The Oil Daily articles from June 2004

The Oil Daily archives from June 2004

El Paso Struggles to Stem Decline in Gas Output.
June 1, 2004... HOUSTON -- El Paso's efforts to stabilize natural gas production at its upstream business have not yet borne fruit, with output falling further in the first and second quarters of 2004. After revealing a massive writedown in its gas...

Shippers Challenged by Jul. 1 Security Deadline.(International Ship and Port Facility Security )
June 1, 2004... LONDON -- The International Maritime Organization (IMO) has warned its members to expect disruptions when the International Ship and Port Facility Security (ISPS) code comes into effect on Jul. 1. It warned that the deadline could not...

Will Saudis Get Help From Others With Spare Output Capacity?(petroleum)
June 1, 2004... NEW YORK -- Will Saudi Arabia get much help from other producers in its attempt to bring oil prices back to more comfortable levels for consumers and producers (OD May24,p1)? Although there may be some unused capacity in a few Opec...

Short Covering, Expiring Gasoline Contract Pull Oil Futures Higher.
June 1, 2004... HOUSTON -- The next few days will be interesting ones in the oil and gasoline markets. The Memorial Day weekend kicked off the US summer driving season -- a period of historically high fuel demand when millions of Americans traveling by...

Saudi, Other Imported Cargoes Weigh Heavy on US Domestic Spot Crude Market.(Saudi Arabia)
June 1, 2004... WASHINGTON -- The foreign invasion of the US spot market continued apace last week as imported cargos of both sweet and sour grades put downward pressure on domestic crude differentials. After soaring to record-high close last Tuesday,...

FERC-State Jurisdiction Issues Could Tie Up LNG Permitting.(Federal Energy Regulatory Commission)(liquefied natural gas )
June 1, 2004... NEW YORK -- A festering jurisdictional issue between federal and state regulators on the permitting process for land- based liquefied natural gas (LNG) receiving terminals is headed for court, Federal Energy Regulatory Commission (FERC)...

Bullish Summer Outlook Pushes June Gas to Record Highs.
June 1, 2004... WASHINGTON -- Will $6.70 per million Btu natural gas break the back of some manufacturers? Industrial end-users on the Gulf Coast will be paying for baseload gas at that price level over the next month and over $7 in the Northeast after...

Industry Mergers Deemed to Have Help Boost Gasoline Prices.
June 1, 2004... WASHINGTON -- A General Accounting Office (GAO) report says mergers and market concentration in the oil industry from the mid-1990s through 2000 has slightly increased wholesale gasoline prices in the US. The report, which closely...

Canadian Gas Storage.(Brief Article)
June 1, 2004... Canadian Enerdata reported that the amount of natural gas in Canadian storage facilities rose 19.5 Bcf to 222.5 Bcf for the week ended May 21. Storage caverns are 44.8% full, up from 40.8% last week and 30.8% a year ago. (Bcf) ...

Baker Hughes Rig Count.(Brief Article)
June 1, 2004... US Rig Count Falls by 3 The number of rigs searching for oil and gas in the US fell by three to 1,169 last week, oil services firm Baker Hughes said Friday. During the same week last year, there were 1,059 rigs in operation. The number...

Daily Oil & Gas Price Review.(Illustration)
June 1, 2004... Daily Oil & Gas Price Review Prices for Friday, May 28, 2004 Light Sweet Futures -- Prompt Month ($/barrel) 1st 5-Day 2nd 3rd Chg Month Avg. ...

Stock Market Scorecard.(petroleum industry)(Illustration)
June 1, 2004... Stock Market Scorecard Close 1-Day. % Chg. May 28 Chg. % Chg. 10-Day 52-Wk YTD Integrated Majors ConocoPhillips 73.33 +0.86 ...

Equatorial Guinea LNG Deal Done.(Brief Article)
June 1, 2004... Marathon Oil announced Friday that it has finalized agreements with the government of the central African republic of Equatorial Guinea allowing the country to ship its first liquefied natural gas (LNG) sometime in the fourth quarter of 2007....

Kerr-McGee Sees Bohai Output.(Kerr-McGee China Petroleum Ltd.)(Brief Article)
June 1, 2004... Kerr-McGee is moving ahead with production in China's Bohai Gulf faster than previously expected, the company told Oil Daily Friday. The 150 million bbl CFD 11-1 and CFD 11-2 fields on Block 4/36 are expected to come onstream next quarter,...

