Dear Medicine Bow Shipper: Yesterday the FERC authorized WIC to placed the entire Medicine Bow Loop and compression into service. WIC will have the contracts in the system and ready to accept nominations on Thursday November 29 for transportation on Friday November 30. Please call me if you have any questions.
Answer: Medicine Bow Loop Approved by FERC
Liz, Greg told me on thurs to contact you regarding if he had anytime on tues aftn. If he even has 15 min that woud suit as I'm just want to bounce some two or three ideas off him. Greg, If you have sometime to comment in writing or if you want to have a brief meeting on tues aftn I would appreciate it. I am seeking your guidance as a mentor not as a manager. 1) The group is trying something that it would seem only Morgan Stanley has achieved. We want to be a trader and marketer of both physical oil and financial derivatives. I liked the sound of this one year ago but thinking now we need to develop a franchise in one first rather than trying to do both in tandem. 2) Jeff would like to see this group move away from 'view' trading to 'flow' trading. I'm not convinced this is the right direction given our lack of existing customer business and traders with experience trading in this manner. we seem to be taking a bunch of hockey players and asking them to go play basketball. If we are going to go this course I would like some advise on trying to convince people to change and we need to think about the cost of changing the group to go this route. 3) I feel we should stick to improving our fundamental analysis and working on developing a greater physical presence. The approach to achieving that physical presense should come through aggressive pricing of physical supply to major consumers. This is the only group that at a price will willingly outsource their oil exposure. We should still work on trying to adapt to being more of a flow shop and develop customer business but not make it our top priority.
Answer: next tues
Gas and coal article interesting... Indigestion Daniel Fisher, Forbes Magazine, 10.29.01 All those new natural gas-fired electric plants mean more gas demand, right? Maybe not. For natural gas bulls, there was never a surer sign of good times to come than the order book at General Electric Corp. Backlogs in GE's Power Systems group almost tripled to $25 billion in the late 1990s as scores of utilities and freestanding power producers ordered natural gas turbines to supply the nation's growing appetite for electricity. Gas demand had to go up as all those shiny new turbines were connected to the grid. Ah, but there was a flaw in that argument--one that is becoming glaringly clear as the price of gas plunges below $2 per million Btu at the wellhead from as high as $10 last year. (A million Btu of gas equals just about 1,000 cubic feet.) Those new gas plants were supposed to steal business from pollution-spewing coal units, which still supply half the nation's electricity. But in a painstaking study of 788 power plants that supply the bulk of U.S. electricity, Charles Studness, president of Studness Research, found quite the opposite could happen.
Answer: Forbes Article-Gas Fired Power Plants 10-29-01
I've taken the liberty of drafting a form of extension letter to extend the ILA until June 15. I suspect Reagan will be distributing to the commercial folks, but I thought I would give you a heads up. David, I'm at work on revising the longer term doc. If you have your preamble stuff ready, I'm happy to put it in now. Thanks,
Answer:
Extension of ILA