Time

The board of the Washington, D.C. transit authority for the first time has recommended the purchase of 100 buses fueled by compressed natural gas, a breakthrough hailed by the Natural Gas Vehicle Coalition (NGVC) as part of a growing trend.

With gas futures prices soaring past $5, now is not a bad timeto raise price forecasts and expectations for the coming winter andnext year. Prudential Securities did just that yesterday, uppingits predictions on spot wellhead prices to $4.10 for the secondhalf of the year, $3.55 for all of 2000 and $3.65 for 2001.

The board of directors of the New York Mercantile Exchange hasamended plans to move up the start-up time for natural gas futurestrading because of the overlap with crude oil markets, which sharean options ring with natural gas. Daily gas futures trading nowwill commence at 9:30 a.m. rather than 9:45. The board hasscheduled expanded energy trading hours to begin with the Sept. 8trading session.

Record rainfall in parts of central and southern Saskatchewanhas put a damper on construction of the 1.325 Bcf/d AlliancePipeline, but for the time being sponsors are standing by theirprojected in-service date, sort of.

Enron and IBM are teaming up again, but this time in the form of acontract, not a joint venture. (see NGI, May 22 ) Enron EnergyServices, a subsidiary of Enron, has inked a deal with IBM todistribute $350 million in technology services to Enron locations allover the U.S. for the next 10 years.

For the second time in just over a week Union Pacific ResourcesGroup is selling off non-core assets in North America. MadisonEnergy Advisors will be handling the evaluation, marketing, andsale of almost all of UPR.’s South Louisiana producing assets. Theproperties for sale include 52 wells with 100% working interests inmost of them. The net production from these properties duringDecember 1999 was approximately 16.1 MMCFD, 490 b/d, and 54 liquidsb/d.

The Texas Railroad Commission passed a sweeping measure lastweek that for the first time in the state’s history dramaticallyoverhauls how the state handles abandoned oil and gas wells. At thecore of the plan is a requirement that financial assurance, such asa bond or a letter of credit, be in place for a well entering itsthird year of inactivity.

Cash prices took a dive again Thursday as expected. Declineswere around 20 cents or greater at nearly all eastern points and inthe Southwest basins but ranged from about a dime to 18 cents inCalifornia and the Rockies.

The Texas Railroad Commission yesterday passed a sweepingmeasure that for the first time in the state’s history dramaticallyoverhauls how the state handles abandoned oil and gas wells. At thecore of the plan is a requirement that financial assurance, such asa bond or a letter of credit, be in place for a well entering itsthird year of inactivity.