The Oil Daily articles from July 2006

The Oil Daily archives from July 2006

Kerr-McGee, US to mediate royalty dispute.
July 5, 2006... In a move that could calm the firestorm over royalty relief, Kerr-McGee on Friday announced it would negotiate with the US government to settle a dispute over royalties for offshore leases and shelve a lawsuit against the Interior Department...

Conoco takes stake in Rockies Express.
July 5, 2006... ConocoPhillips has exercised its option for a 25% stake in the Kinder Morgan-Sempra Energy Rockies Express natural gas pipeline, agreeing to invest $1.1 billion for its share in the $4.4 billion transportation system from the Rocky Mountain...

Supply glut, onset of summer has gas seeking direction.
July 5, 2006... Gas futures seem to be stuck in the mud, unable to move notably higher due to the growing glut of supply, but unable to erode much lower due to the onset of summer demand, potential hurricanes, and crude poised to test new highs. "Until...

Bulls drive up crude futures prices, eye new record.
July 5, 2006... Just about everything went in the bulls' favor last week in the crude oil markets. Gasoline demand was reported to be healthy, there were draws in crude and gasoline, the closure of the Calcasieu Shipping Channel in Louisiana and refinery...

Daily oil & gas price review: prices for Friday, June 30, 2006.(Statistical table)
July 5, 2006... Daily Oil & Gas Price Review Prices for Friday, June 30, 2006 Crude Oil [GRAPHIC OMITTED] Cash/Spot Change Spot Price 5-Day Avg. Month-Ago WTS (Midland) +0.25 69.40 68.30 66.65 LLS...

US spot crudes firm as refiners capitalize on contango, high margins.
July 5, 2006... The US spot crude market was tighter on short covering last week, as refiners moved to restock supplies ahead of the long Independence Day holiday weekend in the US and investment banks stepped up their buying as bullish sentiment took hold...

US rig count falls by 3.(Baker Hughes Drilling Report)(Statistical table)(Brief article)
July 5, 2006... The number of rigs searching for oil and gas in the US fell by three to 1,666 last week, Baker Hughes said Friday. During the same week last year, there were 1,370 rigs at work. The number of rigs searching for oil in the US rose by eight...

Probe shows pride execs bribed Latin America officials.
July 5, 2006... US oil driller Pride International on Friday said an in-house investigation found employees may have bribed government officials in Venezuela and Mexico, violating US federal laws. The payments to government officials in the two oil...

EnCana's Deep Panuke development gets preliminary OK.(Offshore Strategic Energy Agreement)
July 5, 2006... The Canadian province of Nova Scotia and super-independent EnCana have reached a preliminary agreement that could lead to development of the Deep Panuke natural gas field, located about 150 miles southeast of Halifax. The pact, known as an...

Petroplus has Coryton interest.(Corporate News)(Brief article)
July 5, 2006... Netherlands-based Petroplus is interested in buying the UK-based Coryton refinery which BP officially put up for sale last week, a person involved in the process said Friday. Petroplus, which was taken over by The Carlyle Group and...

Norsk Hydro trims target.(Corporate News)(Brief article)
July 5, 2006... Norway's Norsk Hydro on Friday trimmed its 2006 oil and gas output target by about 5%, but kept its growth goal for 2005 through 2010. The company cut its 2006 target to 585,000 boe/d, about 30,000 boe/d lower than earlier estimates. "The...

Canadian gas storage.(NEWS ALERT)(Brief article)
July 5, 2006... From staff and wire reports Enerdata reported that the amount of natural gas in Canadian storage facilities rose 11.7 Bcf to 333.7 Bcf for the week ending Jun. 23. Storage caverns were 70% full, up from 67.5% the previous week and up from...

Exxon OKs Niger Delta deals.(International)(Oriental Energy Resources)(Brief article)
July 5, 2006... A multiparty deal brokered by Texas-based Sovereign Oil & Gas has concluded with Nigerian outfit Oriental Energy Resources and Canada's Addax Petroleum farming into the Okwok field on Exxon Mobil's OML 67 block offshore Niger Delta. "The...

Stock market scorecard.(table)(Statistical table)
July 5, 2006... From staff and wire reports Stock Market Scorecard Integrated Close 1-Day Majors 6/30 Chg. % Chg. Petro-Canada 47.41 +1.20 +2.60% Total 65.52 +1.37 +2.14...

