The Oil and Gas Journal articles from August 1999

The Oil and Gas Journal archives from August 1999

Newsletter.(includes brief articles about petroleum business)(Statistical Data Included)
August 30, 1999... Is there a change in the wind regarding how OPEC will manage production in response to oil price changes? OPEC Pres. Yousef Yousfi has proposed an OPEC summit meeting, ahead of the scheduled ministerial meeting Sept. 22 in Vienna, of a...

U.S. INDUSTRY SCOREBOARD 8/30.(1999)(Brief Article)(Statistical Data Included)
August 30, 1999... U.S. INDUSTRY SCOREBOARD 8/30 4 wk. 4 wk. avg % Year-to-date Latest week 8/20 average year ago [*] change average [*] Demand (1,000 b/d) Motor gasoline ...

LETTERS.
August 30, 1999... MTBE's misconception Your editorial," MTBE's slide continues," makes a number of very good points on the absurdity (and possibly the inevitability) of the loss of methyl tertiary butyl ether (MTBE) as a component in U.S. gasoline (OGJ,...

Aberdeen's fringe.(Offshore Europe)(Brief Article)(Column)
August 30, 1999... Every August, the city of Edinburgh hosts an arts festival, in which the city's main theaters, concert halls, and art galleries put on a wide range of "high art." Alongside the main festival, an alternative feast of small-scale shows...

The U.N.: oil safeguard?(Statistical Data Included)
August 30, 1999... The United Nations, busy rebuilding the Iraqi oil industry, now plays safeguard to the recovering oil market it helped destroy. Its influence in the oil industry since 1996 has been surreal. The U.N.'s oil-for-food program helped wreck...

U.S. wellhead deliverability slide may spike gas prices in late 1999.(Statistical Data Included)
August 30, 1999... The continuing decline in U.S. natural gas wellhead deliverability may be setting the stage for a sharp spike in natural gas prices later this year. While this trend of declining deliverability has been under way for some time, its...

Growth in U.S. cogen use of gas to slow.(Statistical Data Included)
August 30, 1999... The U.S. cogeneration market will continue to favor natural gas as its primary fuel source in the coming years, but the 10%/year growth rate of gas use in cogeneration seen in the late 1980s and early 1990s is not likely to continue. ...

Talisman-Rigel latest big Canadian M&A deal.(Statistical Data Included)
August 30, 1999... Merger and acquisition action in Canada's petroleum sector continues to heat up. Last week, Talisman Energy Inc. agreed to take over Rigel Energy Corp. in a $1.2 billion (Canadian) deal. Both are Calgary firms. That comes on the...

Gulf sale marked by lack of participants.(Statistical Data Included)
August 30, 1999... If no one at last week's western Gulf of Mexico offshore lease sale was surprised by the sale results, it is probably because not many expected much to happen. In fact, one would have to think back to the sales held in 1992-93 to see a sale...

Fracturing fuss.
August 30, 1999... Alabama has yielded to a court mandate requiring that fluids used to fracture coalbed methane reservoirs must meet the U.S. Environmental Protection Agency's primary drinking water standard. The case has obvious implications for 12 other...

NW Europe production lower than expected.
August 30, 1999... Northwest Europe's offshore oil and NGL production during first half 1999 showed an increase from the same period last year but fell short of expectations. This is the view of Wood Mackenzie Consultants Ltd., Edinburgh, which said that...

Norway's assets jam.
August 30, 1999... After the Norwegian government was criticized for its role in the takeover battle for Saga Petroleum AS, the country's assets are in the news again. The government engineered a deal between state firm Statoil AS and Norsk Hydro AS, of...

U.K. tightens offshore spill regulations.
August 30, 1999... The U.K. government passed new environmental controls for the offshore oil and gas industry that will bring the U.K. in line with European Commission law. The Pollution Prevention & Control Act 1999 sets out a framework for new U.K....

Yadana field start-up delayed again over power plant woes.
August 30, 1999... Commercial production from Yadana, Myanmar's largest offshore gas field, has been postponed again, to early next year due to the extended delay in completion of a major power station in Thailand. The latest delay in the construction of...

