The big deal: Royal Dutch Shell has agreed to buy British gas producer BG Group for $69.7 billion in cash and stock, the companies announced this morning. The Associated Press reports the move gives oil giant Shell a greater stake in natural gas markets in the wake of tumbling oil prices. A joint statement says the boards of both companies are recommending that shareholders approve the deal that will create a stronger, more competitive company for both sets of shareholders in today’s volatile oil price world. Shell says the takeover will add 25% to its proved oil and gas reserves and 20% to production compared with 2014, and boost its position in new oil and gas projects in Australia and Brazil. Read the full story.
Sitting on top of the world: The U.S. was the world’s biggest producer of hydrocarbon fuels for the third year in a row in 2014, according to new government data. As FuelFix.com reports, record natural gas production and a historic crude oil surge widened the gap between the U.S. and its two closest rivals, Russia and Saudi Arabia, the U.S. Energy Information Administration says in a report issued Tuesday. The total U.S. daily output of liquid and gas energy in 2014 was 54.6 quadrillion British thermal units, an increase of 4.8 quadrillion Btu over 2013. Russia produced 43 quadrillion Btu, while Saudi Arabia produced 27.5 quadrillion. Read the full story.
Past due: How would you like to have 120 days to pay your creditors? The New York Times reports that by adopting a tactic widely used by 3G Capital, the Brazilian private investment group behind the recent merger of Heinz and Kraft Foods, a growing number of the world’s largest food and packaged goods companies are asking their suppliers to give them as much as four months to pay their bills—even though they typically require payment from their own customers in 30 days. The tactic has gained in popularity ever since an affiliate of 3G Capital put it to use after it bought Anheuser-Busch in 2008. It’s also putting a squeeze on suppliers’ finances. Read the full story.
