed to its demise in late 2001.

In a small bit of irony last December when Enron Corp. had filed for bankruptcy, American Electric Power’s Eric van der Walde, the executive vice president of trading and marketing, said the wholesale energy marketplace was “bigger and stronger than any one company” and other leading wholesale energy providers would weather the storm and fill “any market needs that may arise.” That was then, this is now. Few market observers are so confident today.

In a small bit of irony last December when Enron Corp. had filed for bankruptcy, American Electric Power’s Eric van der Walde, the executive vice president of trading and marketing, said, “The wholesale energy marketplace is bigger and stronger than any one company. The market has performed well during these weeks of uncertainty about Enron’s future. We are confident that AEP and other leading wholesale energy providers can fill any market needs that may arise” (see Daily GPI, Dec. 3, 2001). That was then, this is now. And now is not so confident anymore.

In a small bit of irony last December when Enron Corp. had filed for bankruptcy, American Electric Power’s Eric van der Walde, the executive vice president of trading and marketing, said, “The wholesale energy marketplace is bigger and stronger than any one company. The market has performed well during these weeks of uncertainty about Enron’s future. We are confident that AEP and other leading wholesale energy providers can fill any market needs that may arise” (see Daily GPI, Dec. 3, 2001). That was then, this is now. And now is not so confident anymore.

If early reports are confirmed, the irony will not be lost on energy-starved Californians. Last week, Tri-Valley Oil & Gas Co. (TVOG) reported it might have found the West’s largest natural gas field ever near Delano, CA, estimating it holds 3 Tcf in reserves. TVOG said its Sunrise Natural Gas Project might be one of the largest onshore finds in more than half a century.

If early reports are confirmed, the irony will not be lost on energy-starved Californians. Yesterday, Tri-Valley Oil & Gas Co. (TVOG) reported it might have found the West’s largest natural gas field ever near Delano, CA, estimating it holds 3 Tcf in reserves. TVOG said its Sunrise Natural Gas Project might be one of the largest onshore finds in more than half a century.

In yet another irony to the California energy foibles, while state officials are scrambling to expand natural gas transmission and storage capabilities in the state, one of Southern California Gas Co.’s most urban-based underground storage facilities is under siege from opponents of a massive coastal mixed-use residential/commercial development between Marina del Rey, CA, and a 50-year-old gas storage operation.

In yet another irony to the California energy foibles, while state officials are scrambling to expand natural gas transmission and storage capabilities in the state, one of Southern California Gas Co.’s most urban-based underground storage facilities is under siege from opponents of a massive coastal mixed-use residential/commercial development between Marina del Rey, CA, and a 50-year-old gas storage operation.

With a twist of irony that made even the most seasoned traders shake their heads, natural gas futures rebounded strongly yesterday afternoon, just moments after fresh storage data was released showing that the year-on-year storage deficit has finally been eliminated. With that the market broke a string of seven-straight Wednesday losses as traders propelled the new prompt month July contract up 17.1 cents to close at $3.981.