Warned

Nabors Industries Ltd., the world’s largest land-based driller, warned Wednesday that its 4Q2006 earnings will fall well short of Wall Street estimates on weaker-than-expected natural gas operations in the Lower 48 states and Canada. The news, coming as several energy analysts slashed gas price forecasts (see related story), sent oil service stocks tumbling, pushing Nabors’ share price down 6% in early trading.

A group of Alaskan natives and local governments warned President Bush Tuesday not to be fooled by others “masquerading” as locals who are against lifting the drilling moratorium in the North Aleutian Basin, which includes Bristol Bay, in southwestern Alaska. Reports that the president plans to issue an executive order lifting the ban on drilling in the area have prompted letters from several coalitions with opposing views on the matter.

Rising commodity prices failed to lift London-based BP plc, which reported a 3.6% drop in quarterly earnings Tuesday. The oil major also warned daily oil and natural gas production will be slightly lower for the year.

FERC Chairman Joseph Kelliher last Thursday warned natural gas pipelines that they could face potential civil penalties if they continue to file late requests at the agency for waivers of their tariffs.

The North American Electric Reliability Council (NERC) warned in a report last week that U.S. demand for electricity will increase by 19% between now and 2015, while confirmed power capacity will increase by only 6%. Capacity margins are projected to drop below minimum target levels in the next two to three years in Texas, New England, the Mid-Atlantic area, the Midwest and the Rocky Mountains, with many other areas reaching minimum levels later in the 10-year period.

FERC Chairman Joseph Kelliher Thursday warned natural gas pipelines that they could face potential civil penalties if they continue to file late requests at the agency for waivers of their tariffs.

Ameren Corp. warned an Illinois House committee Monday that passing HB 5766, which would extend a current electricity rate freeze in the state, would lead to gas and power supply disruptions and insolvency for Ameren’s Illinois utilities. Exelon, parent company of Illinois’ Commonwealth Edison (ComEd), made similar predictions recently. State consumer groups, meanwhile, urged lawmakers to stand up to this “bankruptcy blackmail.”

Just days after hedge fund Amaranth Advisors LLC warned investors of significant losses due to wrong-way bets in the natural gas futures arena, the company’s founder in a conference call with investors Friday said Amaranth plans to continue operations while working to restore the confidence of investors.

Just days after hedge fund Amaranth Advisors LLC warned investors of significant losses due to ill-advised positions in the natural gas futures arena, the ramifications of those losses on the market — now reported to be as high as $5 billion — are slowly coming into better view. In addition, one prominent broker said that without hedge fund regulation the market will “definitely see more of these blowouts” down the road.