Output Restarts at Sakhalin 2.(Royal Dutch-Shell Group of Cos.)(Brief Article)
June 1, 2004... Royal Dutch/Shell restarted operations at its offshore Sakhalin 2 joint venture project in far eastern Siberia the company said Friday. Production was discontinued in December for the winter iceberg season that makes it treacherous for...

Petrobras Restarts Roncador.(Petroleo Brasileiro S.A.)(Brief Article)
June 1, 2004... Brazil state Petrobras restarted a floating production storage and operations unit in its Roncador field Friday, after losing roughly 270,000 bbl of crude production. The 90,000 b/d FPSO was taken offline late Tuesday night after a gas-flaring...

Pebercan Brings in Cuban Well.(Brief Article)
June 1, 2004... Canadian junior Pebercan has successfully completed its offshore Seboruco 7 well in Cuba, the company said in a news release on Thursday. The Montreal-based company said the highly angled horizontal well reached its target depth of 4,650...

Bolivia,Mexico Sign Accord.(Brief Article)
June 1, 2004... The presidents of Mexico and Bolivia were expected to sign on Saturday a memorandum of understanding for energy cooperation and exchange of information on legal, regulatory and policy issues and energy infrastructure design. Mexico also...

Vinccler Gets Venezuela Funding.(Vinccler Oil and Gas Corp., World Bank loans)(Brief Article)
June 1, 2004... The World Bank will provide up to $40 million in loans to Vinccler Oil and Gas Corp. to develop gas from the Cumarebo and La Vela fields in Venezuela, Vinccler's California-based parent company Petrofalcon said late Friday. Loans will be issued...

BLM Seeks Comments.(Bureau of Land Management, natural gas wells planning)(Brief Article)
June 1, 2004... The Bureau of Land Management (BLM) announced Friday that it is taking comment for a month on a proposal to drill nearly 600 new natural gas wells on more than 200,000 acres of federal land in south-central Wyoming known as Desolation Flats....

BLM Changes Drilling Plans.(Bureau of Land Management amending its oil and gas leasing proposal)(Brief Article)
June 1, 2004... The Bureau of Land Management (BLM) is amending its oil and gas leasing proposal in the Sierra and Otera counties in New Mexico, bowing to the concerns of the state government. In a May 28 Federal Register notice, the BLM said it would...

Freeport LNG Gets EIS.(Brief Article)
June 1, 2004... Friday's release of the final Environmental Impact Study for a 1.5 Bcf/d liquefied natural gas (LNG) import terminal at Freeport, Texas indicates that the permitting process is going smoothly, and project developers could reasonably expect to...

Torch Drill Ship Ends Trials.(Brief Article)
June 1, 2004... Louisiana-based Torch Offshore announced Friday that it has completed initial sea trials of its Midnight Express deep- sea drilling ship, according to a company statement. The ship is scheduled to return to port in the US for more work...

MAP Restarts Cat Cracker.(Marathon Ashland Petroleum )(Brief Article)
June 1, 2004... Marathon Ashland Petroleum said Friday that is had fully restarted its 26,000 b/d fluid catalytic cracker unit at its St. Paul, Minn., refinery after closing the unit for maintenance on May 14. "It has been restarted and is back at full...

Oil Market Sizzles as Opec Ministers Gather.
June 2, 2004... BEIRUT -- As oil prices soared nearly $2.50 per barrel on US futures markets Tuesday, Opec was working hard to douse the flames of the sizzling rally as ministers arrived in the Lebanese capital ahead of talks on Thursday. A move to pour more...

Mexican Energy Secretary Calderon Resigns.
June 2, 2004... NEW YORK -- Mexico's Energy Secretary Felipe Calderon Hinojosa quit in a fit of pique Monday after Mexican President Vicente Fox sharply rebuked him for publicizing his presidential ambitions. His resignation is the death knell for energy...

US Offers Funding for Russian Pipe; Transneft Says Too Little.
June 2, 2004... MOSCOW -- The US has stepped up its efforts to persuade Russia to build facilities for oil exports to the American market, confirming that it is prepared to provide money for initial studies. However, a senior Russian executive rejected the...

