Private equity funds are increasingly buying up energy assets. In 2004 year-to-date,10 energy buyout deals have been done in the US at a value of $9.5 billion, morethan double the number of deals in 2003, according to financial communicationsspecialist Dealogic. Not only are more deals being done, but their value is rising.The average US deal was worth $271 million in the previous five years. In 2004,the average deal size to date is $660 million.

In July alone, Vulcan Energy, the investment