Venezuela, Ecuador ink swap deal.(deal to exchange crude oil)(Brief article)
July 5, 2006... Ecuador's state oil company Petroecuador and Venezuela's state Petroleos de Venezuela (PDV) signed Thursday a swap deal to exchange crude oil for products. The agreement was signed by Petroecuador President Walter Lopez and Rafael Ramirez,...

TransCanada seeks higher rate.(Federal Energy Regulatory Commission)(Brief article)
July 5, 2006... TransCanada said Friday that its Gas Transmission Northwest (GTN) interstate pipeline, which serves markets in the US Pacific Northwest and California, filed a rate case with the Federal Energy Regulatory Commission (FERC) to increase tariff...

Chevron takes Texaco brand.(Chevron North America Marketing)(Brief article)
July 5, 2006... Chevron on Friday announced that it gained exclusive rights to the Texaco brand for retail locations in the US on Jul. 1. Following the company's 2001 merger with Texaco, Chevron was required to license the Texaco retail brand to Royal Dutch...

Canadian Oil sands up offer.(Mergers and Acquisitions)(Brief article)
July 5, 2006... Canadian Oil Sands Trust said on Friday it would raise its offer to acquire Canada Southern Petroleum to about US$167 million, raising its offer to US$11.10/share from the previously accepted US$9.75/share offer (OD Jun.20,p4). The board...

Independence hull arrives.(Natural Gas)(Brief article)
July 5, 2006... Atlantia Offshore Limited said Friday its DeepDraft Semi hull for the Independence Hub development has arrived in Ingleside, Texas. The hull was successfully offloaded on Jun. 19 and towed to Kiewit Offshore Services, where it ultimately will...

Statoil awards service jobs.(Oil Field Service)(Brief article)
July 5, 2006... Norway's Statoil has awarded oilfield service contracts worth up to US$1.12 billion, including extension options, to Halliburton, Schlumberger and M-I Norway. The basic two-year fluid and cement service contracts to the three companies are...

Refiners to cash in on big second quarter.
July 6, 2006... The second quarter of 2006 might have been the best ever for US independent refiners. They are poised to report outstanding earnings for the past three months, and most will likely report their most profitable second quarter ever--and perhaps...

Oxy takes charge after block 15 seizure.
July 6, 2006... Occidental Petroleum plans to take a second-quarter after-tax charge of $306 million to reflect the recent seizure of the company's oil assets in Ecuador. Oxy announced Wednesday that it has reclassified its Ecuador oil assets and stake in the...

Oil equities hold firm in June, poised to resume march higher.
July 6, 2006... June wasn't the most interesting month for oil equities. However, with oil prices and equities seesawing over the past several months, a boring month was likely a welcome break for some oil investors. The IPF Index, which is compiled by Oil...

Geopolitics, strong gasoline push crude to new record.(Brief article)
July 6, 2006... Renewed geopolitical tensions and a strong gasoline market boosted crude futures to a record intraday high of $75.40 per barrel on Wednesday. North Korea is not an oil producer but the communist country's test-firing of at least seven...

Daily oil & gas price review: prices for Wednesday, July 5, 2006.(Statistical data)
July 6, 2006... Daily Oil & Gas Price Review Prices for Wednesday, July 5, 2006 Crude Oil [GRAPHIC OMITTED] US Domestic Crudes ($/barrel) Cash/Spot Change Spot Price 5-Day Avg. Month-Ago WTS (Midland) +1.36 ...

BP struggles with production in Q2, but prices, margins help profits.(Brief article)
July 6, 2006... BP's oil and gas production fell below expectations in the second quarter, according to figures released in a corporate trading update, leaving the UK supermajor with work to do to meet its targeted increase. But the statement's confirmation of...

Mexico braces for heated recount after leftist candidate challenges results.
July 6, 2006... Mexico is bracing for what could be divisive times following the decision by the country's election agency for a vote-by-vote recount that will determine whether conservative candidate Felipe Calderon or his leftist challenger Andres Manuel...

Cooling degree days: for the week of Jul. 1, 2006.(Statistical table)
July 6, 2006... Cooling Degree Days For the week of Jul. 1, 2006 -Week Dev- From Week From Year Cum State/City (PADD) Total Norm...

