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The numbers, it seems, don’t tell the entire story. Even thoughoil and gas industry upstream revenues, profits and cash flow areshowing record profits for 1999 compared with the previous year’scollapse, exploration and development spending dropped and provedreserves spending rose significantly, according to ArthurAndersen’s 21st annual Global E&P Trends survey.

The early May aftermarket is shaping up as typical of itspredecessors in the new millennium: showing remarkable strengthdespite a general lack of fundamental support. Only in the West,where a combination of hot weather and nuclear outages sent powerprices spiking, did sources see anything besides a sharp rise onthe futures screen to account for Monday’s cash upticks.

Despite a strong showing last Friday and gains seen in nearbyphysical market prices, natural gas futures moved lower after theopening bell yesterday and were never able to recover. The Maycontract was the hardest hit, dropping 5.6 cents to settle at$2.889. By comparison, the 12-month strip sank 3.2 cents to closeat $2.96. Estimated volume was modest, with 48,743 contractschanging hands.

A peak at some producer year-end results suggests average dailydomestic gas production could be down about 3% 1998 to 1999.

A peak at some of the producer year-end results that have comein suggests that average daily domestic gas production could bedown by as much as 4% 1998 to 1999, although one industry watcherthinks that number seems a little high. “That blows my mind. That’sa huge drop,” said Ron Denhardt, energy services vice president forWEFA Inc.

Showing unusual candor and market aggressiveness, the CEO ofnonprofit, state-chartered California electricity power exchange(CalPX), George Sladoje, recently outlined plans for the CalPX toexpand through alliances and partnerships with private sectortechnology firms. Expansion plans are drawing heavy criticism fromrival, for-profit power exchange Automated Power Exchange (APX),which wants federal regulators to reign in the stategovernment-created operator of the world’s largest wholesale powermarket.

On the heels of a decision showing that Canadian landowners canforce changes, the National Energy Board has called hearings on 38objections to the route of Alliance Pipeline Project.

The jury is still out, but initial word from the MineralsManagement Service (MMS) on royalty in kind (RIK) pilots is RIKcould work for some gas and oil leases

The jury is still out, but initial word from the Minerals Management Service (MMS) on royalty in-kind (RIK) pilots is RIK could work for some gas and oil leases.