Amoco said yesterday it would consolidate its U.S. explorationand production management offices in Houston to cut costs andincrease competitiveness. About 660 E&P management, technicaland administrative jobs in Denver and New Orleans will be affected.Many of the positions will be relocated to Houston, but Amoco saidthere will be some jobs eliminated as well.
Yesterday
Articles from Yesterday
AGA Shows 58 Bcf Rise in Working Gas Capacity
The American Gas Association sent out a confusing market signalyesterday, reporting 45 Bcf of withdrawals for the week ending Nov.13 but actually showing more gas in storage than was reported inlast week’s survey. The peculiar changes, the association said,resulted from 58 Bcf increase in the full level of working gas inthe country. The AGA said 20 of the more than 40 storage companiessurveyed reported increases in working gas capacity. The newestimated full level of working gas is 3,248 Bcf, which includes a29 Bcf increase in working gas capacity in the Producing Region, a21 Bcf rise in the Consuming Region East and an 8 Bcf increase inthe Consuming Region West.
Dynegy Combines Generation, Trading Divisions
Dynegy Inc. said yesterday it is combining its power generationoperations with its trading and marketing organization to “furtherdefine and capture opportunities presented by the convergence ofthe gas and power industries.” The new organization will operateunder the name Dynegy Marketing and Trade. Steve Bergstrom willserve as president and chief operating officer.
PG&E Woos Kinder Morgan Executive
In a move to strengthen its still under-performing Texas naturalgas assets, PG&E Corp. yesterday named Thomas B. King presidentand COO of unregulated subsidiary PG&E Gas Transmission, whichis based in Houston. King, formerly president of Kinder MorganEnergy Partners, takes on his new duties Nov. 23. He is filling aposition left vacant by the sudden death of Joseph Kearney, aPG&E executive who suffered a heart attack in September. Kingwill be replaced at Kinder Morgan by Vice Chairman Bill Morgan.
Natural’s Capacity Auction Procedures Get Nod at FERC
FERC yesterday approved, subject to modifications, a majorcontested settlement that outlines how Natural Gas Pipeline Co. ofAmerica (NGPL) will auction off long- and short-term transportationcapacity on its system. Although the Commission stressed theNatural auction shouldn’t be considered a blueprint for theproposed auction procedures that are now being considered forindustry-wide use, the decision does provide a sneak preview intoFERC’s thinking on the issue.
ARCO, Mobil Exchange Properties
Atlantic Richfield (ARCO) and Mobil Exploration & ProducingU.S. yesterday announced that they closed an exchange transactionthat will allow ARCO subsidiary Vastar Resources to boost its gasproduction and reserve activity level in the Gulf of Mexico shelfby one third, and Mobil’s exploration and production arm tosignificantly increase its stake in California production. The dealclosed on Oct. 31st.
Williams’ Cherokee Expansion in Service
Williams announced yesterday that its Cherokee expansion projecthas been placed into service, increasing capacity on theTranscontinental system by about 87 MMDth/d to provide additionalannual firm transportation capacity to serve markets in Georgia.
Sonat’s Alabama Project Gets FERC Nod Again
FERC yesterday approved an amended certificate for SouthernNatural Gas (Sonat) to build a controversial mainline extension tooffer competing transportation services to customers in northernAlabama and Georgia. The fate of the project, however, still hangsin the balance given that Interior Department’s Fish and WildlifeService (FWS) hasn’t issued Sonat a permit yet to build through aprotected public refuge.
FERC Plans Seminar on Pipe Competition, Retail Unbundling
FERC Chairman James Hoecker yesterday announced that theCommission will hold a conference on Feb. 25 to address therelationship between interstate pipeline competition and retailunbundling at the state level.
Mitch-No-Match for Futures Profit-Taking
The futures market retraced advances tallied Monday and thensome yesterday as traders discounted the threat of Hurricane Mitch.Profit taking by all segments of the market was the feature of theday. Only the final bell could stop the price erosion that left theNovember contract down 19 cents to settle at $2.108.