Stopped

The Federal Energy Regulatory Commission announced that it stopped receiving mail from the U.S. Postal Service on Tuesday, March 15 after signs of possible anthrax contamination were reported at the Pentagon mail facility and several other Defense Department mail facilities in northern Virginia. The postal service blackout was extended to all government agencies in the area.

Although the proponents are downplaying it, U.S. Coast Guard and California officials last week stopped the regulatory clock on Australian resource giant BHP Billiton’s proposed Cabrillo offshore liquefied natural gas (LNG) terminal along the Southern California coast. Basic operational, public safety and shipping information on the $550 million, 800 MMcf/d project was requested before the environmental review process can be resumed.

El Paso Corp.’s quick response to negative reports about its off-balance sheet transactions may have stopped its stock from sliding even further Tuesday, finally closing down almost 7% to $39.17. The stock had slid to almost $36 early in the day after rumors surfaced that the Houston-based company had conducted related-party deals similar to those conducted by bankrupt Enron Corp.

The cash market came to a near-standstill at mid-morning Tuesday as a result of the terrorist attacks on New York City’s World Trade Center, the Pentagon and other sites (see related story). Virtually all trading operations sent employees home early, while pipelines and utilities kept only those personnel essential for critical operations on duty.

The energy industry remained in a high state of alert Tuesday evening and was still assessing the impact of terrorist attacks on the World Trade Center buildings in New York City, the Pentagon in Washington, DC, and in Somerset County, PA, near Pittsburgh. Trading on the New York Stock Exchange, the New York Mercantile Exchange (Nymex), and on the major over the counter energy e-commerce systems, including EnronOnline and IntercontinentalExchange, remained shut down or delayed indefinitely. No major energy outages or curtailments were reported other than those in close proximity to the terrorist attacks in New York City.

Consolidation hasn’t stopped and, in fact, will play a big rolein the future for both large and small players in the oil and gasindustry, said David Moore, a strategic practices consultant forAndersen Consulting.

Consolidation hasn’t stopped and, in fact, will play a big rolein the future for both large and small players in the oil and gasindustry, said David Moore, a strategic practices consultant forAndersen Consulting.