Natural Gas Week articles from December 2003

Natural Gas Week archives from December 2003

New numbers.(Late News ...)
December 1, 2003... New numbers. December bid-week prices do not appear in this week's issue of Natural Gas Week because of holiday printing schedules. Those prices will appear in Dec. 8 edition. To ensure our readers best service possible, email subscribers will...

New members.(Late News ...)
December 1, 2003... New members. FERC Commissioners Joseph T. Kelliher and Suedeen G. Kelly sworn in last week after Senate confirmed their appointments Nov. 14. Kelliher, whose term expires June 30, 2007, was majority counsel to House energy committee before...

New muscle.(Late News ...)
December 1, 2003... New muscles. Business activity in Midwest, heart of US industrial base, grew at fastest rate in eight years in November, according to National Association of Purchasing Management's Chicago index. Monthly barometer rose to 64.1 from 55.0 in...

Average cash prices & futures strip.(Late News ...)
December 1, 2003... Cash prices jumped with the arrival of cold-weather loads in the East and only faltered slightly for the long Thanksgiving weekend. [GRAPHIC OMITTED]

Energy bill dead for the year following GOP rift over MTBE.
December 1, 2003... Congress has punted the energy bill to next year after leading Republicans, most notably House Majority Leader Tom Delay (R-Texas), refused to strip from the legislation a controversial provision shielding oil and petrochemical companies from...

Majors and supermajors let their US gas production slide.
December 1, 2003... Have the majors and supermajors given up on trying to grow their US natural gas production or even hold it steady? Recent production trends certainly appear to point in that direction. The industry's second- and third-tier players by and...

Short-covering boosts Nymex to close a volatile November.
December 1, 2003... The only thing certain about gas trading last month was its uncertainty, and it carried that trait to the very end. When December approached expiry on Tuesday, it was primed for a fall. Preceeding sessions alternately crushed by long...

Wyoming officials warn supply growth will be elusive ahead.
December 1, 2003... Wyoming state officials have confirmed problems increasingly noticed by producers and gatherers in the state: The future growth rate of gas production in Wyoming is unlikely to match the impressive numbers posted since the late 1990s. ...

Statoil, Shell sign deals to help fill capacity at Cove Point.
December 1, 2003... Three months into operations after having spent almost two decades in mothballs, the Dominion-owned and -operated Cove Point, Maryland LNG receiving terminal is filling up. Moreover, there's a distinct shift away from spot cargoes and towards...

Major market prices.
December 1, 2003... MAJOR MARKET PRICES December 1, 2003 ($/MMBtu) This Weekly Bid Week Week Change for Nov. Chicago City Gate 4.78 +0.23 4.66 New York City Gate 5.17 +0.40 5.03...

Kinder Morgan monitoring LNG developments, plans active role.
December 1, 2003... Kinder Morgan--with its massive natural gas pipeline infrastructure along the Gulf Coast--is closely watching liquefied natural gas (LNG) developments in the region. Kinder Morgan President Michael Morgan said recently that the pipeline...

2003 gas price outlook.
December 1, 2003... 2003 GAS PRICE OUTLOOK December 1, 2003/Week 48 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $5.24 $5.31 $4.732 NOTES: (1) Prices are in $/MMBtu and are...

FERC closes loophole regarding pipeline, transmission affiliates.
December 1, 2003... Federal regulators have closed a loophole in rules governing standards of conduct for gas pipeline and electric transmission affiliates, expanding the definition to and barring some communication among affiliate employees. The Federal...

Spot prices on intrastate pipeline systems.
December 1, 2003... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) December 1, 2003 This Weekly Bid Week Pipeline Week Change for Nov. ...

Composite spot wellhead price.
December 1, 2003... COMPOSITE SPOT WELLHEAD PRICE January 1991 to Present ($/MMBtu) Jan. Feb. March April May June July August Sept. Oct. 2003 5.15 6.91 7.14 4.94 5.48 5.63 4.87 4.88 4.46 4.50 2002 2.14 2.11 2.74...

Alaska's Plan B: LNG on front burner for state's reserves.
December 1, 2003... Energy legislation that would have offered loan guarantees and other incentives to construct a natural gas pipeline from Alaska's North Slope to the Lower 48 may have died in the current session of Congress, but the citizens of Alaska aren't...

CDX says new technology makes CBM gathering more efficient.
December 1, 2003... Amid the furor over coalbed methane (CBM) drilling and its impact on the US landscape, one company is attempting to minimize the effects of such drilling. For the past year, CDX Gas has been touting its Z-Pinnate horizontal drilling and...

