Northeast

Higher oil and gas prices fueled strong quarterly earnings reports last week, with the bulk of the major and top independent oil and gas companies, including BP plc, Exxon Mobil Corp., ChevronTexaco and ConocoPhillips reporting. Also reporting last week were some of the top North American independents, including EnCana, Talisman Energy Inc., Kerr-McGee Corp. and Pioneer Natural Resources.

Five months after natural gas prices at the Henry Hub hit an all-time high of $22/Mcf and prices in the Northeast and Midwest topped $30/Mcf, FERC and the Commodity Futures Trading Commission (CFTC) in independent investigations found that the price aberrations in late February of this year were not caused by manipulation within the market, but rather were due to ordinary supply and demand factors.

Five months after natural gas prices at the Henry Hub hit an all-time high of $22/Mcf and prices in the Northeast and Midwest topped $30/Mcf, FERC on Wednesday concluded that the price aberrations in late February of this year were not caused by manipulation within the market, but rather were due to ordinary supply and demand factors.

With an upbeat conference call and better-than-expected earnings for the first quarter, Dynegy Inc. swung to a profit for the first time in over a year, and further encouraged investors that it now expects to surpass 2003 guidance. The sector-leading stock soared, with more than 34 million shares exchanging hands, sending Dynegy up 25% to close at $4.70 — its highest level since July 18, 2002, when it closed at $4.50.

Despite cold weather in the Mid-Atlantic and Northeast and associated up ticks in physical gas prices, natural gas futures slid lower Monday in another in a growing string of lackluster trading sessions. After pushing prices lower in the morning, local traders covered their shorts in the afternoon when it became apparent a close below $5.00 was not in the cards. May finished at $5.06, down 8.6 cents for the session. At 42,486, estimated volume was extremely light.

The last seven days are going into the record books, according to reports now coming in from northeastern natural gas and power utilities. Old Man Winter 2003 hit the region with a vengeance, breaking previous years’ winter records for power send-outs in four of the last seven days. Three Mid-Atlantic gas distributors also reported record deliveries on Jan. 23.

As winter temperatures in the Northeast plunged to single digits, the Senate last Thursday overwhelmingly passed a major omnibus spending bill that, among other things, calls for a $300 million increase in federal assistance to help low-income heating customers pay their utility bills throughout 2003. At the same time, President Bush released additional emergency funds last week to aid the public during the cold snap.

As winter temperatures in the Northeast plunged to single digits, the Senate overwhelmingly approved Tuesday a $300 million increase in federal assistance to help low-income heating customers pay their utility bills throughout 2003.

Maritimes & Northeast Pipeline’s (MN&P) proposed Phase IV expansion project to carry an additional 400 MMcf/d of gas production from EnCana’s Deep Panuke project offshore Nova Scotia received a green light from Canada’s National Energy Board (NEB) but with certain conditions.