Myanmar faces energy crisis despite potential.
August 30, 1999... Myanmar is facing a growing shortfall in energy supply in spite of its huge energy resources--both in terms of potential petroleum reserves and hydroelectric power potential. Availability of energy is becoming even more critical against...

CNPC shelves China-Kazakhstan oil pipeline.
August 30, 1999... One of China's major state oil companies has decided to postpone its plan to build a pipeline to move crude oil from Kazakhstan to northwestern China, citing insufficient reserves in Kazakhstan's Uzen and Aktyunbinsk oil fields to justify the...

Mexico's Energy Regulatory Commission (CRF).(Brief Article)
August 30, 1999... Mexico's Energy Regulatory Commission (CRF) created a geographic zone for natural gas distribution covering 51 towns in Puebla and Tlaxcala states in Mexico. Development of the Puebla-Tlaxcala distribution network will require capital...

Sao Paulo state's secretary of energy.
August 30, 1999... Sao Paulo state's secretary of energy called for tenders for a concession to distribute gas to about 375 towns in the northwestern part of the Brazilian state; the concession covers more than 120,000 sq km. Sao Paulo Energy Utility Commission...

United Refining Co.
August 30, 1999... United Refining Co. and Allegheny Energy let a contract reportedly worth $300-400 million to Foster Wheeler Power Systems Inc., a unit of Foster Wheeler Corp., Clinton, N.J., for engineering, procurement, and construction to upgrade United's...

Ministry of Petroleum.
August 30, 1999... A group led by Singapore investor Brian Chang is exploring the possibility of building a 50,000 b/d refinery in Pakistan. The group was asked to make a firm proposal for the refinery by the Secretary of the Ministry of Petroleum. Chang also...

TotalFina SA.
August 30, 1999... TotalFina SA acquired a 15% stake in a deepwater license area 100 km off Surinam. Other partners in the 48,000-sq km area are: operator Burlington Resources Inc., 35%; Shell Surinam, 35%; and Korean National Oil Corp., 15%. The license area...

Elf Petroland BV.
August 30, 1999... Elf Petroland BV drilled a gas discovery on Block L4a off the Netherlands, close to a find made in April on adjacent Block K5a. On test, the well flowed 895,000 cu m/day from Rotliegendes pay at 4,036 m. Elf said additional studies will be...

Vastar Resources Inc.
August 30, 1999... Vastar Resources Inc., Houston, found oil on its Horn Mountain prospect on Mississippi Canyon Block 127 in the Gulf of Mexico. Partners in the block are operator Vastar, with two-thirds interest, and Occidental Petroleum Corp., with the...

OMV Australia Ply. Ltd.
August 30, 1999... OMV Australia Ply. Ltd. secured a 6-year exploration license for the WA-292-P permit in the Beagle sub-basin on the North West Shelf off Western Australia. The block covers 6,150 sq km and has been sparsely explored to date; the Nebo-1...

Chieftain International Inc.
August 30, 1999... Chieftain International Inc., Edmonton, Alta., disclosed an oil and gas discovery on High Island Blocks A-510 and A-531 off Texas. The well was drilled to 11, 107 ft TD and cut more than 260 net ft of pay in multiple zones. Further drilling...

American Refining Group (ARG).(Brief Article)
August 30, 1999... American Refining Group (ARG), Bradford, Pa., wants to market lubricants in China and is ready to establish a joint-venture or wholly owned blending plant in the country after completing research and testing of the market there. ARG...

Petroleo Brasileiro SA.(Brief Article)
August 30, 1999... Petroleo Brasileiro SA claimed a deepwater drilling record with a well off Brazil in 8,017 ft of water. The well was drilled by Noble Drilling Corp.'s Paul Wolff submersible rig (OGJ, Oct. 5, 1998, p. 60). The previous record was set by...

Petrobras.(Brief Article)
August 30, 1999... Petrobras let a $53 million, 2-year contract to Stolt Comex Seaway MS Ltd., Aberdeen, for charter of the Seaway Condor pipelay ship. The ship will be used beginning second quarter 2000 to lay flexible flowlines in Brazil's Campos basin field...

