Capital

Oil sands are emerging as Alberta’s celebrity product, but the province still owes much of a developing economic boom — and the capital to finance the new star — to its long-standing status as Canada’s chief natural gas-producing jurisdiction.

Venture capital investment in energy technologies — particularly wind, solar and biofuel — jumped to $917 million last year, compared to $716 million in 2004, according to the fifth annual “Clean Energy Trends Report” for 2006, prepared by Clean Edge, a green power consulting firm. Global solar and wind markets increased by 55% and 47%, respectively, to $11.2 billion and $11.8 billion in 2005, the report said.

Amerada Hess Corp. has set aside $4 billion for its capital budget this year, with about $766 million earmarked for overseas opportunities. The New York-based producer plans to spend $570 million for exploration and exploitation, with more than half of the exploratory program focused on the deepwater Gulf of Mexico.

Royal Dutch Shell will boost its capital spending by 27% next year to about $19 billion, well ahead of the $15 billion it spent this year, to expand upstream activities and cope with rising oil service costs. The spending estimate pegs about $10-$11 billion for new projects around the world, including Canada and Russia, with another $4-$5 billion to be spent on existing projects.

California-based Berry Petroleum Co. raised its 2006 capital expenditure budget 15% to $160 million, with about 60% of the total going to exploration and production in the Rocky Mountains and Midcontinent assets. The other 40%, or $62 million, will be used to develop Berry’s California assets. Berry is targeting production growth of 9% to average about 25,000 boe/d before acquisitions. Production in 2006 is expected to be about 70% heavy oil, 15% light oil and 15% natural gas.

Sierra Pacific Resources and subsidiary Nevada Power last week entered into a settlement agreement with Morgan Stanley Capital Group Inc. resolving ongoing litigation in the U.S. District Court-District of Nevada against Morgan Stanley.

Atmos Energy Corp.’s net income for its fiscal year 2005 ended Sept. 30 was $135.8 million, or $1.72 per diluted share, compared with net income of $86.2 million, or $1.58 per diluted share the prior year. The company noted that its results exceeded First Call’s mean estimate of $1.71 per diluted share.

The liquefied natural gas (LNG) business is poised for a period of strong growth through the rest of this decade, with capital expenditures worldwide totaling nearly $67 billion, according to a report released Thursday by energy analysts Douglas-Westwood.

Cash-heavy energy producers have to begin making some capital investments soon if they expect liquefied natural gas (LNG) and Arctic gas to make up the projected natural gas shortfall in North America, said a senior analyst at BP North America Gas & Power last week.