Summer

Late summer storms weighed on U.S. exploration and production companies in the third quarter, pushing down oil and natural gas output in North America for most of the largest producers. On Friday, ChevronTexaco Corp. and Anadarko Petroleum Corp. both reported strong earnings but mediocre production, while Pioneer Natural Resources reported mediocre income — because of tax changes — but stronger U.S. natural gas output.

Charlotte, NC-based Piedmont Natural Gas narrowed its loss this year during the slow summer quarter, reporting a seasonal loss of $8.2 million and ($0.21) diluted loss per share for the fiscal quarter ending July 31, 2004, compared with a $9.7 million loss and a ($0.29) diluted loss per share for the same quarter in 2003 . The company on Friday also announced a two-for-one stock split.

Dominion Resources and Statoil ASA announced last Monday they have signed a 20-year agreement that gives Statoil access to increased capacity at the Dominion Cove Point liquefied natural gas plant (LNG) located on the Chesapeake Bay in eastern Maryland.

In the wake of last summer’s pipeline mishaps in Arizona, the federal Office of Pipeline Safety (OPS) agreed earlier this month to allow unlimited inspections on Kinder Morgan pipelines in the state, according to an announcement Wednesday from the Arizona Corporation Commission (ACC).

Eagle Energy Partners, an energy services and marketing company that was started earlier this summer and is chaired by former Dynegy CEO Chuck Watson, has signed an agreement to sell FERC-approved tariff hub services for Guardian Pipeline to third parties. The services will include firm and interruptible aggregation and wheeling as well as parking and lending. The agreement was effective on Monday. Terms were not disclosed.

Eagle Energy Partners, an energy services and marketing company that was started earlier this summer and is chaired by former Dynegy CEO Chuck Watson, has signed an agreement to sell FERC-approved tariff hub services for Guardian Pipeline to third parties. The services will include firm and interruptible aggregation and wheeling as well as parking and lending. The agreement was effective on Monday. Terms were not disclosed.

Holding an informal dialogue among its members at its 2003 Summer Committee Meetings in Denver, CO, the National Association of Regulatory Utility Commissioners (NARUC) explored how regulated cost recovery can be used to encourage adequate investment in critical infrastructure.

California’s topsy-turvy fiscal and political climate this summer, with a $38 billion annual budget deficit still waiting to be patched over, does not immediately impact the standing of the state’s former wholesale net-short power buyer, the Department of Water Resources (DWR), but it could longer term, Standard & Poor’s Ratings Services (S&P) said Monday in a terse credit report.

As has often been the case on Thursdays this summer, natural gas futures prices tumbled lower on the news that the market had injected another hefty volume of gas (83 Bcf) into underground storage facilities. The August contract was hardest hit by the sell-off as it fell to a new seven-month prompt contract low at $4.66. A small rebound was seen near the close, leaving the contract to finish the session at $4.731, down 14.5 cents for the day and nearly two dollars off its high from early last month.