Waiting

Those in a counting their chickens mode relative to all theplanned new natural gas-fired generating capacity waiting in thewings, might want to consider a new analysis of just how efficientthose new plants will be. Energy Ventures Analysis (EVA) ofArlington, VA reckons gas displacement by new more efficientgas-fired combined cycle units will total over 250 Bcf/year inTexas and over 100 Bcf/year in California from 2003-5. That’s notto say gas use will decline, because load growth will swallow upsome of those savings, but “the initial gas demand growth rate inthese key regions will be dampened.” The efficiency factor of theswitch to the latest turbines from older steam generation unitswill be most pronounced in those two states, but will have animpact in other areas as well. EVA’s report, “Outlook for Gas-FiredCapacity Additions,” points to 411 gas turbine projects, generating190,980 MW, which are expected to be completed, primarily betweennow and the end of 2003. Where the new units replace oil or coalgeneration, the switch will be a plus for natural gas, but incertain areas they will be replacing older gas hogs as well. EVA’sforecast is part of its “FUELCAST” study which addresses the longterm outlook for fuel and electricity markets.

After waiting two and a half years, American Electric Powercompleted its $4.6 billion purchase of Central and South West Corp.last week following approval from the Securities and ExchangeCommission (SEC). The deal creates the U.S.’s largest electricutility with annual revenues of $12.5 billion, assets of more than$35 billion, more than 4.8 million customers in 11 states, and38,000 MW of power generation in the U.S.

After waiting more than two years, American Electric Power andCentral and South West Corp. completed their merger yesterdayfollowing approval from the Securities and Exchange Commission(SEC). AEP chairman E. Linn Draper Jr. said the company’spost-merger strategy consists of three key elements: wholesale,energy delivery and retail.

The natural gas is waiting, the communities are willing and theauthorities are prepared to co-operate any time producers andpipelines want to revive development in the Canadian north, theindustry is being told.

The natural gas is waiting, the communities are willing and theauthorities are prepared to co-operate any time producers andpipelines want to revive development in the Canadian north, theindustry is being told.

Growing weary of waiting, BP Amoco and Atlantic Richfield Co. hope to step up the pace of their ongoing merger procedures by restarting the required 20-day notice period, suspended Nov. 2, at the US Federal Trade Commission (FTC). The companies concede the FTC has concerns about their pairing, but the merger partners said they don’t agree with the issues raised by the commission.

After a week of offers, acceptances and counter-offers, Southern Union and Oneok are now waiting to see who is awarded the prize of merging with Southwest Gas. Both companies said they have reached the maximum they can offer. The only winners so far, according to a source close to the situation, have been Southwest Gas’ shareholders, who have seen the price for their shares vault from an original $28.50/share to $33.50/share.

The energy industry has begun the “last days of the age of oil,”with a cast of cleaner fuels waiting to take center stage,according to ARCO CEO Mike R. Bowlin.

The energy industry has begun the “last days of the age of oil,”with a cast of cleaner fuels waiting to take center stage,according to ARCO CEO Mike R. Bowlin.