Pulled

Sempra Energy’s Southern California Gas Co. utility told state regulators Monday that it pulled in $31.3 million in the sale of 8 Bcf of added underground storage gas in its two-week open season that ended late last month (Nov. 26). The utility filed a terse “notice of sale” with the California Public Utilities Commission.

Despite news that only 1 Bcf of gas was pulled from storage last week, the natural gas futures market fought its way higher Thursday as traders remained focused on forecasts calling for colder-than-usual temperatures for the end of November. Light profit taking was seen near the closing bell, but it was not enough to erase the bulk of the day’s gains. December finished at $4.351, up 9.7 cents for the session.

With strong natural gas production pulled up in its ever-larger U.S. Rockies assets, North America’s leading independent, EnCana Corp., said it would meet its sales growth targets this year and in 2003, after improving its quarterly oil and natural gas daily sales by 9% and generating more than C$1 billion in cash flow.

With strong natural gas production pulled up in its ever-larger U.S. Rockies assets, North America’s leading independent, EnCana Corp., said it would meet its sales growth targets this year and in 2003, after improving its quarterly oil and natural gas daily sales by 9% and generating more than C$1 billion in cash flow.

Pulled higher by the momentum in the futures market and some lingering effects of the 2.1 Bcf/d in temporary production curtailments in the Gulf of Mexico late last week because of formerly Tropical Storm Hanna, cash prices bounded 10-20 cents higher Monday and ended on a relatively strong note at most locations outside the Rockies.

A $56 million loss in gas trading and marketing despite a 184% increase in sales volumes pulled down the first quarter earnings of American Electric Power. The company reported ongoing earnings of 59 cents per share compared to Wall Street estimates of 61 cents and actual earnings of 71 cents per share in 1Q2001.

As Enron Corp.’s woes pulled other energy companies into the maelstrom last week, the company saw its problems escalate, learning that among other things, due diligence issues from the bankruptcy may complicate its anticipated sale of $800 million in assets that were already on the books. Enron began shedding other assets as well and also began to work with its creditors on a plan that Chairman Kenneth Lay hopes will put the company back on its feet within a year.

Senate Republicans pulled out all the stops last week to get the Democratic leadership to move on energy legislation before the end of the session, and even vowed to tack on an energy bill to other legislation such as the economic-stimulus measure pending in the upper chamber.

Kern River Gas Transmission appears to have pulled off a coup in the competition to serve new merchant electric generation loads in California’s frenetic race to build new in-state power plants in its plans to construct a 32-mile, 24-inch-diameter pipeline extension directly to the 750-MW High Desert Power Plant now under construction in the open spaces about 100 miles northeast of Los Angeles.