Enterprise Oil plc.(Brief Article)
August 30, 1999... Enterprise Oil plc announced test results of a second appraisal well in the Gorrib gas discovery on Block 18/25 off western Ireland (OGJ, Oct. 19, 1998, p. 34). The 18/25-1 well was drilled to 3,741 m TVD into Triassic Sherwood sandstone by...

Dragon Oil plc.(Brief Article)
August 30, 1999... The Cheleken joint venture of Dragon Oil plc, London, and Turkmen state firm Turkmenneft let contract for an undisclosed sum to Deutag U.K. Ltd., Aberdeen, for drilling in LAM field off Turkmenistan in the Caspian Sea. The deal calls for the...

Conoco (UK) Ltd.(Brief Article)
August 30, 1999... Conoco (UK) Ltd. started gas production from Bell field on U.K. North Sea Blocks 49/22 and 49/23. The field was developed with a single subsea wellhead connected by an 8-in, pipeline to the Callisto South field manifold less than 100 m away....

Mobil North Sea Ltd.(Brief Article)(Statistical Data Included)
August 30, 1999... Mobil North Sea Ltd. started oil production from Buckland field on U.K. North Sea Block 9/18. Initial production was 16,000 b/d, but it is expected to increase to 30,000 b/d within a few weeks. The field was developed as a subsea satellite of...

Gold Star Maritime Co.(Brief Article)
August 30, 1999... Gold Star Maritime Co., a subsidiary of Tesoro Petroleum Corp., San Antonio, entered into a charter for a 46,000ton double-hull tanker with Hvide Marine Inc., Fort Lauderdale. The charter has a 3year primary term starting in May 2000 and two...

Bonny Gas Transport Ltd.(Brief Article)
August 30, 1999... Bonny Gas Transport Ltd., a unit of Nigeria LNG Co. (NLNG), let contract to South Korea's Hyundai Heavy Industries Co. for the construction of two 138,000-cu m Moss-type liquefied natural gas carriers. The vessels will be 288 m long, 48.2 m...

U.S. Department of Energy.(Brief Article)
August 30, 1999... U.S. Department of Energy plans to co-fund the construction and testing of a prototype device that uses thermo-acoustic technology to liquefy natural gas. It said the technology could lead to portable LNG conversion units that could be...

Global Industries Ltd.(Brief Article)(Statistical Data Included)
August 30, 1999... Global Industries Ltd., Houston, will acquire all the outstanding stock of ETPM SA from Groupe GTM, the construction unit of France's Suez Lyonnaise des Eaux, for $265 million cash. As part of the deal, Global also will sign a lease-purchase...

CCC Fabricaciones y Construcciones SA de CV.(Brief Article)
August 30, 1999... Global Industries unit Global Offshore Mexico SRL de CV will acquire the offshore construction unit of its Mexican joint venture CCC Fabricaciones y Construcciones SA de CV for $72 million. Additionally, Global Industries sold its own...

Ingersoll-Rand Co.(Brief Article)(Statistical Data Included)
August 30, 1999... Ingersoll-Rand Co. is offering to sell its interests in two joint ventures--Dresser-Rand and Ingersoll-Dresser Pump--to Dresser Industries Inc., a unit of Halliburton Co., Dallas. Dresser holds 51% of Dresser-Rand (DR) and 49% of...

Novus Petroleum Ltd.(Brief Article)(Statistical Data Included)
August 30, 1999... Novus Petroleum Ltd., Sydney, acquired the remaining Australian assets of Gulf Resources (Australia) NL--a unit of Gulf Canada Resources Ltd., Calgary--for $118 million (Canadian). Gulf Resources sold its 4.75% interest in Cooper basin...

Westcoast Power Inc.(Brief Article)(Statistical Data Included)
August 30, 1999... Westcoast Power Inc., a unit of Westcoast Energy Inc., Vancouver, B.C., began construction of its $180 million Bayside power generation project at Saint John, NB. The project will convert one of the four units of the Courtenay Bay generating...

Enterprise Products Partners LP.
August 30, 1999... Enterprise Products Partners LP, Houston, and Exxon Chemical Co. agreed to jointly own and operate a new propylene concentration unit currently under construction. The unit, in Port Allen, La., will be owned by Baton Rouge Propylene...

