Enerfax GOLD
NORTH AMERICA'S FREE? GAS, OIL, LIQUIDS & DERIVATIVES 
INFORMATION SOURCE
   Wednesday, February 20 2002? No. 486
Visit our website at: http://www.enerfaxgold.com 

PETROLEUM PRICES ???
| Bonny Light      |  $20.22
| Brent            |  $20.12
| Butane           |  $ 0.39 
| Fuel Oil #2      |  $ 0.54   
| Louisiana        |  $21.25  
| Medit.           |  $18.87  
| Propane Non-tet  |  $ 0.31   
| Propane Wet-tet  |  $ 0.31  
| W. Tx Int Cush   |  $20.88 
| W. Tx Sour       |  $19.70 

| Euro in US equiv |  0.8764
-------------------------------------------------------------
Todays Petro Bulletins
 * CNOOC Plans $500 Million Global Bond Issue in Early March
 * GlobalSantaFe's Worldwide Summary of Current Offshore Rig 
Economics for January 2002 Down from Previous Month by 0.2%
 * BHP Billiton to Invest $100 Million to Transport Oil and Natural 
Gas from Mad Dog Development and Atlantis Discovery in Deepwater Gulf 
of Mexico
 * Frontier Oil Plans Expansion for El Dorado Refinery; To Increase 
Gasoline Volumes by 5,000 bpd
 * Unocal Says PTO's Initial Rejection of Patent Claims Common in Re-
Examination 
Proceedings
 * Marathon Oil February 28th Security Analyst Meeting Available on 
Company 
Website
 * Conoco Canada Resources Commences Consent Solicitation on Senior 
Notes
 * IMPCO to Supply Honda of India with Propane Fuel Systems for 
Generators
 * Vector Plans Property Sales, Debt Reduction and Further Development
-------------------------------------------------------------
OPEN SEASON

SG Resources Mississippi, L.L.C., a wholly owned subsidiary of SGR 
Holdings, L.L.C., is conducting an open season for firm storage 
services at its new high-deliverability, salt cavern, natural gas 
storage facility, known as the Southern Pines Energy Center. The open 
season will begin at 9:00 a.m. CDT on February 4, 2002, and will 
continue until 5:00 p.m. CDT on March 4, 2002. The project is located 
at the border of Mississippi and Alabama with access to the major 
pipelines serving the Mid-Atlantic and the Southeastern United 
States. The facility is ideally located to serve as a transportation 
and storage hub for shippers on any one of nine major pipelines that 
will be interconnected directly or indirectly to the project. 
Information on the facility and the Open Season is available on our 
web site at 
http://www.sgr-holdings.com 
or contact us at 713-914-8188
--------------------------------------------------------------
NYMEX - NY Harbor Heating Oil? ? ? ? ? ? 
Month ??High ??Low? ? Last ? Change
Mar 02 0.5540 0.5430 0.5440 -0.0149 
Apr 02 0.5560 0.5460 0.5470 -0.0140 
May 02 0.5570 0.5460 0.5490 -0.0140 
Jun 02 0.5590 0.5525 0.5525 -0.0135 
Jul 02 0.5655 0.5570 0.5570 -0.0135 
Aug 02 0.5720 0.5640 0.5640 -0.0135 
Sep 02 0.5810 0.5725 0.5725 -0.0135 
Oct 02 0.5930 0.5810 0.5810 -0.0135 
Nov 02 0.5980 0.5885 0.5885 -0.0135 
Dec 02 0.6060 0.5955 0.5955 -0.0135
-------------------------------------------------------------
NYMEX Crude Oil Futures ($ / Barrel) 
Month ?Open ?High ??Low ?Last  Change
Mar 02 21.00 21.20 20.85 20.88 -0.62 
Apr 02 21.25 21.45 21.10 21.12 -0.62 
May 02 21.46 21.55 21.25 21.27 -0.55 
Jun 02 21.45 21.60 21.28 21.29 -0.51 
Jul 02 21.45 21.52 21.25 21.25 -0.48 
Aug 02 21.35 21.45 21.21 21.21 -0.46 
Sep 02 21.35 21.40 21.18 21.18 -0.43 
Oct 02 21.25 21.25 21.16 21.16 -0.41 
Nov 02 21.11 21.30 21.14 21.14 -0.40 
Dec 02 21.21 21.35 21.12 21.12 -0.39
-------------------------------------------------------------
Crude Oil Futures Slide Downward


