Natural Gas Week articles from February 2004

Natural Gas Week archives from February 2004

Sable slips.(Late News ...)
February 2, 2004... Sable slips. Shell Canada, in its fourth quarter earnings report, reduced estimate for its share of sales gas at Sable Offshore Energy Project by 300 Bcf--down 38.6% from last year's estimate--to approximately 430 Bcf. Revision is based on...

Gridlock.(Late News ...)
February 2, 2004... Gridlock. Team of utility industry experts offered recommendations to the Joint US-Canadian Power System Outage Task Force to improve overall reliability and operational performance of nation's transmission grid. Experts recommend practical...

Average cash prices & futures strip.(Late News ...)
February 2, 2004... A substantial, but not quite hefty enough, storage withdrawal paved the way last week for a late-week price decline. [GRAPHICS OMITTED]

Marathon's Baja California LNG terminal is on shaky ground.
February 2, 2004... Marathon Oil isn't declaring its proposed Tijuana Regional Energy Center in Baja California, Mexico, dead just yet, but the project's health is deteriorating, which is ironic in that LNG receiving terminal developers believed that siting...

Devon expects rapid growth in Barnett Shale to decline slowly.
February 2, 2004... Devon Energy expects its Barnett Shale gas production in north Texas to slow down in 2004 after several years of rapidly expanding output. The Barnett Shale has potential for further growth, but Devon Vice President Brad Foster says it...

Gas storage fears fading after another anemic draw reported.
February 2, 2004... After the Energy Information Administration (EIA) reported another anemic withdrawal in the major eastern storage area, the concerns that working gas will be seriously depleted by the end of the withdrawal season began melting like the coming...

Nymex makes hostile ICE bid; impact mixed for gas trading.
February 2, 2004... The New York Mercantile Exchange (Nymex) appears to have launched a hostile takeover bid for its archrival, the Intercontinental Exchange (ICE), after merger talks broke down last year, potentially swallowing a popular trading platform for spot...

Correction.
February 2, 2004... An article in last week's Current section about environmentalists appealing wind turbine permits and suing wind turbine owners over bird kills contained incorrect information. Florida Power & Light purchased its Altamont Pass Wind...

Energy bill teetering near oblivion, but not dead yet.
February 2, 2004... Most industry observers feel the energy bill is barely on life support and the plug will be pulled this year, though Senate proponents insist they will move forward with efforts to push it through this session of Congress. "You've had the...

Florida bills would grant gas pipelines eminent domain right.
February 2, 2004... Two bills currently in the Florida legislature would establish and solidify eminent domain rights for the state's natural gas pipeline companies. Under a law that was passed in 1953, natural gas transmission companies have enjoyed the...

Major market prices: February 2, 2004.
February 2, 2004... MAJOR MARKET PRICES February 2, 2004 ($/MMBtu) This Weekly Bid Week Week Change for Feb. Chicago City Gate 6.07 +0.01 5.92 New York City Gate 9.92 ...

Duke sale part of trend moving trading assets to Wall Street.
February 2, 2004... Federal regulators agreed last month to allow Duke Energy's trading arm to sell its electricity-trading book to a subsidiary of Morgan Stanley, highlighting the continuing industry trend of companies abandoning the merchant energy function...

Composite spot wellhead price.
February 2, 2004... COMPOSITE SPOT WELLHEAD PRICE January 1992 to Present ($/MMBtu) Jan. Feb. March April May June July 2004 5.90 2003 5.15 6.91 7.14 4.94 5.48 5.63 4.87 2002 2.14 2.11 2.74 ...

Netbacks could keep LNG to US despite Algeria explosion.
February 2, 2004... Squeezing what is normally a tight Atlantic Basin supply period October through March, the temporary absence of approximately 5 million tons of liquefied natural gas (LNG) from Algeria's Skikda plant has effectively eliminated excess LNG...

Composite spot delivered-to-pipeline price.
February 2, 2004... COMPOSITE SPOT DELIVERED-TO-PIPELINE PRICE January 1992 to Present ($/MMBtu) Jan. Feb. March April May June July 2004 6.30 2003 5.40 7.10 7.25 5.07 5.53 5.69 4.92 2002 2.28 2.23...

Race to construct Alaska pipe gets boost with state approval.
February 2, 2004... North Slope producers and a consortium that includes Mid-American Energy, Pacific Star Energy and Cook Inlet Region are in a race to build a pipeline bringing natural gas from Alaska to the Lower 48. Alaska last week accepted the...

