Such

While not wavering in their long-term support, major California utilities such as Southern California Edison Co. (SCE) envision plenty of real-world challenges to the state’s increased renewable energy goal of 33%. Reaching that goal by 2020 holds major implications for the state’s transmission grid and existing fleet of natural gas-fired generation plants, according to Edison International CEO Ted Craver, who spoke last Friday on a third quarter earnings conference call.

As Congress begins debate on energy issues, such as access to the Outer Continental Shelf (OCS) and the repeal of tax breaks, the American Petroleum Institute (API) Thursday told lawmakers that any legislative action detrimental to oil and gas would take a significant toll on an already faltering economy.

Canadian Superior Inc. said it plans to buy Challenger Energy Corp. in a friendly transaction worth an estimated C$78 million (US$69 million) including debt. The merger would give back to Canadian Superior a stake in a promising Trinidad natural gas project that it has been developing for several years. Calgary-based Canadian Superior is undergoing a restructuring after filing for bankruptcy earlier this year (see NGI, May 4). Under the merger agreement, Canadian Superior plans to issue 0.51 share, or C$0.435, for each Challenger share. The transaction would include the assumption of Challenger’s C$54 million in net debt. The transaction is part of a plan by Canadian Superior to restructure under Canada’s Companies’ Creditors Arrangement Act. As part of the restructuring process Canadian Superior agreed to sell to UK-based Centrica plc a 45% interest in Block 5(c) offshore Trinidad, for US$142.5 million in cash (see NGI, June 8). The block is operated by BG Group, which holds a 30% stake, and Challenger, which still has a 25% stake. The discovery, made in 2005, may hold up to 5 Tcf (see NGI, Aug. 18, 2008). The combined company would produce an estimated 3,050 boe/d, 85% weighted to natural gas.

Arizona, which currently has no gas storage facilities, took one step closer to the development of such facilities Wednesday night when members of the state’s House approved a bill that would loosen groundwater protections.

The Senate Energy and Natural Resources Committee begins mark-up of a broad energy bill Tuesday, focusing on the less contentious issues — such as energy efficiency — this week and then moving to the meatier and more controversial issues following a two-week recess for Easter and Passover.

Some traders are crying foul with regards to the Chicago Mercantile Exchange’s (CME) electronic Globex trading system following last Thursday morning’s knee-jerk spike in front-month natural gas futures of nearly 75 cents. Some traders complained that their orders were not filled following the Energy Information Administration’s (EIA) storage report release at 10:30 a.m. EDT, which sparked the run-up in prices. The trading exchange said Friday that no glitches were reported on the system.

Shell Oil Co. said last week its new Perdido Development in the Gulf of Mexico (GOM), which is in the deepest waters of any such facility in the world, will help answer new calls for natural gas and oil supply that are expected to come once the global economy turns around.

Shell Oil Co. said Monday its new Perdido Development in the Gulf of Mexico (GOM), which is in the deepest waters of any such facility in the world, will help answer new calls for natural gas and oil supply that are expected to come once the global economy turns around.

Talks on the future of the stalled Mackenzie Gas Project have resumed with a pledge by the Canadian government to provide support by building “infrastructure” such as roads and landing strips required for construction.