Chicago-based Peoples Energy decided to eliminate the middle manlast week, purchasing an interest in 25 oil and natural gasproducing wells in South Louisiana and the Texas Gulf Coast regionfrom NBB Energy Partners LLP. The $18 million purchase makesPeoples Energy an operator of oil and gas properties for the firsttime in its history, with complete production responsibilities forthe purchased wells.
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Futures Spike 14% on Bullish Storage Data
Since coined by Federal Reserve Chairman Alan Greenspan back in 1995 to explain investors’ love of stocks, “irrational exuberance” has come to typify the stock market and its unprecedented bull rally. But last week as stock prices plummeted again, the phrase was a more apt description of the natural gas futures market, which spiked 14% amid bullish technicals unpinned by concerns over a tightness of supply this summer and next winter.
Cabot Closes Office, Lays Off 15
Cabot Oil & Gas announced it will close its Pittsburghoffice Aug. 31 as part of a “strategic repositioning” that includedthe sale of non-core Appalachian properties to Enervest ManagementCo. for $46.2 million last September. About 15 jobs will beeliminated as a result of the action. The remaining positions willbe transferred to existing offices in Charleston, WV, and Houston.
Hebert Assails FERC’s Grid Reliability Plan
The Federal Energy Regulatory Commission last week announcedfive “practical steps” that it will take this summer to “alleviatereliability stresses” on the electric transmission grid duringperiods of heightened demand. Commissioner Curt Hebert Jr.,however, cast doubts not only the effectiveness of the measures,but FERC’s motive for proposing them.
NPCC Says Power Will Be Short During Peaks
Although officials at the Northeast Power Coordinating Council (NPCC), which oversees electric power grid reliability for Northeastern North America, are forecasting sufficient electricity supplies to meet demand this summer, they cautioned last week that reserves are low.
Senate Debuts Broad-Based Energy Legislation
Alarmed by the U.S. appetite for foreign oil, key SenateRepublicans last week introduced a broad-based legislative packagethat would open up areas that have been closed to drilling in thepast, as well as offer tax measures and other incentives tostimulate the production of crude oil, natural gas and alternativeenergy in the Lower 48 states and Alaska.
‘Marginal’ RTO Plans Being Filed to Defer Competition
FERC Chairman James J. Hoecker indicated last week thattransmission-owning utilities are intentionally submitting sub-parcompliance filings in response to the Commission’s regionaltransmission organization (RTO) rule to delay the onslaught of fullcompetition in the bulk power market for as long as possible.
Senate, House Again Debate Electric Power Restructuring
The heat wave and attendant electric and gas price spikes ofearly May have lit a fire under federal legislators, who may haveto answer to consumers this summer and constituents this fall as towhy the nation’s partially deregulated power industry isn’tworking.
NY Trade Board Tries to Make Amends with Nymex
New York Board of Trade reached an agreement last week to “makewhole” all floor operators whose funds were used to meet marginobligations of Klein and Co. Futures Inc. NYBOT said it will payback the innocent traders and customers of Klein. NYBOT’s decisioncame not long after the New York Mercantile Exchange and 15 of itsmembers filed a class action complaint against NYBOT, New YorkClearing Corp. (NYCC) and Klein, alleging that NYBOT improperlyused funds of Klein customers who also traded Nymex energy, oil andmetals contracts to satisfy obligations of an unrelated Kleincustomer on the New York Futures Exchange, a unit of NYBOT.
Mild Upticks Cap Full Week of Rising Prices
Friday’s mild firmness wasn’t terribly impressive following thedazzling display of cash price might the day before, but it didmake last week five-for-five on ever-higher quotes each day.