Oklahoma Natural Gas (ONG) is digesting the Oklahoma CorporationCommission’s (OCC) recently released upstream unbundling order andfinding at least a few things it does not like. “Generally, basedon what we’ve seen in the order thus far, there is concern on thepart of management that the order as it exists now could curtailthe ability of our affiliate ONEOK Gas Transportation Co. (OGT) tocompete effectively in the marketplace,” said spokesman Don Sherry.”Our management’s considering where we go from here. Presumably theorder was described as an interim order. Presumably, there may beadditional options available to us at the Oklahoma CorporationCommission. Presumably there are legal options as well, but none ofthat has been decided at this moment.”
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QuickTrade released the first commercial Internet-basedelectronic power trading system this week. Streamline, its biggestcompetitor, is expected to follow suit over the next few months.The QuickTrade system is equipped to handle forward trades at 13hub locations across the U.S. and one in Canada, and so far hasattracted the interest of about 35 traders, 20 of which have signedup to begin utilizing the system.
The American Gas Association released a study yesterday thatforecasts gas consumption growth of 40% by 2015, fueled by strongindustrial demand growth, the dominance of gas-fired generation innew power plant construction and the popularity of gas in new homeand commercial construction. AGA projects gas will expand its shareof the U.S. energy market to 28% in 2015. Consumption is expectedto rise to 31.9 quadrillion Btus (roughly 31 Tcf) from about 22.9quads in 1997.
Statistics recently released by the Oklahoma CorporationCommission (OCC) show gas production in the state last year reachedits lowest level since 1968. However, OCC Commissioner Bob Anthonysaid he sees no cause for alarm and expects little or no furthererosion in production this year forward.
The capacity of natural gas pipelines reached an all-time highof more than 84 Bcf/d or 30.7 Tcf/year in 1997, according to areported released Friday by the Energy Information Administration.”This represents a 15% increase over installed capacity reported in1990,” EIA said in a report: “Deliverability on the InterstateNatural Gas Pipeline System.” Flowing gas increased 24% between1990 and 1996, resulting in a record high 75% utilization rate,while U.S. consumption grew by 17%, fed by a doubling of imports.U.S. production increased 6%.
A white paper released by Prosper Business Development Corp.outlines three phases of revolution occurring in the energyindustry and explains three mistakes marketers must avoid to ensuresuccess in the competitive marketplace. The paper addressesdifferences from telecommunications deregulation and warns of ashakeout for energy marketing executives who fail to respond to thederegulating market.
The Clinton Administration’s electric restructuring proposalreleased this week faced immediate praise and vilification bylobbyists and legislators. “I appreciate the apparent progress onthe Administration taking a position,” said Sen. Frank H. Murkowski(R-Alaska), chairman of the Senate Committee on Energy and NaturalResources. “But the devil’s in the details-and we don’t yet havethe details since DOE has yet to provide Congress with its specificlegislative proposal.” When that is provided “we can begin holdinghearings on their measure and the other bills before the EnergyCommittee,” he added