Prospect

FERC Chairman Pat Wood last Thursday fielded several questions about whether he expects to be picked by President Bush for a second term when his current term as chairman and commissioner expires in June 2005.

FERC Chairman Pat Wood on Thursday fielded several questions about whether he expects to be picked by President Bush for a second term when his current term as chairman and commissioner expires in June 2005.

FERC Chairman Pat Wood on Thursday fielded several questions about whether he expects to be picked by President Bush for a second term when his current term as chairman and commissioner expires in June 2005.

Pressured by the prospect of warmer temperatures over the next couple weeks, the natural gas futures market Wednesday morning slipped to lows not seen since early December. However, after dropping down to fill in a key gap on the daily chart, the March contract gained back some of the ground it had lost. At $5.26, the prompt month was 14.4 cents lower for the session, but a dime above its early bottom. At 73,225, volume in the gas pit was moderate to heavy.

Unocal Corp. and its partners reported a major discovery on Wednesday in the Gulf of Mexico at the St. Malo prospect. Potential volumes from the well “give us the confidence to call this discovery a significant milestone in our Gulf of Mexico deep-water program,” said Mike Bell, Unocal’s vice president for the Deepwater USA unit. The well was drilled to a depth of 29,066 feet (8,859 meters), and it hit more than 450 feet of oil-bearing rock over a 1,400-foot interval, Unocal said. Unocal and its partners spent about $62 million on drilling. The well is in 6,900 feet of water 250 miles southwest of New Orleans. An evaluation of the discovery is planned in early 2004, which will include drilling at least one well, Unocal said. Unocal is the operator and holds a 29% stake. Other stakeholders include Brazilian energy concern Petrobras; Devon Energy Corp.; ChevronTexaco Corp.; EnCana Corp.; Exxon Mobil Corp.; and Eni SpA. Corridor Resources

The prospect for renewed cold weather in the Midwest and Northeast early this week resulted in across-the-board cash increases ranging from about a nickel to 45 cents Monday. Most gains were between a dime and 30 cents.

The prospect for better-than-average natural gas prices in 2003 remains good because of lower production levels and the “continued anemic drilling activity,” according to a new “Oil & Gas Report Card” by Standard & Poor’s Ratings Service (S&P). The positive fundamentals, said analysts, are reflected in a 2003 futures strip of about $4/MMBtu.

The prospect for better-than-average natural gas prices in 2003 remains good because of lower production levels and the “continued anemic drilling activity,” according to a new “Oil & Gas Report Card” by Standard & Poor’s Ratings Service (S&P). The positive fundamentals, said analysts, are reflected in a 2003 futures strip of about $4/MMBtu.

The prospect for California fulfilling soon its goal of having 15-20% reserve margins in its electric generation capacity is clouded by the current financial uncertainty facing the energy industry, and may not be resolved until there is some further consolidation, according to representatives of merchant generators speaking at an industry conference in San Diego last week.