Majority

When the going gets tough, the tough turn to gas. That’s oneconclusion that can be drawn from results of Arthur Andersen’s 11thannual U.S. Oil and Gas Industry Outlook Survey. While 70% of the83 companies responding to the survey said they plan to cutexploration spending or hold it at current levels in the comingyear, gas will get a bigger share of the attention. Nearly half ofthe respondents (49%) plan to focus on gas exploration, an increaseof 20% from a year ago. Another 39% of respondents said they willbalance efforts between oil and gas.

The majority of Brooklyn Union Gas’ (BU) residential gascustomers in New York City and Long Island said they want to keeptheir existing utility as a provider in a competitive retail marketor at least have it offered as an option, according to the resultsof market research conducted for parent KeySpan Energy. Thefindings, which reveal a continuing customer connection to LDCs,fly in the face of the New York Public Service Commission’sdirective ordering all utilities to exit the merchant gas role.

The majority of residential gas customers interviewed inBrooklyn and Long Island said they want their existing utility as aprovider of choice in a competitive retail market, according tomarket research results presented by a Brooklyn Union (BU)executive yesterday. The findings fly in the face of the New YorkPublic Service Commission’s directive ordering all utilities toexit the merchant natural gas role.

Over the din of protesters, especially soon-to-be competitorNatural Gas Pipeline Co. of America (NGPL), FERC last week deniedthe majority of rehearing requests and awarded Alliance PipelineL.P. its long-awaited optional certificate to build a majortransportation link between western Canadian production fields andthe U.S. Midwest.

The screen’s drop Tuesday didn’t make much of an impression onthe cash market, which was flat at the majority of points. TheMidcontinent tended to be a little weaker than the average asMidwest citygates were down by almost a nickel after a cold fronthad cooled off the region considerably.

Lacking any impetus from fundamentals or a sedate futuresscreen, the vast majority of points settled down for a level ridein a quiet market Wednesday. The few increases of any size occurredin the Rockies and California and were attributed to supplyconstraints and continuing heavy air conditioning load.

Wednesday’s cash market was almost a carbon copy ofTuesday’s-flat to about a nickel higher at the great majority ofpoints but going lower in the Rockies. About the only differencewas in California numbers, which were flat to slightly higherWednesday instead of joining the Rockies in softening.

The majority of existing large electric-related companies willnot be intact a decade from now, says Roger Gale of WashingtonInternational Energy Group. In fact, he anticipates more than halfof the companies will disappear completely.

A FERC majority yesterday reaffirmed the right of interstatepipelines to “reasonably withhold” their consent for customers topermanently transfer their contract liabilities to third-partyreplacement shippers under capacity releases.