In wake of Algerian LNG mishap, two offshore terminals proposed.
February 2, 2004... Coming on the heels of a liquefied natural gas plant (LNG) explosion in Algeria that killed at least 27 and injured 70 others, two US offshore LNG facilities were unveiled last week. The ink is barely dry on the US government's go-ahead for...

Spot prices on intrastate pipeline systems.
February 2, 2004... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) February 2, 2004 This Weekly Bid Week Pipeline Week Change for Feb....

North American weekly gas storage.
February 2, 2004... NORTH AMERICAN WEEKLY GAS STORAGE (Billion Cubic Feet) Jan. 23 Jan. 16 Weekly Year Region Week Week Change Ago US East 1163.0 1297.0 -134.0...

Prices and differentials for major hubs and selected city gates.
February 2, 2004... [GRAPHICS OMITTED] PRICES AND DIFFERENTIALS FOR MAJOR HUBS AND SELECTED CITY GATES February 2, 2004 US$/MMBtu NOTES: (1) Sumas, Wash.; Kingsgate, B.C.; Emerson, Manitoba; and Niagara Falls, Ontario, are reported as...

Exxon Mobil.(Corporate Earnings)
February 2, 2004... Even after posting record profits in 2003 and acknowledging that it is generating gobs of free cash flow from high commodity prices, supermajor Exxon Mobil says it is still not tempted to boost capital spending above its annual rate of $15...

Duke Energy.(Corporate Earnings)
February 2, 2004... To create a "stable platform for growth," Duke Energy sold $2 billion worth of assets, exceeding its 2003 target, and chopped its debt by $2.2 billion during the year. But Duke still posted fourth quarter and year-end 2003 losses associated...

Dynegy.(Corporate Earnings)
February 2, 2004... Dynegy reported $533 million in yearly losses associated with asset impairments and sales, discontinued operations and accounting changes. The company posted fourth quarter losses of $226 million (62 cents/share) on $1.45 billion in revenue,...

Apache.(Corporate Earnings)
February 2, 2004... Apache's annual earnings crossed the $1 billion threshold for the first time in 2003 as the company benefited from firm oil and gas prices, while production volumes were boosted by acquisitions of properties from BP and Royal Dutch/Shell....

Exelon.(Corporate Earnings)
February 2, 2004... Chicago-based Exelon posted a fourth-quarter 2003 net income of $274 million (83 cents/share) on $3.58 billion in revenue, compared with a net income of $397 million ($1.22/share) on revenue of $3.71 billion in the same year-ago period. For the...

Dominion.(Corporate Earnings)
February 2, 2004... Dominion announced that higher commodity prices and sales volumes strengthened 2003 earnings for its gas and oil exploration, development and production operations but overall profits fell. Yearly income fell to $362 million ($1.14/share)...

Cinergy.(Corporate Earnings)
February 2, 2004... Cinergy, an integrated energy company, posted higher earnings despite mild weather on accounting changes and discontinued operations. Year-end earnings were $469.8 million ($2.63/share), compared with $360.6 million ($2.13/share) in 2002....

Constellation.(Corporate Earnings)
February 2, 2004... Although year-end earnings were down, Constellation's fourth-quarter profits surged more than 80% because of its merchant energy arm. Fourth-quarter income climbed to $119 million (71 cents/share) on revenue of $2.49 billion, from $65 million...

2004 gas price outlook.
February 2, 2004... 2004 GAS PRICE OUTLOOK February 2, 2004/Week 5 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $5.38 $5.51 $5.224 NOTES: (1) Prices are in $/MMBtu and are...

Integrated utilities to grow in 2004.(Current)
February 2, 2004... The buzz about the future of US utilities continues to grow as emerging integrated utility companies overtake the energy-merchant model. Restoring investor confidence led many energy companies involved in wholesale power markets to...

About face: California changes ownership policy.(Current)
February 2, 2004... The state of California may be rethinking how it goes about deregulating its electricity market having recently adopted electricity supply standards that seem antipodal to the deregulation design many say caused the 2000-01 energy crisis. ...

FERC urged to take secondary role.(Current)
February 2, 2004... Some of the largest US utilities are trying to head off a move by the Federal Energy Regulatory Commission (FERC) to launch its own reliability audits of the nationwide power grid to prevent a repeat of the Aug. 14, 2003, blackout. ...

Comparative fuel prices.(Current)
February 2, 2004... COMPARATIVE FUEL PRICES (Cash Market) February 2, 2004 APPALACHIA Appalachian Pool Dlvd (Util) Ohio/Big Sandy River Coal $44.25/ton $6.70/MMBtu ...

Dominion endorses coal-fired plant.(Current)
February 2, 2004... Dominion endorsed the construction of a proposed 500MW advanced coal-fired power plant station in southwestern Virginia. State Sen. William Wampler of Bristol, Virginia, proposed the power station in an amendment to a bill from Gov. Mark...

