Record

Oklahoma’s record winter heating costs last season were caused by inadequate planning by Oklahoma Natural Gas Co., and thus customers should get some of their money back, according to witnesses testifying before the Oklahoma Corporation Commission this week. The Commission is looking into charges that ONG did not adequately prepare for the last winter season, which caused rates to escalate.

Contrary to the charges of price gouging in the California market, Duke Energy said Friday its average rates for wholesale power sales over the last 15 months were only $76/MWh, and in the first quarter of 2001 rose to only $136/MWh, both well below average spot market prices for the same periods.

Cross Timbers Oil Co., riding high on a wave of record earnings and gas production growth, has adopted a new name, XTO Energy Inc., which takes effect June 1. The company will continue to be listed on the New York Stock Exchange under the symbol “XTO.”

At the risk of sounding like a broken record, prices continued to slide Wednesday for pretty much the same reasons that they have through nearly all of the May aftermarket so far: a relative dearth of weather demand for either heating or air conditioning; a weak screen; and a decidedly blasé attitude about any urgency in refilling storage.

With record levels of natural gas rigs in the ground, it’s about time the industry started showing results. Canadian Hunter Exploration Ltd. is doing just that, as the company announced last Tuesday an increase in gas production to 523 MMcf/d during the first quarter 2001, a jump of 36% over the similar time period a year ago, and a 7% rise from the fourth quarter 2000. As a result, the Calgary-based producer posted a 485% increase in net income to C$145.1 million, or C$2.38 per fully diluted share for the first quarter 2001.

IntercontinentalExchange (ICE) reported a new single-day gas trading record on its electronic exchange for over-the-counter (OTC) energy and metals products. On Tuesday, a total of 142 Bcf of gas changed hands on ICE. Physical gas trades contributed over 30 Bcf to the total. So far, ICE has averaged 80 Bcf/d in April, which is more than four times the average daily volume in the first quarter 2001. About 300 traders have traded physical and financial gas on the exchange, completing about 35,000 transactions in 2001, ICE said, adding that it has become a “dominant force in electronic trading for OTC commodity products with current market share of North American natural gas and derivatives approximating 14%.” The exchange was founded in March 2000 by leading U.S. and European financial institutions and energy and natural resource firms. Based in Atlanta, the exchange’s partners include, American Electric Power, Aquila Energy, BP, Deutsche Bank AG, Duke Energy, El Paso Energy, Goldman Sachs, Morgan Stanley, Reliant Energy, Royal Dutch/Shell Group, SG Investment Banking, Mirant (formerly Southern Energy), Totalfina Elf, and Continental Power Exchange.

With record levels of natural gas rigs in the ground, it’s about time the industry started showing results. Canadian Hunter Exploration Ltd. is doing just that, as the company announced on Tuesday an increase in gas production to 523 MMcf/d during the first quarter 2001, a jump of 36% over the similar time period a year ago, and a 7% rise from the fourth quarter 2000. As a result, the Calgary-based producer posted a 485% increase in net income to C$145.1 million, or C$2.38 per fully diluted share for the first quarter 2001.

Despite record high rig counts, natural gas production is unlikely to add the 1 Tcf in new supplies necessary “to bring some comfort back to the market” this year, PACE Global Energy Services said in predicting gas prices will remain above $5.00 in 2001.

Even with the ink still not dry and final allocation still undetermined on California’s record $5 billion electricity rate increase approved last Tuesday, state officials are already worried that the added revenues and state-backed bonds that will follow will not be enough to pay for power over the next 12 to 18 months.