Enerfax GOLD
NORTH AMERICA'S FREE  GAS, OIL, LIQUIDS & DERIVATIVES
INFORMATION SOURCE
   Wednesday, January 2, 2002  No. 453
Visit our website at: http://www.enerfaxgold.com/,

PETROLEUM PRICES
| Bonny Light      |  $19.93
| Brent            |  $19.75
| Butane           |  $ 0.38
| Fuel Oil #2      |  $ 0.56
| Louisiana        |  $20.75
| Medit.           |  $19.40
| Propane Non-tet  |  $ 0.34
| Propane Wet-tet  |  $ 0.34
| W. Tx Int Cush   |  $20.43
| W. Tx Sour       |  $18.83

| Euro in US equiv |  0.8838
-------------------------------------------------------------
Todays Petro Bulletins
 * Baker Hughes Says Number of Rigs Searching for Oil and Natural Gas
in US Rose by 5 to 887 Last Week Compared to 1,114 a Year Ago; Canada
Down 94 to 198, Compared to 322 Last Year; Gulf of Mexico Gained 11
to 119 Compared to 145 a Year Ago; Rigs Searching for Oil Down 3 to
137
 * Justice Department and EPA Order $340 Million California Superfund
Cleanup
 * Fitch Lowers Ultramar Diamond Shamrock's Ratings to `BBB-'
from `BBB'; Affirms Valero Energy
 * S&P 500 Index Down 12.4% for 2001
 * US Economy on Sounder Footing for 2002
 * Goldman Sachs Cuts Estimates on Several Energy Stocks; Forest Oil
Fiscal Year 2002 Earnings Cut to $0.51 per Share, Down from $0.59
 * Iran Seeks to Seal Phases 9 & 10 of South Pars Natural Gas Deals
in January
 * Norway Says It Will Cut 150,000 bpd
 * Gulf Arabs Appeal for Calm in India and Pakistan
-------------------------------------------------------------
NYMEX - NY Harbor Heating Oil
Month   High   Low    Last   Change
Jan 02 0.5900 0.5650 0.5665 +0.0000
Feb 02 0.5960 0.5690 0.5705 +0.0000
Mar 02 0.5925 0.5660 0.5690 +0.0000
Apr 02 0.5810 0.5640 0.5640 +0.0000
May 02 0.5810 0.5580 0.5580 +0.0000
Jun 02 0.5745 0.5590 0.5590 +0.0000
Jul 02 0.5860 0.5640 0.5640 +0.0000
Aug 02 0.5795 0.5705 0.5705 +0.0000
Sep 02 0.5955 0.5785 0.5785 +0.0000
Oct 02 0.5990 0.5870 0.5870 +0.0000
-------------------------------------------------------------
NYMEX Crude Oil Futures ($ / Barrel)
Month  Open  High   Low  Last  Change
Feb 02 21.22 21.38 20.38 20.41 -0.49
Mar 02 21.53 21.60 20.62 20.66 -0.48
Apr 02 21.64 21.64 20.80 20.80 -0.44
May 02 21.15 21.55 20.91 20.93 -0.41
Jun 02 21.72 21.80 21.00 21.00 -0.40
Jul 02 21.75 21.75 21.01 21.01 -0.40
Aug 02 21.79 21.79 21.04 21.04 -0.40
Sep 02 21.63 21.63 21.07 21.07 -0.40
Oct 02 21.35 21.35 21.10 21.10 -0.73
Nov 02 00.00 00.00 00.00 21.13 -0.73
-------------------------------------------------------------
Crude Oil Futures Slide Despite OPEC Cut


