The power of Oil.

The major oil companies are increasingly betting their futures on natural gas, with older oil fields producing less crude and newer ones either hard to reach or controlled by unfriendly nations. They are focusing more than ever on natural gas because it burns cleaner than oil and is gaining traction as a fuel for transportation. The latest move came Tuesday, when Chevron made a $4.3 billion deal to buy up natural gas fields in the Northeast.

Today Subsea 7 said the new deal is for installation of a 2.2 km (1.37 mile) pipeline bundle which involves engineering, procurement, fabrication, installation and commissioning of the new pipeline, plus associated subsea tie-ins, plus testing and commissioning of the line. Offshore installation of the bundle is due for 2011 and the tie-in work is due to be performed offshore in 2112. No further details of the deal have been disclosed but the contractor says it will reveal more about the project “…at the earliest opportunity.”

Revenue was up 497 US $ to 7.082 US $ while earnings were up 3,202 m Danish kroner to hit 10,032 m Danish kroner that reflected higher energy prices generated from wind farms. Profit after tax almost trebled, to 3,091 m Danish kroner.

Jude    Oil and Gas     Anders Eldrup, Danish kroner, Dong Energy, Fadel Gheit., higher energy prices, major oil companies, natural gas, natural gas fields, Offshore installation, oil fields, Oppenheimer & Co., Royal Dutch Shell, Subsea 7, wind farms

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