Composite spot delivered-to-pipeline price.
December 1, 2003... COMPOSITE SPOT DELIVERED-TO-PIPELINE PRICE January 1991 to Present ($/MMBtu) Jan. Feb. March April May June July August Sept. Oct. 2003 5.40 7.10 7.25 5.07 5.53 5.69 4.92 4.97 4.54 4.57 2002 2.28...

North American weekly gas storage.
December 1, 2003... NORTH AMERICAN WEEKLY GAS STORAGE (Billion Cubic Feet) Nov. 21 Nov. 14 Weekly Year Region Week Week Change Ago US East 1859.0 1864.0 -5.0...

Prices and differentials from major hubs and selected city gates: December 1, 2003 US$/MMBtu.
December 1, 2003... NOTES: (1) Sumas, Wash.; Kingsgate, B.C.; Emerson, Manitoba; and Niagara Falls, Ontario, are reported as major import points from Canada. (2) City Gate represents the cost of gas at the point at which the city's local distribution...

California gets transmission, renewable plans.(Current)
December 1, 2003... The California Legislature should receive two key reports today that offer policy recommendations on how best to develop the state's renewable energy resources and provide transmission to deliver enough green power to meet an aggressive...

Comparative fuel prices.(Current)
December 1, 2003... COMPARATIVE FUEL PRICES (Cash Market) December 1, 2003 EAST COAST Natural Gas Natural Gas New York Harbor: Texas...

Natural gas futures and spot electricity trading.
December 1, 2003... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: Nov. 24-Nov. 28, 2003 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday ...

Constellation buying NY nuclear plant.
December 1, 2003... Constellation Energy has agreed to purchase the 495-MW R.E. Ginna nuclear plant in Rochester, New York, from Rochester Gas & Electric (RG&E) for $401 million. Additionally, Constellation will pay RG&E $21.6 million for nuclear fuel. ...

Reliant, CMS agree to settle fake trading, other charges.
December 1, 2003... Reliant Resources and CMS Energy agreed to pay a combined $34 million to settle probes into energy trading practices. Reliant will pay $18 million to settle Commodity Futures Trading Commission (CFTC) allegations of fake trade reporting,...

Spot prices on interstate pipelines systems--Part 1.
December 1, 2003... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS--PART 1 Delivered-to-Pipeline ($/MMBtu) December 1, 2003 This Weekly Bid Week Pipeline Week Change...

Maine LNG terminal vote delayed.
December 1, 2003... The proposed Fairwinds liquefied natural gas (LNG) terminal, a joint venture of ConocoPhillips and TransCanada PipeLines, hit two potential roadblocks last week. For the second time, the Harpswell (Maine) Board of Selectmen rescheduled a...

Lawmakers ask FERC to reject RTO.
December 1, 2003... A group of lawmakers from Idaho, Oregon, and Washington urged the Federal Energy Regulatory Commission (FERC) to reject a request by Western Interconnect to become a regional power market for the US West. In a letter to FERC Chairman Pat...

Spot prices on interstate pipeline systems--Part 2.
December 1, 2003... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS--PART 2 Delivered-to-Pipeline ($/MMBtu) December 1, 2003 This Weekly Bid Week Pipeline Week Change...

Davis-Besse records subpoenaed.
December 1, 2003... FirstEnergy's nuclear subsidiary received a subpoena from a federal grand jury investigating the company's troubled Davis-Besse nuclear plant in Ohio. The grand jury called for documents and records concerning the inspection and maintenance of...

Industry hopeful new PM Martin will put the brakes on Kyoto.(Canadian Markets)
December 1, 2003... The head of Calgary-based Petro-Canada said last week he hopes incoming prime minister Paul Martin will slow Canada's implementation of the Kyoto accord, a multinational agreement to reduce greenhouse gas emissions. "I'm encouraged by the...

Rig count.(Canadian Markets)
December 1, 2003... Rig Count: There were 487 rigs drilling for natural gas and oil in Western Canada as of Nov. 25, an increase of 18 from a week ago, according to the Canadian Association of Oilwell Drilling Contractors (CAODC). During the same period a...

Working gas.(Canadian Markets)
December 1, 2003... Working gas in all Canadian storage facilities was not available this week due to our early Thanksgiving deadline.

The composite spot import price.(Canadian Markets)
December 1, 2003... The composite spot import price this week is US$4.48/MMBtu for gas leaving Canada and entering the US through six border crossing points. Natural Gas Week's Dec. 2, 2002, average for Canadian exports was US$4.02/MMBtu. Canada's average...