    Crude oil futures for February delivery on the NYMEX lost $0.49
to $20.41 per barrel on Friday, despite OPEC's official announcement
of a 1.5 million bpd cut in production after other producers agreed
to slice 462,500 bpd from their combined output. Crude oil prices
rose to $21.38 per barrel but then slumped after OPEC's president
said the cartel would be happy with anything above $20 per barrel for
Brent crude. However many doubt not only the cartels ability, but the
strength of commitment by non-members to stick to their lower
production quotas. The OPEC countries with quotas pumped 600,000 over
their limits in November. But Nigeria was responsible for half of the
cheating, producing 300,000 barrels over its quota. Nigeria's OPEC
representative is slated to become the cartel's new president on
January 1st, effectively putting pressure on the country to adhere to
its limits. Some positive news for the market was found as consumer
confidence posted its biggest gain in almost 4 years, home sales
climbed and unemployment rates stabilized. Heating oil futures for
January delivery on the NYMEX declined $0.0015 to $0.5665 per gallon.
January gasoline futures on the NYMEX fell $0.0071 to $0.5856 per
gallon. In London, Brent crude oil futures for February delivery on
the IPE were down $0.04 to $20.30 per barrel.
-------------------------------------------------------------
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-------------------------------------------------------------
NYMEX Henry Hub Natural Gas Futures
12 Month Strip  2.9464  +0.1528
18 Month Strip  3.0296  +0.1073
| Month | High  |  Low  | Close | Change |
| FEB   | 2.780 | 2.680 | 2.774 | +0.155 |
| MAR   | 2.755 | 2.695 | 2.746 | +0.116 |
| APR   | 2.730 | 2.670 | 2.724 | +0.094 |
| MAY   | 2.780 | 2.700 | 2.769 | +0.088 |
| JUN   | 2.830 | 2.765 | 2.824 | +0.084 |
| JUL   | 2.875 | 2.820 | 2.870 | +0.082 |
| AUG   | 2.916 | 2.880 | 2.916 | +0.083 |
| SEP   | 2.930 | 2.919 | 2.919 | +0.076 |
| OCT   | 2.950 | 2.930 | 2.947 | +0.069 |
| NOV   | 3.140 | 3.120 | 3.135 | +0.067 |
| DEC   | 3.350 | 3.310 | 3.323 | +0.065 |
| JAN   | 3.419 | 3.400 | 3.410 | +0.062 |
-------------------------------------------------------------
Refining Margins Forecast to Shrink in 2002

    Oil refiners around the world will likely experience shrinking
profit margins in 2002 as a global economic slump has sharply lowered
demand. The US, Asia and Northwest Europe all have a hefty oversupply
of oil inventories. Refinery runs can be expected to stay 10% - 50%
below capacity in Asia. Although the percentage may not be as quite
as dismal in Europe and the many still expect lower refinery profits
for early 2002 and possibly for most of the year on both continents.
Asia's margins were mostly negative this year while US margins hit $6-
$9 per barrel early in 2001 but fell to $3 - $4 per barrel later in
the year. European margins were mostly unchanged at an average of
about $2.00 per barrel. In Northwest Europe, refiners' profits depend
on how US gasoline prices fare, as a large portion of Europe's
surplus gasoline is exported across the Atlantic. Northwest European
refiners have cut up to 20% of runs in the last month. On average for
2001, margins for Northwest Europe refineries running Brent crude are
estimated to be less than $2.00 per barrel, below the $3.00 average
for 2000, but well above the $1.20 per barrel Northwest European
margins of 1999.
-------------------------------------------------------------
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-------------------------------------------------------------
Oilfield Services Most Volatile Stocks in Energy Sector

    Oilfield service stocks, which often climb or fall by 5% or more
one day, then swing in the other direction the next day, are the most
volatile group within the energy sector. Energy stocks are among the
most unpredictable in the US stock market, shifting along with oil
and natural gas prices that can soar or sink with a sudden change in
the weather. In the category of energy stocks, oilfield services can
be the most unstable because their earnings are tied to the ups and
downs of drilling activity. When companies lower their drilling
activity, equipment and service companies do not get hired but still
have many fixed costs. The upstream oil and natural gas exploration
and production business is the next most volatile sector of the
energy industry, with integrated oil companies being the most stable
because their refining and marketing operations can counteract their
upstream business. In 1998 oil prices dropped from $17.60 to about
$12 and the Philadelphia stock exchange's oil service index fell 55%
while the S&P oil and gas exploration and production index tumbled
39%. The S&P index of integrated oil companies climbed 6% that year.
The next year, oil prices rebounded to $25.60 per barrel and oil
service stocks jumped by 67%, the upstream sector rose 17% and
integrated oils increased 15%. Last year, contrary to the law of
averages, natural gas prices sky-rocketed to $9.80 per Mcf and
upstream endeavors gained 57% while oil services rose 45% and
integrated oils climbed 6%. In a stock rating system, values above 1
indicate greater risk for volatility, values below 1 show lower than
average volatility. Several oil field service companies have ratings
as high as 1.7, while ExxonMobil is rated 0.4. Some analysts say that
investors could see a potential upside next year by moving away from
the relative safety of the major integrated oil companies towards
more volatile energy stocks.
-------------------------------------------------------------
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-------------------------------------------------------------
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------------------------------------------------------------
Judge Recuses Himself in Unocal Patent Case

