Moved

Weak natural gas prices in the third quarter have so far moved Alberta Energy Co. Ltd. to escalate a maintenance program and reduce its produced gas volumes by about 50 MMcf/d. Dominion and Occidental Petroleum Corp. also reported their third quarter earnings last week, and like many of their peers, both had slight production declines.

The Department of Transportation’s Office of Pipeline Safety (OPS) moved quickly into a “response mode” following the Sept. 11 terrorist strikes, contacting pipeline companies to determine the level of preparedness within the industry, said a top OPS official last week. In the end, it was judged to be “very good.”

Weak natural gas prices in the third quarter have so far moved Alberta Energy Co. Ltd. to escalate a maintenance program and reduce its produced gas volumes by about 50 MMcf/d. At Burlington Resources Inc., total third quarter production actually increased 2%, but analysts noted on Thursday that the Houston-based producer probably will be an exception to the rule for the next three quarters — as producers face the likelihood of lower earnings until energy prices rebound.

The Department of Transportation’s Office of Pipeline Safety (OPS) quickly moved into a “response mode” following the Sept. 11 terrorist strikes, contacting pipeline companies to determine the level of preparedness within the industry, said a top OPS official. In the end, it was judged to be “very good.”

With the “perfect electrical storm” of 2000-01 having moved past California, and continuing low demand and prices filling the void, what is next on the horizon? The short answer is no one knows, according to an Oakland, CA-based energy consultant who has studied events of the past two years. But some clearer ideas on the physical challenges have emerged, while the state and industry’s economic future is clouded.

The Northeast moved a step closer to getting a major new power transmission line, linking surplus generation in Maine and Atlantic Canada with rapidly growing demand in Boston, New York and the Mid Atlantic region. FERC last Wednesday conditionally approved the transmission project filed by Neptune Regional Transmission System LLC consisting of several thousand miles of undersea high-voltage direct transmission. Among other things, the Commission said that its approval was contingent upon Neptune joining the Northeastern regional transmission organization (RTO).

In a session notably void of fresh fundamental or technical news, natural gas futures moved sideways yesterday as many traders opted to wait until the beginning of the three-day settlement period and the release of storage figures today before placing their orders. At $2.97 the August contract finished 0.8 cents lower on the day and just about in the middle of its 3-day $2.915-$3.01, trading range. Volume was relatively weak with just 61,764 contracts changing hands.

A key piece of tax legislation benefiting independent natural gas and oil producers moved through the House Ways and Means Committee Wednesday night (on a 24-17 vote) on its way to a late July rendezvous with three other parts of the administration’s energy plan on the House floor.

The expected roll-out of the Texas pilot deregulation program, originally scheduled for June 1, has been moved to mid-July so that the state’s grid operator, the Electric Reliability Council of Texas (ERCOT), can work out computer glitches. Retail competition begins across the state Jan. 1, 2002.