Likely

The amount of electric power generated from existing nuclear plants is likely to increase in the coming years as a result of higher capacity factors and plant uprates, according to Corbin McNeill Jr., co-CEO of Exelon Corp. But the executive also believes that there are a whole host of antiquated legislative and regulatory requirements currently facing the nuclear power industry that need to be overhauled, given the likelihood that future nuclear plants will be operating in a deregulated environment.

Friction is likely to increase between state and federal regulators on the issue of deregulation if states begin to block retail competition because of the crisis in California, according a new report issued last week by Andersen Consulting. The report, “Energy Crisis in the Western United States: Lessons for Navigating Regulatory and Market Minefields,” was unveiled by Andersen’s North American Energy Consulting Practice at a Washington, D.C. briefing.

The current upturn in oil and natural gas drilling is likely to be more prolonged than similar cycles in past years judging from producers’ confidence, a top executive of Key Energy Services Inc., a leading drilling and well services equipment company, told financial analysts and producers last week.

The current upturn in oil and natural gas drilling is likely to be more prolonged than similar cycles in past years, a top executive of Key Energy Services Inc., a leading drilling and well services equipment company, told financial analysts and producers Tuesday.

Every region of the United States this year “will likely beshort generating capacity,” which will drive margins and fuelprofits higher for generators, according to a report by DeutscheBanc Alex. Brown energy analyst Jay Dobson.

Commissioner William Massey, who took over as FERC chairmanFriday, is likely to have the shortest term as FERC chairman onrecord, with the Bush administration looking to replace him withCommissioner Curt Hebert Jr. as acting chairman possibly as earlyas this week, according to a member of the Bush energy transitionteam.

Commissioner William Massey is likely to have the shortest termas FERC chairman on record, with the Bush administration looking toreplace him with Commissioner Curt Hebert Jr. as acting chairmanpossibly as early as next week, according to a member of the Bushenergy transition team.

It appears increasingly likely that development of 35 Tcf of gasreserves in Alaska and another 6-9 Tcf in the Mackenzie Deltaregion of the Northwest Territories will be headed down parallelbut separate paths. Both projects, however, seem to be picking upspeed in reaction to the current favorable market situation.

Marathon Group, a unit of USX Corp., said the strategicre-organization of its upstream business is largely complete but anadditional 250 positions likely will be eliminated, leaving theupstream business with 24% fewer employees than in 1999. “We haveplans in place for dramatic change and improvement and I believethat the organization is both ready for change and able to deliveron our commitments,” said Company President Clarence Cazalot.Cazalot introduced a new senior leadership team in September afterannouncing the restructuring plan in October. Commenting on thecompany’s target of implementing $150 million of annual repeatableefficiencies by the end of 2001, Cazalot said, “We are on track todeliver a $75 million reduction in above-the-field costs and wehave made substantial progress towards cutting exploration expensesby $50 million. As we also realize annual savings of $25 millionthrough global procurement, we are well on our way to meet ourambitious overall target.”