The Oil and Gas Journal articles from August 2001

The Oil and Gas Journal archives from August 2001

Upturn could last to the mid-2000s.
August 6, 2001... Can the current strength in oil prices be sustained for the longer term, or is another downturn just around the corner? Looking at the way the stock market is valuing operating company and oil service company stocks, one would have to...

Non-OPEC supply market wild card?
August 6, 2001... But another view holds that non-OPEC supply could be the market wild card. Salomon Smith Barney estimates that worldwide E&P spending by publicly traded oil companies rose about 12% last year vs. an 11% drop in 1999. The analyst projected...

Gas storage higher than year ago.
August 6, 2001... Robert Morris of Salomon Smith Barney predicts a further downside to US natural gas prices this fall "when it becomes ever more apparent that storage will be full heading into winter." AGA reported injections of 77 bcf into storage for the...

US INDUSTRY SCOREBOARD -- 8/6.
August 6, 2001... US INDUSTRY SCOREBOARD -- 8/6 4 wk. 4 wk. avg. % YTD Latest week 7/27 average year ago 1 change average 1 Demand, 1,000 b/d Motor gasoline 9,157 8,602 6.4 8,579...

PHILLIP TOWNSEND ASSOCIATES SAID WORLDWIDE POLYPROPYLENE (PP) CONSUMPTION GREW 6% IN 2000 COMPARED WITH 1999.
August 6, 2001... Townsend predicted growth of more than 7%/year worldwide during the next 5 years in its annual report, which included profiles of more than 50 major PP producers. "With further consolidation of the polypropylene industry, globalization is...

US GULF OF MEXICO RIG UTILIZATION HAS SLIPPED TO A 13-MONTH LOW.
August 6, 2001... Total US drilling declined slightly, but the utilization rate among mobile rigs in the Gulf of Mexico dropped for the sixth consecutive week. Industry analysts said the gulf utilization rate has not been this low since June 2, 2000. ...

THE US HOUSE OF REPRESENTATIVES HAS VOTED FOR DRILLING ON THE ANWR COASTAL PLAIN.
August 6, 2001... Alaska Gov. Tony Knowles got his wish when the House passed a sweeping bill that would open the Arctic National Wildlife Refuge coastal plain to oil and gas E&D. Knowles had written House members, saying ANWR oil E&D would strengthen the...

THE US HOUSE HAS VOTED TO EXTEND IRAN-LIBYA SANCTIONS FOR 5 YEARS.
August 6, 2001... The House voted 409-5 last month to extend economic sanctions against companies and countries that do business with Iran and Libya beyond a certain threshold. The Senate previously had approved a similar bill by a 96-2 vote. After the...

THE UK HAS FORMED A GROUP TO STUDY FUTURE GAS AND ELECTRICITY SUPPLIES.
August 6, 2001... UK Energy Minister Brian Wilson and Callum McCarthy, chief executive of the Office of Gas and Electricity Markets, said the Energy Security of Supply Working Group will meet for the first time next month. The energy ministry said the group...

PHILLIPS ALASKA AND ANADARKO DISCOVERED A SATELLITE NEAR NEWLY DEVELOPING ALPINE FIELD ON ALASKA'S NORTH SLOPE.
August 6, 2001... They estimate the Nanuq accumulation contains more than 40 million bbl of gross reserves. Another recent Alpine satellite, Fiord, may contain more than 50 million bbl (see map, OGJ, May 28, 2001, Newsletter, p. 8). The accumulation was...

MOSAIC ENERGY HAS FIELD TESTED WHAT IT IS CALLING THE WORLD'S FIRST LIQUID-FUELED PROTON EXCHANGE MEMBRANE (PEM) FUEL CELL POWER SYSTEM.
August 6, 2001... MOSAIC ENERGY HAS FIELD TESTED WHAT IT IS CALLING THE WORLD'S FIRST LIQUID-FUELED PROTON EXCHANGE MEMBRANE (PEM) FUEL CELL POWER SYSTEM at a Nippon Mitsubishi Oil-operated retail station in Yokohama, Japan. This 5-kw, naphtha-fired power...

ROYAL DUTCH/SHELL'S PLAN TO REVIVE OIL PRODUCTION IN THE GULF OF THAILAND.
August 6, 2001... ROYAL DUTCH/SHELL'S PLAN TO REVIVE OIL PRODUCTION IN THE GULF OF THAILAND has begun with the successful reentry of a well that was shut in more than 4 years ago due to technical problems. Nang Nuan B01, off the Chumphon coast in 30 m of...

