Return

The California state legislature’s chief advocate for a return to tightly regulated energy utilities absent retail customer choice programs told a legislative committee session Wednesday that natural gas could prove the next serious energy problem for the nation’s most populous state — perhaps as early as this fall or the coming winter. Increasing reliance on gas derivatives is at the heart of the problem, according to the legislator.

Prices relied on Monday’s return of industrial load after the weekend and perceptions of hotter weather later this week in some locations to realize mostly moderate rebounds from Friday’s plunges. Eastern points tended to range from down a few pennies to 20 cents higher. The West recorded similar movement at some points but also saw even larger gains close to half a dollar at the Southern California border and PG&E citygate and around 30 cents or so in the San Juan Basin.

For utilities and end-users still shell-shocked from the sky-high spikes of Monday and Tuesday, it may have seemed like re-entering a nightmare they thought they had already awakened from. Dollar-plus price gains — often plus much more than a dollar — were back in vogue Friday, as traders shrugged off the normal demand slump that accompanies a weekend and focused instead on a screen advance of more than 60 cents and prospects that this week largely will repeat the cold-weather pattern of the previous one.

Stemming the price slide that left the February contract down 41 cents Monday, natural gas futures rebounded Tuesday as traders were once again put in a buying mood by bullish weather outlooks.

Most eastern points soared by 20-35 cents or so Thursday as a return of cold-weather fundamentals in parts of the Northeast and Midwest was reinforced by a spiking screen and new forecasts of even more severe weather to come. Transco Zone 6-New York City led the ascent with a gain of nearly 70 cents to average more than $6.

Houston-based major ConocoPhillips has implemented a three-point plan designed to improve its return on capital employed from 12% to 14% over the next several years, with almost 75% of the 2003 capital budget directed toward improving the upstream business.

Houston-based major ConocoPhillips has implemented a three-point plan designed to improve its return on capital employed from 12% to 14% over the next several years, with almost 75% of the 2003 capital budget directed toward improving the upstream business.

Bolstered by a return of winter-like weather in northern market areas and parts of the West, along with positive natural gas futures during morning trading, the cash market saw a surge in prices Monday. Although gains went as high as 20-25 cents or so in California and at some Northeast citygates, most were more modest on either side of a dime. San Juan and intra-Alberta numbers generally ranged from flat to less than a nickel higher.

Dynegy Inc. punted away two assets last week and in return, received some cash to put toward its sagging liquidity. Last Monday, it sold one of its two natural gas storage facilities in the United Kingdom, and on Wednesday, sold the last asset it held in Northern Natural Gas Co. (NNG). Together, the two sales added close to $300 million to the coffers.