Push

With a strong push from the leading producer offshore ofCanada’s East Coast, an intense development effort is under way ona new marine technology intended to tap natural gas on the GrandBanks of Newfoundland sooner than anyone now thinks possible.Andrew Adams, vice-president in charge of Mobil Oil Canada’sNewfoundland exploration and production business unit, told anindustry conference in St. John’s the technique “looks like it hasgreat potential.”

FERC took a major step last week toward regional operation ofthe electric transmission grid by issuing a notice of proposedrulemaking (NOPR) that seeks to promote the formation of regionaltransmission organizations (RTOs) nationwide.

FERC took a major step Wednesday towards regional operation ofthe electric transmission grid by issuing a notice of proposedrulemaking (NOPR) that seeks to promote the formation of regionaltransmission organizations (RTOs) nationwide.

Bears had their choice of reasons for continuing to push thefutures market lower Thursday: forecasts calling for warmingweather, an unremarkable storage report, and follow-through sellingpressure. And so when the February contract opened more than anickel below Wednesday’s low, the price rout was on yesterday. Thesell-off sent the prompt month 9.5-cents lower to settle at $1.836.

FERC last week rejected a proposed service agreement in whichColumbia Gulf Transmission tried to push the envelope too far bynegotiating terms and conditions of service with one of itscustomers, Entergy Louisiana Inc. (ELI)

Joining a sports marketing push that is picking up momentumamong energy companies nationally, Sempra Energy has inked acombination energy services and promotional deal with the operatorsof a new basketball-hockey arena being built in downtown LosAngeles. Sempra’s CEO indicated this was just the first of a seriesof “major branding initiatives” the newly formed San Diego-basedutility holding company will be rolling out over the next 12months.

In the view of Enron CEO Kenneth L. Lay, deregulation andtechnological advances will be a boon to consumers and also naturalgas. As completion creates greater incentives for boostingefficiency, particularly with regard to power regulation, naturalgas stands to benefit. Lay pointed out combined-cycle generation,especially that fired by natural gas, accounts for 60% of total newinstalled generation capacity in the United States since 1991.

The July futures contract was nudged lower again yesterday butnot before bulls attempted to push the market higher early in thetrading session. July reached a high of $2.03 just before 1:00 P.M.EST. only to be beaten back to settle at $1.938, down 3.8 cents forthe day. By dipping into the low $1.90s the spot contract traded atits lowest point since April 1997.

The June Nymex contract made its debut as the spot month byslipping 1.3 cents to settle $2.298 on Wednesday. Volume wasmoderate, with an estimated 40,133 contracts changing hands.