Unocal has said that a US District Court Judge recused himself from
the case involving infringement on the its '393 gasoline patent due
to his discovery that he had a financial interest in one of the
parties involved. The case will be returned for reassignment. In
October, the judge granted the company's motion for summary judgment
requesting an accounting of infringement of its '393 cleaner burning
gasoline patent by 5 refiners. However, a written judgment had not
been issued. Further proceedings in the case will now be considered
by the new judge. The defendants in the case are Atlantic Richfield,
Chevron, Texaco, Exxon, Mobil and Shell. In 1997, a jury found the
Unocal patent valid and that the defendants had infringed upon it in
their refining processes. The jury awarded damages of $0.0575 per
infringing gallon. Unocal received a payment of $69 million plus
accrued interest and some attorneys' fees in June 2000 for
infringement from March through July, 1996. About 29% of the RFG
gasoline manufactured by the defendants during that period infringed
on the '393 patent. The jury decision was upheld by an Appeals Court
in May 2000. In February of 2001, the Supreme Court declined to hear
the case. License agreements have been signed with 8 companies for
the 5 patents that Unocal holds for cleaner burning gasoline
compositions. Earlier this year, Unocal introduced a uniform
licensing program that specifies a range of between $0.12 and $0.34
per gallon for volumes that fall under the Unocal patents. The rate
per gallon is reduced as more utilization occurs.
------------------------------------------------------------
IPE-Brent Crude futures (US $/barrel)
Month  First  High  Low   Sett  Chg
FEB 02 20.70 20.90 20.25 20.30 -0.04
MAR 02 20.25 20.48 19.85 19.89 -0.12
APR 02 20.28 20.43 19.86 19.88 -0.13
MAY 02 20.36 20.41 19.92 19.92 -0.14
JUN 02 20.38 20.58 20.01 20.01 -0.15
JUL 02 20.44 20.44 20.08 20.08 -0.18
AUG 02 20.13 20.13 20.13 20.13 -0.19
SEP 02 20.64 20.65 20.18 20.18 -0.20
OCT 02 20.23 20.23 20.23 20.23 -0.21
NOV 02 20.28 20.28 20.28 20.28 -0.20
-------------------------------------------------------------
NYMEX-Mont Belvieu Propane
Gas Futures($ / Gallon)
Month    High   Low   Last   Change
JAN 02 0.3400 0.3400 0.3400 +0.0000
FEB 02 0.3420 0.3420 0.3420 +0.0000
MAR 02 0.3400 0.3400 0.3400 +0.0000
APR 02 0.3390 0.3390 0.3390 +0.0000
MAY 02 0.3415 0.3415 0.3415 +0.0000
JUN 02 0.3425 0.3425 0.3425 +0.0000
JUL 02 0.3485 0.3485 0.3485 +0.0000
AUG 02 0.3560 0.3560 0.3560 +0.0000
SEP 02 0.3660 0.3660 0.3660 +0.0000
OCT 02 0.3660 0.3660 0.3660 +0.0000
-------------------------------------------------------------
ENERGY JOB LISTINGS
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-------------------------------------------------------------
IPE - ARA Gas Oil Futures $ / Tonne
Month   High   Low    Sett  Change
JAN 02 177.00 169.00 169.50 - 4.50
FEB 02 178.00 172.25 172.25 - 3.00
MAR 02 178.25 172.75 172.75 - 3.00
APR 02 178.00 173.50 173.50 - 2.75
MAY 02 175.00 174.00 174.00 - 3.00
JUN 02 179.75 175.00 175.00 - 3.25
JUL 02 176.50 176.50 176.50 - 3.25
AUG 02 178.00 178.00 178.00 - 3.25
SEP 02 184.00 179.75 179.75 - 3.25
OCT 02 181.50 181.50 181.50 - 3.25
-------------------------------------------------------------
NY HARBOR UNLEADED GAS FUTURES
Month   High   Low    Last   Change
Jan 02 0.6070 0.5770 0.5856 +0.0000
Feb 02 0.6150 0.5830 0.5883 +0.0000
Mar 02 0.6220 0.5960 0.5983 +0.0000
Apr 02 0.6820 0.6588 0.6588 +0.0000
May 02 0.6680 0.6628 0.6628 +0.0000
Jun 02 0.6670 0.6613 0.6613 +0.0000
Jul 02 0.6745 0.6545 0.6545 +0.0000
Aug 02 0.6645 0.6450 0.6450 +0.0000
Sep 02 0.6525 0.6305 0.6305 +0.0000
Oct 02 0.6140 0.6065 0.6065 +0.0000
--------------------------------------------------------------
Get familiar with oil-gasoline.com, inc. This web site ranks
among the favorite sites for petroleum company executives.
In 2002, the corporation plans to run an interactive crude
oil model to provide the latest status of world-wide supply
and demand. You will want to bookmark this one!
-------------------------------------------------------------
ExxonMobil May Withdraw Bid for China Pipeline Project

