Lines

A Senate Energy and Natural Resources Committee staff draft bill would revolutionize the siting of new power transmission lines in the United States, with regional planning entities designated by FERC submitting plans for the Commission’s approval. FERC would have siting and fast-track certificate authority for any high-priority transmission project of 345 kV or higher. Any delays could be appealed to the president.

Alaska officials Friday signed a license agreement that gives TransCanada Alaska LLC (TC Alaska) and affiliate Foothills Pipe Lines Ltd. the concession to construct a pipeline to tap the state’s North Slope gas reserves.

With more than $1 billion of cash on hand, $3 billion in unused credit lines and a 13% debt-to-capitalization rate, Devon Energy Corp. will use the “opportunity to acquire some quality assets at quality prices,” CEO G. Larry Nichols said last week.

With more than $1 billion of cash on hand, $3 billion in unused credit lines and a 13% debt-to-capitalization rate, Devon Energy Corp. is using the “opportunity to acquire some quality assets at quality prices,” CEO G. Larry Nichols said Wednesday.

Thursday’s cash market pretty much divided along the lines of what markets would be most affected by Hurricane Ike-related production outages and those that would feel relatively little impact. Prices continued to rise at most locations in the Gulf Coast and Northeast, while the Midcontinent/Midwest and West were mostly softer. Weather remains a minor market factor as few areas outside the desert Southwest have any substantive cooling load remaining.

As the energy sector lines up to begin issuing its quarterly reports in the coming weeks, North American-based exploration and production (E&P) companies are expected to top earnings estimates because of higher oil and natural gas prices. In the second quarter, which ended June 30, crude oil futures jumped almost 40% and gas futures rose almost 30%.

October natural gas futures traded in a wide range on Tuesday as bears plumbed support lines before the contract rallied back in the afternoon. The prompt month traded between $6.195 and $6.570 before settling at $6.568, down 8.5 cents from Monday’s close.

Reading between the lines from the experts gathered at GasMart 2007 in Chicago last week, domestic and Canadian natural gas production are at their limits and demand is increasing. Pipelines from the far north are years, possibly multiple decades or lifetimes away. Conventional wisdom is that liquefied natural gas (LNG) from overseas will fill in the gap; but will it? And what happens if it doesn’t?

Reading between the lines from the experts gathered at GasMart 2007 in Chicago last week, domestic and Canadian natural gas production are at their limits and demand is increasing. Pipelines from the far north are years, possibly multiple decades or lifetimes away. Conventional wisdom is that liquefied natural gas (LNG) from overseas will fill in the gap; but will it? And what happens if it doesn’t?