Seeing

After seeing its corporate credit rating downgraded to “junk status” and its stock fall to 78 cents at one point last week, embattled Williams Cos. Inc. got some much-needed good news on Friday. First, it announced it had reached a deal in principle with California and other parties, including Oregon and Washington, to resolve all outstanding litigation/claims and the hotly disputed issue of refunds for power overcharges, and then FERC signaled it probably would not strip the company of its license to sell electricity at unregulated rates

After seeing its corporate credit rating downgraded to two levels below “junk status” and its stock skid to a low of 78 cents at one point last week, Williams Cos. Inc. got some much-needed good news Friday. First, the company announced it had reached an agreement in principle with California and a number of other parties, including Washington and Oregon, on a settlement to resolve all outstanding litigation/claims and refunds for electricity overcharges, and then FERC signaled it probably would not strip Williams of its license to sell power at unregulated rates.

After failing to break below support in each of the past three trading sessions, natural gas futures turned higher Tuesday as traders covered short positions on constructive weather outlooks and ahead of fresh storage data due out Thursday morning. The August contract finished at $2.863, up 7.9 cents for the session but only 0.3 cents above its $2.86 opening trade. At 105,524, estimated volume was heavy for the session.

After failing to break below support in each of the past three trading sessions, natural gas futures turned higher Tuesday as traders covered short positions on constructive weather outlooks and ahead of fresh storage data due out Thursday morning. The August contract finished at $2.863, up 7.9 cents for the session but only 0.3 cents above its $2.86 opening trade. At 105,524, estimated volume was heavy for the session.

Natural gas prices are stabilizing, and by the end of this year the United States will be seeing increased natural gas supplies as a result of the drilling boom which started late last year. At the same time, there will be some long-lasting conservation impacts on the gas market brought on by the high prices that will offset some of the growth in power generation demand, according to veteran energy analyst Benjamin Schlesinger.

Sonat reported seeing no significant reduction in nominated supply from Thursday’s gas day to the one today. Based on current nominated supply and projected demand, system requirements will exceed storage injection capabilities today, it said. Thus, unless supplies are cut back significantly today, it’s “highly likely” that an OFO Type 6 will be issued for Saturday’s day, Sonat said.

The 2001 mantra of most North American exploration and production companies could be the oft-quoted line from the 1996 movie Jerry Maguire: “Show Me The Money!” Driven by the continued strong interest in North America and sustained high energy prices, both majors and independents have upped their capital spending budgets for the coming year. Most target domestic natural gas projects.

The 2001 mantra of most North American exploration andproduction companies could be the oft-quoted line from the 1996movie Jerry Maguire: “Show Me The Money!” Driven by the continuedstrong interest in North America and sustained high energy prices,both majors and independents have upped their capital spendingbudgets for the coming year. Most target domestic natural gasprojects.

It’s been a long wait, but traders are finally seeing what theysaid was needed to spark a turnaround in a sagging gas market:genuinely substantial cold weather approaching a major market area.That and continued, albeit moderate, support from the Decemberfutures contract generated cash price increases Thursday rangingfrom a nickel or less in the Rockies and California to between anickel and about 15 cents in the Southwest, Gulf Coast,Midcontinent, Midwest and Appalachia.