    Crude oil futures for March delivery on the NYMEX slid $0.62 to 
$20.88 per barrel yesterday, on concerns that Russia's pledge to trim 
150,000 bpd from exports will end in March. Prices took a hit after 
Russia said the export cuts executed last month by OPEC and other big 
oil producers had stabilized oil prices, leading many to believe that 
it will move to end its output curbs by the end of the 1st quarter. 
Early in March, OPEC will send a high-level delegation to Moscow to 
push for a continuation of the curbs until the end of June. The curbs 
have produced a surplus of crude and oil products in Russia's 
domestic markets, lowering prices by an average of $4.00-$5.00 per 
barrel. Some Russian firms have planned to export more refined 
product to replace lost crude sales. In addition, Russia's big oil 
companies have said that they plan to raise oil production by as much 
as 27% this year. According to IEA data, OPEC did not live up to its 
pledge to trim production as members cut output by less than 50% of 
the 1.5 million bpd it pledged. Non-OPEC Oman agreed to trim 40,000 
bpd, but made no changes in output. Angola, committed to cut 22,500 
bpd then boosted output by 70,000 bpd. Heating oil futures for March 
delivery on the NYMEX trimmed $0.0149 to $0.544 per gallon. March 
gasoline futures on the NYMEX lost $0.0184 to $0.5925 per gallon. In 
London, Brent crude oil futures for April delivery on the IPE were up 
$0.19 to $20.52 per barrel.
-------------------------------------------------------------
NYMEX Henry Hub Natural Gas Futures
12 Month Strip ?2.7519  +0.1334 ? ? ? 
18 Month Strip ?2.8435  +0.1220 ? ? 
| Month | High  |  Low  | Close | Change |
| MAR   | 2.405 | 2.270 | 2.397 | +0.191 |
| APR   | 2.435 | 2.310 | 2.427 | +0.170 |
| MAY   | 2.500 | 2.385 | 2.492 | +0.155 |
| JUN   | 2.557 | 2.450 | 2.557 | +0.143 |
| JUL   | 2.625 | 2.530 | 2.622 | +0.134 |
| AUG   | 2.675 | 2.600 | 2.670 | +0.127 |
| SEP   | 2.674 | 2.595 | 2.674 | +0.125 |
| OCT   | 2.700 | 2.640 | 2.700 | +0.119 |
| NOV   | 2.925 | 2.855 | 2.925 | +0.110 |
| DEC   | 3.143 | 3.100 | 3.143 | +0.110 |
| JAN   | 3.238 | 3.195 | 3.238 | +0.110 |
| FEB   | 3.180 | 3.150 | 3.178 | +0.107 |
-------------------------------------------------------------
Consultants Say MTBE Phase Out Too Costly
  
    The California Energy Commission has been told by its consultants 
that the cost to phase out MTBE may be prohibitively expensive.  The 
consultants from Stillwater Associates told say that keeping the 
current phase out date for MTBE of January 1, 2003, will cause a 5% 
to 10% gasoline supply shortfall, and retail price increases of 50% - 
100%.  The consultants recommended delaying the MTBE phase out to 
November 2005. The CEC consultants pointed out many ominous 
similarities between the electric power and gasoline markets.  A few 
corporate players dominate both markets, and access to supply from 
outside the state is restricted by logistics.  
-------------------------------------------------------------
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-------------------------------------------------------------
Unocal Gasoline Patent Rejected 


