Relationships

Unconventional natural gas — most notably that found in shale rock — is transforming the gas industry. It will be transformational for major international oil companies, too. But that won’t happen right away, according to an analysis by consultant Wood Mackenzie.

FERC’s standards of conduct governing the relationships between regulated natural gas/electric transmission providers and their affiliates may cause “significant increases” in the rates of Wyoming customers of Questar Gas Co., the state’s chief regulator cautioned.

For the next two to three years, certain oil/natural gas pricing relationships are “likely” to be ongoing themes, energy analyst Stephen Smith noted in his latest monthly report. And, except for extreme cold winter shortfalls, “we don’t expect to see sustained periods when Henry Hub gas prices exceed Gulf Coast distillate prices.”

For the next two to three years, certain oil/natural gas pricing relationships are “likely” to be ongoing themes, energy analyst Stephen Smith noted in his latest monthly report. And, except for extreme cold winter shortfalls, “we don’t expect to see sustained periods when Henry Hub gas prices exceed Gulf Coast distillate prices.”

Enron Corp.’s relationships with El Paso Electric, Avista Corp. and affiliate Portland General Electric were so cozy that it was impossible at times to distinguish who was calling the shots at the companies’ energy trading desks, according to the FERC staff report on the status of the agency’s probe into energy price manipulation and trading irregularities.

Basis relationships have tightened by a remarkable degree inMarch, and Thursday’s continuing price strength in the West coupledwith drops of a nickel or so at points in the Gulf Coast,Midcontinent and Appalachia/Northeast brought the regions evencloser.