Western North America has overreacted to price signals and taken “drill, baby, drill” to an extreme, and as a result the region is saturated with natural gas production that outstrips the current prospective markets, according to a panel of western energy executives speaking Tuesday at the 2008 LDC Forum Rockies & West Conference in Irvine, CA. Current swift drops in wholesale gas prices will help, but volatility still adds continued uncertainty for buyers, the panelists said.
Signals
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Futures Post Small Gain; Weather Expected to Call Next Shot
The natural gas futures market meandered within its recent trading range again Monday as traders continued to process the mixed signals of early season cold and record storage levels. The December contract traded between $7.740 and $8.070 on the day before retreating to close at $7.961, up 6.4 cents from Friday’s finish.
27 Large Consumer, Environmental Groups Blast FERC’s PURPA Rule
FERC stirred up a hornets nest when it finalized a rule in October allowing utilities in five organized power markets to file for relief from the mandatory purchase obligation under the Public Utility Regulatory Policies Act of 1978 (PURPA). Twenty-seven industrial associations, consumer groups and environmental organizations, released a joint statement last week blasting the new rule for its potential impact on power supply and the environment.
NGSA Chairman Sees Flat Production Volumes Without More Access
Natural gas producers are responding “very aggressively” to the price signals in the market by stepping up production activity, but production volumes are expected to remain flat at best without access to new resources, said the chairman of a major gas producer group Tuesday.
All Points Fall, But New Rally May Be in Store
As bearish weather, screen and storage signals had indicated the day before, prices fell at all points Thursday. Declines ranged from a little less than a Canadian dime for intra-Alberta numbers to as much as half a dollar at Cheyenne Hub. Most losses were at least 20 cents or greater.
Duke Gets Positive Market Signals for Expansion Plans
Duke Energy Gas Transmission (DEGT) said Tuesday that it received some positive feedback from potential gas transportation customers who participated in recent non-binding open seasons for existing and expansion capacity on three Duke pipeline systems: Union Gas, Algonquin Gas Transmission and Texas Eastern Transmission.
Duke Gets Positive Market Signals for Expansion Plans
Duke Energy Gas Transmission (DEGT) said Tuesday that it received some positive feedback from potential gas transportation customers who participated in recent non-binding open seasons for existing and expansion capacity on three Duke pipeline systems: Union Gas, Algonquin Gas Transmission and Texas Eastern Transmission.
Watson’s Departure Signals Refocus at Dynegy as ChevronTexaco Exec Takes Helm
Dynegy Inc.’s new management team said restoring investor confidence and focusing on business remain key following the resignation last week of founder Chuck Watson, CEO and chairman. No strategic shifts are expected, but the executive team is now led by ChevronTexaco Vice Chairman Glenn F. Tilton. Steve Bergstrom, Watson’s right-hand man, remains COO and president — already seen by many as a good sign that the board of directors was loyal to Dynegy’s direction, but not its 17-year leader.
CPUC Signals Decision on Court Appeal of LNG Jurisdiction Issue May Be Imminent
California regulators may announce by the end of the week whether they plan to appeal FERC’s decision asserting “exclusive jurisdiction” over Sound Energy Solution’s planned liquefied natural gas (LNG) terminal for the Port of Long Beach, CA, an attorney for the California Public Utilities Commission (CPUC) said Tuesday.
PG&E Advances on $9.6B Settlement Financing; S&P Signals Rating Upgrade
Culminating a week of progress in pulling together the financing underpinning of its exit from Chapter 11 bankruptcy protection, Pacific Gas and Electric Co. on Friday announced that it intends to offer $6.7 billion in first mortgage bonds to help pay credit claims in its $12 billion utility bankruptcy. This followed announcement earlier in the week that the utility secured $2.9 billion in credit facility commitments and authorization from California state regulators for its new financial structure.