Promise

The two-year-old Liberal government in British Columbia, setting out to keep a promise to Canadian natural gas producers, has gone to bat for the latest effort to connect some of their hottest drilling targets to markets.

The past year has been relatively quiet for many North America independent producers, but with natural gas prices remaining high, many have begun to ramp up production across the continent and especially in the deepwater Gulf of Mexico. Although they are loathe to offer production projections going forward, positive results should show up by the end of the second quarter, executives said Tuesday at the UBS Warburg Energy Conference in Scottsdale, AZ.

Mexican President Vicente Fox, elected last year on a promise to improve the country’s economic future, has begun actively courting “out-of-towners” in the hopes of encouraging capital investments in his country. With several productive global trade missions completed, Fox now is turning his attention further north, courting Canadian oil and gas producers in his plan to develop Mexico’s untapped oil and gas reserves.

Mexican President Vicente Fox, elected last year on a promise to improve the country’s economic future, has begun actively courting “out-of-towners” in the hopes of encouraging capital investments in his country. With several productive global trade missions completed, Fox now is turning his attention further north, courting Canadian oil and gas producers in his plan to develop Mexico’s untapped oil and gas reserves.

Duke Energy North America (DENA) is making good on its promiseto bring a significant amount of new electricity generation onlineby summer 2002. Yesterday the company broke ground on itspreviously announced Arlington Valley Energy Facility located inMaricopa County, AZ (see Daily GPI, Feb. 8).

Despite his promise to the gas industry last year that he wouldn’t change the Pipeline Safety Act of 1995 (see Daily GPI, March 19, 1999), Congressman Bob Franks (R-NJ), chairman of the House Transportation and Infrastructure Subcommittee, who also is running for a Senate seat in his home state, introduced a bill last week that would do just that. His legislation joined a growing stack of pipeline safety bills that have been introduced this session.

Despite his promise to the gas industry last year that he wouldn’t change the Pipeline Safety Act of 1995 (see Daily GPI, March 19, 1999), Congressman Bob Franks (R-NJ), chairman of the House Transportation and Infrastructure Subcommittee — who also is running for a Senate seat in his home state — introduced a bill last week that would do just that. His legislation joined a growing stack of pipeline safety bills that have been introduced this session.

Strong gas prices and the promise of robust demand fromgas-fired generation are making industry executives almost giddy.Production may be waning in the shallow Gulf of Mexico, but it iswaxing in the greater depths. Ditto for LNG imports. Canadianproducers look south and see market, north and see future supply.It’s all good if you can overlook the fact Wall Street isn’t payingmuch attention.

Making good on a promise made to the Federal Trade Commission(FTC) in order to close its merger with Sonat, El Paso Energyannounced the sale of the East Tennessee Natural Gas Co. to DukeEnergy Gas Transmission for $386.3 million in stock yesterday. Thetransaction is expected to close in the first quarter subject toFTC consent.