    ExxonMobil is considering pulling out of talks to build a $5 
billion natural gas pipeline in China. The withdrawal would leave
Royal Dutch/Shell Group as the only major foreign oil company taking
part in the project and may affect its funding. The 4,000-kilometer
pipeline, China's longest, is part of a $14 billion plan to transport
reserves in the northwestern province of Xinjiang to Shanghai.
-------------------------------------------------------------
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email address: info@fea.com
-------------------------------------------------------------
PHYSICAL GAS PRICES
Gulf/Eastern Region
| Agua Dulce              | 2.44  |
| ANR SE                  | 2.59  |
| Carthage TG             | 2.53  |
| Chicago Citygate        | 2.70  |
| Columbia Gulf Onshore   | 2.67  |
| Dominion South Point    | 2.80  |
| Henry Hub               | 2.64  |
| Houston Ship Channel    | 2.59  |
| Katy Hub                | 2.53  |
| NGPL LA Pool            | 2.57  |
| NGPL - Midcontinent     | 2.51  |
| NGPL STX                | 2.49  |
| NGPL TX/OK              | 2.53  |
| NNG Demarc.             | 2.58  |
| Niagara                 | 2.89  |
| Sonat Tier 1            | 2.60  |
| TCO IPP Pool            | 2.76  |
| Tetco ELa               | 2.57  |
| Tetco M-3               | 3.20  |
| Tetco STX               | 2.44  |
| TGP Zone 0              | 2.48  |
| TGP Zone 1 (500 Leg)    | 2.59  |
| TGT Zone SL             | 2.64  |
| New York Citygate       | 3.46  |
| Transco Station 65      | 2.66  |
| Transco Zone 6 (NY)     | 3.47  |
| Trunk ELa               | 2.59  |
| Western Region
| California Border       | 2.47  |
| El Paso Keystone        | 2.34  |
| El Paso San Juan-Blanco | 2.32  |
| Waha Hub                | 2.46  |
| Canadian/Rockies Region
| Nova/Aeco (C$/gig)      | 3.57  |
| Dawn Hub/Union          | 2.81  |
| Northwest Stanfield     | 2.37  |
| Wyoming Pool            | 2.24  |
| Opal/Kern River         | 2.26  |
| PGT-Malin               | 2.42  |
| Sumas                   | 2.34  |
        Flow Dates 12/29-31
-------------------------------------------------------------
Judge Recuses Himself in Unocal Patent Case

