Watched

The Energy Information Administration (EIA) expects to publish the first natural gas production estimates from its new survey of 280 domestic gas producers (about 90% of total U.S. production) in May, said John Wood, director of reserves and production in the EIA’s Dallas office. Wood said the May report will estimate domestic gas production for January and February 2005 and that by the end of September EIA will be estimating production on a two-month delay.

The Energy Information Administration (EIA) expects to publish the first natural gas production estimates from its new survey of 280 domestic gas producers (about 90% of total U.S. production) in May, said John Wood, director of reserves and production in the EIA’s Dallas office. Wood said the May report will estimate domestic gas production for January and February 2005 and that by the end of September EIA will be estimating production on a two-month delay.

In much-watched oral arguments before FERC last Monday, California representatives decried El Paso Corp.’s attempts to “mightily” turn the high-profile complaint alleging market manipulation on the part of the company’s affiliates into a case involving pipeline safety.

In much-watched oral arguments before FERC Monday, California representatives blasted critics who have tried “mightily” to turn the high-profile complaint alleging market manipulation on the part of El Paso Natural Gas into a case involving pipeline safety. “El Paso’s cry of safety is a blatant attempt to divert this Commission’s attention from the fact that [it] failed — failed egregiously, failed miserably — to fulfill its contractual service and regulatory obligations in California,” said Kevin J. Lipson, attorney for Southern California Edison. But El Paso Corp. attorneys said capacity on its system was reduced to alleviate safety concerns, and argued that detractors were attempting to second-guess the pipeline’s operating judgment.

Energy marketers and merchant power generators have watched their stocks drop precipitously as investors continue to run from companies even remotely associated with, or similar to, bankrupt Enron Corp. The walking wounded include Mirant (down about 36% by midday Friday from the prior Friday’s close), Calpine (down 37% for the week), Williams (-16%) and Dynegy (-17%), NRG (-14%), Aquila (-14%), El Paso (down 6%), and Reliant (-5%).

California’s closely watched entry into the long-term, bulkpower market turned up 39 bidders at an average 6.9 cents/kWhprice, the governor’s office reported late Wednesday, as the stategovernment finished its whirlwind 27-hour, sealed-bid powerauction.

Market observers watched in disbelief yesterday as prices atsome locations rocketed up more than $1 from Wednesday’s levels.Most cash points made daily gains of between 40 and 50 cents, anddaily price ranges were enormous.