Shortfall

Anxious Houston-based employees Friday were waiting for formal news that their employer, Enron Corp., had filed for bankruptcy, expected to be the largest in U.S. history, and also to learn whether layoffs will begin in the United States as they have in Europe. Across the country, others kept an eye on whether Enron would file a lawsuit against its short-term merger partner Dynegy Corp. for backing out of the transaction last week. Meanwhile, companies that had once dealt with the former trend-setting energy trader continued tallying their own expected losses should Enron go under, and analysts began looking at the pieces, attempting to comprehend and explain a situation gone terribly wrong.

Apparently in a move to prepare for expected downturns through the remainder of the year, Houston-based Anadarko Petroleum Corp.’s CEO said Thursday that the independent would shift some of its spending from onshore natural gas projects in the Lower 48 to “more profitable opportunities in the Gulf of Mexico and Canada.” Second quarter earnings, however, jumped on higher natural gas prices and increased production, mostly from acquisitions. Across town, rival independent Apache Corp. also had a stellar quarter, with earnings up 73%, also related to strategic acquisitions.

The Energy Information Agency (EIA) and the California Energy Commission (CEC) both agree there is a bottleneck where the interstate and intrastate grids meet in California. However, the two agencies are miles apart on the size of that bottleneck.

The Energy Information Agency (EIA) and the California Energy Commission (CEC) both agree there is a bottleneck where the interstate and intrastate grids meet in California. However, the two agencies are miles apart on the size of that difference.

The Energy Information Administration said in its SeptemberShort Term Energy Outlook it is projecting natural gas prices atthe wellhead will increase by about 87% this winter (October-March)compared to last winter. Residential prices for gas are expected torise on average by 27% compared to last year. For the entire year,the average wellhead price for natural gas is projected to be$3.40/Mcf, the highest annual wellhead price on record (ininflation-adjusted terms, it would be the highest annual averageprice since 1985).

The Energy Information Administration said yesterday in itsSeptember Short-Term Energy Outlook it is projecting natural gasprices at the wellhead will increase by about 87% this winter(October-March) compared to last winter. Residential prices for gasare expected to rise on average by 27% compared to last year. Forthe entire year, the average wellhead price for natural gas isprojected to be $3.40/Mcf, the highest annual wellhead price onrecord (in inflation-adjusted terms, it would be the highest annualaverage price since 1985).

Williston Basin Interstate Pipeline Co. is in the midst ofboosting firm transportation capacity on its system in anticipationof supplying cheaper Powder River Basin gas to shippers on NorthernBorder Pipeline, who it believes will be deprived of economicalCanadian gas supplies when Alliance Pipeline goes into servicelater this year.

As the western states generally, and California in particular,faced another blast of power-draining summer heat, Duke EnergyNorth America (DENA) last week proposed to California Gov. GrayDavis a combination of long- and short-term new generation and afive-year, fixed-price electricity option to buffer mass consumersfrom electric price volatility.

As the western states generally, and California in particular,faced another blast of power-draining summer heat, Duke EnergyNorth America (DENA) proposed Monday to California Gov. Gray Davisa combination of long- and short-term new generation and afive-year, fixed-price electricity option to buffer mass consumersfrom electric price volatility.