Solid

Canadian Natural Resources Ltd.’s biggest opportunities to build its solid natural gas reserves won’t come from overseas acquisitions, but rather from prospects in its own backyard: northwestern Alberta and northeastern British Columbia, the president of the company said Wednesday. John Langille, speaking at the Peters & Co. Energy Conference in Toronto, said overseas assets will contribute to new oil reserves, but Canada continues to provide the best gas potential both near- and long-term.

Canadian Natural Resources Ltd.’s biggest opportunities to build its solid natural gas reserves won’t come from overseas acquisitions, but rather from prospects in its own backyard: northwestern Alberta and northeastern British Columbia, the president of the company said Wednesday. John Langille, speaking at the Peters & Co. Energy Conference in Toronto, said overseas assets will contribute to new oil reserves, but Canada continues to provide the best gas potential both near- and long-term.

In its first report comparing the full effects of its merger with Columbia Energy Group, NiSource Inc. reported a 33% increase in first quarter net income to $242.2 million, or $1.18 per share, led by a favorable hedging program in its gas production and merchant division, reduced debt and reduced expenses that offset the negative impacts of very warm weather.

In a story that ran in the Oct. 25 edition of NGI’s Daily Gas Price Index, titled “El Paso Posts Solid Earnings, But Special Charges Lower Profits,” some comments were incorrectly attributed to El Paso Merchant Energy Group President Ralph Eads III. The comments were made by Greg Jenkins, CEO of El Paso Global Networks. The comments also contained some inaccuracies. Jenkins said, “The [global network business] has deteriorated much more over the course of the past several weeks and few months. The regulatory environment in our judgement is viewed unfavorably against real competition, and today the market fundamentals are very weak. Consequently we are reducing our focus [on telecommunications]. Our focus next year is going to be on those activities where that value is recognizable, that being the Texas market in particular, and maximizing returns on those assets.” Jenkins’ was not referring to the merchant generation business, and El Paso Corp. has reaffirmed its confidence in merchant generation and its position in that market. NGI regrets the errors.

The big rallies that had developed late in Friday’s trading for the weekend provided a solid base for spectacular price increases Monday. Gains of about 30 cents or more were common in the East, while the West, where winter storm watches were posted for parts of the Pacific Northwest and northern Rockies, registered upticks that exceeded 40 cents in most cases.

A Nor’easter dumped snow from D.C. to Boston yesterday, fuelingthe bullish momentum in the gas futures pit. It also forced Nymexto close up shop an hour early and plan for a one-hour delayedopening today.

A solid blast of cold, wintry weather and a technically bullishfutures screen produced tremendous price increases and enormousprice ranges nationwide last week. On Friday, there was little onthe horizon to change the current market picture other than thenormal weekend decline in demand.

Most of what was lost in spot market pricing on Monday wasrather quietly regained yesterday, as storage buying started tokick back in and the weather situation in the Gulf of Mexico onceagain looked ominous, with the possibility of another tropicalstorm or two developing.

With a weaker screen during the morning and not a lot of solidweather load emerging from the weekend, most of the East was flatto down a few cents Monday. Western points continued a now-familiarpattern bracketing weekends: having suffered the biggest drops onFriday, they saw the biggest rebounds on Monday.