Predicted

All of the leading indicators for offshore construction activity point to “much higher levels of pipelay, derrick and diving activity,” and underlying fundamentals driving the offshore construction industry continue to be “very robust,” according to Raymond James Energy “Stat of the Week.”

Supply deficiencies facing the California Independent System Operator (Cal-ISO) this summer will be worse than anticipated by the Cal-ISO, and California residents should brace for a higher number of rolling blackouts over the coming months than they experienced last summer or this past winter, according to a widely anticipated report unveiled last week by the North American Electric Reliability Council (NERC).

Supply deficiencies facing the California Independent System Operator (Cal-ISO) this summer will be worse than anticipated by the Cal-ISO, and California residents should brace for a higher number of rolling blackouts over the coming months than they experienced last summer or this past winter, according to a widely anticipated report unveiled yesterday by the North American Electric Reliability Council (NERC).

In a second lawsuit filed last week to prevent future legal roadblocks, Royal Dutch Shell Group asked a federal court to declare that its tender offer to take over Denver-based Barrett Resources Corp. complied with the regulations of the Securities and Exchange Commission, and that Barrett may not file a lawsuit on any merger-related issues except in the Delaware courts, where Barrett is incorporated.

Just as a couple of producers had predicted, the screen’s upturnMonday afternoon after being mildly negative earlier was enough togenerate a moderate cash rally Tuesday. Only the SouthernCalifornia border and Malin continued to head lower. Just as mostof Monday’s declines had been between 10 and 20 cents, the sameapproximate range applied to most of Tuesday’s rises.

Every region of the United States this year “will likely beshort generating capacity,” which will drive margins and fuelprofits higher for generators, according to a report by DeutscheBanc Alex. Brown energy analyst Jay Dobson.

Admitting that this month may not be the same “March Madness” byexploration and production companies that was experienced a yearago, the sector is expected to advance “strongly” again this yearbecause of the “mounting confidence” in relatively firm natural gasprices and under-appreciated crude oil prices in the near term,according to a Salomon Smith Barney E&P report released thisweek.

The huge price run-ups that had been predicted for Thursdaymaterialized on schedule with double-digit gains across the board.Most increases were 30 cents or greater, with citygate quotes forFlorida, Pacific Gas & Electric and several Northeast pointstouching on the high side of $6.

As sources had predicted (see Daily GPI, July 14), the weekendmarket was divided along geographical lines. Eastern quotes were upby around a nickel to a little more than a dime in most cases,while the majority of western points registered declines rangingfrom slightly less than a dime to 20 cents or more.