Daily GPI

El Paso’s San Juan Basin capacity is reduced by 100 MMcf/d through Friday due to the installation of pigging facilities on Line 1200 between Gallup and Window Rock Stations. The work also cuts North Mainline capacity by 135 MMcf/d.

Foreign direct investment (FDI) in the domestic petroleum and natural gas industry rose at an astonishing rate of nearly 80% to $93 billion in 2000, outpacing the rate of growth of U.S. producers’ investments overseas for the first time in a decade.

Houston-based Dynegy Inc. said its board of directors has elected not to pay a dividend on the company’s Class A or Class B common stock for the third quarter of this year.

Beleaguered CMS Energy said Monday it will not be able to certify the truthfulness of its 2000, 2001 and its semi-annual 2002 financial statements to the Securities and Exchange Commission (SEC) this week, as many publicly held companies will be doing, until it completes its internal investigation into bogus round-trip trading activity. The company had already informed the SEC it was conducting the investigation.

Florida Gas Transmission lifted an Overage Alert Day notice for its market area Saturday and Sunday, but declared one Monday with 15% tolerance for negative daily imbalances.

High temperatures in nearly every section of the U.S. except the Midwest and Upper Plains, along with strong energy futures, generated a run-up in gas prices at all points Monday.

After failing to break to beneath pivotal support etched last Wednesday, natural gas futures rocketed higher Monday as commercial traders greeted the return of hot temperatures, and non-commercial traders rushed to cover shorts. The September contract was the biggest beneficiary of the buying surge, closing 20.4 cents higher at $2.965. Estimated volume across all months was moderate, with an estimated 81,811 contracts changing hands.

The Energy Information Administration (EIA) is attempting to post warning signs to help prevent the gas industry from entering what might be considered the Bermuda Triangle of weekly gas storage levels. There could be changes in EIA’s revisions policy, including using more months of actual data from its monthly national storage survey to come up with a better estimation ratio (see EIA’s recent request for comments in the Federal Register on July 11).

EOG Resources CEO Mark Papa said Monday he expects total North American gas production to continue falling through next year because of the decline in drilling and the continuing intrinsic decline rate of existing gas wells.