Pockets

Spending on natural gas extraction in the Haynesville Shale has stuffed so much money in the pockets of some Louisianans that it is akin to winning the lottery, suggests a recent analysis prepared for the Louisiana Department of Natural Resources (DNR).

Spending on natural gas extraction in the Haynesville Shale has stuffed so much money in the pockets of some Louisianans that it is akin to winning the lottery, suggests a recent analysis prepared for the Louisiana Department of Natural Resources (DNR).

Most of the cash market moved higher Thursday on the basis of some air conditioning load developing in the South, pockets of chilly weather continuing in northern market areas (primarily near the Canadian border) and the previous day’s 22.8-cent futures gain capping a three-day run of firmness by the May contract.

Pending approval by the five-member Illinois Commerce Commission (ICC), a proposed decision by an administrative law judge (ALJ) could put about $160 back in the pockets of each of Peoples Gas’ customers. The ruling recommends that Peoples Gas refund customers $118.6 million for imprudent gas purchases and illegal profit sharing between Peoples’ parent company and an Enron affiliate in winter 2000-2001.

The market was finding pockets of heating load that it must have ignored earlier, for despite generally bearish talk on Monday, prices rose nearly across the board Tuesday between a little less than a nickel and about 45 cents. A few flat to slightly lower points were almost buried amid the overall advances.

The cash market turned in a mixed performance Wednesday that was slightly weighted toward the downside. A few pockets of freezing temperatures remain, and induced gains of up to about a dime. Most points were flat to off a few cents, however, pressured by weak weather fundamentals in most regions.

El Paso Corp. has completed a previously announced agreement to sell its Eagle Point refinery to Sunoco Inc. for $111 million, plus fair market value for related working inventories when the deal closes in mid-January. When the transaction was announced last April, El Paso agreed to sell the refinery and its related assets for $130 million.

This week’s erosion of prices (not counting isolated pockets of firmness, mostly in the West) slowed to a crawl Thursday as further declines were limited to about 30 cents or less, and quite a few points (again, mostly in the West) registered moderate gains of up to about a quarter.

Generally moderate softness dominated the weekend market. With pockets of modest gains tucked in here and there, a large majority of points ranged from flat to down about 15 cents Friday, although most of the losses were confined to single digits. However, San Juan Basin numbers stood out with a plunge of about 35 cents.