Level

Although there was no agreement on the level of preparedness of the of the western energy infrastructure, a federally developed overview concluded that the interstate natural gas pipeline capacity was adequate to serve the large influx of new gas-fired power plants being built in the region, participants heard Friday at a FERC conference in Seattle.

While some experts expect the economic slowdown to shave significant gas demand from the market this winter, Raymond James & Associates believes there will be a substantial shift toward greater year-over-year gas demand comparisons by mid-December. The investment bank said that high prices last winter drove about 8-10 Bcf/d of demand out of the market in the first quarter of 2001. At least half of that demand should be back by the first quarter of 2002, it said.

While some experts expect the economic slowdown to shave significant gas demand from the market this winter, Raymond James & Associates believes there will be a substantial shift toward greater year-over-year gas demand comparisons by mid-December. The investment bank said that high prices last winter drove about 8-10 Bcf/d of demand out of the market in the first quarter of 2001. At least half of that demand should be back by the first quarter of 2002, it said.

The value of merger and acquisition activity in the Canadian oil and gas industry has soared this year to the highest level in 10 years, but with the decline in commodity prices, the pace has slowed significantly in the second half, said Calgary-based Sayer Securities Ltd., which has been tracking M&A activity in Canada since 1987.

The value of merger and acquisition activity in the Canadian oil and gas industry has soared this year to the highest level in 10 years, but with the decline in commodity prices, the pace has slowed significantly in the second half, said Calgary-based Sayer Securities Ltd., which has been tracking M&A activity in Canada since 1987.

With little on either the technical or fundamental news front, natural gas futures shuffled sideways and lower yesterday, as traders weighed moderating temperatures against the potential for a bullish storage report Wednesday. At the closing bell the September contract was 4.1 cents lower at $2.999. The 12-month strip suffered only a minor setback, down 1.6-cents at $3.443.

Just as it looked like prices were going to make another assault on the $3.00 level, natural gas futures rebounded yesterday morning in a knee-jerk reaction to reports that a tropical storm had formed in the Gulf of Mexico. While market watchers and traders have been mindful all week about a serious low pressure system bringing rains to Florida, few expected it to develop into a tropical system so quickly. The September contract led the price march higher, finishing 11.1 cents stronger at 3.192. The 12-month strip, meanwhile, lagged somewhat, closing 7.8 cents higher at $3.533. Estimated volume was light with just 52,503 contracts changing hands. As of 5 p.m. EDT Thursday Barry was about 315 miles southeast of the mouth of the Mississippi River, according to the National Weather Service. It was moving toward the northwest at 4 mph and likely to make a gradual turn to a west-northwest track Friday, NWS said, forecasting “some strengthening” of Barry, which was packing a maximum sustained wind of 45 MPH yesterday evening. A tropical storm is labeled a hurricane when sustained winds have reached 74 MPH.

As the five-week-old hearing into whether El Paso Natural Gas manipulated gas prices in California last year wound down at FERC last Tuesday, a war of words erupted over just how much transportation on the pipeline was unavailable to customers during 2000 for reasons other than operational factors.

As the five-week-old hearing into whether El Paso Natural Gas manipulated gas prices in California last year winds down at FERC, a war of words has erupted over just how much transportation on the pipeline was unavailable to customers during 2000 for reasons other than operational factors.