Ethylene demand, capacity to rise through 2010.
August 30, 1999... Global consumption of ethylene is expected to increase to 139 million metric tons by 2010 from 80.5 million tons in 1998. World ethylene plant utilization is expected to increase to 92% by 2003 from the current level of 87%. In 2003, it...

South Africa, Ireland slate refinery upgrades.
August 30, 1999... State refining companies in South Africa and Ireland have slated refinery upgrades. South Africa's National Petroleum Refiners (Pty.) Ltd. (Natref) plans to expand the capacity of its Sasolburg refinery to 105,000 b/d from 86,000 b/d, at...

NEW TECHNOLOGY Is 'LIFEBLOOD' FOR NORTHWEST EUROPE OFFSHORE.
August 30, 1999... As the average size of Northwest Europe's remaining development prospects dwindles and operators look to screw down development and operating costs, new technology is the key to making many projects viable. Innovation is the theme of...

Seabed lander measures seabed sediments.
August 30, 1999... THE AUTHOR Jon Rees received an engineering degree (BSc Hons) from Warwick University and an MSc in physical cceanograplty from Southampton University before joining Cefas (Centre for Environment, Fisheries and Aqua. culture Sciences) in...

COMBINING GIS AND WEB SIMPLIFIES ACCESS TO CORPORATE DATA.
August 30, 1999... THE AUTHORS Knut-Olav Fjell holds an MSc in Control Engineering from the Nerwergian University of Science and Technology (NTNU). He has worked as systems programmer for different software companies in Trondheim and has been a college...

MULTISTAGE CHOKE VALVE DESIGN DRAMATICALLY INCREASES OPERATING LIFE ON SEVERE-SERVICE WELLS IN BRENT FIELD.
August 30, 1999... THE AUTHOR Paul Smirl is manager of advanced products at CCI. He has served more than 13 years in the process control industry and has 10 years of experience with severe-service control valves. He attended Texas Tech University, Lubbock....

JORIN'S PARTICLE ANALYZER DESIGNED TO IMPROVE OIL/WATER SEPARATION.
August 30, 1999... Produced water is a headache for offshore operators, but a British company has designed an instrument intended to make analysis and decision-making easier. Jorin Ltd., Sandhurst, U.K., developed the instrument after identifying the...

Inland barge to allow cluster drilling in Nigeria.
August 30, 1999... A unique shallow-water drilling barge designed for sequential well drilling should commence operations in September in the Tunu field of Nigeria. "The barge will allow us to remain in place and drill a cluster of six wells without moving,"...

Prospect of arctic gas line leads to thermal simulation program.
August 30, 1999... THE AUTHORS Michael Metz is manager of pipeline engineering for Yukon Pacific Corp., Anchorage. He is an engineering geologist with 26 years' experience in cold-regions pipeline design. Metz holds a BS (1967) in geology from Kansas State...

Formation mineral content key to successful sandstone acidizing.
August 30, 1999... THE AUTHOR Rick Gdanski is a scientific advisor in the production-enhancement section at Halliburton's Duncan technology center. His responsibilities include research, and treatment design in the areas of sandstone acidizing and...

New flowmeter.
August 30, 1999... The Brooks BiRotor Plus meter is a volumetric positive displacement flow measuring device designed to measure petroleum liquids. It transmits an electronic output signal that is compatible with many electronic totalization devices, batch...

New logging platform for hostile environments.
August 30, 1999... A new suite of logging tools is designed specifically for hostile environments. The Xtreme high pressure, high temperature (HPHT) well logging platform provides state of the art measurements comparable with quality data provided by...

Production packer.
August 30, 1999... A hydraulically actuated hydrostatic set interventionless retainer production packer, the new Model SB-3H, is designed to simplify operations, reduce rig time, and lower risk associated with deepwater, extended reach, and other high overhead...

Marine sewage system.
August 30, 1999... This new, ultracompact Omnipure 15MX process module for marine sewage treatment utilizes existing shipboard tanks. It treats the black water effluent of 500 people from a skid that measures 30 in. (762 nun) wide and 64 in. (1,626 mm) long....