Canadian price report.
December 1, 2003... CANADIAN PRICE REPORT ($U.S per MMBtu/$Can per Gigajoule) BRITISH COLUMBIA ALBERTA Huntingdon/ Kingsgate/ Total Sumas...

Cash market hub trading.
December 1, 2003... CASH MARKET HUB TRADING ($/MMBtu) Henry Hub, La. Current month: Dec. 1: $4.60 Jan. Feb. March April May June July 2003 5.30 7.35 8.06 5.27 5.78 5.84 5.04 2002 ...

Natural gas rig count.
December 1, 2003... NATURAL GAS RIG COUNT Nov. 26: Nov. 21: Nov. 14: 1,113/959/86.2% 1,107/948/85.6% 1,111/948/85.3% Jan. Feb. March April May June July 2003 Total ...

Gas price trends.
December 1, 2003... GAS PRICE TRENDS ($/MMBtu) ROCKY NEW CALIFORNIA MTNS MEXICO South North December 1, 2003 Inter (well) -- -- 4.22...

Analysts: energy bill a porker that won't solve supply woes.
December 1, 2003... The energy bill, for now dead in the water in the US Senate, (see story p1), came under withering heat during its near-passing by Congress, enduring not only the predictable ballasts from environmentalists but in editorials from The Wall Street...

Gas price report.
December 1, 2003... GAS PRICE REPORT ($/MMBtu--Spot) December 1, 2003 Interstate Intrastate Wellhead Wellhead Bid Bid ...

The Natural Gas Week.
December 1, 2003... The Natural Gas Week composite spot wellhead price this week is $4.49/MMBtu, 28 cents more than last week and 47 cents more than the Dec. 2, 2002, average. The spot delivered-to-pipeline price this week is $4.58/MMBtu, 25 cents more than last...

Keep the lights on.(Late News ...)
December 8, 2003... Northeast utility representatives back calls for national standards to avoid repeat of Aug. 14 blackout. William Museler, president and chief executive of New York Independent System Operator, suggested adopting national reliability standards,...

Energy Bill II.(Late News ...)
December 8, 2003... American Gas Association President David Parker expects energy bill to be back sooner rather than later. "It's logical to think that some time between the president's State of the Union address and when Congress recesses for its Lincoln Day...

Plea entered.(Late News ...)
December 8, 2003... John Forney, Enron's former manager of real-time trading in Portland, Oregon, entered not guilty plea on 11 counts of conspiracy and wire fraud related to energy market manipulation during California's power crisis. US Attorney's Office in San...

Average cash prices & futures strip.(Late News ...)
December 8, 2003... A sensational wave of short covering pulled the Henry Hub contract up $1.21 for the week as cold weather pumped up spot prices. [GRAPHICS OMITTED]

Surge in LNG imports decreases value of pipeline capacity to NE.
December 8, 2003... Buried deep underground, one casualty of increasing volumes of liquefied natural gas (LNG) to the US looms large. The long-haul interstate pipeline system from the US Gulf, which has been the main way supply-constrained Northeast markets have...

Weather, short-covering propel Nymex gas past $6; $7 in east.
December 8, 2003... Numerous factors--bullish weather, technical short-covering and momentum buying--played a role in the remarkable 28% surge in Nymex gas futures last week, a rise of up to $1.38/MMBtu in the January contract before profit-taking Friday. The...

API, AGA are still the heavy hitters in the lobbying game.
December 8, 2003... Once again, the American Petroleum Institute (API) dwarfed its oil and gas trade association brethren in terms of fiscal strength, doling out nearly $6.5 million in lobbying and political expenses in 2002--its competitors did not even crack...

Lease sale offers firms second bite at eastern Gulf of Mexico.
December 8, 2003... The Minerals Management Service (MMS) will hold a lease sale for blocks in the eastern Gulf of Mexico this week, and it seems safe to assume that Anadarko and Royal Dutch/Shell--the big spenders at the previous sale--will be among the top...

Alma field begins production.
December 8, 2003... Natural gas production began last week at the Sable Offshore Energy Project's Alma field offshore Nova Scotia, adding 120 MMcf/d of natural gas and 3,000 b/d of condensate and natural gas liquids. Alma is Sable's first Tier 2 field and was...

BP is latest to enter US LNG market with proposed terminal.
December 8, 2003... Supermajor BP is the latest entrant into the scramble to build liquefied natural gas (LNG) import facilities in North America, setting its sights on the banks of the Delaware River in New Jersey, just downstream from Philadelphia. The LNG...