Dynegy extends peaker agreement.(Current)
February 2, 2004... Dynegy has reached an agreement to provide North Carolina Municipal Power Agency Number 1 (NCMPA1) with 50 MW of peaking capacity from the company's Rockingham, North Carolina, electric power generating facility. The five-year capacity...

Natural gas futures and spot electricity trading.(Current)
February 2, 2004... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: Jan. 26-Jan. 30, 2004 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Wednesday Last/Volume...

Bruce Power mulls restarting nukes.(Current)
February 2, 2004... Bruce Power, Ontario's nuclear power producer, said it is studying the restart of its Bruce A units 1 and 2 and might also consider building one or more new reactors. The company said it would also examine the preliminary case for refurbishing...

Entergy buys 718-MW La. plant.(Current)
February 2, 2004... Entergy Louisiana, a subsidiary of Entergy, has agreed to buy a 718-MW power plant in Louisiana from Cleco unit Perryville Energy Partners for $170 million. Power from the natural gas-fired Perryville plant, near Monroe, Louisiana, will be...

Cash market hub trading.(Current)
February 2, 2004... CASH MARKET HUB TRADING ($/MMBtu) Henry Hub, La. Current month: Feb. 2: $5.86 Bid-Week for Feb.: $5.76 Jan. Feb. March April May June July 2004 6.09 2003 5.30 7.35 8.06 5.27 5.78...

Natural gas rig count.(Current)
February 2, 2004... NATURAL GAS RIG COUNT Jan. 30: 1,084/938/86.5 Jan. 23: 1,087/946/87.0 Jan. 16: 1,127/980/87.0% Jan. 9: 1,106/957/86.5% Jan. Feb. March April May June July 2004 Total 1,101 Gas ...

Oxy plans 1 Bcf/d LNG terminal; two others planned for area.(Regional Market Roundup)
February 2, 2004... Occidental Petroleum's OxyChem unit plans to build a 1Bcf/d liquefied natural gas (LNG) receiving facility at its petrochemical complex at Ingleside, Texas, on the north side of Corpus Christi Bay. The facility would be near a proposed 1 Bcf/d...

Texas.(Regional Market Roundup)
February 2, 2004... Scientists at Exxon Mobil Upstream Research have developed a new technology for LNG storage that they claim will deliver full-containment LNG tanks that cost less and can be constructed more quickly. The new tanks will be easy to spot--they...

Kansas.(Regional Market Roundup)
February 2, 2004... Heartland Oil and Gas has completed the first phase of its coalbed methane (CBM) pilot program in Kansas' Forest City Basin, on time and within budget. The five-well pilot is located in the Engelke area of Nemaha County, Kansas, where the...

Florida.(Regional Market Roundup)
February 2, 2004... FERC gave Tractabel's Calypso natural gas pipeline the environmental go-ahead. The $144 million Calypso project is slated to bring 832 MMcf/d over a 90-mile pipeline from an LNG terminal in Freeport, Bahamas, across the water to Broward County,...

Spot prices on interstate pipeline systems--part 1.
February 2, 2004... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS--PART 1 Delivered-to-Pipeline ($/MMBtu) February 2, 2004 This Weekly Bid Week Pipeline Week Change for Feb. ...

Spot prices in interstate pipeline systems--part 2.
February 2, 2004... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS--PART 2 Delivered-to-Pipeline ($/MMBtu) February 2,2004 This Weekly Bid Week Pipeline Week Change for Feb....

Fewer gas wells to be taken off line to preserve oil sands.(Canadian Markets)
February 2, 2004... Alberta's energy regulator is calling for the permanent shut in of 485 natural gas wells with daily production of 136 MMcf/d to protect oil sands reserves in the northern Athabasca region of the province. The Alberta Energy and Utility...

Rig count.(Canadian Markets)
February 2, 2004... Rig Count: There were 633 rigs drilling for natural gas and oil in Western Canada as of Jan. 27, an increase of nine from a week ago, according to the Canadian Association of Oilwell Drilling Contractors (CAODC). During the same period a...

Working gas.(Canadian Markets)
February 2, 2004... Working gas in all Canadian storage facilities decreased to 54.4% of capacity as of Jan. 23, down from 61.8% the week before, according to the most recent Canadian Enerdata gas storage survey. Canadian storage facilities were 42.9% full a...

The composite spot import price.(Canadian Markets)
February 2, 2004... The composite spot import price this week is US$5.50/MMBtu for gas leaving Canada and entering the US through six border crossing points. Natural Gas Week's Feb. 3, 2003, average for Canadian exports was US$5.16/MMBtu. Canada's average...

