Natural Gas Week articles from November 2003

Natural Gas Week archives from November 2003

Swamped by LNG.(Late News ...)
November 3, 2003... LNG shipments out of Cove Point, Maryland, reportedly flooded Mid-Atlantic markets Friday sending regional prices spiraling down and crushing supply points. Facility is one-tank short, forcing imports directly into pipeline, sources say....

Aluminum industry woes.(Late News ...)
November 3, 2003... Longview, Washington, aluminum smelter, which filed bankruptcy in March, announced plans to liquidate assets tomorrow, saying it has received offers for some property and equipment. Bill Brandt, the smelters Chapter 11 trustee, estimated...

New coal plants.(Late News ...)
November 3, 2003... Wisconsin Energy wins state approval to build two coal-fired power plants, at cost of $2.15 billion, in Milwaukee suburb of Oak Creek. First new coal fueled plants to be built in state since 1985, they will provide total of 1,230 MW. Public...

Average cash prices & futures strip.(Late News ...)
November 3, 2003... Cash prices hit the skids last week as fundamentals weakened in the eastern markets.

Is the Powder River overhyped? Well data suggest basin issues.
November 3, 2003... Coalbed methane from Wyoming's Powder River Basin may not prove the supply panacea as billed by many in the natural gas industry, based on disturbing well data emerging in the play. Has the Powder River been overhyped? By about 40%, based...

Schwarzenegger energy plan may face battle in Golden State.
November 3, 2003... Overshadowed by the hoopla over Arnold Schwarzenegger's victory in the Oct. 7 California gubernatorial recall election is a detailed plan to help solve the Golden State energy woes. The question is how well key proposals will stand up against...

Forecasts put bears in command as traders muse over EIA data.
November 3, 2003... A significant reversal in early winter weather forecasts has put bears in the driver's seat of gas markets and, coupled with upward inventory revisions under the Energy Information Administration's (EIA) new storage survey, raised the...

Ethanol logjam holds up bill as watchers ponder FERC mandates.
November 3, 2003... Those waiting for a break in the impasse on ethanol taxes that has been holding up the energy bill were disappointed last week as neither side seemed willing to compromise, in spite of the efforts of both the President and Vice President to...

Oneok buys Texas properties.
November 3, 2003... Oneok announced that it agreed to pay $240 million for oil and gas properties and related gathering systems in east Texas from Wagner and Brown, a private oil and gas producer. Despite a divestiture earlier this year, the purchase falls in...

Major market prices.
November 3, 2003... MAJOR MARKET PRICES November 3, 2003 ($/MMBtu) This Weekly Bid Week Week Change for Nov. Chicago City Gate 4.47 -0.40 4.66 New...

Offshore LNG projects are the future for Shell and Chevron.
November 3, 2003... Both Chevron Texaco and Royal Dutch/Shell confirmed previously reported plans construct offshore liquefied natural gas (LNG) receiving terminal to serve US markets (NGW Oct 27,p3). Shell issued a statement last week announcing its US Gas...

Spot prices on intrastate pipeline systems.
November 3, 2003... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) November 3,2003 This Weekly Bid Week Pipeline Week Change for Nov. ...

NW aluminum smelters operating on limited basis; outlook grim.
November 3, 2003... Hanging by a proverbial thread, aluminum smelting capacity in the Pacific Northwest continues to run on a very limited basis and could continue to run for a while longer while aluminum prices rally. But the ultimate fate of the troubled...

Chevron, Conoco push Nigeria LNG.
November 3, 2003... Two years after an initial memorandum of understanding was signed, Nigerian National Petroleum Corp. (NNPC), ConocoPhilhps, Eni, and ChevronTexaco last week announced the signing of an agreement with the Nigerian government for front-end...

2003 gas price outlook.
November 3, 2003... 2003 GAS PRICE OUTLOOK November 3, 2003/Week 44 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $5.25 $5.32 $4.829 NOTES: (1) Prices...

New organization pushes for energy policies to help the West.
November 3, 2003... In an effort to combat what they see as environmental extremism, a new organization is looking towards pending energy legislation to pave the way for economic growth and preservation in the western US. Formed roughly a month ago, the...

North American weekly gas storage.
November 3, 2003... NORTH AMERICAN WEEKLY GAS STORAGE (Billion Cubic Feet) Oct. 30 Oct. 17 Weekly Year Region Week Week Change Ago US East 1847.0 1767.0R...

Composite spot wellhead price.
November 3, 2003... COMPOSITE SPOT WELLHEAD PRICE January 1991 to Present ($/MMBtu) Jan. Feb. March April May 2003 5.15 6.91 7.14 4.94 5.48 2002 2.14 2.11 2.74 3.16 3.24 2001 8.72 5.63...

