Daily Archives: November 18, 2010

Sheila McNulty

Dynegy’s decision to delay for a week the close of voting on its buyout by Blackstone indicates not quite enough shareholders are on board. If they were, the votes would have been tallied on Wednesday, as planned, and the deal completed.

Dynegy says it had to give shareholders more time because Blackstone revised its offer price late on Tuesday, and they needed more time to consider the new offer. But in this world of instant information, anyone involved would have had ample time to learn of the new $5.00 a share offer, up from $4.50, with plenty of time to change their vote.

Kiran Stacey

Just two days ago the Wall Street Journal picked up on Chinese state media reports that the government was worried it might run out of coal. The paper reported:

State-run media reported that Beijing is considering capping domestic coal output in the 2011-2015 period, partly because officials worry miners are running down reserves too quickly to meet the needs of a rapidly expanding economy.

Those signals have been picked up by companies around the entire world, who are now clamouring to meet that demand.

Sheila McNulty

When it comes to Texas’ budget deficit, nobody is quite sure where the state stands. The comptroller does not release official figures until January. And with the energy industry resilient as ever, there has been much talk by Governor Rick Perry about how well Texas has held up. Oil prices are high and new plays – mainly the Eagle Ford, with its oil and natural gas liquids – and enhanced oil recovery on old fields, are producing strong returns.

But, as big as the energy industry is in Texas, it cannot carry the state alone. There are signs the deficit is going to be a doozy. John Reynolds, a Texas budget expert with the Quorum Report, which reports on Texas politics, crunches the numbers for us.

FT Energy Source

- BP board to exert tougher control – FT

- Baptism of fire for BP’s new chairman – FT

- Spill fund rules would shift claimant rights to BP – Reuters

- US House Democrats want Dudley to testify – Argus

- Dynegy delays vote on Blackstone offer – FT

- Eon mulls selling up to 49% of Ruhrgas – WSJ (£)

- Huhne sets out energy market reforms – FT

- National Grid profits surge 45% – BBC

- Radical overhaul aims to boost green energy – The Times (£)

- ‘Rational discussion of climate’ on Capitol Hill? – NY Times Dot Earth

- Austria charges OMV chief over purchase – FT

- Coal plants, rising and retiring – NY Times Green blog

- Unipec plans to increase diesel imports in December – Bloomberg

- Blow to Kulczyk after Emea contest reopens – FT

- Antihydrogen captured – Nature

Kiran Stacey

In February, a group of business leaders (including Richard Branson) came together to issue the government a warning: we’ve had the credit crisis, the next crisis will be a peak oil crisis.

Their message to government was to stop listening to the over-exuberance of oil companies who promised great things from their upstream operations and start thinking seriously about how to move away from the UK’s dependence on oil.

Now they have repeated that call, with an additional warning: Macondo has made the situation even more pressing.

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