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  1. Enbridge to Buy Spectra Energy in $28 Billion Deal — Energy Journal

    Enbridge to Buy Spectra Energy in $28 Billion Deal — Energy Journal

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    ENBRIDGE TO BUY SPECTRA ENERGY IN $28 BILLION DEAL

    Canadian pipeline operator Enbridge Inc. on Tuesday agreed to buy Houston’s Spectra Energy Corp. in an all-stock deal valued at about $28 billion, creating a North American energy-infrastructure giant at a time when growth is challenged by lower commodity prices and higher regulatory hurdles, according to The Wall Street Journal.

    The deal is a shift away from reliance on crude oil and is a bullish bet on natural gas by crude-hauling heavyweight Enbridge. The Calgary-based company expanded existing cross-border pipelines in recent years to help Canada set new export records to the U.S., and the company is one of the biggest owners of oil storage tanks in Cushing, Okla., the pricing hub for West Texas Intermediate crude.

    DRIVER-LED OIL RALLY IN PERIL AS STOCKPILES GROW

    Surging demand from drivers in the richest countries helped power a big rally in crude this year. But many analysts say the surge is ending, according to The Wall Street Journal.

    In the U.S., lower gasoline prices led consumers to drive a record three trillion miles in the past 12 months. In June, gas consumption hit an all-time high of 9.7 million barrels a day. And in July, pickup trucks, SUVs and other gas guzzlers reached a record share of auto sales.

    OPEC LIKELY TO BE CAUTIOUS ON OUTPUT CAP

    The Wall Street Journal’s Benoit Faucon and Summer Said report that OPEC members face a dilemma in the run-up to a new round of oil-production talks later this month: They want to boost crude prices to raise their revenue, but they don’t want to send prices so high that North American shale-oil producers will lift their output.

    The result, say officials from members of the Organization of the Petroleum Exporting Countries, is that the cartel is unlikely to make aggressive efforts to curb output when it meets in Algiers beginning Sept. 26.

    STATOIL RENEWS PUSH INTO ARCTIC BASINS

    Norway’s Statoil ASA said Tuesday that it was pushing deeper into the Arctic, shopping for Barents Sea drilling licenses in a bid to add resources and maintain output over the coming decades, according to Kjetil Malkenes Hovland, writing in The Wall Street Journal.

    The 67% state-owned company said it had acquired stakes in four licenses in Norway’s far north from Tullow Oil PLC, after entering or boosting its holdings in five other Arctic licenses in the past months through deals with companies including OMV AG and ConocoPhillips, at undisclosed prices.

    MARKETS

    Oil prices rose Wednesday on a slightly weaker dollar despite dwindling hopes for a production freeze agreement between major producers.

    The November contract for global crude benchmark Brent edged 0.66% higher to $47.57 a barrel while its U.S. counterpart West Texas Intermediate gained 0.71% to $45.15 for October deliveries.

    The U.S. dollar index fell by just over 1% Tuesday, providing a slight tailwind for prices, which are still lodged in the $45-$50 a barrel bracket. Read our latest market report at www.wsj.com


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