Removed

President Bush last Monday removed the executive ban on oil and natural gas drilling in much of the federal Outer Continental Shelf (OCS), and called on Congress to follow suit and lift its long-term prohibition on drilling in key offshore areas. But the congressional Democrat leadership, which is focused more on potential excess energy speculation and existing oil and gas leases, gave the president the cold shoulder.

BP plc CEO John Browne abruptly resigned Tuesday after a British court removed an injunction that had prevented a newspaper group from publishing stories about his personal life. Tony Hayward, slated to move into the top spot this summer, was named CEO effective immediately.

Traders on Thursday shrugged off the news that 115 Bcf was removed from underground storage last week as the number — while large for this time of year — was already factored into the market. As a result, April natural gas futures dropped below $7 once again to settle at $6.959, down 12.4 cents from Wednesday’s close.

A contractor working on a natural gas meter in an Allentown, PA, home on Saturday apparently removed the wrong fitting, which allowed gas to escape and lead to an explosion that leveled three homes and damaged a fourth, according to UGI Utilities. No one was seriously injured, according to authorities.

Mariner Energy said it restarted about 50 MMcfe/d of gas production from its Ochre and Pluto deepwater Gulf of Mexico projects, which were shut in because of hurricane activity last year and in 2004. Ochre, located in Mississippi Canyon Block 66, was shut in following Hurricane Ivan. Production has been restored at about 10.5 MMcfe/d. Mariner operates Ochre with a 75% working interest and Stone Energy has a 25% working interest. Pluto, located in Mississippi Canyon Block 718, was shut in for the drilling and completion of a new well. Start-up was delayed due to Hurricane Katrina. Production from Pluto has recommenced and the well is currently producing at a gross rate of 40 MMcfe/d. Mariner expects to achieve a gross production rate in the range of 40-50 MMcfe/d. Mariner operates Pluto with a 51% working interest and W&T Offshore has a 49% working interest. Mariner estimates that most of its remaining production shut in due to the damage caused by the 2005 hurricanes will recommence during the fourth quarter of 2006.

Mariner Energy said it restarted about 50 MMcfe/d of gas production from its Ochre and Pluto deepwater Gulf of Mexico projects, which were shut in because of hurricane activity last year and in 2004. Ochre, located in Mississippi Canyon Block 66, was shut in following Hurricane Ivan. Production has been restored at about 10.5 MMcfe/d. Mariner operates Ochre with a 75% working interest and Stone Energy has a 25% working interest. Pluto, located in Mississippi Canyon Block 718, was shut in for the drilling and completion of a new well. Start-up was delayed due to Hurricane Katrina. Production from Pluto has recommenced and the well is currently producing at a gross rate of 40 MMcfe/d. Mariner expects to achieve a gross production rate in the range of 40-50 MMcfe/d. Mariner operates Pluto with a 51% working interest and W&T Offshore has a 49% working interest. Mariner estimates that most of its remaining production shut in due to the damage caused by the 2005 hurricanes will recommence during the fourth quarter of 2006.

Effective with Monday’s Cycle 4 nominations, Destin removed a force majeure notice and said it was accepting nominations from all receipt points. However, due to the approach of Hurricane Rita, at 1 p.m. CDT Tuesday Destin said it was claiming force majeure again until further notice and would be unable to provide transportation services from offshore receipt points. Onshore receipt and delivery points will remain in operation, Destin said.

Energen Corp. on Monday hedged an additional 5 Bcf of its 2006 natural gas production at $7.50/Mcf and 360,000 bbl of its sour oil output at $55.21/bbl, and with the additional uncertainty of price volatility removed, raised its 2006 earnings guidance to a range of $2.55-2.75/diluted share

In an update of restrictions for Friday’s gas day, Texas Eastern had removed one cutting IT-1 deliveries into the M-3 market zone to zero. See the bulletin board for details.