PHILLIPS PETROLEUM AND ITS PARTNERS SAID LATE LAST MONTH THEY HAVE POSTPONED INDEFINITELY A DECISION TO BUILD A GAS PIPELINE FROM BAYU-UNDAN FIELD.
August 6, 2001... PHILLIPS PETROLEUM AND ITS PARTNERS SAID LATE LAST MONTH THEY HAVE POSTPONED INDEFINITELY A DECISION TO BUILD A GAS PIPELINE FROM BAYU-UNDAN FIELD in the Timor Sea to Darwin, Australia. The companies said the deferral was prompted by...

PETROCHINA PLANS TO CLOSE A NUMBER OF INEFFICIENT REFINERIES WITH CAPACITY TOTALING 320,000 B/D BY 2005.
August 6, 2001... Most of these refineries are small and use older technology. PetroChina closed six refining unites last year, involving a total distillation capacity of 112,000 b/d. Meanwhile plans are under way to expand two PetroChina refineries by...

BERRY PETROLEUM INKED A DEAL WITH SOCAL EDISON AND HAS RESTARTED ITS 42-MW PLACERITA, CALIF., COGENERATION FACILITY.
August 6, 2001... Under the contract SoCal Ed will purchase power generated by Berry's cogeneration plant, which is in northern Los Angeles County. Both of the plant's 21-Mw units have been shut down since February and April, "due to nonpayment and contract...

Letters.
August 6, 2001... Ironic message What a delicious bit of irony I found in OGJ (June 25, p. 10), with the letter "Another dry hole" from reader Max Edison placed just a few pages from the opinion piece "Californicus Energeticus." Edison points out that...

Alaskanus energeticus.
August 6, 2001... The last time this editor revisited the subject of his former West Coast beat, it was to analyze the often contradictory behavior of the strange beast known as Californius energeticus (OGJ June 25, 2001, p. 17). That column elicited a...

Energy policy dilemma.
August 6, 2001... As congressional debate began last week on US energy policy, a dilemma emerged for oil and gas producers. A Republican proposal in the House of Representatives offered tax changes and other measures that producers have sought for years....

Route controversy heats up as push to market Alaskan North Slope gas gathers steam.
August 6, 2001... The push to finally bring Alaskan North Slope natural gas to market is gathering steam. ANS producers, various pipeline project proponents, and governments in both the US and Canada have in the past year stepped up efforts to bring the...

After Bonn.
August 6, 2001... Some of the US's closest allies insist the Kyoto climate change treaty is not dead, although diplomats and environmentalists fret that the long-term prognosis for the world's first greenhouse gas agreement is still shaky. Representatives...

Coflexip accepts Technip's revised offer.
August 6, 2001... The consolidation trend among engineering and energy service companies has picked up momentum, highlighted by a deal involving two French firms. Coflexip Stena Offshore Group SA's board has recommended that its stakeholders tender their shares...

Technip, Coflexip takeover.
August 6, 2001... Technip recently revised its original offer for Coflexip, made July 3, boosting the deal's value to $2.8 billion (3.3 billion euro). The principal exchange offer remains 9 Technip shares for 8 Coflexip shares, but the alternative cash...

Saipem acquisitions.
August 6, 2001... Saipem said the acquisitions enhance its ability to offer integrated engineering, procurement, construction, and installation services to the offshore oil and gas industry. Moss Maritime designs floating oil production and process systems,...

Weatherford buy.
August 6, 2001... Weatherford said the Brit Bit acquisition includes a research and development facility in Aberdeen and a manufacturing facility in Arbroath. The deal compliments Weatherford's expandable, multilateral, liner, and cementation product lines....

RVWS-Petroplus deal.
August 6, 2001... RVWS and Petroplus are working out details of their agreement, and they plan to sign a contract in the third quarter. Petroplus Engineering provides engineering and construction services throughout Europe, mainly in the petrochemical...

Shell, Kinder Morgan, and Gulf Indonesia appoint top executives.
August 6, 2001... Shell Exploration & Production Co., Kinder Morgan Inc., and Gulf Indonesia Resources Ltd. have each recently appointed of new chief executives. Raoul Restucci has been named by Shell E&P to the position of president and CEO. Since 1998,...

Flint Energy-Chaparral deal.
August 6, 2001... Flint Energy expanded its US presence with the Chaparral Equipment acquisition. which became effective July 6. Flint Energy Chairman and CEO Brian F. Butlin said, "The addition of Chaparral will be a strong asset to Flint, and this is a...

Anadarko-Perenco deal.
August 6, 2001... Anadarko had acquired Basic Resources as part of a merger with Union Pacific Resources Group Inc., Ft. Worth, in July 2000. Basic Resources operates and controls 100% of an infrastructure that extends from the wellhead to the export...

Duke Energy purchase.
August 6, 2001... Duke Energy bought the former MCN Investment Corp.'s ownership interest in natural gas gathering, transportation, and processing facilities off Louisiana, Mississippi, and Alabama Terms of the deal were not disclosed. Duke Energy Field...

