Returns

Producers seeking better returns than dry gas provides these days have turned much of their attention to natural gas liquids (NGL)-rich plays, hoping to capitalize on strong NGL economics. This has sparked a midstream infrastructure buildout that could ultimately rustle NGL flow patterns as products from new supply areas seek markets.

BP plc, which has been nudging up its natural gas position in North America’s shales in the past few years, sees its best opportunities in the next decade coming from new technology and a new company culture, CEO Tony Hayward said Tuesday.

BP plc, which has been nudging up its natural gas position in North America’s shales in the past few years, sees its best opportunities in the next decade coming from new technology and a new company culture, CEO Tony Hayward said Tuesday.

Producers and large natural gas consumers are banking on the Senate making financial regulatory reform a priority when it returns this month, and on the final legislative product mirroring the House bill passed in mid-December, which exempted “end-users” and commercial traders who use over-the-counter (OTC) derivatives to hedge commercial risk from being centrally cleared and traded on regulated exchanges (see Daily GPI, Dec. 14, 2009).

In times of economic health and strong commodity prices, the returns of regulated assets can be something of a bore. These days, though, they’re at least one thing to smile about. Such is the case at National Fuel Gas Co. where a charge for a ceiling test writedown on producing properties slashed profits, but utility and pipeline results improved during the first quarter of the company’s fiscal 2009.

Early returns from the first month of short-term firm pipeline capacity trading in the secondary market under the new FERC Order 712 no-cap rules show the market ginned up an additional $5.7 million in payments above the maximum capacity rate, a small start to what could become a billion dollar business, according to projections by market monitor CapacityCenter.com.

Early returns from the first month of short-term firm pipeline capacity trading in the secondary market under the new FERC Order 712 no-cap rules show the market ginned up an additional $5.7 million in payments above the maximum capacity rate, a small start to what could become a billion dollar business, according to projections by market monitor CapacityCenter.com.

California regulators last Thursday adopted a new indexed process for setting major utilities’ returns on equity (ROE) using shifts in the interest rates on some of Moody’s Investors Service’s bond ratings. The action does not change the authorized profit-levels for any of the state’s major private-sector utilities. That was done late last year by the California Public Utilities Commission (CPUC).

California regulators Thursday adopted a new indexed process for setting major utilities’ returns on equity (ROE) using shifts in the interest rates on some of Moody’s Investors Service’s bond ratings. The action does not change the authorized profit-levels for any of the state’s major private-sector utilities. That was done late last year by the California Public Utilities Commission (CPUC).