Nation

Due to a confluence of events, including ample natural gas storage supplies and the nation entering a recession, Ronald Barone of UBS Warburg said it should “come as no surprise” that the company has decided to lower its 2001 and 2002 natural gas spot price forecast. The analyst said he has lowered the 2001 projection of 12-region composite spot price to $3.80 from $4.10, compared to the current Street consensus of $4.00. UBS Warburg’s Henry Hub equivalent is $3.95.

Competitive wholesale electricity markets are important to achieve effective competition in retail markets, according to a new report issued by the staff of the Federal Trade Commission (FTC). The report also examined which features of various state retail electricity programs have resulted in consumer benefits and which have not.

Due to a confluence of events, including ample natural gas storage supplies and the nation entering a recession, Ronald Barone of UBS Warburg said it should “come as no surprise” that the company has decided to lower its 2001 and 2002 natural gas spot price forecast. The analyst said he has lowered the 2001 projection of 12-region composite spot price to $3.80 from $4.10, compared to the current Street consensus of $4.00. UBS Warburg’s Henry Hub equivalent is $3.95.

While energy analysts remain shell-shocked following the brazen terrorist attacks on the nation’s financial distriction and admit they have “no answers” for industry, some predict that the war-provoking events may cause the public, Capitol Hill lawmakers and investors to look more favorably upon North American energy producers, service companies and pipelines.

The American Gas Association reported a 95 Bcf injection into the nation’s natural gas storage facilities last week, which compares to a 72 Bcf injection during the same week a year ago. The injection came in slightly above consensus estimates around 85 Bcf and should be a bit of a reality check for traders caught up in the hype surrounding the impact the terrorist attacks might have on international crude supplies. However, the New York Mercantile Exchange remains closed and there was still no word yesterday evening on whether the exchange would attempt to open its doors on Thursday (see related story).

While natural gas prices are down considerably, the nation’s largest municipal electric utility is hoping to acquire some natural gas reserves and forward supply contracts to lock in supplies and prices for the next three to five years, the muni’s interim general manager, David Wiggs, said Thursday.

AmeriGas Partners LP became the nation’s largest retail propane marketer by completing the $202 million purchase of Columbia Propane from NiSource in a deal that closed last Tuesday. The combination will distribute more than one billion retail gallons per year from more than 700 locations.

AmeriGas Partners LP became the nation’s largest retail propane marketer with the $202 million purchase of Columbia Propane from NiSource. The deal closed onm Tuesday. The combination will distribute more than one billion retail gallons per year from more than 700 locations.

For now, California and other parts of the nation can thank Mother Nature for saving consumers from severe and sustained summer energy price spikes, and perhaps bolstering the political resolve to keep pushing ahead with market-based energy solutions, said a Wall Street analyst with Commerzbank Securities. However, the market fundamentals are still present to sustain higher-than-historic prices and volatility, particularly for natural gas.