Composite spot delivered-to-pipeline price.
November 3, 2003... COMPOSITE SPOT DELIVERED-TO-PIPELINE PRICE January 1991 to Present ($/MMBtu) Jan. Feb. March April May 2003 5.40 7.10 7.25 5.07 5.53 2002 2.28 2.23 2.87 3.28 3.33 2001 ...

Prices and differentials for major hubs and selected city gates.
November 3, 2003... November 3, 2003 US$/MMBtu 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...

Exxon.(Corporate Earnings)
November 3, 2003... Even though Exxon recorded the second highest third-quarter profits in its history, and profits jumped 38% from year ago levels, analysts still qualified the performance as a disappointment The US supermajor reported net income of $3.65...

Unocal.(Corporate Earnings)
November 3, 2003... In the third quarter, Unocal earned $152 million (58 cents per share), up from year-ago net earnings of $99 million (41 cents/share). Excluding special items, Unocal's third-quarter 2003 earnings were $190 million (72 cents/share). Unocal's...

Duke Energy.(Corporate Earnings)
November 3, 2003... Duke Energy lowered its earnings guidance last week and said it is cutting 2,000 jobs after posting third-quarter profits that fell 79% from the prior year. The Charlotte, North Carolina-based company saw some of its greatest profits in...

BP.(Corporate Earnings)
November 3, 2003... BP said that its third quarter results were up 25% ever a year ago on the basis of higher average commodity prices for oil and gas. The company's exploration and production section produced 8.4 Bcf/d of natural gas for the quarter at an average...

Dynegy.(Corporate Earnings)
November 3, 2003... Dynegy reported a strong turnaround for the third quarter, reporting a $5 million profit in spite of a $16 million net loss from its discontinued operations and risk management unit. The company said that it benefited from higher commodity...

EnCana.(Corporate Earnings)
November 3, 2003... Independent Canadian producer EnCana reported stronger earnings for the third quarter on the back of strong sales and higher commodity prices. The company reported revenue of C$3.1 billion (US$2.35 billion) for the quarter with net...

Oneok.(Corporate Earnings)
November 3, 2003... Oil and gas producer Oneok announced late Thursday that it posted higher-than-expected third-quarter profits as earnings fell compared with the same year-ago quarter because of accounting changes at its marketing arm. Gas production for...

Cyber security solutions growing for utilities.(Current)
November 3, 2003... Increasingly, the power industry has relied more and more on interconnected information technology (IT), making cyber security an issue of growing importance. Sen. John Kerry (D-Massachusetts) in a letter to Federal Energy Regulatory...

Downgrades won't hamper utility.(Current)
November 3, 2003... In spite of credit downgrades, a Wisconsin utility will push forward in its plans to develop additional intrastate power resources through a combination of asset sales and equity issuances. Moody's Investors Service said Wisconsin Energy...

Comaparative fuel prices.(Current)
November 3, 2003... COMPARATIVE FUEL PRICES (Cash Market) November 3, 2003 EAST COAST Natural Gas New York Harbor: New York City Gate Heating Residual Residual Oil-No. 2* 0.3%...

Mirant, Pepco Settle dispute.(Current)
November 3, 2003... Mirant and Pepco Holdings have agreed to restructure two power purchase agreements under review that Mirant had sought to void. Mirant supplies Pepco with electricity for Pepco's customers in Maryland and Washington, D.C. Under the terms...

Reliant to close NJ steam units.(Current)
November 3, 2003... Reliant Energy will close two steam units early next year at its plant in Sayreville, New Jersey. The two units are capable of generating 225 MW of electricity, about half of the plant's capacity. The plant, commissioned in 1955, will...

Natural gas futures and spot electricity trading.
November 3, 2003... NATURAL GAS FUTURES AND SPOT ELECTRICITY TRADING Trading Dates: Oct. 27-Oct.31, 2003 New York Mercantile Exchange (NYMEX) (Henry Hub) Monday Tuesday Last/Volume Last/Volume ...

Shell, PPM to build wind project.(Current)
November 3, 2003... PPM Energy and Shell WindEnergy announced the construction of the 162-MW Colorado Green Wind Project near Lamar, Colorado, which is being touted as the largest wind project in the state. Power generated by the project will be delivered under a...

BC Hydro readjusts supply plans.(Current)
November 3, 2003... BC Hydro said it has a new plan to supply electricity to Vancouver Island, British Columbia, after a proposal to build a 265-MW natural gas power plant was rejected. The province-owned utility is asking for private-sector bids to supply up...

