Word

Destin Pipeline continued to keep about 600 MMcf/d of offshore gasshut in Tuesday and today. The latest word Tuesday from BP Amoco,operator of the Pascagoula (MS) Gas Plant into which Destin feeds, wasthat repairs of a leak in a downstream natural gas liquids line (seeDaily GPI, March 6) likely would not becompleted before late this evening, according to a Destinstaffer. However, Williams Field Services, which has a unit thatoperates the liquids line, said the line had been cleared andexcavation was starting Tuesday afternoon. “We should have a muchbetter picture of the work Wednesday morning,” a WFS spokesman said,adding that line service could be restored at any time during the day.

Even though “bailout” has become a dirty word as Californiagovernment leaders in Sacramento hammer out more comprehensiveresponses to the state’s electricity woes, San Diego-based SempraEnergy’s CEO Stephen Baum says there is a light at the end of thetunnel.

“Hope” was the operative four-letter word in California last week if you had anything to do with the energy industry or government as Friday saw the previous day’s specter of rolling blackouts from razor-thin electricity reserves ease.

While careful not to use the word “re-regulation” CaliforniaGov. Gray Davis on Monday clearly indicated his desire to give thestate more direct control over energy operators, utilities and theusage of all the state’s 34 million residents (see Daily GPI, Jan. 9). He barely had time to clarify orget reactions for his plans before flying to Washington, D.C., wherelate Tuesday he huddled with Clinton Administration and industryofficials.

The Democrats barely mentioned the word “energy” in theirplatform at the August convention, but President Clinton put thespotlight on energy issues last week in Washington with hisdecision to release 30 million barrels of crude oil from theStrategic Petroleum Reserve (SPR), as well as a record $400 millionof funding for energy assistance to low-income households for thiswinter.

The Democrats hardly mentioned the word “energy” in theirplatform at the August convention, but President Clinton last weektried to make up for that omission by ordering the release of 30million barrels of crude oil from the Strategic Petroleum Reserve(SPR), as well as a record $400 million of funding for energyassistance to low-income households for this winter.

“Dead” was the popular word used by traders to describe thestagnant cash market Thursday, where prices showed very little, ifany, change from the prior day. Most sources believe that shortcovering is the main factor helping cash maintain current pricelevels amid the lack of any meaningful fundamental support.

The jury is still out, but initial word from the MineralsManagement Service (MMS) on royalty in kind (RIK) pilots is RIKcould work for some gas and oil leases

The jury is still out, but initial word from the Minerals Management Service (MMS) on royalty in-kind (RIK) pilots is RIK could work for some gas and oil leases.