Mexican imports to peak by 2005, fall, then peak again by 2012.(World Roundup)
February 2, 2004... Mexican demand for imported gas will peak in the next 18 months, subside as new domestic gas production comes on stream and then spike again in 2012, according to a recent report by Mexico's Energy Ministry (Sener). The report estimates natural...

Russia wants access to Europe.(World Roundup)
February 2, 2004... Russia is pressing ahead with its ambitious project to obtain direct access to Western Europe's gas transportation system via a pipeline under the Baltic to Germany. The system would bypass all former Soviet transit countries, which tend to...

Canadian price report .(World Roundup)
February 2, 2004... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) BRITISH COLUMBIA Hun- ting ...

City gate prices.(World Roundup)
February 2, 2004... CITY GATE PRICES February 2, 2004 ($/MMBtu) Bid Week Bid Week City for Feb. for Jan. Austin, Texas Valero Transmission Co. 5.28...

Gas price trends.(World Rooundup)
February 2, 2004... GAS PRICE TRENDS ($/MMBtu) ROCKY NEW CALIFORNIA MTNS MEXICO South North February 2, 2004 Inter (well) -- -- ...

Connecticut AG drags FERC into price spike investigation.(World Roundup)
February 2, 2004... Connecticut Attorney General Richard Blumenthal's probe into "profiteering" during recent record-breaking cold is kicking up quite a storm, putting local regulators on the defensive while dragging Washington into the imbroglio. But whether...

Gas price report.(World Roundup)
February 2, 2004... GAS PRICE REPORT ($/MMBu--Spot) February 2, 2004 Interstate Interstate Wellhead Wellhead Bid Bid ...

LNG imports up.(Late News ...)
February 9, 2004... LNG imports up. Mirroring earlier Natural Gas Week estimates, Department of Energy's Office of Fosil Energy released its preliminary 2003 liquefied natural gas (LNG) import data showing volumes of 506 Bcf. Natural Gas Week estimates showed...

Jackpine gets ok.(Late News ...)
February 9, 2004... Jackpine gets OK. Shell Canada received decision report and conditional approval for Phase 1 of its Jackpine oil sands mine from joint review panel established by the Alberta Energy and Utilities Board and the Canadian government. Jackpine...

Average cash prices & futures strip.(Late News ...)
February 9, 2004... Caption: Despite the strongest storage withdrawal of the season, cash prices continued to slide last week. [ILLUSTRATION OMITTED]

E&P write-downs dim outlook for two promising gas plays.
February 9, 2004... Another round of producer reserve write-downs has called into question future supply in two of the more promising North American gas plays--offshore Atlantic Canada and in South Texas. Investors have been fretting over the exploration and...

Proposed Washington state LNG terminal could replace hydro.
February 9, 2004... "If you build a liquefied natural gas (LNG) terminal, we will buy." It's not quite the same message from Field of Dreams, but the head of at least one Washington state utility is more than amenable to the idea of LNG to fuel his power plants....

Huge EIA withdrawal ignored with milder temps in sight.
February 9, 2004... The worst of winter is now clearly in the rearview mirror for major US and Canadian heating markets, a reality that is dragging on sentiment in gas markets despite a monster storage withdrawal last week. Mother Nature has delivered quite a...

Utilities stand to absorb costs as LIHEAP funds are used up.
February 9, 2004... The ongoing crisis in the natural gas market is now leaving emergency energy providers in a pinch, and the utilities may be the ones paying the price. Two months ago, the National Energy Assistance Directors' Association (NEADA) released a...

Barton likely to replace Tauzin.
February 9, 2004... House Energy and Commerce Committee Chairman W.J. "Billy" Tauzin (R-Louisiana) said last week that he would step down on Feb. 16. Tauzin's abrupt decision, announced in the midst of the Senate considering a redo of the energy legislation, could...

MTBE maneuver may breathe life into moribund energy bill.
February 9, 2004... In a decision that has far-reaching ramifications for the oil industry, a key Senate chairman last week announced he was withdrawing his support for a controversial provision in the energy bill shielding companies from certain lawsuits relating...

North American gas will help drive Devon's growth in 2004.
February 9, 2004... Devon Energy expects an active North American gas drilling program, coupled with international oil projects, to deliver organic production growth of 4% to 6% in 2004. Devon's production surged in 2003, mainly as a result of its $5.3...

Major market prices.
February 9, 2004... MAJOR MARKET PRICES February 9, 2004 ($/MMBtu) This Weekly Bid Week Week Change for Feb. Chicago City Gate 5.63 -0.44 5.92 New York City Gate 6.53 -3.38 ...

