Quick

As prospects for a quick infusion of new reserves from the Arctic fade, Canadian expectations of natural gas prices are on the rise and markets are encouraging them to believe they are right with their diagnosis that supplies are tight.

As prospects for a quick infusion of new reserves from the Arctic fade, Canadian’s are expecting higher gas prices and markets are encouraging them to believe they are right with their diagnosis that supplies are tight.

The Industrial Energy Consumers of America (IECA) has called on FERC for quick action to mandate price reporting, citing investigations and settlements by the Commodities Futures Trading Commission (CFTC) with 16 energy companies.

The Industrial Energy Consumers of America (IECA) has called on FERC for quick action to mandate price reporting, citing investigations and settlements by the Commodities Futures Trading Commission (CFTC) with 16 energy companies.

President Bush last week took steps to try to bring about a quick resolution of the tax-related conflict that has halted progress on comprehensive energy legislation for weeks, pressing House and Senate lawmakers to get a “common sense, reasonable” measure to his desk before they leave for the year.

The Senate Energy and Natural Resources Committee whipped through a fast-paced hearing last Tuesday on the nomination of New Mexico’s Suedeen Kelly for commissioner of the Federal Energy Regulatory Commission, with both the chairman and ranking minority member vowing to rush through Kelly’s confirmation, along with that of Joseph T. Kelliher, whose nomination has been stalled in the Senate.

Global Insight analyst Kemm Farney said that like most large system failures, the Northeast blackout in August resulted from a large number of more or less random system faults distributed over a large geographic area. However, quicker correctional measures by FirstEnergy to the shutdown of its Eastlake Unit 5 in Cleveland could have helped prevent the blackout from being so widespread, he said.

With prices remaining high and conventional supply sources drying up, U.S. producers are finding themselves in a tough situation, where a tightening supply crisis might force prices even higher in the next few years, according to Jim Duncan, director of structured products for ConocoPhillips Gas & Power.

Chairman Pete Domenici, R-NM, worried that FERC is down to three commissioners, one of which is “serving on borrowed time.” Commissioner William Massey’s term has expired and he may only continue to serve while the current Congress is in session. When Congress adjourns, the normally five-member commission would be without a quorum. Domenici raised the specter of “a disabled FERC,” which in view of the August blackout is not acceptable.