Canada beefs up nuclear security.(Current)
November 3, 2003... Canada is building barriers in the waters around its seven nuclear power plants and taking other security precautions to protect against a possible attack by ships carrying explosives. Officials at the Canadian Nuclear Safety Commission...

Cash market hub trading.
November 3, 2003... CASH MARKET HUB TRADING ($/MMBtu) Henry Hub, La Current month Nov. 3:$4.34 Jan. Feb. March April 2003 5.30 7.35 8.06 5.27 2002 2.29 2.26 2.85 3.44...

Natural gas rig out.
November 3, 2003... NATURAL GAS RIG COUNT Oct. 31: 1,107/ Oct. 24: 1090/930/85.3% 944/85.3% Jan. Feb. March 2003 Total 854 907 941 Gas 718 750 767 %Gas 84.1 82.7 81.5...

Barnett Shale formation draws interest from Texas Drillers.(Regional Market Roundup)
November 3, 2003... Dallas-based Angus Energy has received state approval for a drilling permit that will allow it to begin development of its Barnett Shale properties in Bosque County south of Fort Worth, Texas. Angus said it plans to use horizontal drilling...

Spot prices on interstate pipeline systems-Part 1.(Regional Market Roundup)
November 3, 2003... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS-PART 1 Delivered-to-Pipeline ($MMBtu) 3-Nov-03 Pipeline This Weekly Week Change ANR Pipeline Co. ...

Denver-based Evergreen Resources has completed the acquisition of Carbon Energy.(Colorado)
November 3, 2003... Denver-based Evergreen Resources has completed the acquisition of Carbon Energy, an independent oil and gas company with a focus on operations in the Piceance Basin in Colorado and the Uintah Basin in Utah, as well as operations in...

Galleon Energy.(Alberta)
November 3, 2003... Galleon Energy, a Calgary-based oil and gas company, has signed a strategic farm-in agreement with an unnamed senior oil and gas company. Under the agreement, Galleon gains a right to explore 173 sections of land--about 110,720 gross acres or...

Spot prices on interstate pipeline systems-Part 2.(Regional Market Roundup)
November 3, 2003... SPOT PRICES ON INTERSTATE PIPELINE SYSTEMS-PART 2 Delivered-to-Pipeline ($MMBtu) 3-Nov-03 Pipeline This Weekly Week Change...

Pipeline Project.(Wyoming)
November 3, 2003... Denver-based Infinity reported recent activities on its Pipeline Project on the Wamsutter Arch in Sweetwater County in southwestern Wyoming. The project is in the Greater Green River Basin. In the early fourth quarter of 2003, Infinity...

Drilling forecasts pushed to all time high by commodity prices.(Canadian Markets)
November 3, 2003... With high commodity prices fueling record earnings for Canadian energy firms, analysts and industry groups are raising their drilling forecasts. While the estimates vary, all agree the drilling sector will set an all-time record this year. ...

Rig Count.(Canadian Markets)
November 3, 2003... Rig Count: There were 394 rigs drilling for natural gas and oil in Western Canada as of Oct. 28, a decrease of 37 from a week ago, according to the Canadian Association of Oilwell Drilling Contractors (CAODC). During the same period a year...

Working gas.(Canadian Markets)
November 3, 2003... Working gas in all Canadian storage facilities increased to 93.9% of capacity as of Oct. 24, up from 93.6% the week before, according to the most recent Canadian Enerdata gas storage survey. Canadian storage facilities were 92.7% full a...

The composite spot import price.(Canadian Markets)
November 3, 2003... The composite spot import price this week is US$4.16/MMBtu for gas leaving Canada and entering the US through six border crossing points. Natural Gas Week's Nov. 4, 2002, average for Canadian exports was US$4.20/MMBtu. Canada's average...

BP and Sonatrach agree to form LNG venture to serve UK market.(World Roundup)
November 3, 2003... BP and Algerian state-owned Sonatrach last week announced plans to form a joint venture to provide the first LNG to the UK market in over 20 years, beginning in early 2005. The joint venture might later expand to US and other markets, they...

Portugal's first liquefied natural gas terminal at Sines, has received its debut cargo.(Portugal)
November 3, 2003... Portugal's first liquefied natural gas terminal at Sines, has received its debut cargo. Nigeria LNG said it had delivered the country's first-ever direct LNG cargo on Oct. 26, when the vessel LNG Port Harcourt sailed into Transgas Atlantico's...

Canadian price report.(World Roundup)
November 3, 2003... CANADIAN PRICE REPORT ($U.S. per MMBtu/$Can per Gigajoule) --BRITISH COLUMBIA-- Huntingdon/ Kingstate/ Total ...

