Marketplace

Mixed pricing returned to the cash marketplace Friday, but this time declines were in a lopsided majority. Forecasts of mild to cool weather throughout much of the U.S. and Canada and the typical weekend drop in industrial demand were the chief price depressants.

As questions regarding domestic supply adequacy continue to swirl around the marketplace, new questions about a lack of manpower in the sector are beginning to be asked. Called upon by Congress to help lead the way in addressing the issue, North Dakota Gov. John Hoeven said a lack of manpower within the oil and gas industry is jeopardizing the country’s energy security.

Consultants at Energy Security Analysis Inc. said they expect the U.S. gas market to become the “sink” for any unwanted or spillover global LNG supply in the future, which means significant downward gas price pressure and a struggle for domestic gas producers. However, not all market experts agree on that assessment. Benjamin Schlesinger, president of Schlesinger and Associates Inc. in Bethesda, MD, said that such fears are unfounded.

Norway’s Statoil upped its stake in the U.S. liquefied natural gas (LNG) marketplace last week, setting up an agreement for Tractebel LNG North America to deliver 34 Bcf/year to Statoil Natural Gas LLC at the Dominion Cove Point LNG import terminal in Maryland. No financial details were disclosed.

Norway’s Statoil upped its stake in the U.S. liquefied natural gas (LNG) marketplace this week, setting up an agreement for Tractebel LNG North America to deliver 34 Bcf/year to Statoil Natural Gas LLC at the Dominion Cove Point LNG import terminal in Maryland. No financial details were disclosed.

Looking for a way to turn things around in the difficult energy marketplace, TXU Corp. last week shook up its senior management structure, while at the same time announcing that the company is in the process of reducing officers overall by about 30%. The moves are part of the company’s action plan to cut 2003 costs by a net $250 million from 2002 levels, aimed at streamlining the organization and increasing focus on the operations of its core businesses in North America.

With the state’s deregulated marketplace just one year old, retail electric provider (REP) Texas Commercial Energy (TCE) on Thursday filed for Chapter 11 protection. The company claimed that “significantly higher volatility and uncertainty in the Texas wholesale power supply market” since the beginning of 2003 made it “necessary” to protect its estimated 1,500 customers.

Looking for a way to turn things around in the difficult energy marketplace, TXU on Wednesday shook up its senior management structure, while at the same time it announced the company is in the process of reducing officers overall by about 30%. The moves are part of the company’s action plan to cut 2003 costs by a net $250 million from 2002 levels, aimed at streamlining the organization and increasing focus on the operations of its core businesses in North America.

CMS Energy could completely exit the wholesale natural gas and power marketplace; however, the company already has terminated speculative trading, CEO Ken Whipple said Monday. And, to prevent questionable business practices going forward, CMS will require all employees to complete an ethics program.