Possible

Moody’s Investors Service last week placed El Paso Corp. and its subsidiaries under review for a possible upgrade, reflecting the possibility the Houston-based company will reduce more of its debt in the near future than previously expected and because there are “signs of recovery” within its revamped exploration and production operations.

Moody’s Investors Service on Wednesday placed El Paso Corp. and its subsidiaries under review for a possible upgrade, reflecting the possibility it will reduce more of its debt in the near future than previously expected and because there are “signs of recovery” in its exploration and production operations.

The Sable Offshore Energy Project (SOEP), whose operators in 1998 boasted possible production rates as high as 500 MMcf/d (see Daily GPI, Feb. 13, 1998), is now in “terminal” decline, and the sixth and final field in the project, which was scheduled to ramp up in 2007, may be written off, according to a study by a Dalhousie University engineering professor.

While another shutdown of Central Gulf production is possible by the weekend given the projected path of Tropical Storm Wilma, producers made relatively substantial gains restoring supply over this past weekend. The Minerals Management Service (MMS) said that 149 MMcf/d of shut-in offshore production was restored since Friday, and consulting firm Bentek Energy said scheduled gas flows Monday on regional pipelines indicate onshore and offshore production rose about 414 MMcf/d.

FERC on Thursday began an inquiry of possible changes in the criteria used to determine when it can assert jurisdiction over unregulated offshore gathering affiliates of natural gas pipelines that are suspected of engaging in abusive practices.

The House Armed Services Committee said Friday it will hold a hearing on Wednesday to decide whether a possible merger of Unocal Corp. with the China National Offshore Oil Corp. (CNOOC) raises national security concerns.

The House Armed Service Committee said Friday it will hold a hearing on Wednesday to decide whether a possible merger of Unocal Corp. with the China National Offshore Oil Corp. (CNOOC) raises national security concerns. And in a letter to Unocal last week, attorneys general from Texas, California, Montana and New Mexico said they are seeking assurances that the company will honor its environmental obligations if CNOOC’s $18.5 billion offer is successful.

With fears swirling over the possible one-two punch to Gulf of Mexico production from Tropical Storms Cindy and Dennis, August natural gas futures found themselves 30.4 cents higher at $7.475 by the end of the regular trading session Tuesday.

In an effort to gauge interest in a possible expansion of its storage facilities in Northern California, Lodi Gas Storage LLC (LGS) said it is conducting an open season for additional firm natural gas storage services.