NGI The Weekly Gas Market Report

©Copyright, 2001 Intelligence Press. All rights reserved. Thepreceding news report may Not be republished Or redistributed, in wholeOr in part, without prior written consent of Intelligence Press .

Several consumer groups in Montana, including the local chapter of the Public Interest Research Group (PIRG), want to pursue ballot initiatives that would call for the repeal of sections of the state’s deregulation law and a ratepayer rebate that would be funded by excess profits from generators.

Duke Energy earnings jumped 23% during the second quarter to 54 cents/share led by a 128% quarterly increase in EBIT (earnings before interest and taxes) from wholesale energy operations. Duke’s Energy Services division, which includes North American Wholesale Energy, International Energy and Other Energy Services business segments, posted EBIT of $328 million for the quarter, a 58% increase over 2Q2000.

El Paso Natural Gas and affiliate El Paso Merchant Energy are challenging FERC’s decision last month to re-open an investigation into allegations that the bidding for transportation capacity on the pipeline’s system was skewed to favor its merchant power generation affiliates.

©Copyright, 2001 Intelligence Press. All rights reserved. Thepreceding news report may Not be republished Or redistributed, in wholeOr in part, without prior written consent of Intelligence Press .

Occidental Petroleum earnings of $466 million ($1.25 per share) beat Wall Street estimates by more than 20 cents/share. The company posted a 34% gain in net income before special items from the same period a year ago mainly on higher western gas prices and improved chemicals operations.

Controversy, fueled by increasing political tensions, heated up last week about a group of private sector consultants brought on the state payroll by Gov. Gray Davis in the past six months to help California wrestle with its electricity problems, including the state’s role in buying bulk wholesale power.

Global Marine last week reported the first decline in 23 months in its June Summary of Current Offshore Rig Economics (SCORE) for the Gulf of Mexico. The SCORE report measures the profitability of drilling operations. Global Marine Chairman Bob Rose said softening jackup rates due to declining natural gas prices have “taken a toll on the Gulf SCORE.” However, strong oil prices have “continued to fuel improvement in international offshore rig markets.”

Four House committees passed major energy bills last week that, among other things, would open the door to drilling in the Arctic National Wildlife Refuge (ANWR), provide producers $8 billion in tax breaks and incentives, and suspend royalties on oil and natural gas production in deep waters of the Gulf of Mexico up to certain limits. The measures are expected to rendezvous in late July in a comprehensive piece of legislation to be voted on by the full House.