Ex Enron boss Lay dies of heart attack.(Obituary)
July 6, 2006... Kenneth L. Lay, Enron's long-time chairman and chief executive, died Jul. 5 of an apparent heart attack at his vacation home in Aspen, Colorado, according to a family statement and local law enforcement officials. He was 64. Lay was...

Nigeria militants threaten more violence.(Niger Delta People Volunteer Force)
July 6, 2006... Niger Delta militants have threatened violent reprisals against local authorities, after the deaths of three men police claimed played a part in a June attack on the Royal Dutch Shell gas capturing facility at Cawthorne Channel. "The...

Democrats raise environmental concerns over NPR-A lease sale.(National Petroleum Reserve-Alaska)
July 6, 2006... As the Bush administration prepares for a lease sale in the National Petroleum Reserve--Alaska (NPR-A) this September, Senate Democrats are pressing Interior Secretary Dirk Kempthorne to review key issues, including the decision to allow...

Non-OECD growth keeps June global oil demand flat.(crude production management)
July 6, 2006... The revival of global oil demand growth in May could not be sustained in June, when year-on-year consumption was flat, preliminary data show. Just as the US provided a key upward push in May demand, it was the hefty US fall from June that led...

Petrobras details outlay plans.(exploration and production of gas and energy)(Brief article)
July 6, 2006... Petrobras on Tuesday announced that the largest chunk of 2007-11 new projects spending will go towards international expansion, absorbing $5.6 billion of an $87.1 billion investment plan. Out of $17.4 billion in additional spending on new...

Seniat shuts Petro-Canada office.(Petro-Canada as a sanction for tax irregularities)(Brief article)
July 6, 2006... Venezuelan tax authorities have briefly closed down the offices of a local affiliate of oil company Petro-Canada as a sanction for tax irregularities, officials said on Friday. The Seniat tax agency said in a statement that it had shut down...

Hopes up for offshore drilling.(Legislation/Regulation)(Brief article)
July 6, 2006... A key Senate Republican chairman is hopeful that a bill to expand offshore drilling can be passed in the Senate this month. Encouraged by the House of Representatives' approval of an offshore drilling bill last week, Senate Energy and...

Court won't reconsider air law.(air pollution regulations)(Brief article)
July 6, 2006... A federal court has rejected the Bush administration's request to reconsider an earlier decision striking down key air pollution regulations that critics said exempted industrial facilities from costly pollution control measures. US Court...

Stock market scorecard.(petroleum industry)(Statistical table)
July 6, 2006... Stock Market Scorecard Integrated Close 1-Day Majors 7/5 Chg. % Chg. Marathon 84.91 +1.64 1.97% Chevron 63.88 +1.13 1.80 Hess 54.34 +0.77 ...

BP ups claims allotment.(British petroleum)(Brief article)
July 6, 2006... BP has set aside an additional $500 million for victim claims from a 2005 blast at its Texas City, Texas, refinery, the company said in a filing on Friday with the US Securities and Exchange Commission (OD Mar.30'05,p1). BP previously set...

Calpine seeks Rosetta interests.(power producer )(Brief article)
July 6, 2006... Struggling California power producer Calpine on Jun. 29 filed a motion in the US Bankruptcy Court for the Southern District of New York seeking the entry of an order authorizing Calpine to assume oil and gas leases it had previously agreed to...

Conoco to develop Aceh block.(Natural Gas)(Brief article)
July 6, 2006... ConocoPhillips plans to develop natural gas from its working area of Block A in Indonesia's Aceh province, a company official said on Wednesday. Last year, Jakarta urged ConocoPhillips, the third largest oil firm in the United States, to...

PRB adds Powder River assets.(Brief article)
July 6, 2006... PRB Energy announced Wednesday the acquisition of about 630 coal-bed methane (CBM) wells on 29,500 acres from Pennaco Energy in Wyoming's Powder River Basin. Denver-based PRB Energy is the principal gas gatherer for these wells. The financial...

Ziff sees natural gas shortfall.(Liquefied Natural Gas)(Brief article)
July 6, 2006... Calgary-based Ziff Energy Group has released a report projecting that new LNG supplies will help fill a natural gas shortfall of 14.5 Bcf/d in the Northeastern US and Canada by 2015. Ziff said the shortfall could not be met with traditional...