Wiser Shares Soar Following Buyout Offer From Rival Forest.
June 2, 2004... HOUSTON -- Shares of Wiser Oil shot up 31.8% last week -- with most of that jump happening last Monday -- following news that rival Forest Oil is acquiring the Dallas-based exploration and production company. Also moving higher last week...

Shell's Problems Go Deeper Than Reserves, Chairman Warns Staff.
June 2, 2004... LONDON -- Royal Dutch/Shell will have to look beyond its reserves accounting difficulties at other, deeper-rooted problems if it is to reclaim its position as the world's leading oil company, Chairman Jeroen van der Veer said in a speech last...

Saudi Terror Attack Aimed at Oil Industry Ratchets Up Pressure.
June 2, 2004... BEIRUT -- Foreign oil companies in Saudi Arabia are reviewing security procedures, adjusting operations and, in some cases, withdrawing staff in the wake of the weekend's bloody terrorist attack in Al-Khobar. Saudi Arabia is in a state of...

Major Oils Outperform Market in May as Crude Soars to Record Heights.
June 2, 2004... WASHINGTON -- Shares of leading worldwide oil and gas companies outperformed the broader equity market in May, as crude oil prices and US natural gas prices soared to record heights and refining fundamentals remained strong in most key regions....

Venezuelans Wait for Results of Referendum Drive Recount.
June 2, 2004... WASHINGTON -- Fear of renewed social unrest increased Tuesday in oil-rich Venezuela as the country readies to learn this week the result of a signature recount process that could end up in the removal from power of controversial President Hugo...

Iraq's New Cabinet: The View From Washington.(Brief Article)
June 2, 2004... WASHINGTON -- The choice of Thamer al-Ghadban as Iraq's new oil minister, replacing political appointee Ibrahim Mohammed Bahr al-Uloum, was greeted in Washington circles as a smart move. Robert Ebel, energy program director at the Center...

Iraq's New Minister Outlines Oil Priorities.
June 2, 2004... Iraq's newly appointed interim oil minister, Thamer al- Ghadban, aims to restructure his ministry and the companies under its umbrella, and to launch a number of long delayed oil development projects, he told International Oil Daily Tuesday, in...

Cooling Degree Days.(Illustration)
June 2, 2004... Cooling Degree Days Week Dev Cum Dev For week of From From From May 29, 2004 Week From...

Daily Oil & Gas Price Review.(Illustration)
June 2, 2004... Daily Oil & Gas Price Review Prices for Tuesday, June 1, 2004 Light Sweet Futures -- Prompt Month ($/barrel) 1st 5-Day 2nd 3rd Chg Month Avg. ...

Stock Market Scorecard.(Illustration)
June 2, 2004... Stock Market Scorecard Close 1-Day. % Chg. Jun 01 Chg. % Chg. 10-Day 52-Wk YTD Integrated Majors Statoil 13.10 +0.61 +4.88...

Husky Looks at White Rose.(Brief Article)
June 2, 2004... Calgary-based Husky Energy is soliciting bids to evaluate the potential of producing natural gas at the White Rose field about 217 miles offshore Newfoundland and Labrador. "Husky is pleased to commence the evaluation of this important...

Range Raises Capital Budget.(Brief Article)
June 2, 2004... Fort worth-based Range Resources announced Tuesday that has increased its 2004 capital expenditure budget 8% to $136.5 million. The $10.1 million increase includes additional drilling, seismic and land expenditures, of which $5.3 million...

Talisman Touts NY Output.(Brief Article)
June 2, 2004... Talisman Energy said Tuesday that its Fortuna Energy subsidiary is now producing more than 100 MMcf/d of natural gas from its Appalachian properties in the Corning area of New York State. Additionally, Talisman recently completed its...

Exxon Mobil Targets Azeri Well.(Brief Article)
June 2, 2004... Exxon Mobil hopes to complete an ultra-deep well on a huge Azeri block by October, with the results expected to become a major sign of whether the Caspian country's shelf contains more significant reserves, Reuters reported. "We should...

Black Sea Well Planned.(Stratic Energy )(Brief Article)
June 2, 2004... Calgary-based Stratic Energy has entered into a farm-out deal with Toreador Resources of Dallas to participate in the drilling of an exploration well in the Black Sea, offshore Turkey. The well is scheduled to spud in July. Under the terms...