Bush budget cuts DOE funding but leaves DOI, EPA steady.
February 9, 2004... The Bush administration's fiscal 2005 budget offers no new initiatives for tackling domestic energy production and conservation in a significant way, as a looming deficit forced the White House to recommend to Congress small or zero increases...

Spot prices on intrastate pipeline systems.
February 9, 2004... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) February 9, 2004 This Weekly Bid Week Pipeline Week Change for Feb. ...

North American smelters dying as Alcan closes Quebec plant.
February 9, 2004... The aluminum industry--already teetering on the edge--saw two more signs last month that North American smelters are a dying breed. The first was an announcement by Montreal-based Alcan that it would permanently shut down its 60-year old...

2004 Gas price Outlook.
February 9, 2004... 2004 GAS PRICE OUTLOOK February 9, 2004/Week 5 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $5.27 $5.40 $5.344 NOTES: (1) Prices are in $/MMBtu and are for...

More LNG projects look unlikely as plans fall by the wayside.
February 9, 2004... A year ago, announcements of new North American liquefied natural gas (LNG) receiving terminals seemed to come as fast as fax machines could distribute them. Now, the news is as likely to be about projects deferred, on life support or...

North American weekly gas storage.
February 9, 2004... NORTH AMERICAN WEEKLY GAS STORAGE (Billion Cubic Feet) Jan. 30 Jan. 23 Weekly Year Region Week Week Change Ago US East 1009.0 1163.0 -154.0 805.0 West...

2003 earnings good for E&P's; mixed for power.(Corporate Earnings)
February 9, 2004... Entergy posted lower fourth-quarter losses on $51.8 million in severance charges and mild weather, while year-end earnings surged more than 50% with the absence of 2002 charges. Entergy Commodity Services, which includes merchant trading...

2003 earnings good for E&P's; mixed for power.(Corporate Earnings)
February 9, 2004... American Electric Power reported narrower year-over-year fourth quarter losses and reversed 2002 year-end losses and posted a profit for 2003. Losses from discontinued operations, accounting changes and write downs led to almost $1 billion in...

2003 earnings good for E&P's; mixed for power.(Corporate Earnings)
February 9, 2004... AES reported significantly less in losses that went from billions to millions despite costs incurred from discontinued operations--domestic and foreign--and an accounting charge. Year-end 2003 net losses were $403 million (67cents/share) on...

2003 earnings good for E&P's; mixed for power.(Corporate Earnings)
February 9, 2004... EOG Resources net income rose to $71.8 million (61cents/share) from $41.7 million (36cents/share) in the fourth quarter of 2002. The company will raise its dividend by 20% in April to an annual rate of 24cents/share, the fourth increase in five...

2003 earnings good for E&P's; mixed for power.(Corporate Earnings)
February 9, 2004... Noble Drilling expects its output of oil and gas to increase by 10% to 17% this year, driven by new gas production in Israel and the recent start-up of a condensate project in Equatorial Guinea. Production for the fourth quarter of 2003...

2003 earnings good for E&P's; mixed for power.(Corporate Earnings)
February 9, 2004... Pioneer Natural Resources' fourth-quarter net income roughly tripled to $57.4 million (48cents/share) from $18.4 million (16cents/share) in the same period of 2002. Production jumped 43% to 167,700 boe/d, boosted by the start-up of the Falcon...

2003 earnings good for E&P's; mixed for power.(Corporate Earnings)
February 9, 2004... Unocal's worldwide production fell 7% to 420,000 boe/d as asset sales and natural field declines in the US and Canada outweighed higher output in the Far East. Nevertheless, higher oil and gas prices lifted the California-based independent's...

Apache makes oil and gas business look easy.(E & P Update)
February 9, 2004... As it celebrates its 50th anniversary this year, Houston-based independent producer Apache appears to have found a simple and effective formula for surviving and thriving in the oil and gas business: acquire, exploit, explore. Apache has...

Entergy's Nuclear uprate plan scares locals.(Current)
February 9, 2004... Opponents of nuclear energy are unhappy about efforts to increase power production capacity at Entergy Nuclear's 535-MW Vermont Yankee nuclear power station in Vernon, Vermont, just north of the Massachusetts border. Increasing production...

NRC holds Davis-Besse meetings.(Current)
February 9, 2004... The US Nuclear Regulatory Commission (NRC) last week began a week-long "restart readiness assessment" of the 925-MW Davis-Besse nuclear plant in Oak Harbor, Ohio. The results of this inspection are critical in determining whether and when the...