Waiting

While waiting on a ruling from the National Energy Board (NEB) on plans to convert part of its gas pipeline system to transport oil, TransCanada Corp. moved ahead with an application last week for construction of the Canadian portion of the Keystone oil pipeline, which would includes the coverted line. TransCanada expects the new pipeline system, which would transport crude oil from Hardisty, AB, to refineries in the U.S. Midwest, to be placed in service in late 2009.

While waiting on a ruling from the National Energy Board (NEB) on plans to convert part of its gas pipeline system to transport oil, TransCanada Corp. moved ahead with an application this week for construction of the Canadian portion of the Keystone oil pipeline. TransCanada expects the pipeline, which would transport crude oil from Hardisty, AB, to refineries in the U.S. Midwest, to be placed in service in late 2009.

After waiting until late Monday to issue a customer-specific high-inventory OFO for Tuesday, Pacific Gas & Electric expanded the OFO into a systemwide one for Wednesday. The systemwide Stage 2 OFO carried $1/Dth penalties for exceeding a 5% tolerance on positive daily imbalances.

Despite precipitous drops in the petroleum futures sector, natural gas future trading was fairly quiet Tuesday as traders appeared to be on the sidelines waiting for the petroleum markets to adjust to last week’s natural gas futures declines. After trading between $4.900 and $5.120, October natural gas ended up closing at $5.006, up 6.4 cents on the day.

March may disappoint those who are still waiting for winter to show up, according to Andover, MA-based WSI Corp. The month is expected to bring more warmer than normal weather for a majority of the U.S., WSI said.

Very little gas changed hands on Friday as many traders were displaced by the hurricane, while others stood by watching and waiting for some news about the impact on Gulf production and operations. Most business was done on Thursday for a four-day period (Friday-Monday). There was some choppy intraday business, and, aside from high quotes in the Northeast and Gulf Coast, prices generally reflected the weakness of the futures market on Friday. Near month futures fell 46.6 cents to end the day at $12.324.

Speculation was growing Friday that China Offshore Oil Co. Ltd. (CNOOC) was only waiting for Congress to recess before boosting its bid for Unocal and announcing a U.S. partner to take over its U.S. assets.

Speculation was growing Friday that the China Offshore Oil Co. (CNOOC) was only waiting for Congress to recess before either dropping its attempt to purchase Unocal Corp. or raise the stakes and announce a U.S. partner to take over its U.S. assets.

Outgoing Chairman Pat Wood essentially passed the baton, sizzling hot from heavy use, to his successor-in-waiting, Commissioner Joseph T. Kelliher, at the close of the Federal Energy Regulatory Commission’s open meeting Thursday.