Shell

For utilities and end-users still shell-shocked from the sky-high spikes of Monday and Tuesday, it may have seemed like re-entering a nightmare they thought they had already awakened from. Dollar-plus price gains — often plus much more than a dollar — were back in vogue Friday, as traders shrugged off the normal demand slump that accompanies a weekend and focused instead on a screen advance of more than 60 cents and prospects that this week largely will repeat the cold-weather pattern of the previous one.

Although neither side indicated any wrongdoing, the energy trading affiliate of Shell Oil Co., Coral Energy Inc., agreed Wednesday to pay Ontario’s Independent Electricity Market Operator (IMO) US$1 million for conducting some cross-border electricity trades.

Main Street AC Inc., a publicly tradable shell corporation that acquired 15 failing oil and gas partnerships and then reorganized under Chapter 11 of the Bankruptcy Code in January 2000, has tendered a cash offer for up to 4.9% of Aquila Inc., Dynegy Inc., Mirant Corp. and Reliant Resources Inc. at a 25% premium to their closing price Aug. 27.

Royal Dutch/Shell, Exxon Mobil Corp., ChevronTexaco, Burlington Resources Inc. Petrobras and Schlumberger are but a few of the 75 foreign companies that have expressed an interest in the long-term natural gas production contracts officially unveiled by Mexico’s state-run oil monopoly last week. The first agreements are expected to be offered in November, officials said (see NGI, June 17).

While energy analysts remain shell-shocked following the brazen terrorist attacks on the nation’s financial distriction and admit they have “no answers” for industry, some predict that the war-provoking events may cause the public, Capitol Hill lawmakers and investors to look more favorably upon North American energy producers, service companies and pipelines.

While energy analysts remain shell-shocked following the brazen terrorist attacks of last week and admit they have “no answers” for industry, some predict that the war-provoking events may cause the public, Capitol Hill lawmakers and investors to look more favorably upon North American energy producers, service companies and pipelines.

Williams, which wooed away gas-rich Denver-based independent Barrett Resources Corp. from oil giant Shell Corp. earlier this year (see Daily GPI, May 8), completed the marriage Thursday when Barrett shareholders approved the merger in a special meeting in Denver. In less than a week, Williams will begin distributing the materials necessary for Barrett shareholders to exchange their shares for Williams shares.

Dallas-based Crosstex Energy Services Inc. has acquired Corpus Christi Natural Gas Co. LP from an affiliate of Shell U.S. Gas & Power Co., The purchase includes CCNG’s gathering, processing, transmission, marketing and industrial pipeline affiliates. In a related transaction, which fits geographically with the CCNG purchase, Crosstex also acquired the 200-mile South Texas Pettus gathering system from Plains Resources. No financial details were disclosed.

Analysts covering the attempted takeover of Barrett Resources byRoyal Dutch Shell Group said last week they expect to seeadditional consolidation of U.S. independents with a heavy gasportfolio, especially now that the majors and larger independentsare flush with cash from through-the-roof commodity pricing in thepast year.