Operators unlocking North Slope's viscous oil commerciality.
August 6, 2001... More than 3 decades after its discovery, Alaskan North Slope operators are beginning to unlock the huge commercial potential of the slope's viscous heavy oil resource. As much as 21-36 billion bbl of OOIP has been estimated for the areally...

Shell field tests two expandable completion technologies.
August 6, 2001... Shell Exploration and Production Co., Houston, recently installed the world's first expandable liner hanger (ELH) system in a field trial well in South Texas. Enventure Global Technology LLC's 7 5/8 in. ELH was run in 9 5/8 in., 53.5...

Fire, gas mapping improves safety, lowers cost.
August 6, 2001... Computer modeling techniques for fire and gas detection systems can optimize the number and position of detectors for both land and offshore installations, as shown by the application of this technique on the Shell Philippines Exploration...

Nonconcrete gravity-based platform refloated successfully.
August 6, 2001... Last June, the largest and heaviest nonconcrete structure in the North Sea was refloated and towed to Aker Offshore Partner AS's Stord facility in Norway to await final disposition (Fig. 1). Phillips Petroleum Co. UK Ltd. operated the...

California's electricity woes generate problems, opportunities for refineries.
August 6, 2001... The electrical power shortages in California will compel the state's refining industry to re-evaluate its existing power conservation and supply policies. The industry is working through the electricity crisis by conserving during...

Colonial Pipeline tests interlace-detector methods.
August 6, 2001... Pilot testing in 2000 of an optical interface detector (OID) on a Colonial Pipeline Co. stubline in Georgia has indicated that the detector cannot by itself identify a product type flowing in a pipeline. When paired with a gravitometer,...

New era dawning for Alaskan North Slope.
August 6, 2001... The articles in this special report were written by Executive Editor Bob Williams. Late-breaking adjuncts to the special report also lead off the General Interest and Exploration and Development sections in this issue. A new era has dawned...

ANWR coastal plain leasing at center of storm over Bush energy policy.
August 6, 2001... The political furor that has erupted over proposals to allow exploration and development on the coastal plain of Alaska's Arctic National Wildlife Refuge soon will reach fever pitch. At stake is perhaps the whole of President George Bush's...

Phillips makes own mark on North Slope with Alpine start-up, NPR-A strikes.
August 6, 2001... Phillips Alaska Inc., inheritor of the ARCO Alaska Inc. legacy and assets, has quickly made its own mark in assuming ARCO's mantle as the largest oil producer in Alaska. The Alaskan unit of Phillips Petroleum Co., within a year of its...

BP rejuvenating North Slope outlook with new technology, strategies.
August 6, 2001... BP Exploration (Alaska) Inc. continues to push the envelope on advanced drilling and production technology to sustain oil production in the greater Prudhoe Bay area. The BP PLC unit has taken an aggressive approach to reducing costs and...

OGJ CRACK SPREAD.
August 6, 2001... OGJ CRACK SPREAD 7-27-01 * 7-28-00 * Change % $/bbl change SPOT PRICES Product value 29.25 32.86 -3.61 -11.0 Brent crude 24.51...

API IMPORTS OF CRUDE AND PRODUCTS.
August 6, 2001... API IMPORTS OF CRUDE AND PRODUCTS Districts 1-4 District 5 7-27 7-20 1 7-27 7-20 1 2001 2001 2001 2001 ...

API CRUDE AND PRODUCT STOCKS.
August 6, 2001... API CRUDE AND PRODUCT STOCKS Motor gasoline Blending Jet fuels Crude oil Total comp. 2 Naphtha 1,000...

API REFINERY REPORT--JULY 27, 2001.
August 6, 2001... API REFINERY REPORT--JULY 27, 2001 REFINERY OPERATIONS Total Input refinery Crude to crude Operable input...

OGJ GASOLINE PRICES.
August 6, 2001... OGJ GASOLINE PRICES (Approx. prices for self-service unleaded gasoline) Price Pump Pump ex tax price * price 7-25-01 7-25-01 7-26-00 ...

REFINED PRODUCT PRICES.
August 6, 2001... REFINED PRODUCT PRICES 7-20-01 [cent]/gal Spot market product prices Motor gasoline (Conventional-regular) New York Harbor 67.00 ...

BAKER HUGHES RIG COUNT.
August 6, 2001... BAKER HUGHES RIG COUNT 7-27-01 7-28-00 Alabama 5 4 Alaska 12 10 Arkansas 1 3 California 43 28 Land ...

SMITH RIG COUNT.
August 6, 2001... SMITH RIG COUNT 7-27-01 7-28-00 Proposed depth, Rig % Rig % ft count footage * count footage * 0-2,500 55 3.6 25 16.0 ...

OGJ PRODUCTION REPORT.
August 6, 2001... OGJ PRODUCTION REPORT (Crude oil and lease codensate) 7-27-01 1 7-28-OO 2 1,000 b/d Alabama 25 28 Alaska 948 913 California 828 840 Colorado ...

