Reversed

Petroleos Mexicanos (Pemex), Mexico’s state-owned oil and gas company, has reversed the trend of declining natural gas reserves and by 2010, output will be around 8 Bcf/d — nearly double what it was three years ago, a company executive said Wednesday.

A decision last month in which FERC reversed its policy on negotiated rates by allowing pipelines to enter into transactions tied to natural gas basis differentials “has now unleashed again a regulatory regime which will permit market manipulation,” BP America Production Co. and affiliate BP Energy told FERC this week.

The Georgia Public Service Commission reversed an early decision Tuesday and extended Atlanta Gas Light’s asset management agreement with its subsidiary Sequent Energy Management for another two years with some modifications, including an increase in the net income share that Sequent gives to the state Universal Service Fund (USF), which provides energy assistance to low-income customers.

Cash prices rose sharply Wednesday morning on the heels of the futures market but then reversed course when the entire energy futures complex suddenly plummeted. However, most cash averages showed daily net increases of 15-35 cents, with Florida, the Gulf Coast, Northeast and Midwest points posting the highest gains and with smaller gains in the West.

Once again taking their cue more from prior-day screen movement than from waning weather support, cash prices reversed direction Thursday for the third time in as many days by recording increases at virtually all points.

FERC last Tuesday reversed an August 2001 ruling that found part of Transcontinental Gas Pipe Line’s network located onshore and offshore Louisiana to be unregulated gathering and eligible to be spun down to affiliate Williams Gas Processing-Gulf Coast Co. (WGP).

FERC on Tuesday reversed an August 2001 ruling that found part of Transcontinental Gas Pipe Line’s network located onshore and offshore Louisiana to be unregulated gathering and eligible to be spun down to affiliate Williams Gas Processing-Gulf Coast Co. (WGP).

With still almost two months in which water levels could be reversed upward before the summer in the Pacific Northwest, power industry observers are predicting more reliance on natural gas-fired electric generation and higher overall wholesale power costs in the region, while California and parts of the Southwest prepare to head off any peak demand problems this summer, mostly due to infrastructure bottlenecks rather than a shortage of generation capacity.

With still almost two months in which water levels could be reversed upward before the summer in the Pacific Northwest, power industry observers are predicting more reliance on natural gas-fired electric generation and higher overall wholesale power costs in the region, while California and parts of the Southwest prepare to head off any peak demand problems this summer, mostly due to infrastructure bottlenecks rather than a shortage of generation capacity.