Falcon looking to buy storage.
December 8, 2003... Falcon Gas Storage is looking to add an additional facility in New Mexico to its current fleet of US natural gas storage caverns. Jeffrey Foutch, Falcon's executive vice president, said the New Mexico prospect would tie into El Paso's...

Imperial may replace gas with bitumen in oil sands recovery.
December 8, 2003... Imperial Oil said last week it may not use natural gas in the future to make the steam it needs for oil sands projects in Alberta. The company also put an estimated price tag of C$5 billion-C$8 billion (US$4 billion-$6 billion) on a new oil...

Alaska seeks loan guarantee for LNG, but producers don't want it.
December 8, 2003... Laguage helping to guarantee financing for an Alaskan liquefied natural gas (LNG) terminal that slipped into the spending legislation that Congress will consider this week may seem like the perfect way to bolster efforts to commercialize...

Major market prices.
December 8, 2003... MAJOR MARKET PRICES December 8, 2003 ($/MMBtu) This Weekly Bid Week Week Change for Dec. Chicago City Gate 5.50 +0.72 4.97 New York City Gate 6.57 +1.40 ...

FERC uses PURPA for authority to override state laws on RTOs.
December 8, 2003... Late last month, the Federal Energy Regulatory Commission (FERC) re-ignited the long-standing jurisdictional battle between state and federal regulators regarding regional transmission organizations (RTO) by ordering Columbus, Ohio-based...

Spot prices on intrastate pipeline systems.
December 8, 2003... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) December 8, 2003 This Weekly Bid Week Pipeline Week Change for Dec....

Anadarko plans ways to extend Canadian winter drilling season.
December 8, 2003... Anadarko Petroleum is attempting to break the rigid seasonal pattern of oil and gas drilling in Canada and expects the new approach to deliver cost savings of 25%. The vast majority of drilling activity in Canada occurs during a narrow...

2003 gas price outlook.
December 8, 2003... 2003 GAS PRICE OUTLOOK December 8, 2003/Week 49 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $5.35 $5.42 $5.144 NOTES: (1) Prices are in $/MMBtu and...

Nort American weekly gas storage.
December 8, 2003... NORTH AMERICAN WEEKLY GAS STORAGE (Billion Cubic Feet) Nov. 28 Nov. 21 Weekly Year Yr. Ago Region Week Week Change Ago Difference Us East 1824.0...

Prices and differentials for majors hubs and selected city gates.
December 8, 2003... PRICES AND DIFFERENTIALS FOR MAJOR HUBS AND SELECTED CITY GATES December 8, 2003 US$/MMBtu Sumas, Wash. $4.74 Malin, Ore. $4.80 Los Angeles City Gate $5.38 Topock, Ariz. $4.89 AECO-C Hub ...

Shell executive affirms need for Gulf plays.(E & P Update)
December 8, 2003... Royal Dutch/Shell executives surprised analysts during its late October third-quarter conference call by saying that its Brutus field in the deepwater Gulf of Mexico is depleting quicker than expected and field reserves aren't what the company...

Gas rigs vs. total rigs.
December 8, 2003... Gas Rigs Vs. Total Rigs Oil Rigs Gas Rigs 12/1/1999 162 636 12/1/2000 243 854 12/1/2001 147 754 12/1/2002 142 714 10/31/2003 163 944 11/7/2003 ...

Storage-price-gas rig count.
December 8, 2003... Storage-Price-Gas Rig Count Rig Count Storage 08/01/03 937 2106 08/08/03 920 2188 08/15/03 933 2266 10/24/03 930 3121 10/31/03 944 3155 11/07/03 952...

Wind energy faces '04 without tax credit.(Current)
December 8, 2003... Last month's failure by Congress to pass sweeping energy legislation may stunt the growth of the wind energy industry, due to the expiration of a key federal tax incentive that was to be extended by the energy bill. Wind energy has had one...

Consumers to Surf power lines.(Current)
December 8, 2003... Despite the financial fiasco broadband and telecom investment brought energy merchants, companies continue to peddle broadband over power lines (BPL) to power companies--except this time the players are much smaller, more localized, and...

EPA announces new emissions plan.(Current)
December 8, 2003... The Environmental Protection Agency (EPA) said last week that it plans to propose new requirements for coal-burning power plants to reduce their emissions. The "Interstate Air Quality Rule" will require further cuts to reduce sulfur dioxide...

ConEd reaches rate case agreement.(Current)
December 8, 2003... New York-based Consolidated Edison (ConEd) agreed to settle a rate case for $137.5 million, related to four forced outages at its Indian Point 2 nuclear unit, the state's utility regulator said. The proposed agreement, still awaiting...

