Chairman

Amid the merger frenzy that has gripped the energy industry thisweek, CMS Energy Chairman and CEO William McCormick said he doesn’tenvision his company – whose goal is to be the third largest energyconcern in the world – being swallowed up by a competitor. Instead,he sees CMS Energy continuing in its aggressive role as a buyer ofassets.

NiSource Chairman Gary Neale said his company has been meetingwith shareholders representing more than 30% of Columbia EnergyGroup’s outstanding common stock, including six of the eightlargest shareholders, and has found the investors eager to see thetwo companies begin negotiations on a potential merger transaction.

U.S. Senate Energy and Natural Resources Committee ChairmanFrank Murkowski (R-AK) is planning to take a closer look at thepotential impact on his home state and on the West Coast of theproposed merger of BP Amoco and Atlantic Richfield Co. Thecommittee has scheduled a hearing on June 24 at 9 a.m. to reviewthe merger. BP Amoco-Arco would hold 75% of the Alaska North Slopeoil fields and a similar share of the Trans-Alaska Pipeline System.It also would have control over 90% of the crude oil delivered tothe West Coast. Its property holdings in Alaska would far exceedthe maximum allowed by state law, although the companies said theyplan to divest some of their leases. The merger would create thelargest oil producer in the U.S. and the world’s second-largestpublicly traded oil firm, with a market capitalization of about$200 billion.

The U.S. Senate is closing in on a set schedule of hearings forall pending federal electric deregulation proposals, Senate EnergyCommittee Chairman Frank Murkowski (R-AK) said at a committeehearing last week. The schedule will include a hearing date for theDept. of Energy (DOE) Secretary Bill Richardson’s administrationproposal, allowing interested parties to comment on itscontroversial 7.5% renewable energy mandate.

The U.S. Senate is closing in on a set schedule of hearings forall pending federal electric deregulation proposals, Senate EnergyCommittee Chairman Frank Murkowski (R-AK) said at a committeehearing Wednesday. The schedule will include a hearing date for theDept. of Energy Secretary Bill Richardson’s administrationproposal, allowing interested parties to comment on itscontroversial 7.5% renewable energy mandate.

The Royal Dutch/Shell Group announced one of its top executives,Steven Miller, 53, will take over as president, CEO and chairman ofits Houston-based subsidiary, Shell Oil Co. July 1 with theretirement of Jack Little who turned 60 last year. Little had beenpresident for a year. Miller, who will give up his managingdirector titles with the parent company, said in a writtenstatement, he would like to see the U.S. branch “even more closelyaligned with the rest of the Royal Dutch/Shell Group in order todeal with competitive realities more effectively on a globalbasis.”

FERC Chairman James Hoecker said recently he didn’t expect tosee much “consensus” from the natural gas industry on the majorinitiatives in the notice of proposed rulemaking (NOPR) and noticeof inquiry (NOI). Judging from some of the comments that floodedinto the Commission yesterday, he was right on target.

Storage overhang isn’t enough to temper the optimism of EnronOil & Gas Chairman Forrest Hoglund when it comes to the outlookfor gas this year and next. With demand expected to grow andproduction expected to fall – 3% by Hoglund’s count – on softdrilling activity, the coming months are shaping up to be good onesfor producers.

Industry observers shouldn’t be surprised to see Texaco marchingto a different drummer in the industry’s high-stepping mergerparade, Texaco Chairman Peter I. Bijur said last week. Unlike manyof its peers, Texaco appears to be looking outside the upstreamindustry for a merger partner.