Triple

If projections that overall demand for oil, natural gas and electricity will jump by 21% over the next decade are on target, U.S. energy prices could come close to tripling in just 10 years based on current supply levels, according to an analysis issued recently by Sens. Charles E. Schumer (D-NY) and Susan Collins (R-ME).

If projections that overall demand for oil, natural gas and electricity will jump by 21% over the next decade are on target, U.S. energy prices could come close to tripling in just 10 years based on current supply levels, according to an analysis issued last week by Sens. Charles E. Schumer (D-NY) and Susan Collins (R-ME).

Triple-digit spikes at the Southern California border andPG&E citygate were the standout leaders of a strongly risingoverall swing market Wednesday. Virtually all non-California pointswere up between about a nickel and a quarter, with the smallestincreases tending to cluster in the Rockies.

The swing market kept falling Friday, but outside of continuedtriple-digit plunges in California, the softness was generallymild. The Southwest basins and Rockies joined a few scatteredMidcontinent and Gulf Coast points in declines of about 15 cents ormore, but otherwise the downticks were about a dime or less.

Except for continued triple-digit spikes in California, theprice rally that began in trading for the weekend appeared to berunning out of steam quickly Monday. Non-California gains rangedfrom barely above flat to nearly 60 cents at Stanfield; most wereless than 15 cents.

Exploration successes in its deepwater Gulf of Mexico drillingprogram helped to triple reserve replacement to 269% last year forHouston-based Ocean Energy Inc., a positive sign that otherindependents hope to mimic as fourth quarter results are announcedin the next few weeks. Ocean Energy’s over-the-top numbers may notbe matched, but analysts believe independents’ reserve replacementswill be up, averaging around 3%.

With temperatures dropping considerably out of theirtriple-digit-heat conditions on Friday, California energy officialsbegan assessing the economic and operating impact of rotatingblackouts in numerous San Francisco Bay Area neighborhoods lastWednesday and the curtailment Thursday of 135 large industrialcustomers in Sacramento and Stockton totaling 300 MW.

With temperatures dropping considerably out of theirtriple-digit-heat conditions on Friday, California energy officialsbegan assessing the economic and operating impact of rotatingblackouts in numerous San Francisco Bay Area neighborhoods lastWednesday and the curtailment Thursday of 135 large industrialcustomers in Sacramento and Stockton totaling 300 MW.

Christopher Helms, president of CMS Panhandle Pipe Line Co.,estimated that LNG use will swell to take up 3.5% of the predicted30 Tcf of gas demand by 2010. In an interview with NGI, Helms saidPanhandle is working toward building LNG trade to the same level ascrude oil trading, complete with a futures and financial market,with Lake Charles serving as the hub for all operations.