More hurdles for weaver's cove.(liquified natural gas)(Coastal Resources Management Council)(Brief article)
July 6, 2006... Although Hess LNG's Weaver's Cove project has gotten federal approval to move forward with a proposed LNG terminal in Fall River, Massachusetts, construction is being held back by nearby Rhode Island. The Federal Energy Regulatory...

Stallion to hold IPO.(Oil Field Service)
July 6, 2006... Stallion Oilfield Services, which provides wellsite support and construction and logistics services, said on Monday it is planning an initial public offering of as much as $287.5 million in common stock. Lehman Brothers, Credit Suisse and...

KBR wins Saudi contract.(Oil Field Service)
July 6, 2006... KBR, the engineering, construction and services subsidiary of Halliburton, on Wednesday announced that it has been awarded a lump sum services contract by Saudi Kayan Petrochemical Company, a Saudi Basic Industries Corp. (SABIC) affiliate, for...

Cheney pushes Alaska pipe.(Pipelines)
July 6, 2006... Vice President Dick Cheney in a letter to members of the Alaska Legislature this week urged Alaska lawmakers to approve Gov. Frank Murkowski's controversial deal with ConocoPhillips, BP and Exxon Mobil for a $20 billion natural gas pipeline...

Saudis raise light crude prices.(Oil & Gas Markets)
July 6, 2006... Saudi Arabia's state-owned oil company Saudi Aramco has adjusted its August term prices by tightening the differentials for Arab Extra Light and Arab Light while leaving unchanged the differentials for Arab Medium and Arab Heavy to the United...

Saudi crude price differentials.(table)(Statistical table)
July 6, 2006... Saudi Crude Price Differentials February barrels on an f.o.b. basis ($/bbl) US Europe Asia Basis WTI Brent Oman/Dubai Extra Light Aug. -2.05 -1.75 +3.65 Jul. -2.70 ...

Costs soar at Shell's Athabasca oil sands.
July 7, 2006... Alberta's ambitious oil sands development efforts, coupled with high demand for engineering-construction services and an ultra-tight labor market are pushing up costs radically for the Athabasca Oil Sands Project (AOSP), project majority owner...

Burlington assets to lift Conoco's output.
July 7, 2006... ConocoPhillips expects to put up some big numbers when it reports second-quarter results later this month. The addition of Burlington Resources' assets to the oil major's portfolio, along with initial crude oil liftings from Libya, will provide...

Free markets, energy security top US agenda at G8 summit.
July 7, 2006... The US is slated to push free market principles and securing critical energy infrastructure at the G8 summit this month, a meeting that will focus on energy security, according to a top Bush administration official. The energy-themed summit in...

Crude, gasoline futures cool on bearish stock data.
July 7, 2006... Oil prices cooled in early trading on Thursday amid bearish gasoline data and a technical correction following Wednesday's sizzling market, when prices closed at a record of $75.19 per barrel (OD Jul.6,p3). But speculative buying and declining...

Daily oil & gas price review: prices for Thursday, July 6, 2006.(Statistical table)
July 7, 2006... Daily Oil & Price Review Prices for Thursday, July 6,2006 Crude Oil [GRAPHIC OMITTED] US Domestic Crudes ($/barrel) Cash/Spot Change Spot Price 5-Day Avg. Month-Ago WTS (Midland) -0.12 70.64 ...

EIA weekly statistics: for week ended June 30, 2006.(Statistical table)
July 7, 2006... EIA Weekly Statistics For Week Ended June 30,2006 US Crude Oil: Stocks (1) (millions of bbl) Current Previous Week Week Chg. PADD 1 15.9 15.3 3.9% PADD...

Tesoro mulls entry into Gulf Coast market, eyes Houston refinery.
July 7, 2006... Sources reported Thursday that Tesoro is negotiating to buy Lyondell-Citgo's 268,000 barrels-per-day Houston refinery in a deal valued at around $4 billion. Such a deal would provide Tesoro, which owns refineries in the Western United...

Business-friendly Calderon wins Mexico's election recount.
July 7, 2006... Conservative candidate Felipe Calderon built an insurmountable lead in Mexico's presidential election recount, but his rival leftist Andres Manuel Lopez Obrador vowed not to concede on Thursday. Lopez Obrador, considered the less...

