Surging

Forecast costs of Canada’s arctic natural gas pipeline project have jumped 116% and the beleaguered scheme’s sponsors have pushed the target date for starting deliveries back at least three years.

After surging to new, two-week highs last Wednesday, the natural gas futures market funneled lower Thursday and Friday as supportive weather forecasts were not enough to overcome the bearish force of a seemingly ample supply situation. After gapping lower 37.2 cents in overnight Access trading to open Friday at $11.570, the prompt month during the regular Friday trading session bounced within a fairly tight 26-cent range before settling at $11.414, down a whopping 52.8 cents for the day and 29.8 cents lower for the week.

WSI Corp. is calling for a warmer than normal summer in many regions of the country, which could lead to surging power prices and competition for natural gas supply between electric power generators and gas storage operators. WSI’s forecast for August shows warmer than normal temperatures in all regions except for the Northwest.

WSI Corp. is calling for a warmer than normal summer in many regions of the country, which could lead to surging power prices and competition for natural gas supply between electric power generators and gas storage operators. WSI’s forecast for August shows warmer than normal temperatures in all regions except for the Northwest.

Volatility continued at the Nymex Tuesday as natural gas futures prices plodded higher in sympathy with surging prices in the nearby crude oil pit. After an initial push to the downside failed to crack the $4.70 level, local traders were active buyers and had little trouble goosing the prompt month into a healthy, late-day rally.

Prices were surging again Wednesday in mostly double-digit advances. Traders mentioned late-season storage buying and substitution of gas-fired generation during nuclear plant outages as having minor roles in the bullishness, but for most, it was a case of “following the screen.”

It was a volatile day on Wall Street for the utility and energy merchant sector Wednesday, opening with a heavy sell-off by frazzled investors, with calm finally restored by noon, as the intrepid stepped in to buy what they hope become good bargains. The Dow Jones Industrial Average, which soared 488 points, carried with it nearly the entire energy marketplace, with few exceptions. Only two utilities, National Fuel Gas Co., off just over 1%, and Delta Natural Gas, down 4%, lost ground.

It was a volatile day on Wall Street for the utility and energy merchant sector Wednesday, opening with a heavy sell-off by frazzled investors, with calm finally restored by noon, as the intrepid stepped in to buy what they hope become good bargains. The Dow Jones Industrial Average, which soared 488 points, carried with it nearly the entire energy marketplace, with few exceptions. Only two utilities, National Fuel Gas Co., off just over 1%, and Delta Natural Gas, down 4%, lost ground.

Third quarter earnings for the three largest U.S. oil companies— ExxonMobil, Chevron and Texaco — handily surpassed analysts’expectations on the wave of surging oil and gas prices. ExxonMobilbeat predictions by six cents, Texaco beat the estimates by 12cents and Chevron also soared, rolling over an expected earningsforecast by 54 cents. All three released their quarterly statementsyesterday.