Strong

Vermont Gov. Howard Dean this week voiced strong opposition to a$100 million gas pipeline project and two power plants proposed inhis state. The governor’s position, local opposition and financingtroubles for the power plants have left project planners EnergyEast, Iroquois Gas Pipeline and Vermont Energy Park Holdings withvery few options.

The March swing market continued to roar in like a lionWednesday, and it appeared that many traders are betting it won’tturn into a lamb between now and the end of the month.

Directed by strong gas, power and liquids operations, DynegyInc. reported yesterday a 56% increase in 4Q99 net income to $45.1million and a 50% increase in 1999 recurring net income to $146.1million. In addition to that good news, the Houston-based companyalso said its merger with Illinova Corp., should be complete byearly February.

Growth lies ahead for the North American gas industry as do anumber of risks and challenges, according to the just released”North American Natural Gas Trends 2000,” a joint report of ArthurAndersen and Cambridge Energy Research Associates (CERA).

Growth lies ahead for the North American gas industry as do anumber of risks and challenges, according to the just released”North American Natural Gas Trends 2000,” a joint report of ArthurAndersen and Cambridge Energy Research Associates (CERA).

Although 1998 saw a 25-year low in world oil prices, capitalexpenditures by major U.S. producers totaled $75.1 billion, thesecond highest level since 1974. Expenditures were up 21% from1997, according to data released by the Energy InformationAdministration (EIA) in “Performance Profiles of Major EnergyProducers 1998.”

After a strong opening at $2.28 failed to entice much in the wayof additional buying, natural gas futures gave back most of thegains achieved during Wednesday’s Access trading session anddrifted lower for much of the yesterday’s session. Although itsmomentum was decidedly to the downside Thursday, the Februarycontract did manage to post a higher high at $2.29 and escape witha modest, 0.8-cent advance to finish at $2.252. Estimated volumewas thin with only 45,585 contracts changing hands.

After a strong opening yesterday, gas futures were hit with awave of selling, pressuring the market down to a $2.19 midday low.From there the February contract limped mostly sideways until alate, short-covering rally trimmed losses into the close. Theprompt month finished at $2.244, down 1.6 cents for the day.

Although 1998 saw a 25-year low in world oil prices, capitalexpenditures by major U.S. producers totaled $75.1 billion, thesecond highest level since 1974. Expenditures were up 21% from1997, according to data released by the Energy InformationAdministration (EIA) in “Performance Profiles of Major EnergyProducers 1998.”