Exxon consolidates position as top IOC in Middle East.
July 7, 2006... US energy giant Exxon Mobil last year consolidated its position as the leading international oil company in the Middle East, according to a report by UK consultants Wood Mackenzie. Exxon - whose Mideast portfolio is valued at $18 billion,...

Enbridge gets shipper pledges.(Brief article)
July 7, 2006... Enbridge's Southern Lights diluent pipeline project received commitments from shippers exceeding the planned 180,000 b/d capacity of the system, resulting in prorationing capacity in the project. Committed shippers will receive an aggregate...

Shell questions food for fuel.(Environment)(Brief article)
July 7, 2006... Royal Dutch Shell, the world's top marketer of biofuels, considers using food crops to make biofuels "morally inappropriate," according to Eric G Holthusen, Shell's Asia/Pacific fuels technology manager. "If you look at Africa, there are...

Indian field draws majors.(International)(Brief article)
July 7, 2006... At least 13 oil companies, including Exxon Mobil, Royal Dutch Shell, BP, BG Group and Total have submitted a preliminary offer to buy a stake in one of India's biggest gas fields, its operator said on Thursday. State-run exploration firm...

Azeri oil production rises.(International)(Brief article)
July 7, 2006... Azerbaijan's crude oil production rose 52% in January-June, year-on-year, mainly due to increased output from a BP-led group, oil officials said on Thursday. The BP-led group said its own output from the Chirag and Azeri oilfields rose to...

Firms eye Colombia field.(National Hydrocarbons Association)(Brief article)
July 7, 2006... Nine oil companies, including BP, Total and Russian Lukoil, sent offers to participate in Colombia's Niscota area, according to the country's National Hydrocarbons Association (ANH). Repsol YPF, Argentina's Pluspetrol, France's Perenco,...

Stock market scorecard.(table)(Statistical table)
July 7, 2006... Stock Market Scorecard Integrated Close 1-Day Majors 7/6 Chg. % Chg. Hess 55.20 +0.86 +1.58% Exxon Mobil 63.47 +0.92 +1.47 Repsol YPF 28.77 ...

Mexico raises US Maya prices.(Latin America)(Brief article)
July 7, 2006... Mexico increased its August prices on exports of Maya crude to the US Gulf coast by lowering its discount by $1.50 to $3.35/bbl from July levels, as calculated under the monthly adjustment to its oil export price formulas, state oil monopoly...

Mexican price adjustments.(table)(Statistical table)
July 7, 2006... Mexican Price Adjustments ($/bbl) Isthmus-34 Maya-22 Olmeca-39 US Gulf Aug. -$4.70 -3.35 +$0.45 US Gulf July -4.95 -4.85 +0.25 US W. Coast Aug. ... -11.00...

Chevron sells Ecuador stations.(gasoline stations)(Brief article)
July 7, 2006... Chevron has sold its network of 65 gasoline stations in Ecuador to Colombia's Terpel for an undisclosed price, a company spokeswoman confirmed Thursday. "We are pulling out of the gasoline market in Ecuador and we continue in the...

Enron, Merrill settle claims.(Litigation related to the investment bank)(Brief article)
July 7, 2006... Enron said on Thursday Merrill Lynch & Co. will pay $29.5 million to settle MegaClaims" litigation related to the investment bank's role in the energy company's bankruptcy. Merrill Lynch did not admit liability or wrongdoing, and both...

Noble takes Cameroon stake.(Mergers & Acquisitions)
July 7, 2006... Noble Energy announced Thursday that it has acquired ConocoPhillips' 50% participating interest in the PH-77 license offshore the Republic of Cameroon. The other participants in the PH-77 license area include Malaysian state Petronas, with...

Sinopec buys Udmurtneft.(Udmurtneft)(Brief article)
July 7, 2006... China's Sinopec will pay $3.5 billion to buy a 96.9% stake in mid-sized oil unit Udmurtneft, part of BP's Russian TNK-BP, Interfax news agency reported on Thursday (OD Jun.6,p8). Udmurtneft produces 120,000 b/d and has reserves of 1 billion...

Gazprom in Yamal LNG talks.(Natural Gas)
July 7, 2006... Russia's Gazprom was in talks Thursday to take a controlling stake in Yamal LNG, a project to build an LNG plant in Northern Siberia that would feed Europe, North America and possibly other markets, Russia's Kommersant reported. However,...

