U.S. Senate Energy and Natural Resources Committee ChairmanFrank Murkowski (R-AK) is planning to take a closer look at thepotential impact on his home state and on the West Coast of theproposed merger of BP Amoco and Atlantic Richfield Co. Thecommittee has scheduled a hearing on June 24 at 9 a.m. to reviewthe merger. BP Amoco-Arco would hold 75% of the Alaska North Slopeoil fields and a similar share of the Trans-Alaska Pipeline System.It also would have control over 90% of the crude oil delivered tothe West Coast. Its property holdings in Alaska would far exceedthe maximum allowed by state law, although the companies said theyplan to divest some of their leases. The merger would create thelargest oil producer in the U.S. and the world’s second-largestpublicly traded oil firm, with a market capitalization of about$200 billion.
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After Busy Wednesday, Bulls Take Day Off
“Buy the rumor, buy Access; then sell on Thursday,” was onetrader’s variation on the almost clich‚ “buy the rumor, sell thefact” trading strategy. However, that variation would have beenprofitable considering the market’s price action both before andafter the release of the storage report Wednesday evening. Afterbounding as much as a dime higher in the regular open outcry andAccess trading sessions Wednesday, the futures market was shuffledlower yesterday. The July contract finished at $2.397, off a pennyfor the session.
Virginia SCC to Take Long Look at Dominion-CNG Merger
Virginia’s State Corporation Commission (SCC) said it plans to use the full 180 days allowed by Virginia law before ruling on Dominion Resources’ merger with CNG. The announcement was made just two weeks after CNG cited fewer potential regulatory problems as a main reason for selecting the Dominion bid over a hostile offer from Columbia Energy Group (See NGI, May 17). If the SCC takes the full 180 days, a decision would not be reached until Nov. 17.
Virginia SCC to Take Long Look at Dominion-CNG Merger
Virginia’s State Corporation Commission (SCC) said it plans touse the full 180 days allowed by Virginia law before ruling onDominion Resources’ merger with CNG. The announcement was made justtwo weeks after CNG cited fewer potential regulatory problems as amain reason for selecting the Dominion bid over a hostile offerfrom Columbia Energy Group (See Daily GPI, May 13). If the SCCtakes the full 180 days, a decision would not be reached until Nov.17.
Initial Futures ‘Head Fake’ Higher Fools Nobody
After an early attempt to take out prior highs was rebuffedyesterday, natural gas futures trickled down to easily establish anew low for the week at $2.19. Bears were egged on by a number offactors, which include a rapidly deteriorating technical pictureand expected weekend physical demand fall-off, sources agreed. TheJune contract finished at $2.218, down 3.6 cents for the day.
Lower Cash Quotes Take Cue From Tuesday Screen
As sources had expected, the prolonged decline of the Junefutures contract throughout Tuesday’s trading made its influencefelt in softer cash prices Wednesday. But cash losses weredecidedly modest, with nearly all points registering drops of only2-4 cents. Futures offered only a tiny downtick of less than apenny as further guidance Wednesday.
People
The Royal Dutch/Shell Group announced one of its top executives,Steven Miller, 53, will take over as president, CEO and chairman ofits Houston-based subsidiary, Shell Oil Co. July 1 with theretirement of Jack Little who turned 60 last year. Little had beenpresident for a year. Miller, who will give up his managingdirector titles with the parent company, said in a writtenstatement, he would like to see the U.S. branch “even more closelyaligned with the rest of the Royal Dutch/Shell Group in order todeal with competitive realities more effectively on a globalbasis.”
Duke Trading Arm Expects Stronger Gas Prices
Producers addled by low prices could take some comfort from atasty lunch served up with a cheerful prediction. Brad Karp,president of Duke Energy Trading and Marketing, told a producerluncheon in Houston last week his company is pretty bullish on gasprices long term.
Koch Seeks Abandonment of Texas Line, Laterals
Koch Gateway Pipeline has asked FERC for the go-ahead to takeout of service the western portion of its Latex-Fort Worth Mainlineand associated laterals. The system, which extends from near WillsPoint, TX, to Fort Worth, consists of about 102 miles of pipelineand laterals ranging in diameter from 4 to 20 inches.
After Breaking Resistance; Bulls Take Profits, Market Lower
Technical analysis was originated by Charles Dow in the late1800s as an attempt to interpret recurring historical pricemovements displayed by a group of stocks, which have since evolvedinto today’s Dow Jones Industrial Average. He would have been proudof the natural gas futures market last week. For four days the Maycontract ebbed and flowed within a 10-cent trading range until itbroke higher Friday in a technical buying spree. But as if it werefollowing the same script rehearsed during the prior two tradingdays, the May contract couldn’t hold onto its gains Friday,releasing them in the form of profit taking ahead of the weekend.The May contract capped the week with a 2.7-cent advance to $2.096after notching a $2.15 high.