Comparative fuel prices.(Current)
December 8, 2003... COMPARATIVE FUEL PRICES (Cash Market) December 8, 2003 APPALACHIA Appalachian Pool Dlvd (Util) Ohio/Big Sandy River Coal $37.65/ton $5.92/MMBtu $1.57/MMBtu...

Natural gas futures and spot electricity trading.(Current)
December 8, 2003... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: Dec. 1-Dec. 5, 2003 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Thursday ...

Exelon ends Illinois power deal.(Current)
December 8, 2003... Exelon's agreement to buy an Illinois utility from Dynegy was terminated after state regulators chose not to approve legislation crucial to the deal that would have extended electricity rates through 2010 to preserve Exelon's revenue, according...

Black Hills eyeing Oregon plant.(Current)
December 8, 2003... Black Hills Corp. is looking to revive plans to build a 900-MW natural gas-fired power plant in Oregon that had been put on hold after Enron, the project's original backer, went bankrupt. If built, the facility would be the biggest fossil...

Cash market hub trading.
December 8, 2003... CASH MARKET HUB TRADING ($/MMBtu) Henry Hub, La. Current month: Dec. 8: $5.56 Dec. 1: $4.60 Bid-Week for Dec.: $4.86 Jan. Feb. March April May June July August Sept. 2003 5.30 7.35 8.06 5.27...

Natural gas rig count.
December 8, 2003... NATURAL GAS RIG COUNT Dec. 5: 1,111/956/86.0% Jan. Feb. March April May June July August 2003 Total 854 907 941 983 1034 1067 1081 1090 Gas 718 750 767 795 ...

Kinder Morgan Energy Partners grabs infrastructure stakes.(Regional Market Roundup)
December 8, 2003... Kinder Morgan Energy Partners (KMEP) made a pair of natural gas infrastructure purchases last week. KMEP increased its ownership stake in a natural gas storage facility and purchased an oil pipeline that it plans to convert to a natural gas...

Mid-Atlantic.(Regional Market Roundup)
December 8, 2003... Dominion received Federal Energy Regulatory Commission (FERC) approval for two new natural gas transmission projects that will provide additional natural gas supplies to the Mid-Atlantic region--the Mid-Atlantic Expansion Project and the Cove...

Spot prices on interstate pipeline systems--part 1.(Regional Market Roundup)
December 8, 2003... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS--PART 1 Delivered-to-Pipeline ($/MMBtu) December 8,2003 This Weekly Bid Week Bid Week Pipeline Week Change for Dec....

Wyoming.(Regional Market Roundup)
December 8, 2003... St. Mary Land & Exploration will proceed with the development of coalbed methane reserves in the Hanging Woman Basin, located in the northern part of the Powder River Basin along the Montana-Wyoming border. The company has 126,000 net lease...

British Columbia.(Regional Market Roundup)
December 8, 2003... Canada's National Energy Board has granted conditional approval for the construction and operation of the Georgia Strait Crossing (GSX) pipeline that could help supply natural gas to markets in northwestern Washington state and Vancouver...

Gulf of Mexico.(Regional Market Roundup)
December 8, 2003... Murphy Oil has begun production from its Medusa field located in Mississippi Canyon blocks 538 and 582. The Medusa development is located in 2,200 feet of water and consists of a spar facility capable of handling 110 MMcf/d of natural gas as...

Spot prices on interstate pipeline systems--part 2.(Regional Market Roundup)
December 8, 2003... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS--PART 2 Delivered-to-Pipeline ($/MMBtu) December 8, 2003 This Weekly Bid Week Bid Week Pipeline Week Change for Dec....

Plans for Deep Panuke scrapped; EnCana may scale back project.(Canadian Markets)
December 8, 2003... EnCana has withdrawn its C$1.3 billion (US$1 billion) plan to develop the Deep Panuke natural gas project offshore Nova Scotia but may retool it to tap the estimated 1 Tcf of gas. EnCana put the project on hold last February saying it would...

Rig count.(Canadian Markets)
December 8, 2003... Rig Count: There were 505 rigs drilling for natural gas and oil in Western Canada as of Dec. 2, an increase of 18 from a week ago, according to the Canadian Association of Oilwell Drilling Contractors (CAODC). During the same period a year...

Working gas.(Canadian Markets)
December 8, 2003... Working gas in all Canadian storage facilities decreased to 90.3% of capacity as of Nov. 28, down from 91.6% the week before, according to the most recent Canadian Enerdata gas storage survey. Canadian storage facilities were 79.7% full a...