Spending

The U.S. economy is spending $1 billion, or 60%, less on energy right now than it was a year ago, according to a report by Raymond James & Associates. Since the U.S. GDP is about $28 billion per day, this represents a 3.5% year-over-year windfall to our economy.

The U.S. Senate and House voted out a $19.1 billion spending package last Wednesday that dropped a controversial amendment to defer drilling in the eastern Gulf of Mexico (GOM), an area referred to as the “offshore oil and gas backbone of this country.”

After spending the first two weeks of July in a mini uptrend, natural gas futures broke beneath major support last week, as traders continued to factor in the blistering pace of storage refills and normal- to below-normal temperatures. The August contract was hit with heavy selling Monday, and then again Wednesday through Thursday, pressuring prices to new 14-month lows and dashing bulls’ hopes that a bottom had been achieved. August moved mostly sideways on Friday to close at $2.955, up a modest 1.6-cent for the day but down a whopping 29.5 for the week.

Albany-based Energy East Corp., parent of New York StateElectric and Gas, is spending $1.4 billion to acquire RGS EnergyGroup, creating a Empire State powerhouse that would serve almostthree million customers, including half of those in upstate NewYork. The boards of both companies approved the deal last week.Energy East also will assume about $1 billion of RGS Energy debt.

Albany-based Energy East Corp., parent of New York StateElectric and Gas, is spending $1.4 billion to acquire RGS EnergyGroup, creating a Empire State powerhouse that would serve almostthree million customers, including half of those in upstate NewYork. The boards of both companies approved the deal last weekend.Energy East also will assume about $1 billion of RGS Energy debt.

Just days after Houston-based Anadarko said it would boost itsspending in Canada this year (see NGI, Feb. 12), the independentplayed white knight last week, agreeing to acquire gas-rich BerkleyPetroleum Corp. for $777 million, further boosting its Canadianreserves and pulling the rug out from under another Texas-basedproducer that had set its sights on the company two months ago.

Just days after Houston-based Anadarko said it would boost itsspending in Canada this year (see Daily GPI, Feb. 12), the independent played whiteknight Monday, agreeing to acquire gas-rich Berkley PetroleumCorp. for $777 million, further boosting its Canadian reserves andpulling the rug out from under another Texas-based producer that hadset its sights on the company two months ago.

Following a four-year upswing in spending between 1995 and 1998,domestic oil and natural gas industry expenditures for drilling inthe U.S. fell 15.2% in 1999, the American Petroleum Institute (API)reported last week.

Following a four-year upswing in spending between 1995 and 1998,domestic oil and natural gas industry expenditures for drilling inthe U.S. fell 15.2% last year, the American Petroleum Institute(API) reported.