Largely

Driven largely by the year-round tightness in natural gas supply and expectations of normal temperatures for the upcoming heating season, the Energy Information Administration (EIA) in its “Winter Fuels Outlook” said last Tuesday it foresees residential customers consuming less gas but paying more this winter despite an anticipated adequate level of supply and lower wellhead prices.

Driven largely by year-round tightness in natural gas supply and expectations of normal temperatures for the upcoming heating season, the Energy Information Administration (EIA) in its “Winter Fuels Outlook” said Tuesday it foresees residential customers consuming less gas but paying more this winter.

In what was largely believed to be a follow-through from Friday’s erratic screen rise of nearly 16 cents, cash prices saw strong gains Monday that hit double digits at a majority of points and were especially pronounced in the heated West. Eastern upticks tended to range from about a nickel to a little more than 20 cents, while some western points fit within the East’s pattern and others soared by as much as 40-60 cents or more.

A report to Congress issued Thursday by the Department of the Interior concludes that an estimated 57% of the oil and 63% of the gas resources in five major geologic basins in the Rocky Mountain region are accessible to drilling companies under standard leasing terms, and only 15% of the oil and 12% of the gas are totally unavailable. The remaining oil and gas resources are available with increasing restrictions on development.

A report to Congress issued Thursday by the Department of the Interior concludes that an estimated 57% of the oil and 63% of the gas resources in five major geologic basins in the Rocky Mountain region are accessible to drilling companies under standard leasing terms, and only 15% of the oil and 12% of the gas are totally unavailable. The remaining oil and gas resources are available with increasing restrictions on development.

The post-Christmas cash market saw a mix of price movement that was largely weighted toward moderate declines. A few small upticks were scattered here and there, but a majority of points ranged from flat to down a little more than 20 cents (Northwest-Sumas).

Buoyed largely by “significant asset acquisitions” completed during the past year, Houston-based El Paso Energy Partners LP reported last week a 77% jump in net income for the third quarter over a year ago. The company said approximately $2.2 million, or five cents per unit, had been shaved from its quarterly earnings due to disruptions caused by Hurricane Isadore and a loss associated with a natural gas hedging transaction.

Buoyed largely by “significant asset acquisitions” completed during the past year, Houston-based El Paso Energy Partners LP reported Monday a 77% jump in net income for the third quarter over a year ago. The company said approximately $2.2 million, or five cents per unit, had been shaved from its quarterly earnings due to disruptions caused by Hurricane Isadore and a loss associated with a natural gas hedging transaction.

Dominion Resources, which up until now has largely avoided the collapse in energy stocks, saw its shares tumble 10% Monday to $52.33 in response to a reduced earnings outlook for 2003. The prospective reduction will come mainly from a pending equity sale that is designed to strengthen Dominion’s balance sheet and debt coverage ratios to meet stricter standards from the credit ratings agencies, which are concerned with the heightened risk in the energy industry.