Margins

With refining margins down, production problems up and its Dynegy Inc. investment blown, ChevronTexaco Corp. reported a net loss of $904 million (85 cents/share) for the third quarter, compared to earnings of $1.27 billion ($1.19/share) for the same period a year ago. Total net charges were $2.07 billion, including the $1.55 billion Dynegy write-off.

The prospect for California fulfilling soon its goal of having 15-20% reserve margins in its electric generation capacity is clouded by the current financial uncertainty facing the energy industry, and may not be resolved until there is some further consolidation, according to representatives of merchant generators speaking at an industry conference in San Diego last week.

Despite a slowing economy that reduced both wholesale energy margins and energy use by industrial customers, American Electric Power reported a 13% increase in third-quarter earnings to $1.43 per share and a 50% jump in revenues to $18 billion. Its wholesale power sales volumes soared 66%, and its gas sales rocketed 265% to 14.5 Bcf/d.

Despite a slowing economy that reduced both wholesale energy margins and energy use by industrial customers, American Electric Power reported a 13% increase in third-quarter earnings to $1.43 per share and a 50% jump in revenues to $18 billion. Its wholesale power sales volumes soared 66%, and its gas sales rocketed 265% to 14.5 Bcf/d.

With system reliability and power reserve margins becoming catch-phrases nationally going into summer’s hottest months, the Ohio Consumers’ Counsel (OCC) has gone on the record to allay consumers’ fears, saying it is “reasonably optimistic” the state’s electric system can meet power demand this summer.

With system reliability and power reserve margins becoming catch-phrases nationally going into summer’s hottest months, the Ohio Consumers’ Counsel (OCC) has gone on the record to allay consumers’ fears, saying it is “reasonably optimistic” the state’s electric system can meet power demand this summer.

Conoco reported record results for the third quarter, as strongprices and margins for refined products and record refinerythroughputs produced net income of $523 million, or $0.83 perdiluted share, double that of third quarter 1999. “Earnings were atrecord levels for the third consecutive quarter, and majordiscoveries were made in Vietnam and the deep-water Gulf ofMexico,” said CEO Archie W. Dunham. “In the North Sea, we completedthe Norsk Hydro producing properties acquisition and broughtonstream the Vixen natural gas field. We also announced agroundbreaking 20-year supply contract to deliver Indonesiannatural gas to Malaysia. Great strides are being achieved inexploration. We are extremely encouraged by the Magnolia appraisalwell currently being drilled in the Gulf of Mexico. In addition, weunveiled the industry’s most powerful exploration supercomputerthat allows more cost-effective seismic data analysis. In a relatedstep, we began a massive geophysical survey over 2,000 deep-waterblocks in the Gulf of Mexico, using gravity gradiometry technologyonce used exclusively by the military,” he said. The company’s U.S.gas production was down 2% from 3Q99 levels to 826 MMcf/d. Itstotal net worldwide production was down 4% to 619 Mboe/d.

After suffering through a long period of low prices and thinmargins, exploration and production (E&P) companies appear tobe headed toward a period of success, a report published recentlyby Deutsche Banc Alex. Brown said. Strong gas prices, industryconsolidation and probable low storage levels are the main factorscontributing the report’s bullish conclusions.

After suffering through a long period of low prices and thinmargins, exploration and production (E&P) companies appear tobe headed toward a period of success, a report published recentlyby Deutsche Banc Alex. Brown (Deutsche Banc) said. Strong gasprices, industry consolidation and probable low storage levels arethe main factors contributing the report’s bullish conclusions.