New regulations for the derivatives markets will not prevent future corporate failures similar to Enron Corp.’s and in fact might make failures more likely in the future, according to a new report by the International Swaps and Derivatives Association (ISDA), a global trade association representing participants in the privately negotiated derivatives industry, which includes interest rate, currency, commodity, credit and equity swaps, as well as related products.
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Transportation Notes
Northern Natural Gas issued a System Overrun Limitation notice (similar to a low-linepack OFO) for all market-area zones Monday.
Transportation Notes
Pacific Gas & Electric did not extend a high-linepack OFO beyond Friday, but its neighbor to the south, Southern California Gas, had a similar Overnominations Day notice in place Saturday.
Equitable Picks Up Praise for its Hedging Strategy
Despite Equitable Resources’ lower fourth quarter earnings for 2001 when compared to the similar quarter of 2000, UBS Warburg’s Ronald Barone rated the Pittsburgh-based company a ‘strong buy’ due in part to its “significant collar/hedge position,” which will likely mitigate a substantial part of its exposure to the “ongoing weakness in natural gas prices.”
Transportation Notes
Pacific Gas & Electric lifted a high-linepack OFO Saturday. However, Southern California Gas extended a similar Overnominations Day notice that had begun Thursday into at least its third day Saturday.
Storage Supplants Weather as Market Mover; Sends Futures Lower
In a session strikingly similar to last Friday, natural gas futures opened higher, only to shuffle lower throughout the morning Tuesday as traders elected to look past the hottest temperatures yet this summer to focus on the likelihood of bearish storage news to be released this afternoon. After gapping higher at the open, the September contract was unable to attract much in the way of follow-through buying. As a result, the prompt month tumbled 5.6 cents lower yesterday to take back gains achieved Monday and to close even with Friday’s settle at $2.971.
Key Energy Sees Extended Drilling Cycle Based on Producer Optimism
The current upturn in oil and natural gas drilling is likely to be more prolonged than similar cycles in past years judging from producers’ confidence, a top executive of Key Energy Services Inc., a leading drilling and well services equipment company, told financial analysts and producers last week.
Optimism has Key Energy Seeing Extended Drilling
The current upturn in oil and natural gas drilling is likely to be more prolonged than similar cycles in past years, a top executive of Key Energy Services Inc., a leading drilling and well services equipment company, told financial analysts and producers Tuesday.
MMS Calls Pilot RIK Program ‘Viable Alternative’
In what could be a telling sign for making permanent a similar program for natural gas royalties, the Minerals Management Service reports that its crude oil royalty-in-kind (RIK) pilot program in Wyoming has successfully demonstrated that taking production in kind is a “viable alternative” to the traditional method of collecting royalties, in some circumstances.
MMS Calls Pilot RIK Program ‘Viable Alternative’
In what could be a telling sign for making permanent a similarprogram for natural gas royalties, the Minerals Management Servicereports that its crude oil royalty-in-kind (RIK) pilot program inWyoming has successfully demonstrated that taking production inkind is a “viable alternative” to the traditional method ofcollecting royalties, in some circumstances.