ZZ:Petrobras Gets P-53 Bids.(Brief Article)
June 2, 2004... Brazil's state-owned oil company Petrobras received seven bids to build a stationary production unit on the P-53 platform that will be used in the Campos Basin Marlim Leste field, a company news release said Monday. The offers came from...

Petrobras Receives P-53 Bids.(Brief Article)
June 2, 2004... Petrobras Monday received four bids -- one of them unwelcome -- to construct its P-53 platform destined for its offshore Marlim Leste field. Former Petrobras contractor Maritima Petroleo e Engenharia submitted its bid after filing a court case...

Speculators Boost Net Longs.(Brief Article)
June 2, 2004... Noncommercial crude oil speculators on the New York Mercantile Exchange raised their net long positions to within reach of a record high in the week ended May 25, according to a Commodity Futures Trading Commission report issued Friday. ...

Forest Names Marketing Exec.(Brief Article)
June 2, 2004... Forest Oil on Tuesday named Robert B. Wofford as vice president for oil and natural gas marketing, where he will be responsible for all aspects of Forest's US, Canadian and international oil and gas marketing activities. Wofford was most...

Opec Leaders Pledge to Boost Crude Supply.(Organization of Petroleum Exporting Countries)
June 3, 2004... BEIRUT -- Opec continued to drive home the message Wednesday that it is doing all it can to cool the oil market. On the eve of their critical Jun. 3 meeting in Beirut, Opec ministers were promising to deliver more oil but becoming less sure...

Elizondo Named Mexican Energy Secretary.
June 3, 2004... NEW YORK -- Mexican president Vicente Fox has chosen a trusted political associate to take over as Energy Secretary. Fernando Elizondo Barraging was sworn in Wednesday morning, replacing Felipe Calderon who resigned Monday after his...

Alaska Crude Production Ends Fiscal Year With Dip in May.
June 3, 2004... NEW YORK -- Alaska crude oil production declined by 9,400 barrels per day in May to 992,000 b/d, compared to more than 1 million b/d in April, according to data from the state Department of Revenue Tax Division. Output was also 43,393 b/d...

Oil Futures Drop Below $40 as Market Reacts to Opec Pledges.(Organization of Petroleum Exporting Countries)(Brief Article)
June 3, 2004... NEW YORK -- Heavy selling pushed crude oil on the New York Mercantile Exchange just below $40 per barrel on Wednesday - - wiping out Tuesday's gains -- as traders reacted to Opec's promise to provide more oil and Saudi Arabia's assurances that...

Stability of Power Grid Remains Concern for Midwest Refiner MAP.
June 3, 2004... HOUSTON -- The head of Marathon Ashland Petroleum (MAP) likes his company's moneymaking prospects heading into the summer -- assuming the lights stay on. Gary Heminger, president of MAP, said Wednesday that the biggest summertime concern...

Gorgon Partners Push Australia LNG Project Forward.
June 3, 2004... SINGAPORE -- With government approval under its belt, the partners behind Australia's massive Gorgon liquefied natural gas (LNG) development are pushing to move it onto the next phase, a senior project executive told Oil Daily. In the...

Range Resources Buys Out Appalachian Basin Gas Partner.
June 3, 2004... HOUSTON -- Range Resources of Fort Worth, Texas, has agreed to buy the 50% share of Appalachian Basin natural gas producer Great Lakes Energy Partners it does not already own in a deal worth $290 million. The deal, announced on Wednesday,...

Petro-Canada Still Shopping for Deals After Buzzard Acquisition.
June 3, 2004... LONDON -- Petro-Canada is on the lookout for "long-life" oil and natural gas assets to expand its international upstream portfolio, and is ready in terms of financial strength and flexibility to take full advantage of new opportunities, the...

Daily Oil & Gas Price Review.(Illustration)
June 3, 2004... Daily Oil & Gas Price Review Prices for Wednesday, June 2, 2004 Light Sweet Futures -- Prompt Month ($/barrel) 1st 5-Day 2nd 3rd Chg Month Avg. ...

Stock Market Scorecard.(Illustration)
June 3, 2004... Stock Market Scorecard Close 1-Day. % Chg. Jun 02 Chg. % Chg. 10-Day 52-Wk YTD Integrated Majors BP 53.86 +0.51 +0.96...

