Leaving

The executive director of the California Public Utilities Commission (CPUC) is leaving state government to become president of Woodside Natural Gas, an Australian company with one of four outstanding proposals to develop a liquefied natural gas (LNG) offshore terminal along the Southern California coast. The CPUC Thursday announced Steve Larson’s departure and named his assistant, Paul Clanon, to the commission’s top staff position May 1.

Cash prices ended the week mixed, leaving traders with some uncertainty about whether continued cold temperatures, particularly in eastern and midwestern markets, and the likelihood of another big weekly storage withdrawal in the next report from the Energy Information Administration (EIA) would put additional upward pressure on the market.

July natural gas futures on Friday finished last week with a steady climb, leaving some to wonder whether the previous week’s $5.750 low by the then-front month June contract might stand as a low for the move. July natural gas ended up reaching a high of $6.690 before closing at $6.623, up 17.5 cents on the day and 46.9 cents higher than the previous Friday’s close.

Leaving no area of alternative fuels untouched, the California Energy Commission (CEC) Monday released a plan and set of recommendations for the stepped up development of biomass — biologically derived renewable materials that can produce heat, power, transportation fuels and what state officials think can be other valued-added products and chemicals.

Natural gas production in the Gulf of Mexico inched up by 124.3 MMcf from Tuesday, leaving 4.04 Bcf of gas still shut-in following Hurricane Katrina, according to the latest Minerals Management Service (MMS) update, which was issued Wednesday. However, concerns were growing that potential pipeline damage and flooded natural gas processing plants in Louisiana may lead to gas shortages this winter.

Continuing to ride the downward futures momentum from Thursday, cash points cratered another 15-65 cents on Friday, leaving Henry Hub cash about flat to the screen as of the end of the cash trading session. The vast majority of points were down 20-40 cents. However, natural gas futures then proceeded to follow crude oil higher, ending the day up 18.3 cents to $9.111.

Global Energy Decisions Inc. (GED) said Thursday that high natural gas prices aren’t likely to be leaving anytime soon. In fact, the Boulder, CO-based company, which provides software, consultation and data solutions to the energy industry, said natural gas prices are likely to remain “stubbornly high” for the next few years.

California Energy Commission (CEC) Chairman William Keese said last week he was leaving the power plant siting and energy planning commission as of March 4. Keese, an attorney, made the announcement as part of the commission’s regular business meeting last Wednesday in Sacramento. Originally appointed to the commission in 1997 by then Gov. Pete Wilson, Keese was re-appointed by Gov. Gray Davis in the midst of the 2000-2001 western energy crisis. He alluded to that in making his announcement, indicating he never planned to stay on the CEC as long as he has. His fellow commissioners expressed surprise at Keese’s decision, and lauded his leadership in recent years. Keese’s current term was set to run until the end of this year. At Gov. Arnold Schwarzenegger’s request, Keese will continue to be California’s designee and co-chair of the Western Governors’ Association advisory committee on “clean and diversified” energy. Schwarzenegger will have 30 days after Keese leaves to name a replacement to fill out his term.

Leaving analysts and the press equally befuddled, Canadian Superior said the abandonment of the El Paso Mariner I-85 well in the Atlantic Ocean off Nova Scotia, following 3-1/2 months of drilling, was actually not out of the ordinary when dealing with a new prospect.