Become

Talisman Energy Inc. is poised to become the dominant player in the growing core area of gas-rich Alberta after it set up a friendly agreement this week to purchase cross-town Calgary neighbor Petromet Resources Ltd. for C$806 million in cash and assumed debt. If the deal closes as expected, Talisman would add 72 MMcfe/d to its production base this year and 144 MMcfe/d in 2002.

All power suppliers in the West could become the target of a formal FERC investigation into their wholesale rates under a draft emergency bill that is being considered by Chairman Joe Barton (R-TX) and members of the House Energy and Air Quality Subcommittee.

Taking steps to ensure Nevada does not fall prey to the”financial and operational chaos” of the California energy market,Sierra Pacific Resources introduced an emergency package ofproposed long-term contracts, tiered price increases, low incomeassistance and conservation programs to stabilize energy markets inNevada.

All of a sudden proposed pipeline laterals from New England toLong Island, NY, have become all the craze, as the second pipelineproject in a week was announced yesterday, this time by TennesseeGas Pipeline Co. to serve roughly the same area. The El Pasobusiness unit announced the commencement of an open season for itsConnecticut-Long Island project, which is open for non-bindingnominations until Feb. 28.

Even though “bailout” has become a dirty word as Californiagovernment leaders in Sacramento hammer out more comprehensiveresponses to the state’s electricity woes, San Diego-based SempraEnergy’s CEO Stephen Baum says there is a light at the end of thetunnel.

As natural gas shortages become almost commonplace, and pricescontinued to stay perched at the higher end, it comes as nosurprise that producers such as Chevron, Texaco and Burlington haveincreased their capital and exploratory spending programs in 2001.

Alaska Gov. Tony Knowles’ State of the State address this weekcentered on what could become the legacy of his administration: an1,800-mile natural gas pipeline to transport the state’s 36 Tcf tothe marketplace. With energy prices and energy consumption burstingat the seams, Knowles is dedicating the remainder of his term,which expires in 2003, to the gas project.

Conservation and off-peak power usage have become the rallyingcries from government and utility officials in the western statesfacing power shortages, as they seek to avert a California-typecrisis.

Positioning itself to become a top tier national energymarketing and trading merchant, Allegheny Energy Inc. announcedyesterday it will acquire Global Energy Markets (GEM), the energycommodity marketing and trading arm of Merrill Lynch & Co.Subsidiary Allegheny Energy Supply LLC will pay $490 million andgive its new partner a 2% equity interest. In turn, Merrill Lynchwill refer clients to its partner.