NPR-A Sale Has Good Response.(Alaska's National Petroleum Reserve)(Brief Article)
June 3, 2004... For the first time in more than 20 years, acreage in the northwest corner of Alaska's National Petroleum Reserve (NPR- A) was offered for lease and five companies responded with bonus bids totaling nearly $54 million on 123 tracts. ...

Anadarko Hits Again in Gulf.(Brief Article)
June 3, 2004... Anadarko Petroleum said Wednesday that its K2 North No. 2 well encountered a total of 165 feet of net oil pay, increasing the size of the company's K2 North discovery. The K2 North field, located on Green Canyon Block 518 in the Gulf of...

EOG Leases Texas Land.(Brief Article)
June 3, 2004... EOG Resources has signed a $1.2 million lease agreement with United States Lime & Minerals to explore for oil and natural gas on land in Cleburne, Texas, about 40 miles southwest of Dallas. According to a United States Lime & Minerals...

GulfTerra Redeems Debt.(Brief Article)
June 3, 2004... GulfTerra Energy Partners said Wednesday that it redeemed the entire $175-million outstanding principal of it 10 3/8% senior subordinated notes -- originally due in 2009 -- on Jun. 1. The partnership said it has also obtained a new $200-...

Iberdrola Expands in Brazil.(Brief Article)
June 3, 2004... Iberdrola, Spain's second largest power company, announced the start of a new combined cycle plant in Brazil that will be the primary electricity generator for the country's north and northeast states, said a company news release. Brazil's...

El Paso Closes Plant Sale.(Brief Article)
June 3, 2004... El Paso announced Wednesday that it has closed the sale of its 50% interest in a 540-megawatt natural gas-fired merchant power plant located in Bastrop, Texas, to FPL Energy for approximately $72 million (OD Apr.23,p7). El Paso said it...

Pacific Energy Buys Pipeline.(Brief Article)
June 3, 2004... Long Beach, California-based Pacific Energy Partners said Wednesday that one of its subsidiaries would acquire the Mid Alberta Pipeline, located in Alberta, Canada, from Imperial Oil for C$39.5 million (US$29 million). The 138-mile MAPL...

Tankers Getting Certified.(International Association of Independent Tanker Owners, International Port and Ship Facility Security )(Brief Article)
June 3, 2004... The pace of certification by oil tankers for new security regulations is accelerating ahead of a Jul. 1 deadline. Almost 39% of oil tankers owned by members of the International Association of Independent Tanker Owners (Intertanko) were in...

Exxon Treasurer Retires.(Brief Article)
June 3, 2004... Exxon Mobil announced Wednesday that Frank Risch, a company vice president and treasurer, is retiring effective Jun. 30. Risch joined the Texas-based supermajor in 1966 and was elected a vice president and treasurer in January 1999. Donald...

Opec Delivers Market Less Than Expected.
June 4, 2004... BEIRUT -- Oil markets are in for a bumpy ride after Opec sent mixed signals from Beirut Thursday. Instead of an unequivocal pledge of more oil to chill prices that are above $40 per barrel, Opec will raise its production ceiling to align...

Referendum on Chavez Rule Seems Assured.(Venezuelan president Hugo Chavez)
June 4, 2004... CARACAS -- Venezuela's opposition has collected enough signatures to trigger a binding recall vote on the rule of President Hugo Chavez, according to preliminary results presented Thursday by Venezuela's National Electoral Council. Jorge...

Gasoline Flood, Not Opec Meeting, Drags Down Oil Price.
June 4, 2004... NEW YORK -- Reports that more gasoline is entering the US than the system can handle dragged down the gasoline price - - and in its slipstream the crude oil contract -- on the New York Mercantile Exchange (Nymex) as the market mostly ignored...

Unocal Says Alaminos Canyon Could Be Next Big Thing in US Gulf.
June 4, 2004... HOUSTON -- The remote ultradeep waters of the Alaminos Canyon area of the Gulf of Mexico are shaping up to become a major hub for oil production, senior US and Mexican oil executives said Thursday. "There's going to be a lot of oil found in...

Noble Energy Prepares for Next Phase of International Growth.
June 4, 2004... HOUSTON -- After a period of heavy investment in a trio of major overseas projects, Noble Energy is breathing a little easier and preparing for the next phase of its international growth. Chief Executive Chuck Davidson said the company's...