Producers in Argentina finally look set to get at least a bit more than the current meager US35 cents-US40 cents/MMBtu for at least part of their gas.(Argentina)
November 3, 2003... Producers in Argentina finally look set to get at least a bit more than the current meager US35>-US40>/MMBtu for at least part of their gas, after Spanish natural gas producer Repsol YPF took the lead in negotiating gradual increases in...

City gate prices.(World Roundup)
November 3, 2003... CITY GATE PRICES November 3,2003 ($/MMBtu) Bid Week Bid Week City for Nov. for Oct. Austin, Texas Valero Transmission Co. ...

Gas price trends.(World Roundup)
November 3, 2003... GAS PRICE TRENDS ($/MMBtu) ROCKY CALIFORNIA MTNS South North November 3, 2003 Inter (well) ...

Without Rockies, Barnett Shale US gas reserves are sinking.
November 3, 2003... Without the Rockies and a few choice upstream plays in Texas, most US natural gas basins where drillers have access would be in fast decline, according to a new government reserve report. The advance summary of the Energy Information...

Gas price report.
November 3, 2003... GAS PRICE REPORT ($/MMBtu--Spot) November 3, 2003 Interstate Interstate Wellhead Wellhead Bid Bid ...

The Natural Gas Week composite spot wellhead price this week is $4.24/MMBtu, 33> less than last week and 26> more than the Nov. 5, 2002, average.
November 3, 2003... The Natural Gas Week composite spot wellhead price this week is $4.24/MMBtu, 33> less than last week and 26> more than the Nov. 5, 2002, average. The spot delivered-to-pipeline price this week is $4.33/MMBtu, 28 less than last week and 22 more...

Ultimate potential of natural gas (trillion cubic feet).
November 3, 2003... Produced Remaining 1 Alberta 86 184 2 Saskatchewan 4 5 3 British Columbia 13.5 ...

Canada's gas production Ebbs as US demand continues to grow.
November 3, 2003... Canada has exported natural gas to the US since the 1890s, and today is the largest exporter of natural gas to the US. The country currently exports 3.8 Tcf/yr to its neighbor to the south, accounting for 94% of US natural gas imports and...

Will declines plague Canadian gas like US?(Special report: the Canadian factor)
November 3, 2003... Is Canada's gas industry doomed to inexorable supply declines, as many suspect to be the fate of US producers? Five years ago the question would never have been considered, but many analysts now are starting to wonder if Canada's star has...

New FERC commissioners.(Late News ...)
November 10, 2003... Senate on Friday approved nominations of Joe Kelliher and Suedeen Kelly to fill vacancies on Federal Energy Regulatory Commission (FERC). Appointments come at crucial time for five-member panel, which has been operating with minimum of three...

Lay concedes.(Late News ...)
November 10, 2003... Ex-Enron Chairman Ken Lay agreed to turn over, within three days, all documents required by Securities and Exchange Commission (SEC). SEC can use documents for any law-enforcement purposes, according to agreement finalized on Friday. Lay had...

Average cash prices & futures strip.(Late News ...)
November 10, 2003... Short covering and increasing weather loads sent the market higher last week but near-record storage staunched the advance.

Analysts drop gas forecasts due to high storage, mild winter.(NGW's Analyst Scoreboard)
November 10, 2003... With storage reaching surplus levels and a relatively non-threatening winter ahead, analysts in this quarter's NGW Price Scoreboard for the most part have dropped their spot wellhead gas prices estimates. Our 28 analysts lowered their 2003...

FERC continues to push for stronger price indexes, liquidity.(NGW's Analyst Scoreboard)
November 10, 2003... Federal regulators last week continued to press the natural gas industry on the health of pricing surveys, particularly regarding the liquidity of pricing points used in the surveys. The Federal Energy Regulatory Commission (FERC) called...

High storage, technical forces send market on roller coaster.(NGW's Analyst Scoreboard)
November 10, 2003... Anyone who needed more proof that Nymex futures trading is not for the faint of heart only had to catch Thursday's market. For some time now, spot and futures traders have been watching short positions grow and wondering what catalyst....

Gas panelists promote differing methods to fulfill gas needs.
November 10, 2003... North American producers are on a treadmill and they are pedaling "very fast to keep up" with demand, according to energy experts speaking at a conference in Calgary last week. Speakers at Ziff Energy's North American Gas Strategies...

Dominion halts Greenbrier Pipe.
November 10, 2003... Dominion Resources announced last Thursday that it is suspending field work on the Greenbrier Pipeline, a 280-mile natural gas pipeline that would stretch from West Virginia to North Carolina. The company is reviewing whether to shift funds...