Unocal has said that a US District Court Judge recused himself from
the case involving infringement on the its '393 gasoline patent due
to his discovery that he had a financial interest in one of the
parties involved. The case will be returned for reassignment. In
October, the judge granted the company's motion for summary judgment
requesting an accounting of infringement of its '393 cleaner burning
gasoline patent by 5 refiners. However, a written judgment had not
been issued. Further proceedings in the case will now be considered
by the new judge. The defendants in the case are Atlantic Richfield,
Chevron, Texaco, Exxon, Mobil and Shell. In 1997, a jury found the
Unocal patent valid and that the defendants had infringed upon it in
their refining processes. The jury awarded damages of $0.0575 per
infringing gallon. Unocal received a payment of $69 million plus
accrued interest and some attorneys' fees in June 2000 for
infringement from March through July, 1996. About 29% of the RFG
gasoline manufactured by the defendants during that period infringed
on the '393 patent. The jury decision was upheld by an Appeals Court
in May 2000. In February of 2001, the Supreme Court declined to hear
the case. License agreements have been signed with 8 companies for
the 5 patents that Unocal holds for cleaner burning gasoline
compositions. Earlier this year, Unocal introduced a uniform
licensing program that specifies a range of between $0.12 and $0.34
per gallon for volumes that fall under the Unocal patents. The rate
per gallon is reduced as more utilization occurs.
------------------------------------------------------------
 Energy Seminars, Inc. Announces Key Seminar Offerings for January:


Energy Seminars will be going to Florida and Calgary in 2002!

Click to www.energyseminars.com to see our 2002 schedule.


Register on-line at http://www.energyseminars.com or call Registrar
Gina Patrick

Phone: 281-362-7979
FAX: 281-296-9922
-------------------------------------------------------------
Oilfield Services Most Volatile Stocks in Energy Sector

    Oilfield service stocks, which often climb or fall by 5% or more
one day, then swing in the other direction the next day, are the most
volatile group within the energy sector. Energy stocks are among the
most unpredictable in the US stock market, shifting along with oil
and natural gas prices that can soar or sink with a sudden change in
the weather. In the category of energy stocks, oilfield services can
be the most unstable because their earnings are tied to the ups and
downs of drilling activity. When companies lower their drilling
activity, equipment and service companies do not get hired but still
have many fixed costs. The upstream oil and natural gas exploration
and production business is the next most volatile sector of the
energy industry, with integrated oil companies being the most stable
because their refining and marketing operations can counteract their
upstream business. In 1998 oil prices dropped from $17.60 to about
$12 and the Philadelphia stock exchange's oil service index fell 55%
while the S&P oil and gas exploration and production index tumbled
39%. The S&P index of integrated oil companies climbed 6% that year.
The next year, oil prices rebounded to $25.60 per barrel and oil
service stocks jumped by 67%, the upstream sector rose 17% and
integrated oils increased 15%. Last year, contrary to the law of
averages, natural gas prices sky-rocketed to $9.80 per Mcf and
upstream endeavors gained 57% while oil services rose 45% and
integrated oils climbed 6%. In a stock rating system, values above 1
indicate greater risk for volatility, values below 1 show lower than
average volatility. Several oil field service companies have ratings
as high as 1.7, while ExxonMobil is rated 0.4. Some analysts say that
investors could see a potential upside next year by moving away from
the relative safety of the major integrated oil companies towards
more volatile energy stocks.
-------------------------------------------------------------

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-------------------------------------------------------------
Washington DC
January 24, 2002
Spencer Abraham U.S. Secretary of Energy to address energy community
on
potential security and commerce threats. Also to speak will be key
directors
from the CIA, SPR, IEA, SPR and more. See complete
detail and register today at
http://www.wesc.org

-------------------------------------------------------------
FINANCIAL SUMMARY
The TSE 300 added 24.39 points to 7674.97
The CRB Index lost 0.16 points to 191.91
The US Dollar dropped 0.23 points to 117.26
The Dow advanced 5.68 points to 10136.99
The S&P 500 climbed 3.89 points to 1161.02
The Nasdaq was up 10.84 points to 1987.26
February NYMEX Crude Oil fell 0.49 to 20.41
Canadian-US Exchange rose 0.0021 to 1.595
-------------------------------------------------------------
Please Welcome Our Advertisers by Visiting These Websites!
http://www.fea.com/
http://www.kwi.com/
http://www.capacitymap.com/
http://www.energyseminars.com
http://www.energyjobs.com
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