Petrobras sets out plans for Latin America.
July 10, 2006... Brazil's state-controlled oil company Petrobras plans to invest up to $1.3 billion over the next five years in upstream and downstream projects across Latin America. Petrobras International Director Nestor Cunar Cervero told reporters that...

Bodman wants to see Alaska pipeline progress.
July 10, 2006... Energy Secretary Samuel Bodman has thrown his weight behind the push for construction of an Alaska gas pipeline, sending a letter to Alaskan governor Frank Murkowski that calls for tangible progress on the project this summer. Bodman's...

El Paso on road to recovery, tests Indiana shale gas play.
July 10, 2006... El Paso remains on target for "clean earnings" of at least $1 per share for 2006 as well as reducing corporate debt to less than $14 billion, Chairman and Chief Executive Doug Foushee said last week. The integrated natural gas pipeline and...

Citgo refinery OK after fire.(Brief article)
July 10, 2006... A fire in a gasoline-additive unit at Citgo's 157,000 b/d Corpus Christi, Texas refinery has had a limited impact upon the plant's gasoline production, according to a person familiar with the plant. The fire in the larger of the refinery's...

Despite setting new record, crude ends week barely changed.
July 10, 2006... It is unclear why the test-firing of missiles by North Korea--which is not a crude oil producer--should affect the dynamics of the oil markets. But last week, the bulls, in typical fashion, used a geopolitical crisis to run up prices to a...

Daily oil & gas price review: prices for Friday, July 7, 2006.(Statistical data)
July 10, 2006... Daily Oil & Gas Price Review Prices for Friday, July 7, 2006 [GRAPHIC OMITTED] US Domestic Crudes ($/barrel) Cash/Spot Change Spot Price WTS (Midland) -0.98 69.66 LLS (St....

US spot crude differentials flat to stronger as contango grows wider.
July 10, 2006... US spot crude differentials were unchanged to slightly stronger last week, boosted by a wider contango as refiners booked prompt cargoes for later use amid rising crude futures prices. Refiners are also buying more prompt crude barrels...

US rig count falls by 7.(Baker Hughes Drilling Report)(Brief article)
July 10, 2006... The number of rigs searching for oil and gas in the US fell by seven to 1,659 last week, Baker Hughes said Friday. During the same week last year, there were 1,394 rigs at work. The number of rigs searching for oil in the US fell by seven...

Kirkuk sales push up Iraq's oil exports to new highs.
July 10, 2006... Iraq offered a fourth tender for Kirkuk crude on Friday after stable flows along its fragile northern pipeline to Turkey allowed spot sales of about 9 million barrels (430,000 barrels per day) over the past three weeks. Kirkuk exports have...

Pemex raises wages by 4.1%.(Brief article)
July 10, 2006... Mexico's state oil monopoly Pemex said Thursday it has agreed with the National Oil Workers Union to increase worker's wage by 4.1%, plus 1.7% in additional benefits. The increase surpasses the 3% to 3.5% inflation rate targeted by...

Bearish demand, technicals sends August NatGas futures tumbling.
July 10, 2006... Lackluster demand across much of the US, coupled with an overall bearish sentiment, sent prompt-month gas futures last week to the lowest levels seen this year. However, while some weather models are calling for relatively mild conditions to...

PrimeWest closes US deal.(Brief article)
July 10, 2006... Calgary-based PrimeWest Energy Trust has closed the acquisition of producing oil and gas assets in Montana, North Dakota and Wyoming for a total consideration of about $300 million (OD Jun.27,p7). The acquisition increases the oil and gas...

Enbridge weighs Gulf Coast pipeline options.(Brief article)
July 10, 2006... Canada's Enbridge said today it is considering two options to increase its pipeline capacity to the US Gulf Coast. The North American pipeline giant said it will either extend its current pipeline system from Chicago southward to the Gulf...

Syncrude to restart unit.(Environment)(Brief article)
July 10, 2006... Joint-venture company Syncrude Canada, the world's largest producer of synthetic crude oil, said Thursday it will restart a new Phase 3 expansion at its northern Alberta refinery that converts heavy oil sands bitumen into synthetic crude oil....