Uphill

The mega-merger candidates in the production industry face anuphill battle in California, according to the state’s attorneygeneral, who promised close scrutiny of their transactions lastweek. With a new study on the causes of a gasoline price spikesthis summer in hand, Attorney General Bill Lockyer said there’s adistinct lack of oil industry competition in the state.

California’s continuing uphill struggle for a market-basedsolution to its proposed restructuring of the wholesale natural gastransmission and storage business will be extended through Januaryin hopes that upwards of 75 market participants can attain anegotiated all-party settlement. A California Public UtilitiesCommission administrative law judge overseeing the statewide gascase and the CPUC President Richard Bilas indicated Wednesday (Oct.27) they were willing to allow more time.

The cash market took a bit of a breather Friday from the uphillclimb that began last Tuesday. Weekend quotes ranged from minimallyhigher to nearly a dime lower, with most of the softnessconcentrated in the Midcontinent, Midwest citygates, Southwestbasins, northern and southern California borders and intra-Alberta.