Major market prices.
November 10, 2003... MAJOR MARKET PRICES November 10, 2003 ($/MMBtu) This Weekly Bid Week Week Change for Nov. Chicago City Gate 4.70 +0.23 4.66 New York City Gate ...

White House ethanol deal moves energy bill closer to finish.
November 10, 2003... Senate and House Republican leaders edged closer to an agreement on an energy bill after striking a deal on a tax credit for refiners blending ethanol in gasoline. But stubborn policy wrinkles over gasoline additives are still being ironed out...

Exxon CEO sees Russia and LNG as opportunities to be seized.
November 10, 2003... Exxon Mobil's plans for a deal with Russia's Yukos are on hold following the arrest of former head Mikhail Khodorkovsky, but Exxon Chairman and Chief Executive Lee R. Raymond remains convinced that Exxon will have opportunities in this leading...

Spot prices on intrastate pipeline systems.
November 10, 2003... SPOT PRICES ON INTRASTATE PIPELINE SYSTEMS Delivered-to-Pipeline ($/MMBtu) November 10, 2003 This Weekly Bid Week Pipeline Week Change for Nov. Louisiana...

Dynegy, Exelon await vote for Illinois Power utility purchase.
November 10, 2003... Dynegy announced last week that it agreed to sell Illinois Power, its regulated utility, for $2.225 billion to Exelon. Dynegy and Exelon said if certain legislation quickly raising Illinois Power's electric rates is passed, they expect the...

2003 gas price outlook.
November 10, 2003... 2003 GAS PRICE OUTLOOK November 10, 2003/Week 45 12-Month Strip Wellhead Delivered-to-Pipeline Nymex $5.23 $5.30 $4.740 NOTES: (1) Prices are in $/MMBtu...

Prices and differentials for major hubs and selected City Gates.
November 10, 2003... PRICES AND DIFFERENTIALS FOR MAJOR HUBS AND SELECTED CITY GATES November 10, 2003 USS/MMBtu NOTES: (1) Sumas, Wash.; Kingsgate, B.C.; Emerson, Manitoba; and Niagara Falls, Ontario, are reported as major import points from Canada. ...

Devon Energy.(Corporate Earnings)
November 10, 2003... Devon Energy, the largest independent producer of natural gas in the US, posted net income of $412 million ($1.71/share) in the third quarter, up from $62 million (37 cents/share) a year earlier. The company far exceeded a Thomson First...

Sempra.(Corporate Earnings)
November 10, 2003... Sempra reported earnings of $211 million ($1.00/share) on revenue of $2.1 billion. In the year-ago quarter, Sempra reported earnings of $150 million (73 cents/share) on revenue of $1.4 billion. Net income for Sempra Energy Trading rose to...

Williams.(Corporate Earnings)
November 10, 2003... Williams reported income of $106.3 million (20 cents/share) on revenue of $4.8 billion. In the year-ago quarter, Williams reported a loss of $294.1 million (58 cents/share) on revenue of $719 million. Profits for its power segment were $43.9...

Calpine.(Corporate Earnings)
November 10, 2003... Calpine reported a 57% increase in third-quarter profits. Higher realized oil and gas prices increased Calpine's oil and gas production margins. Revenue from oil and gas production was $333.5 million, compared with $253.7 million in the...

Canadian Natural Resources.(Corporate Earnings)
November 10, 2003... Canadian Natural Resources has set a C$2.3 billion (US $1.7 billion) capital spending budget for 2004 that it expects to result in production growth of over 5% next year. Last week, it also reported progress on two big long-term investment...

Aquila.(Corporate Earnings)
November 10, 2003... Aquila reported its third consecutive quarter of losses this year as the Kansas City, Missouri-based utility continues to wind down its merchant trading business and continue with asset sales. The company almost cut is losses in half from...

North American weekly gas storage.
November 10, 2003... NORTH AMERICAN WEEKLY GAS STORAGE (Billion Cubic Feet) Nov. 4 Oct. 30 Weekly Region Week Week Change US Last 1871.0 1847.0 24.0...

EOG bullish for long term, steps up hedging.(E & P Update)
November 10, 2003... EOG Resources has hedged itself against the possibility of some weather-related weakness in US gas prices in the short term, but Chief Executive Mark Papa says the company is well positioned to profit from strong market fundamentals over the...

Canadian power markets deregulation uneven.(Current)
November 10, 2003... Just as they have in the US, regulatory uncertainty and political pressures are driving the future of electricity deregulation in Canada, from price cap issues in Ontario and transmission investments in Alberta, to developing Regional...