America's Shale Deposits & Goldman Sachs

[WhiskeyGirl]

Nicor Inc. is being sold to AGL Resources Inc. for $2.38 billion in a cash-and-stock deal that would create one of the largest natural-gas distributors in the United States.

"[Together] we're going to have a bigger, better, stronger platform to continue to grow both companies," Russ Strobel, Nicor Chairman and CEO, said to “The Associated Press.”

The deal, announced Tuesday, comes as many companies such as Exxon Mobil hurry to build more pipelines and storage facilities that will enable them to develop America’s vast shale gas deposits this year.

The new company is predicted to generate around $5.1 billion in annual revenue and serve more than 1 million retail customers. Strobel said Nicor’s 2.2 million customers “can continue to rely on the same local gas company,” and they wouldn’t see a change in prices or services because of the merge.

According to the company statement, AGL is also committed to maintaining local jobs for three years, and will continue Nicor’s philanthropic and community work for five years.

Read more: http://www.thirdage.com/news/nicor-inc-acquired-agl-238-billion_12-7-2010#ixzz17SVZNyJD

Robert W. Baird analyst David Parker tells “The Associated Press” Nicor’s strategic location in the Midwest will give AGL access to eight interstate pipelines. Nicor’s storage facilities and access to shale gas fields will also help power plants shift away from coal.

"Pipelines and storage are expensive, and a bigger balance sheet will make this easier for them,” Parker said.

Read more: http://www.thirdage.com/news/nicor-inc-acquired-agl-238-billion_12-7-2010?page=1#ixzz17SVuAM3W

What exactly does Goldman get out of this?

[WhiskeyGirl]

Nicor has some interesting pipeline connections -

We have direct connections with eight major interstate pipelines:

    * ANR Pipeline Company (ANR)
    * Natural Gas Pipeline Company of America (NGPL)
    * Northern Border Pipe Line (NBPL)
    * Northern Natural Gas Company (NNG)
    * Midwestern Gas Transmission Company (Midwestern)
    * Alliance Pipeline (APL)
    * Panhandle Eastern Pipeline Company
    * Horizon Pipeline (NGPL/Nicor)

Our services are provided at regulated rates and are made possible through the use of under-utilized capacity at Nicor Gas' seven underground storage facilities and its transmission network.

http://www.nicor.com/en_us/commercial/gas_xchange/chicago_hub.htm

ANR has a pipeline in Wisconsin.  Oddly, the pipeline seems to match plans for Obama's choo-choo in Wisconsin.  Up towards Fond du Lac, and west.

Pipeline map here - http://www.eia.doe.gov/pub/oil_gas/natural_gas/analysis_publications/ngpipeline/midwest.html

More here - http://www.eia.doe.gov/state/state_energy_profiles.cfm?sid=WI

So, if coal use is declining due to Obama, this will be like a pipeline monopoly?

How much stimulus/taxpayer money does Obama want to spend on repairing our aging infrastructure?  I keep thinking of the many times gas pipelines are put forth as needing taxpayer money.

Has taxpayer money been used for this pipeline?  Government contract?