Tulsa, Okla.-based Williams Cos., (NYSE: WMB) plans to publicly offer 26,000,000 shares at $30.59 each for a total raise of US$795.34 million. The proceeds will fund the purchase of additional Williams Partners LP (NYSE: WPZ) common units in connection with the financing of the acquisition by Williams Partners of Caiman Eastern Midstream LLC.
The underwriters have been granted a 30-day option to purchase up to an additional 3,900,000 shares of common stock.
Barclays, Citigroup, UBS Investment Bank, Deutsche Bank Securities and J.P. Morgan are acting as joint book-running managers.
This is a great way to manage methane from man-made sources. I am glad the EPA is ignoring the environmental groups that want to shut this down.
PITTSBURGH—A Pennsylvania landfill is generating enough methane gas to power the entire community, and company officials said that’s a win-win example of turning garbage into renewable energy. But some environmental groups believe such assumptions are mistaken.
Waste Management operates a landfill for Tullytown Borough in Pennsylvania, and it now sends enough gas to a power plant to supply electricity for the entire town, which counted 1,872 residents last year.
The methane is generated by the decomposition of waste, and contained in the landfill by a liner and the tons of trash, said Bob Iuliucci, Waste Management’s senior district manager. But instead of letting the gas just leak out of the landfill, the company installed a system to collect the gas and route it to a pipeline.
Read more at: http://www.yorkdispatch.com/penn/ci_19172158
This can be a very significant shift in Pennsylvania policy towards the pipeline industry. In Pennsylvania, gathering lines are not considered utilities and therefore do not have the power of eminent domain nor any agency oversight. Gathering lines will make up the bulk of pipeline construction here in Pennsylvania and currently require the builder to pay a negotiated fee to the landowner. Should the gathering lines become a utility, PA landowners will become a loud voice in Harrisburg.
Laura Legere, The Times-Tribune
DUNMORE – The rapid development of natural gas from the Marcellus Shale has raised questions about who, if anyone, will regulate the construction, safety and utility status of the pipelines necessary to carry the gas from wells to market.
Those questions shaped the discussion at a public forum held Tuesday evening by educators with the Penn State Co-operative Extension at the Worthington Scranton campus of Penn State.
Gathering lines – the pipelines that run between wellheads and larger gas transmission lines – are not inspected by any agency, although the state’s Public Utility Commission, which inspects other types of natural gas lines, is seeking jurisdiction to oversee the nonutility lines everywhere but the most sparsely populated areas.
“No one’s looking; no one’s inspecting them,” said Michael Chilek, a civil engineer in the PUC’s gas safety division, adding that Pennsylvania is the only gas-producing state that does not regulate the construction and safety of such gathering lines.
Much has happened since I’ve last posted on here. I took the bar exam, passed the bar exam, got married, and even found a great job with a great company. Now, that I’m getting settled in, I thought it appropriate to start blogging about energy and energy-related topics. Stay tuned, more posts will be coming your way shortly.
Oil companies keep placing their bets on shale-gas. They are not snubbing petroleum. They are, however, choosing to diversify and explore for a commodity that they once considered excess and just burned off.
It’s an economical play. But it’s also a move that recognizes the global pressures to curb carbon emissions and to invest in cleaner burning fuels. It is all coming at a time when Big Oil is reaping record profits from the sale of high-priced gasoline — money that is getting reinvested into the exploration of shale-gas that is purported to be the next bonanza.
Exxon Mobil Corp. may exemplify the trend. After closing on XTO Energy in June 2010 for around $31 billion, it is now evaluating additional prospects. According to Bloomberg news, it is considering up to a dozen such purchases worldwide. Since its XTO acquisition, it has spent about $3 billion to collect shale-gas leases through the United States, which includes parts of Texas, the Southeast and Pennsylvania. That totals 10 trillion cubic feet.
WASHINGTON, July 27, 2011—API Executive Vice President Marty Durbin said that the oversight hearing on “State Perspectives on Offshore Revenue Sharing” in the House Committee on Natural Resources presented a promising discussion highlighting the opportunities available to increase production of American oil and natural gas resources and increase revenues for state and local governments.
“Offshore development brings with it immense opportunities, including hundreds of thousands of new jobs, billions of dollars of additional government revenues, and increased energy security,” said Durbin. “It makes sense that coastal states should share revenues provided by such development, much as inland states do, to address infrastructure demands related to this economic boost.”
Durbin said the oil and natural gas industry is in a unique position to stimulate both the national and state economies through resource development and that revenue sharing should be a part of this approach
Since the federal government deregulated natural gas prices in the 1980s, the prices of crude oil and natural gas have moved more or less in tandem.
But in the last three years, the prices have become unhinged. One reason is the dramatic increase in natural gas production from unconventional formations such as Pennsylvania’s Marcellus Shale, which has driven down natural gas prices while crude oil prices have soared.
When the two fossil fuels are compared on the basis of energy equivalency, natural gas is a bargain compared with oil. A dollar spent on natural gas buys more than three times the energy that a dollar spent on crude oil buys.
The U.S. Energy Information Administration believes the disparity could last for decades.
“We think we will have relatively reasonable natural gas prices over the long term,” said Philip Budzik, an analyst with the EIA. “That looks good to me because I use natural gas at home and I’m happy I don’t have to pay oil prices.”
The natural gas discount has more implications than a bonus for homeowners considering a switch from heating oil.