    An alleged Unocal patent for cleaner gasoline was rejected in a 
preliminary review by the US Patent and Trademark Office after 
protests from refiners that face millions of dollars in license fees. 
The review last month by the patent office determined that Unocal did 
not invent anything new or novel in its number 393 patented gasoline 
blend, according to Valero Energy. Unocal accused Valero last month 
of infringing on its fuel patents. Unocal says it still expects its 
patent will be supported and borne out by the very documents that the 
other parties are using to support their argument. Unocal's 5 patents 
on cleaner-burning gasoline may generate about $75 million to $150 
million per year in royalties. Eight companies have signed license 
agreements, which require them to pay from $0.012 ? $0.034 per gallon 
to Unocal. Shares of Unocal fell $0.46 to $34.91. 
-------------------------------------------------------------
IPE-Brent Crude futures (US $/barrel)
Month ?First ?High ?Low ??Sett ?Chg
APR 02 20.39 20.70 20.35 20.52 +0.19 
MAY 02 20.50 20.75 20.42 20.60 +0.11 
JUN 02 20.36 20.63 20.34 20.48 +0.13 
JUL 02 20.26 20.50 20.25 20.38 +0.13 
AUG 02 20.31 20.37 20.31 20.37 +0.13 
SEP 02 20.30 20.36 20.30 20.36 +0.13
OCT 02 20.33 20.33 20.33 20.33 +0.12
NOV 02 20.30 20.30 20.30 20.30 +0.12
DEC 02 20.20 20.42 20.16 20.28 +0.13
JAN 02 20.24 20.24 20.24 20.24 +0.15
------------------------------------------------------------
NYMEX-Mont Belvieu Propane 
Gas Futures($ / Gallon)
Month ? ?High ??Low ??Last ? Change
Mar 02 0.3195 0.3125 0.3125 -0.0025 
Apr 02 0.3200 0.3150 0.3150 -0.0025 
May 02 0.3150 0.3100 0.3150 -0.0025 
Jun 02 0.3175 0.3025 0.3175 -0.0025 
Jul 02 0.3175 0.3000 0.3175 -0.0025 
Aug 02 0.3200 0.3100 0.3200 -0.0025 
Sep 02 0.3350 0.3125 0.3350 -0.0025 
Oct 02 0.3350 0.3150 0.3350 -0.0025 
Nov 02 0.3375 0.3175 0.3375 -0.0025 
Dec 02 0.3375 0.3250 0.3375 -0.0025
-------------------------------------------------------------
TotalFinaElf Pursues Middle East Natural Gas Deals
  

    TotalFinaElf is pursuing natural gas deals with Iran and Saudi 
Arabia. It has already produced oil from Iran's Sirri field, and is 
currently starting production from the South Pars natural gas 
project. TotalFinaElf says that full commercial production of natural 
gas from the $2 billion South Pars project is expected before the end 
of the 1st quarter. The company said it would insist on a minimum 
return of 15% on capital in real terms for any new investments in 
Iran. Saudi Arabia is expected to sign agreements on its $25 billion 
natural gas reserves soon. The deals, which mark the end of 25 years 
of state control of Saudi Arabia's natural gas fields, were divided 
between upstream and downstream activities. Iran is opening the doors 
to foreign investment after 20 years of isolation. The Iran Libya 
Sanctions Act does not permit US companies to invest in Iran but 
European are anxious to cash in on the country's vast reserves. 
Recent declarations by President Bush that Iran was part of an axis 
of evil is not likely to change the way TotalFinaElf looks at 
possible investments in Iran, the company's CEO said. He contends 
that there is a certain level of political risk in the oil and 
natural gas industry because the Middle East controls 2/3 of the 
world's oil reserves and 1/3 of its natural gas. TotalFinaElf is 
expected to meet its target of 10% growth in production in 2002, 
despite cuts by OPEC. It expects to boost its current 2.2 million bpd 
of oil equivalent to 2.8 million bpd by 2006.
-------------------------------------------------------------
IPE - ARA Gas Oil Futures $ / Tonne
Month ??High ??Low ???Sett ?Change 
MAR 02 168.50 165.50 166.50 + 1.00 
APR 02 170.25 167.50 169.25 + 1.25 
MAY 02 171.25 169.75 171.25 + 1.25 
JUN 02 173.00 171.75 173.00 + 1.00 
JUL 02 175.00 175.00 175.00 + 1.00 
AUG 02 177.00 176.50 177.00 + 1.00
SEP 02 179.00 179.00 179.00 + 1.00
OCT 02 181.00 181.00 181.00 + 1.00
NOV 02 181.75 181.75 181.75 + 1.00
DEC 02 182.00 180.00 182.00 + 1.00
-------------------------------------------------------------
NY HARBOR UNLEADED GAS FUTURES
Month? ?High ? Low ???Last ??Change
Mar 02 0.6040 0.5910 0.5925 -0.0184 
Apr 02 0.6725 0.6590 0.6599 -0.0199 
May 02 0.6800 0.6650 0.6674 -0.0194 
Jun 02 0.6790 0.6700 0.6700 -0.0188 
Jul 02 0.6760 0.6650 0.6650 -0.0183 
Aug 02 0.6630 0.6530 0.6530 -0.0183 
Sep 02 0.6510 0.6345 0.6345 -0.0178 
Oct 02 0.6215 0.6070 0.6070 -0.0173 
Nov 02 0.5970 0.5810 0.5970 -0.0173 
Dec 02 0.6120 0.5945 0.5945 -0.0173
-------------------------------------------------------------
PetroChina Interested in Husky Energy 


