Tag / Risk

Subscribe

Risk

Underserved Risk Management Market Offers Opportunity

How the energy wholesale marketplace sorts itself out in the wake of the past year’s stream of bad news remains to be seen, but regardless, there is a “tremendous” need to market the natural gas of producers, and the growing, underserved wholesale market presents a myriad of opportunities, energy executives believe.

February 14, 2003

Supply Side Lagging; Keep Your Eye on Drilling

After building itself a growing customer base, it looks like the U.S. natural gas industry may not be able to service it all if the economy picks up this year. If the gas-directed rig count ramps up to 1000 by the end of the year — averaging about 900 rigs through 2003 — then supply available in the U.S. will only be down about 2 Bcf/d from 2002 levels, EOG Chairman Mark Papa estimates. He believes drilling will pick up, but if active rigs don’t hit that level “then production is going to fall harder.”

January 13, 2003

Supply Side Lagging; Keep Your Eye on Drilling

After building itself a growing customer base, it looks like the U.S. natural gas industry may not be able to service it all if the economy picks up this year. If the gas-directed rig count ramps up to 1000 by the end of the year — averaging about 900 rigs through 2003 — then supply available in the U.S. will only be down about 2 Bcf/d from 2002 levels, EOG Chairman Mark Papa estimates. He believes drilling will pick up, but if active rigs don’t hit that level “then production is going to fall harder.”

January 13, 2003

Buffett, CSFB Rescue CenterPoint with $1.31B Loan

Warren Buffett, the “Omaha Oracle” whose knack for investment risk has turned a mighty profit for believers, added another energy company to his hefty portfolio on Friday, as Buffett’s Berkshire Hathaway Inc. and Credit Suisse First Boston (CSFB) agreed to loan cash-poor CenterPoint Energy Inc. $1.31 billion. The three-year loan, which carries a 12.75% interest rate, ensures CenterPoint will make a Nov. 15 deadline to pay off a $400 million facility, and more important, allow it to maintain a $4.7 billion credit facility.

November 11, 2002

Questar On Target to Increase Gas Production by 12% for 2002

Questar Corp. said Wednesday that its low-risk development gas drilling programs have deliverability by 40% this year at its core Rocky Mountain plays in western Wyoming and eastern Utah. Despite intentionally curtailing Rockies production because of low prices and unprecedented basis differentials, the company is on track to grow production by 12% this year, said Chuck Stanley, executive vice president of Questar’s Market Resources (QMR) subsidiary.

October 31, 2002

Duke’s Trading Practices Concern Moody’s; Outlook to ‘Negative’

Moody’s Investors Service has changed the rating outlooks for Duke Capital and Duke Energy to “negative” from “stable” because of Duke’s report to the Securities and Exchange Commission this week that it engaged in 23 round-trip trades on electronic trading system IntercontinentalExchange (see Daily GPI, July 17 ). Although the $126 million in revenues from the trades “are not material relative to total sales, it causes some concerns about company trading practices and related controls,” Moody’s said.

July 19, 2002

Duke’s Trading Practices Concern Moody’s; Outlook to ‘Negative’

Moody’s Investors Service has changed the rating outlooks for Duke Capital and Duke Energy to “negative” from “stable” because of Duke’s report to the Securities and Exchange Commission this week that it engaged in 23 round-trip trades on electronic trading system IntercontinentalExchange (see Daily GPI, July 17 ). Although the $126 million in revenues from the trades “are not material relative to total sales, it causes some concerns about company trading practices and related controls,” Moody’s said.

July 19, 2002

Raymond James: Drilling Activity to Continue to Fall

Once again reducing its near-term oil and natural gas activity forecast, Raymond James & Associates Inc. said on Dec. 24 that the deteriorating oil and gas prices from two months ago still appear to be “weighing on the minds” of exploration and production companies.

December 27, 2001

El Paso, Olympic Face Record Fines for Fatal Pipe Blasts

The Department of Transportation (DOT) last week announced it was seeking a fine of $2.52 million against El Paso Natural Gas for several “probable violations” that potentially contributed to the fatal explosion on its pipeline system in New Mexico last August, which resulted in 12 deaths. It was said to be the “largest civil penalty” ever sought against a pipeline operator for federal safety violations.

December 3, 2001

Watson: Enron Upside ‘Clearly Worth Doing the Deal’

Dynegy CEO Chuck Watson told the investment community Monday that he was “90% sure” that the risk/reward ratio in the planned merger with Enron Corp. made it “clearly worth doing the deal,” because the issues that decimated the former market leader were with its non-core businesses. Explaining that his team had “adequately bracketed the downside,” as the deal fell together over the past few weeks, Watson said he could not be “99% positive,” but noted that the upside was “substantial,” and said he had a “good deal of confidence…that we’ll be absolutely fine here.”

November 13, 2001