Winning Local Support is Trickiest Part of LNG Process: BP Exec.
June 4, 2004... HOUSTON -- Federal regulators last week issued a key approval for the Freeport LNG project, a move government officials say demonstrates that regulators are moving quickly to approve applications for liquefied natural gas (LNG) facilities in...

Refining Capacity Review Is Top Priority for FTC Nominee.(Federal Trade Commission)
June 4, 2004... WASHINGTON -- Deborah Majoras, the Bush administration's nominee to head the Federal Trade Commission (FTC), vowed Wednesday to review "any basis for reduction in US refining capacity" in an effort to answer concerns about rising gasoline...

Pemex May Offer Shares.(Brief Article)
June 4, 2004... Mexico state Pemex is once again pushing for a limited stock offering. Partial privatization -- anathema to many Mexican nationalists -- is necessary to insure the corporate governance and financial independence Pemex needs, said Chief...

EIA Gas Storage.(report)(Brief Article)
June 4, 2004... Gas in Storage Rises 87 Bcf Stocks of working natural gas in US storage facilities rose 87 Bcf for the week ended May 21, leaving storage levels at 1,564 Bcf, according to the Energy Information Administration (EIA). Stocks are 365 Bcf...

EIA Weekly Statistics.(petroleum)(Illustration)
June 4, 2004... Summary of Weekly Petroleum Data for the Week Ending May 28, 2004 Crude Oil: Stocks Crude Oil: Production and Imports (millions of bbl) (Average, thousands of bbl) Domestic ...

Daily Oil & Gas Price Review.(Illustration)
June 4, 2004... Daily Oil & Gas Price Review Prices for Thursday, June 3, 2004 Light Sweet Futures -- Prompt Month ($/barrel) 1st 5-Day 2nd 3rd Chg Month Avg. ...

Stock Market Scorecard.(Illustration)
June 4, 2004... Stock Market Scorecard Close 1-Day. % Chg. Jun 03 Chg. % Chg. 10-Day 52-Wk YTD Integrated Majors Total 95.40 +0.31 +0.33...

Sempra Raises 2004 Guidance.(Sempra Energy)(Brief Article)
June 4, 2004... Sempra Energy has raised its 2004 earnings target and is closing a deal that will provide as much as $1 billion in credit for its energy trading operation, the company said Thursday. The San Diego parent of two California utilities -- San...

Trinidad Methanol Plant Opens.(Brief Article)
June 4, 2004... The world's largest methanol plant, Atlas Methanol, began production this week in Trinidad, the company said Thursday. The plant is expected to produce 1.7 million tons per year and is jointly owned by Methanex, which holds a 63.1% stake, and...

Exxon Invites Erha Offers.(Exxon Mobil Corp.)(Brief Article)
June 4, 2004... Exxon Mobil has invited bidders to prequalify for the supply of goods and services, starting in the third quarter of 2005, to the Erha deepwater oil field, 90 miles offshore Nigeria. Four such invitations were advertised Thursday, including one...

Bolivia Sends Gas to Argentina.
June 4, 2004... Bolivia has begun piping natural gas to Argentina as part of a six-month, $44 million emergency deal aimed at mitigating Argentina's energy crunch, Bolivia's state oil firm said Thursday. The valves were opened late Wednesday and Bolivia...

Mexican Exports to US Cheaper.(petroleum)(Brief Article)
June 4, 2004... Pemex widened July discounts for Mexico's Maya crude exports to the US, while tightening discounts for Europe-bound cargoes, as part of the monthly adjustment in its oil export price formulas, the state oil company said Thursday. (OD May...

Aussie PM, Arnold Meet on LNG.(John Howard )(Arnold Schwarzenegger )(Brief Article)
June 4, 2004... Australian Prime Minister John Howard and officials from BHP Billiton said on Wednesday they had a "very positive" meeting with Gov. Arnold Schwarzenegger of California on a proposal to supply the state with liquefied natural gas (LNG) from an...

Gasoline Trades a Record in May.(Brief Article)
June 4, 2004... A record 1,203,821 New York harbor gasoline futures contracts were traded on the New York Mercantile Exchange during May, surpassing the previous monthly record of 1,105,044 futures traded in October 2002. "The record volume in this market...