   PetroChina is considering the purchase of Husky Energy's 
exploration and production assets. Hong Kong tycoon Li Ka-shing owns 
72% of Husky. Trading of Husky's stock was halted on the TSE after 
word got out that PetroChina was interested in acquiring its assets, 
which are valued at $4.4 billion. Husky's stock jumped last fall 
after it was thought that TotalFinaElf might be making a bid for the 
company. PetroChina is conducting an internal feasibility study for 
the purchase but has not entered into formal negotiations with Husky. 
PetroChina is also in talks on a $2 billion, 1,490-mile oil pipeline 
running from Siberia to China. Husky has an interest in the Terra 
Nova oil field off Newfoundland and could possibly proceed on another 
project in the area, White Rose. Along with these assets, Husky has 
oil and natural gas fields, heavy crude production projects in 
western Canada and it operates a chain of service stations and the 
60,000 bpd Husky Upgrader, which transforms heavy oil into light 
crude. It also has a 40% share in the Wenchang development in the 
South China Sea in partnership CNOOC. PetroChina has proven reserves 
of 11 billion barrels of oil and 32.5 Tcf of natural gas. Husky owns 
proven reserves of about 600 million barrels of oil and about 2 Tcf 
of natural gas. Phillips and another Canadian company have also been 
mentioned as potential bidders for Husky. 
-------------------------------------------------------------

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email address: info@fea.com 
-------------------------------------------------------------

PHYSICAL GAS PRICES? ? ?
Gulf/Eastern Region     
| Agua Dulce              | 2.20  |
| ANR SE                  | 2.26  |
| Carthage TG             | 2.26  |
| Chicago Citygate        | 2.32  |
| Columbia Gulf Onshore   | 2.28  |
| Dominion South Point    | 2.51  |
| Henry Hub               | 2.32  |
| Houston Ship Channel    | 2.32  |
| Katy Hub                | 2.28  |
| NGPL LA Pool            | 2.25  |
| NGPL - Midcontinent     | 2.20  |
| NGPL STX                | 2.23  |
| NGPL TX/OK              | 2.25  |
| NNG Demarc.             | 2.24  |
| Niagara                 | 2.46  |
| Sonat Tier 1            | 2.27  |
| TCO IPP Pool            | 2.39  |
| Tetco ELa               | 2.26  |
| Tetco M-3               | 2.57  |
| Tetco STX               | 2.21  |
| TGP Zone 0              | 2.23  |
| TGP Zone 1 (500 Leg)    | 2.27  |
| TGT Zone SL             | 2.29  |
| New York Citygate       | 2.58  |
| Transco Station 65      | 2.30  |
| Transco Zone 6 (NY)     | 2.57  |
| Trunk ELa               | 2.24  |
| Western Region         
| California Border       | 2.30  |
| El Paso Keystone        | 2.17  |
| El Paso San Juan-Blanco | 2.17  |
| Waha Hub                | 2.21  |
| Canadian/Rockies Region 
| Nova/Aeco (C$/gig)      | 3.03  |
| Dawn Hub/Union          | 2.39  |
| Northwest Stanfield     | 2.13  |
| Wyoming Pool            | 2.06  |
| Opal                    | 2.06  |
| PGT-Malin               | 2.19  |
| Sumas                   | 2.07  |
          Flow Date 2/20
-------------------------------------------------------------
Nymex Option Volatility   
Supplied by "The Daily Hedger"
http://www.energyinstitution.org

West Texas Intermediate   
                 Days Left   Implied
Month Settlement to Expire   Volatility
Apr	 $21.12	    24	     50.7%
May	 $21.27	    57	     47.2%
Jun	 $21.29	    86	     45.4%
Jul	 $21.25	   118	     43.6%
Aug	 $21.21	   148	     42.3%
Sep	 $21.18	   177	     40.5%
Oct	 $21.16	   210	     39.4%
Nov	 $21.14	   240	     38.8%
Dec	 $21.12	   269	     35.6%
Jan	 $21.10	   300	     37.0%

