January

A proposed coalbed methane (CBM) project in British Columbia’s Elk Valley is drawing opposition on both sides of the U.S./Canadian border. BP plc’s Canadian subsidiary in January announced it would spend C$1 billion to develop the Mist Mountain CBM Gas Project in the province’s Crowsnest Coalfield (see Daily GPI, Jan. 28). BP also entered into a commercial agreement with Elk Valley Coal to evaluate CBM opportunities on the Elk Valley acreage. However, the city council in Fernie, BC, wants to prevent the Elk Valley development. The council unanimously passed a resolution that provincial regulators rescind or not issue leases to BP to explore or develop the Elk Valley region because of the possible environmental contamination. The tourism industry in Fernie, which is about 50 miles north of Montana, could be jeopardized, the council stated. Because the Elk River sends water into Montana’s Lake Koocanusa, which is near Glacier National Park, some U.S. stakeholders also have voiced their opposition to BP’s plans. Sen. Max Baucus (D-MT) said in February that the potential CBM project in the Elk Valley was a “worry” for Montana because of possible contamination to the border-straddling Lake Koocanusa. Provincial officials said environmental reviews are their top priority, and concern in Fernie and Montana is premature. Also, not all of the area’s residents are opposed to the CBM proposal, noted BC’s Ministry of Energy, Mines and Petroleum Resources. The ministry said it would consider the Fernie opposition, but it also will consider other regional stakeholders that are in favor of the development.

In a letter from one federal agency to another earlier in January, doubt was cast over NorthernStar Natural Gas’s plans for building a liquefied natural gas (LNG) terminal along the Columbia River in Oregon and it stirred local news coverage. However, the project backers said they aren’t concerned about it.

In a letter from one federal agency to another earlier in January, doubt was cast over NorthernStar Natural Gas’s plans for building a liquefied natural gas (LNG) terminal along the Columbia River in Oregon and it stirred local news coverage. However, the project backers said they aren’t concerned about it.

January natural gas futures resumed their assault on $7 price support in Monday trade, recording a low of $7.010 before closing out the day at $7.032, down 12.3 cents from Friday’s finish. While traders were debating storage levels and weather forecasts, they were also forced to account for the possibility of an out of season tropical storm, which was gaining strength east of Puerto Rico.

Picking up right where they left off late last week, January natural gas futures continued to scout lower price levels on Monday, even as winter storms simultaneously brought chilly temperatures to the Northeast and Northwest. The prompt-month contract touched a low of $7.060 in the regular session Monday before rebounding to close at $7.214, down 8.8 cents from Friday.

ConocoPhillips CEO Jim Mulva said it’s unlikely the company will pursue any significant acquisitions or consider any merger opportunities for the foreseeable future.

ConocoPhillips CEO Jim Mulva said it’s unlikely the company will pursue any significant acquisitions or consider any merger opportunities for the foreseeable future.

Pacific Energy Resources Ltd. agreed Tuesday to buy Forest Oil Corp.’s Alaskan subsidiary for an estimated $448 million and 5.5 million Pacific Energy shares.

April natural gas futures managed to score the largest gain since late January on Tuesday by jumping 21.8 cents to settle at $7.472 in active trading. The gain was the largest the April contract had made since Jan. 30 when it soared 68.3 cents to settle at $7.695.