Optimism

Xcel Energy said natural gas use by Colorado customers will likely be higher in September, but prices for the fuel will stay relatively flat. Xcel predicted that average customer bills next month will be lower than they were in September 2008.

February natural gas futures managed to rebound 13.8 cents to close at $4.780 on Wednesday, but market experts were quick to put the brakes on any bullish optimism. Even with brutal cold lingering in a number of important gas-consuming regions, most traders were quick to note that the slumping economy remains the lead story in commodity trading.

Natural gas association officials last Wednesday publicly expressed optimism about working with a new Democratic Congress, although they acknowledged that the direction of energy policy would likely shift to alternative energy and away from oil and gas in the short run, and that offshore drilling legislation — if not passed by the current Republican-controlled Congress in the lame-duck session — would become a back-burner issue.

El Paso Corp. restructured and expanded its hedging program that supports its 2007 gas production, and CEO Doug Foshee expressed optimism about the company’s 2007 outlook.

Natural gas association officials on Wednesday publicly expressed optimism about working with a new Democratic Congress, although they acknowledged that the direction of energy policy would likely shift to alternative energy and away from oil and gas in the short run, and that offshore drilling legislation — if not passed by Republicans in the upcoming lame-duck session — would become a back-burner issue.

Capital spending is on the rise for oil and natural gas producers, and their exploration and production (E&P) investment strategy appears to reflect a continuing sense of optimism in industry fundamentals, and in particular, a strong outlook for cash, Raymond James’ energy analysts said in a new report.

Top officials with Exelon Corp. and Public Service Enterprise Group (PSEG) last Wednesday expressed optimism that the pending mega-merger between the two companies will be able to navigate FERC’s regulatory process without a hearing.

Natural gas futures climbed modestly higher Wednesday, fueled by cautious optimism over expectations of a large storage draw set to be announced Thursday morning combined with an increasingly bullish technical outlook. The March contract closed at $6.376, up 6 cents for the session, but down more than a dime from its $6.48 high on the day.

David Crane, CEO of NRG Energy, last Thursday said he was baffled by the apparent renewed optimism over the future direction of wholesale power markets in the United States from certain quarters, noting, among other things, the continued oversupply cloud hanging over most parts of the country.