Heating Oil    
      Futures     Days left Implied 
Month Settlement  to Expire Volatility 
Mar	$0.5440	       6	    47.7%
Apr	$0.5470	      34	    42.0%
May	$0.5490	      65	    40.8%
Jun	$0.5525	      98	    39.7%
Jul	$0.5570	     126	    38.3%
Aug	$0.5640	     157	    37.6%
Sep	$0.5725	     189	    37.0%
Oct	$0.5810	     218	    35.1%
Nov	$0.5885	     251	    34.9%
Dec	$0.5955	     278	    34.0%

Unleaded  
       Futures    Days left    Implied
Month Settlement   to Expire  Volatility
Mar	 $0.5925	        6	      47.4%
Apr	 $0.6599	       34	      45.6%
May	 $0.6674	       65	      43.8%
Jun	 $0.6700	       98	      42.7%
Jul	 $0.6650	      126	      40.8%
Aug	 $0.6530	      157	      39.2%
Sep	 $0.6345	      189	      37.2%

 Natural Gas 
	     	                               Implied
Month	Settlement	Days Left    
Volatility                            
Mar	$2.397	   6	    81.2%
Apr	$2.427	  34	    58.9%
May	$2.492	  65	    50.8%
Jun	$2.557	  98	    47.4%
Jul	$2.622	 126	    45.9%
Aug	$2.670	 157	    45.3%
Sep	$2.674	 189	    45.4%
Oct	$2.700	 218	    45.2%
Nov	$2.925	 251	    43.0%
Dec	$3.143	 279	    46.1%
-------------------------------------------------------------
Weekly Retail Gasoline Prices Jump Higher

  The retail price for gasoline increased $0.009 last week to $1.116 
per gallon, according to the DOE. The price of regular unleaded 
gasoline is down $0.33 from a year ago due to a drop in overall 
petroleum demand from the slowing economy, plenty of gasoline 
supplies and lower crude oil costs. The national average price for 
RFG was up $0.017 to $1.169 per gallon. Prices on the West Coast 
increased $0.016 to $1.244 per gallon. The lower Atlantic states had 
the cheapest fuel an average price up $0.001 to $1.049 per gallon. 
The average price for diesel fuel nationwide increased $0.003 to 
$1.156 per gallon, but down $0.32 from a year ago. New England had 
the highest diesel fuel at $1.29 per gallon, up $0.005. The Gulf 
Coast states had the cheapest diesel at $1.126 per gallon, up $0.004. 
-------------------------------------------------------------
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-------------------------------------------------------------
Saudi Arabia Expects Russia to Extend Cuts through June


    A battle could be brewing after Saudi Arabia said it expects 
Russian oil companies to extend export curbs through the end of the 
2nd quarter. OPEC and other producing countries, including Oman, 
Mexico and Norway, committed to maintain their cuts through June, but 
Russia has been vague on the duration of its output reductions. 
Russia's prime minister will meet today with oil companies to discuss 
ending its 150,000 bpd cut. Russian officials have said that it wants 
a stable oil market and that the current cuts have achieved the 
country's aims. Russia, which wants to reclaim its position as the 
world's top oil producer, produced 7.6% more crude last year than in 
2000 and increased exports by 11%. Some Russian oil companies have 
said that they plan to increase production by up to 27% this year. 
The IEA has said that Russia was not alone in not living up to its 
pledge to cut production as OPEC members cut output by less than half 
of the 1.5 million bpd it pledged. Non-OPEC Oman agreed to cut 40,000 
bpd, but made no changes in output. Angola, committed to cut 22,500 
bpd then boosted output by 70,000 bpd.
-------------------------------------------------------------
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--------------------------------------------------------------
FINANCIAL SUMMARY
The TSE 300 dropped 87.65 points to 7470.98
The CRB Index slipped 1.43 points to 190.15
The US Dollar decreased 0.27 points to 118.33
The Dow declined 157.90 points to 9745.14
The S&P 500 fell 20.84 points to 1083.34
The Nasdaq was down 54.59 points to 1750.61
March NYMEX Crude Oil dipped 0.62 to 20.88
Canadian-US Exchange lost 0.0027 to 1.5885
-------------------------------------------------------------
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