Energy In-depth: Merger Activity In Upstream Oil And Gas Sector Declines In Q1

by Talk Business & Politics staff ([email protected]) 75 views 

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MERGER ACTIVITY IN UPSTREAM OIL AND GAS SECTOR DECLINES IN Q1
U.S. oil and gas deal activity stalled in the first quarter of 2015, due to a low oil price environment, according to a quarterly analysis from PricewaterhouseCoopers (PwC) of merger and acquisition (M&A) activity in the U.S. upstream industry.

Total deal activity in the upstream segment dropped significantly in the first quarter, accounting for 12 transactions representing $3.6 billion, or a decrease of 60% and 71% in total deal volume and value, respectively, compared to the same period in 2014.

The most active shale play for M&A with values greater than $50 million during the first quarter of 2015 was the Permian, which led in activity with four deals worth $1.5 billion. The Eagle Ford contributed three deals worth $1.2 billion.

PSC ALLOWS SIERRA CLUB TO INTERVENE IN ENTERGY RATE CASE IN LIMITED ROLE
The Arkansas Public Service Commission on Wednesday granted limited status to the Arkansas Sierra Club’s request to intervene in Entergy Arkansas Inc.’s $167 million rate case, saying the environmental group had established “specific interests” to participate in the regulatory docket. There was also a mystery intervenor whose status is still pending. Read more here.

REPORT: NUCLEAR POWER’S CONTRIBUTIONS TO U.S. ENERGY POLICY, ECONOMY UNDERVALUED
The nation’s nuclear energy fleet contributes $60 billion annually to gross domestic product (GDP), in addition to other economic and societal benefits, according to a new study conducted by economists at The Brattle Group.

The report estimates the value of the entire nuclear industry to the U.S. economy and its contribution to limiting greenhouse gas (GHG) emissions. The research concludes that the nuclear industry accounts for about 475,000 full-time jobs (direct and secondary). In addition, energy generated from nuclear plants prevents 573 million tons of carbon dioxide emissions. This is worth an additional $25 billion annually if valued at the U.S. government’s estimate for the social cost of carbon.

“The economic and environmental benefits of nuclear energy are often undervalued in national and state energy policy discussions,” said Dr. Mark Berkman, co-author of the report of the Cambridge, Mass.-based economic consulting and research firm. The study, called “The Nuclear Industry’s Contribution to the U.S. Economy,” was prepared on behalf of Nuclear Matters, an industry advocacy group.

GROUP SAYS EPA’S CLEAN POWER PLAN WILL LEAD TO NEW MARKET INNOVATIONS
The U.S. Environmental Protection Agency’s proposed Clean Power Plan (CPP) will spark an industry response that makes available a wide array of cost-competitive compliance options, according to a new report prepared by the Advanced Energy Economy Institute.

This conclusion is based on a review of prior EPA regulations that allowed for market-based compliance, such as emission reduction credit trading. In every case, an efficient and active market developed rapidly in response to a regulatory signal. Given the structure of the proposed CPP and large existing markets for advanced energy technologies and services that can be used as compliance measures, the report concludes that the CPP will elicit a similarly robust market response.

“Time and again, when there’s a market signal — whether it’s from consumers, from states, or from EPA — markets respond,” said Malcolm Woolf, Senior Vice President for Policy and Government Affairs for Advanced Energy Economy (AEE), a national business association. “There is no reason to think the Clean Power Plan should be any different. With strong markets already in place for advanced energy technologies that can be used for compliance, there is every reason to expect an industry response that will make implementation of the Clean Power Plan easier and cheaper.”

The paper, “Markets Drive Innovation: Why History Shows that the Clean Power Plan Will Stimulate a Robust Industry Response,” is available for download here.

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