MOVES AND PROMOTIONS.
August 30, 1999... Dresser-Rand Co., Glean N.Y., has named John Hanigan vice president of manufacturing worldwide. Hanigan has more than 20 years experience at Dresser-Rand, most recently as vice president of manufacturing at the company's Turbo Products...

Potential outlined for Kamchatka back-arc basin, Far East Russia.
August 30, 1999... THE AUTHORS Robert Maxwell is a Canadian professional geologist with 20 years experience in international petroleum exploration. He worked for Shell during 1977-82 and later for several major companies in Indonesia, Libya, Egypt, and...

Costa Rica.
August 30, 1999... The ministry signed final concession agreements Aug. 12 on blocks 2, 3, 4, and 12 covering a combined 5,634 sq km on and offshore in the North and South Limon back-arc basin along the Caribbean coast (see map, OGJ, July 13, 1998, p. 84). ...

Turkey.
August 30, 1999... Aladdin Middle East Ltd. plans to start sustained production from the No. 12 well in Zeynel field in southeast Turkey's Gaziantep region. It indicated initial production of 1,000 b/d of 24[degrees] gravity oil from Cretaceous Mardin...

Tennessee.
August 30, 1999... Exploration may be expanding in eastern Tennessee on and near the Eastern Overthrust Belt. Empire Energy Corp., Overland Park, said it signed a joint exploration agreement with Pryor Oil Co., Parkville, Mo. The companies plan to...

Texas.(Brief Article)(Statistical Data Included)
August 30, 1999... Gulf Coast Dale Operating Co., Dallas, said its 3 Rochelle in the Dry Hollow field area of Lavaca County is producing 30 MMcfd of gas with 1,300 psi FTP from Lower Wilcox at about 13,500 ft. Including this fourth successful well, the...

OGJ CRACK SPREAD.(Brief Article)(Statistical Data Included)
August 30, 1999... OGJ CRACK SPREAD 8-20-99 [*] 8-21-98 [*] Change % $/bbl change SPOT PRICES Product value 25.43 15.85 9.58...

API IMPORTS OF CRUDE AND PRODUCTS.(Brief Article)(Statistical Data Included)
August 30, 1999... API IMPORTS OF CRUDE AND PRODUCTS Districts 1-4 District 5 Total U.S. 8-20 8-13 [*] 8-20 8-13 [*] 8-20 ...

API CRUDE AND PRODUCT STOCKS.(Brief Article)(Statistical Data Included)
August 30, 1999... API CRUDE AND PRODUCT STOCKS Motor gasoline Blending Jet fuels Crude oil Total Comp....

API REFINERY REPORT -- AUGUST 20, 1999.(Brief Article)(Statistical Data Included)
August 30, 1999... API REFINERY REPORT -- AUGUST 20, 1999 REFINERY OPERATIONS Total Input refinery Crude to crude Operable % District ...

OGJ GASOLINE PRICES.(Brief Article)(Statistical Data Included)
August 30, 1999... OGJ GASOLINE PRICES (Approx. prices for self-service unleaded gasoline) Price Pump Pump ex tax price [*] price 8-18-99 ...

BAKER HUGHES RIG COUNT.(Brief Article)(Statistical Data Included)
August 30, 1999... BAKER HUGHES RIG COUNT 8-20-99 8-21-98 Alabama 6 8 Alaska 5 12 Arkansas 6 6 California 24 29...

OGJ PRODUCTION REPORT.(Brief Article)(Statistical Data Included)
August 30, 1999... OGJ PRODUCTION REPORT (Crude oil and lease condensate) 08-20-99 [*] 8-21-98 [+] (1,000 b/d) Alabama 34 34 Alaska 1,070...

REFINED PRODUCT PRICES.(Brief Article)(Statistical Data Included)
August 30, 1999... REFINED PRODUCT PRICES 8-13-99 ([cent]/gal) Spot market product prices Motor gasoline (Conventional-regular) New York Harbor ...

