Shuffle

Federal Reserve Board Chairman Alan Greenspan will be waving his red flag on natural gas supply issues again on July 10 in front of the Senate Energy and Natural Resources Committee. Three weeks ago Greenspan told a House panel that if the United States wants to maintain its current standard of living, it will have to become a bigger player in the global gas market by importing more liquefied natural gas (LNG).

Federal Reserve Board Chairman Alan Greenspan will be waving his red flag on natural gas supply issues again on July 10 in front of the Senate Energy and Natural Resources Committee. Three weeks ago Greenspan told a House panel that if the United States wants to maintain its current standard of living, it will have to become a bigger player in the global gas market by importing more liquefied natural gas (LNG).

Ernest Fage has been named the new Minister of Energy for the province of Nova Scotia, following a complete cabinet re-shuffle by Prime Minister John Hamm. Fage had been the Minister of Natural Resources and the Minister of Agriculture and Fisheries. His family owns Fage Farms Ltd. in Hastings and Nappa, Canada, which produces milk, beef and grains for export. He was first elected to the Nova Scotia legislature in a 1997 by-election, then was re-elected in 1998 and 1999. Fage replaces Gordon Balser, who has become Minister of Agriculture and Fisheries, with responsibility over the Public Service Commission. Fage had co-chaired a working group with Balser last year, which created Nova Scotia’s energy strategy. One of the recommendations had been the creation of the Department of Energy, which Balser first took over in June 2002. Fage will be the second person to hold the title with Balser’s move.

Volatility was once again the name of the game Monday in the natural gas pit at Nymex, as local traders found it easier to push prices around in a market noticeably void of its once-dominant market-maker, Enron. The exchange last Thursday forbid its floor members to accept an order placed by Enron or its affiliates without written authorization, and since that time the market has experienced volatility that one would not expect considering the lack of fundamental or technical impetus. Rebounding nearly 8 cents from a $2.555 low notched early in the session, the January contract finished at $2.63, down 6.7 cents for the day.

Boosted by scaled-down buying support, the natural gas futures market rebounded from lows notched Monday morning. However, that buying was muted by a continued negative technical and fundamental outlook, and as a result the market finished in negative territory for the day. The November contract experienced the largest trading range Monday, as the prompt month rebounded to a $2.41 high after dipping down to $2.33 earlier in the session. It closed with a 5.2-cent loss to $2.378. By comparison, the rest of the winter strip was hit harder, led by December, which tumbled 6.5 cents to $2.66.

After failing to move through Monday’s $3.40 high, natural gas futures checked lower yesterday, as traders liquidated longs amid waning tropical storm concerns and ahead of potentially bearish storage data to be released today. Although modest advances were seen in the afternoon, losses sustained earlier in the day were more sizeable, leaving September with a 5.7-cent decline to finish at $3.296.

After opening on a strong note, natural gas futures tumbledlower in the first half-hour of trading Monday as traders tookprofits following Friday’s surprising 17.1-cent rally. However,once December had etched a $4.80 low for the day, the market wasleft to chop lazily sideways for the rest of the session. Theprompt month finished at $4.849, down 8.2 cents for the day.

Duke Energy Field Services (DEFS) showed last week that it wasnot willing to sit tight and wait for its midstream venture withPhillips’ GPM to begin, as it announced plans to acquire gatheringand processing assets in central Oklahoma from Conoco Inc. andMitchell Energy & Development Corp. The transaction is expectedto close March 31 after regulatory approvals are received. Nofinancial information was disclosed.

Duke Energy Field Services (DEFS) yesterday showed it was notgoing to sit tight and wait for its midstream venture withPhillips’ GPM to begin, as it announced plans to acquire gatheringand processing assets in central Oklahoma from Conoco Inc. andMitchell Energy & Development Corp. The transaction is expectedto close March 31 after regulatory approvals are received. Nofinancial information was disclosed.