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At their height a year ago, the domestic natural gas and electricity trading arms of energy companies across the United States employed between 12,000 and 15,000 in front-, middle- and back-offices, many making well above average college-educated salaries. There were nearly 4,000-5,000 sales and marketing professionals, another 6,000-7,000 accountants and analysts, and 2,000 to 3,000 specialists, focusing on transportation and certain contracts. Today, energy trading units are shrinking rapidly, but they won’t disappear, a veteran energy expert said Wednesday. They can’t, he said.

Constellation Energy Group CEO Mayo Shattuck expects the shakeout in the energy marketing and trading business to take up to two years and to bring down several more of Constellation’s competitors in that time period.

A financial community audience hosted by Standard & Poor’s in New York City was told Wednesday that in the wake of this year’s energy industry credit and credibility crisis, electricity reserves look adequate for North America through 2008, but energy price volatility is expected to continue, particularly in regard to natural gas, according to a presentation by Boulder, CO-based researcher Douglas Logan, a principal in Platts Research & Consulting/RDI. On average, however, gas prices should stay in the $2.75-$3.50/MMBtu range.

The post-Enron Corp. energy industry erosion of financial sector confidence will only be reversed by companies and the overall industry developing more standardized contracts and greater disclosure, according to speakers at a day-long Standard & Poor’s “Power and Energy Credit Conference” Wednesday in New York City. The rating agency’s speakers also said their ratings work will continue to be done on a company-by-company basis, so individual companies do not have to be tainted by the current industry torpor.

The Federal Energy Regulatory Commission on Wednesday gave Copiah County Storage Co., a subsidiary of Duke Energy’s Market Hub Partners, its long awaited approval to build a 3.3 Bcf salt dome natural gas storage facility in Copiah County, MS. Market Hub Partners started its first open season for the project more than two years ago (see Daily GPI, April 17, 2000).

The Federal Energy Regulatory Commission on Wednesday gave final approval to Florida Gas Transmission Co.’s (FGT) Phase VI expansion, which will add 85,356 Dth/d of capacity and 33 miles of pipeline to meet increasing demand mainly from gas-fired power generators in Mississippi, Louisiana, Alabama and Florida.

Given the emphasis on its new enforcement role, FERC will be holding more closed door meetings in the future, Chairman Pat Wood said Wednesday as the Commission scheduled a private session following its regular open session.

In an effort to improve its supply diversity on its Texas Gas Transmission (TGT) system, a unit of Williams reported Wednesday that it is connecting to a “significant” new supply source in offshore Louisiana at East Cameron Block 9 in the Gulf of Mexico, which is being developed by Energy Partners, Ltd.

Florida Gas Transmission lifted Wednesday an Overage Alert Day notice for its market area that had been in effect for two days.