Market

Even though experts predicted the energy market would make a U-turn, “it is always painful when reality slaps you in the face,” according to Raymond James Energy’s “Stat of the Week.” As early as April, energy analyst Marshall Adkins predicted mid-$5/Mcf prices were not going to be sustainable with expected large gas injections. Through July, he predicts natural gas prices will continue to fall.

PG&E Gas Transmission-Northwest (GTN) said it received market requests for about three times the capacity on a proposed lateral that would cross Washington and compete with Northwest Pipeline for rapidly expanding power generation markets in the western half of the state along the I-5 highway corridor. GTN closed its open season for the Washington Lateral Project June 22. It was the third open season for a GTN pipeline expansion this year. Meanwhile Northwest Pipeline has four expansions of its own planned for the region.

Even though experts predicted the energy market would make a U-turn, “it is always painful when reality slaps you in the face,” according to Raymond James Energy’s “Stat of the Week.” As early as April, energy analyst Marshall Adkins predicted mid-$5/Mcf prices were not going to be sustainable with expected large gas injections. Through July, he predicts natural gas prices will continue to fall.

Since the “near-term problems” involving the California power market and added funding for low-income energy assistance seem to have become less pressing, Chairman Jeff Bingaman (D-NM) announced last week that the Senate Energy and Natural Resources Committee will move up its consideration of comprehensive legislation that will address long-term energy issues.

After months of planning and market tests for a proposed expansion of its gas storage facility in Butte County, CA, Wild Goose Storage Inc., a subsidiary of Alberta Energy Co. Ltd., filed an application with the California Public Utilities Commission last week to double the field’s size and triple the withdrawal capacity.

Since the “near-term problems” involving the California power market and increased funding for low-income energy assistance seem to have been resolved or are close to it, Chairman Jeff Bingaman (D-NM) announced yesterday the Senate Energy and Natural Resources Committee will move up its consideration of comprehensive legislation that will address long-term energy issues.

After months of planning and market tests for a proposed expansion of its gas storage facility in Butte County, CA, Wild Goose Storage Inc., a subsidiary of Alberta Energy Co. Ltd., filed an application with the California Public Utilities Commission yesterday to double the field’s size and triple the withdrawal capacity.

Due to warmer weather in its market area and lower overall linepack, Florida Gas Transmission issued Thursday an Overage Alert Day notice with 15% tolerance for negative imbalances.

The complete lack of demand and flood of supply on the market last week left many considering a return to historical price levels, particularly in the Rockies on Friday where prices dropped to near $1. The $5-$6 dollar crash in prices at the Southern California border into SoCalGas last week including a $2 tumble on Friday and the recent declines in western power prices were enough to prompt California Governor Gray Davis to declare the “war” on energy prices officially “won.”