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.
Articles from Vows
Improving crude oil market conditions usually are accompanied byincreasing political scrutiny into rising prices. A good example ofthat is occurring in California where Attorney General Bill Lockyerhas vowed to probe deeply into the mergers of major oil and gasproducers following a report that shows consolidation is one of thereasons California has experienced some of the highest gasolineprice spikes in the nation.
Conceding defeat – at least temporarily – North AtlanticPipeline Partners withdrew from FERC its application to build amassive 575-mile subsea pipeline system to carry initially 2 Bcf/dof gas from the Scotian Shelf offshore Nova Scotia to markets inAtlantic Canada and New England.
The FERC staff has indicated it may not be able to finish itsenvironmental review of the proposed New York-bound MillenniumPipeline in time for the Commission to issue a final certificate byJune 1, 1999, as the pipeline has requested. But even if this turnsout to be the case, project sponsor Columbia Gas Transmission saysit still intends to meet the planned in-service date of Nov. 1,2000. That would coincide with the start-up date for the AlliancePipeline.