SMITH RIG COUNT.(Brief Article)(Statistical Data Included)
August 30, 1999... SMITH RIG COUNT 8-20-99 8-21-98 Proposed depth Rig % Rig % (ft) Count footage [*] Count footage [*] 0-2,500 13 23.0...

U.S. CRUDE PRICES.
August 30, 1999... U.S. CRUDE PRICES ($/bbl) [*] 8-20-99 Alaska-North Slope 27[degrees] 9.67 Southern Louisiana Light 21.00 California-Kern River 13[degrees] 15.25 Lost Hills...

WORLD CRUDE PRICES.
August 30, 1999... WORLD CRUDE PRICES ($/bbl) [*] 8-13-99 United Kingdom-Brent 38[degrees] 20.68 Russia-Urals 32[degrees] 20.33 Saudi light 34[degrees] ...

AGA NATURAL GAS STORAGE [*].
August 30, 1999... AGA NATURAL GAS STORAGE [*] 8-13-99 8-6-99 Change (bcf) Producing region 725 724 1 Consuming region east 1,290 1,247 43 Consuming region...

Newsletter.
August 23, 1999... Multinational companies emerging from a downturn are getting more selective about where to invest their E&D capital. and offshore is not the automatic green light it once seemed to be. Offshore licensing rounds in Peru and India both...

U.S. INDUSTRY SCOREBOARD 8/23.(Brief Article)(Illustration)(Statistical Data Included)
August 23, 1999... U.S. INDUSTRY SCOREBOARD 8/23 4 wk. 4 wk. avg. % Year-to-date Latest week 8/13 average year ago [*] change average [*] Demand (1,000 b/d) Motor gasoline ...

An evening's amble.(Brief Article)
August 23, 1999... Putting together OGJ's annual Pipeline Economics Report (p. 45) involves a visit to Washington, D.C., to the Federal Energy Regulatory Commission. The trip, inevitably when Washington is hottest, leaves room for little but work. Most...

Privatization, continued.(Indonesian and Norwegian petroleum industries)
August 23, 1999... Two more state-owned monoliths look set to yield to pressures reshaping the oil-producing world in the 1990s. Indonesia's legislature is ready to pass a bill by month's end that will end a 30-year-old monopoly of the state oil company,...

NPC details petrochemical projects eyed under Iran's expansion plan.
August 23, 1999... Iran is hoping to entice foreign investors into participating in a major expansion of its petrochemical sector. The growth plans of Iran's National Petrochemical Co. are ambitious, to say the least. If NPC accomplishes its goals under the...

Sable project nearing start-up.(Brief Article)
August 23, 1999... The Sable Offshore Energy Project (SOEP) off Nova Scotia is rapidly approaching the first-gas milestone, with work on the natural gas development project now 80% complete. The project received a production license in July, and...

U.K. efficiency law.(utilities and the poor)(Brief Article)
August 23, 1999... The U.K. government plans to extend into the gas supply sector legislation that requires electricity supply companies to help out poor customers. The details are spelled out in a consultation document published by the Office of Gas and...

Maritimes pipeline aims for Nov. 1 completion.(Brief Article)
August 23, 1999... Maritimes & Northeast Pipeline Co. (M&NP) is on schedule to complete a 204-mile trunk line across Maine to move 360 MMcfd of Nova Scotian gas to Northeast U.S. markets. The pipeline is an extension of the Sable Offshore Energy Project, which...

Peru extends deadline for Camisea bids.
August 23, 1999... Peru has set new deadlines for submitting bids on contracts for development of the Camisea natural gas fields and for transportation of the gas to the Lima area, 500 km to the west of the fields. The Camisea oversight committee decided to...

Burlington Resources to buy Poco Petroleums.
August 23, 1999... Burlington Resources Inc., Houston, has signed a definitive agreement under which it will acquire all the common shares of Poco Petroleums Ltd., Calgary, for $1.75 billion and assume $0.75 million in Poco debt. The merger will create...

The real Y2K threat.
August 23, 1999... The U.S. oil industry should have minimal Year 2000 computer problems Jan. 1, with no disruption of normal petroleum supplies, according to key industry surveys. However, oil analysts are worried that public fears about product shortages...