Tier

Financial analysts see a sharper focus this year on reserves accounting systems, continued financial restraint and more international expansion by exploration and production companies, with perhaps a few mergers and acquisitions between integrated companies and refiners. However, less is certain about the status of North America’s natural gas resources, as producers continue to make discoveries but fail to grow production.

Financial analysts see a sharper focus this year on reserves accounting systems, continued financial restraint and more international expansion by exploration and production companies, with perhaps a few mergers and acquisitions between integrated companies and refiners. However, less is certain about the status of North America’s natural gas resources, as producers continue to make discoveries but fail to grow production.

It hadn’t reached the southern tier of states or Mid-Atlantic quite yet, but wintry conditions or a reasonable facsimile dominated the weather picture Wednesday and forecasts for the next few days in the rest of the U.S. and Canada. The cash market responded with major gains that were as small as 15-30 cents in most of the West but hit 35-70 cents or so throughout the East.

Continuing to ride the support of chilly weather across much of the northern tier of states and getting an unexpected goose from a soaring oil market, cash prices rose again Wednesday but in nearly all cases by lesser amounts than on Tuesday. Some sources believe that what is expected to be another storage injection report close to 100 Bcf Thursday will halt this week’s so-far steady price advance.

Though chilly temperatures reigned that day along the northern tier of states and in Eastern Canada, prices softened at nearly all points Thursday on expectations of weather moderation and the demand slump of a holiday-lengthened weekend. Flat to mildly higher numbers in the Rockies compared with drops elsewhere that ranged from barely lower to down more than half a dollar in the Northeast.

Positioning itself to become a top tier national energymarketing and trading merchant, Allegheny Energy Inc. announcedyesterday it will acquire Global Energy Markets (GEM), the energycommodity marketing and trading arm of Merrill Lynch & Co.Subsidiary Allegheny Energy Supply LLC will pay $490 million andgive its new partner a 2% equity interest. In turn, Merrill Lynchwill refer clients to its partner.