For the second day in a row, the futures market raced off to afast start as steady buying bolstered prices to their highest marksince December. But in contrast to Tuesday’s price action, whichfeatured the May contract finishing near its daily high,Wednesday’s rally ran into heavy overhead selling that trimmedthose gains into the close. May finished up 3.5 cents to $2.013,after notching a $2.07 high.
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CA Independents Holding for Deregulation
Despite bullish prospects two years ago with the advent ofderegulated energy markets, California independent gas producers atthe start of 1999 are still struggling against depressed prices,slow developing electric and gas restructurings and a hard core ofthree major investor-owned utilities that have proven to beformidable competitors. One independent producer, Tri-Valley Corp.,in Bakersfield still expects to ride out continuing years of redink until real gas/electric competition and increased oil/gasprices eventually make current projects profitable in the long run.
Conoco, Exxon Swap GOM Assets
Marking the start of a five-year, $400 million Gulf of Mexico(GOM) exploration and production (E&P) assault, Conoco announcedthe exchange of interest in several deep-water blocks with Exxonand the debut of the Deepwater Pathfinder, a drillship capable ofreaching 10,000-foot depths. In the exchange, Conoco acquired 50%of 29 Exxon-owned blocks and Exxon acquired 50% of 30 Conoco-ownedblocks. The undeveloped acreage is in Green Canyon, Garden Banks,Walker Ridge and Keathley Canyon. Terms of the transaction were notdisclosed. With this addition, Conoco holds interest in 295 blocksin the GOM, amounting to 1.2 million net acres.
Conoco, Exxon Share Deep-Water Economics, Risks
Marking the start of a five-year, $400 million Gulf of Mexico(GOM) exploration and production (E&P) assault, Conocoannounced Monday the exchange of interest in several deep-waterblocks with Exxon and the debut of the Deepwater Pathfinder, adrillship capable of reaching 10,000-feet depths.
PNGTS Trying to Complete Construction by February
Portland Natural Gas Transmission System isn’t going to make itssecond start-up deadline this month, but officials are promising tobe in service in early February. The pipeline originally expected152 MMcf/d of Canadian gas would begin flowing to New Englandmarkets last November.
Sempra Plans to Compete for Nova Scotia Distribution
Sempra Energy now has three start-up gas distribution operationsin development or in planning stages in North America with theannouncement yesterday that it will compete for gas distributionfranchise rights in Nova Scotia. The company said it intends tofile an application with the Nova Scotia Utilities and Review Boardto build a gas distribution system capable of serving all areas ofthe province. Nova Scotia has a population of about 900,000. Sempraexpects to hire local contractors and workers to build the newdistribution company, called Sempra Atlantic Gas, which willdeliver production from the Sable Island Offshore Energy Projectstarting next fall.
Arizona Muni Accuses Questar of Dampening Competition
An Arizona municipality, which seeks to start up its own gasdistribution system, has accused an out-of-state distributor ofhiding behind its Hinshaw status to justify its refusal totransport interstate gas for resale to the municipal’s potentialcustomers. Without the distributor’s transportation link, themunicipal says its dream of its own system will fizzle. Thedistributor, on the other hand, contends that its denial of transportation service is strictly a business decision.
Arizona Muni Accuses Questar of Stifling Competition
An Arizona municipality, which seeks to start up its own gasdistribution system, has accused an out-of-state distributor ofhiding behind its Hinshaw status to justify its refusal totransport interstate gas for resale to the municipal’s potentialcustomers. Without the distributor’s transportation link, themunicipal says its dream of its own system will fizzle. Thedistributor, on the other hand, contends that its denial of transportation service is strictly a business decision.
AGA ‘Surprise’ Lifts Market in Evening Trading
Fueled by Tuesday afternoon advances, the November contractraced out to a strong start on Wednesday. But the rally becameshort-lived when it met with a wall of selling in the mid-teens,leaving the market to finish lower at the closing bell. TheNovember contract settled at $2.041, a 4.3 cent decline for theday.
NYPSC Orders LDCs to Exit Merchant Function
Retail gas competition in the state of New York clearly needs ajump start, and the New York Public Service Commission (PSC) gaveit one yesterday. The PSC announced it will force the state’s localdistribution companies to cease selling gas within three to sevenyears.