US CRUDE PRICES.
August 6, 2001... US CRUDE PRICES $/bbl * 7-27-01 Alaska-North Slope 27[degrees] 20.83 South Louisiana Sweet 26.00 California-Kern River 13[degrees] 19.00 Lost Hills 30[degrees] 22.70...

WORLD CRUDE PRICES.
August 6, 2001... WORLD CRUDE PRICES $/bbl 1 7-20-01 United Kingdom-Brent 38 [degrees] 23.09 Russia-Urals 32 [degrees] 22.14 Saudi Light 34 [degrees] 23.53 Dubai Fateh 32 [degrees]...

AGA NATURAL GAS STORAGE *.
August 6, 2001... AGA NATURAL GAS STORAGE * 7-20-01 7-13-01 Change bcf Producing region 621 608 13 Consuming region east 1,143 1,083 60 Consuming region west 362 ...

PACE REFINING MARGINS.
August 6, 2001... Statistics PACE REFINING MARGINS May June July July 2001 2001 2001 2000 Change % change ...

US NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD.
August 6, 2001... US NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD Apr. Total Apr. Mar. Apr. change YTD 2001 2001 2000 2001-2000 2001...

US HEATING DEGREE DAYS 1.
August 6, 2001... US HEATING DEGREE DAYS 1 2000 % change Total degree days May May from July 1 through May 31 2001...

WORLDWIDE NGL PRODUCTION.
August 6, 2001... WORLDWIDE NGL PRODUCTION 4 month average Apr. Mar. Production 2001 2001 2001...

OXYGENATES.
August 6, 2001... OXYGENATES May Apr. YTD YTD 2001 2001 Change 2001 2000 Change 1,000 bbl Fuel ethanol Production 3,339 3,226 113 16,888 16,172 716 ...

OPEC may have cut production one time too many.
August 13, 2001... Are oil markets headed for another price spike in the second half, thanks to the latest OPEC cut? Raymond James & Associates analyst John Gerdes said a dramatic build in second quarter petroleum inventories initially appears to supports...

Will fuel-switching bolster gas prices?
August 13, 2001... The S3/MMbtu floor for natural gas prices continues to hold, thanks to a brutal heat wave scorching the US Midwest and Northeast. How long that floor holds remains largely up to the weather and the prospect of continuing firm oil prices...

Pace of gas storage injections remains strong.
August 13, 2001... Robert Morris of Salomon Smith Barney said the adjusted pace of gas storage injections, adjusted for temperature and nuclear and hydro supply variances, vs. last year has remained at the 4-5 bcfd level that has persisted since mid-May. AGA...

US INDUSTRY SCOREBOARD -- 8/13.
August 13, 2001... US INDUSTRY SCOREBOARD -- 8/13 4 wk. 4 wk. avg. Change, YTD Latest week 8/3 average year ago 1 % average 1 Demand, 1,000 b/d Motor gasoline 9,228 8,617 7.1 8,600...

PRODUCERS' STOCK PRICES ARE DROPPING AS US GAS PRICES FALL.
August 13, 2001... That word comes from Dain Rauscher Wessels: "Exploration and production companies' stock prices continue to trend lower in 2001, as plunging natural gas prices and lofty service costs portend less-than-stellar profit margins in the second...

HIGH US GAS SUPPLY COUPLED WITH SOFT DEMAND COULD PROLONG WEAK GAS PRICES.
August 13, 2001... Thomas Driscoll, Lehman Bros. analyst, said increasing gas storage inventory might partly offset the positive impact of recovering gas demand. "If we see continued evidence of strong supply growth over the remainder of the year, we should...

PERU'S ENERGY MINISTER WANTS PETROPERU PRIVATIZATION COMPLETED BY THE END OF 2003.
August 13, 2001... Jaime Quijandria made that announcement upon taking office as Peru's new energy and mines minister. The privatization involves the petroleum and electric power sectors. Some 40% of Peru's electric power sector remains to be privatized. ...

ALASKA HAS SCHEDULED AN OCT. 24 NORTH SLOPE, BEAUFORT SEA LEASE SALE.
August 13, 2001... The Alaska Division of Oil and Gas said the North Slope areawide sale will offer 1,225 state tracts totaling 5.1 million acres between the Canning River and the Arctic National Wildlife Refuge on the east and the Colville River and National...

US INDUSTRY QUIETLY ACCEPTED A 5-YEAR EXTENSION OF IRAN-LIBYA SANCTIONS.
August 13, 2001... President George W. Bush has signed a 5-year extension of the Iran-Libya Sanctions Act. The original 1996 act, which allowed the US to punish companies or countries that invest more than $20 million/year in the oil sectors of Iran or Libya,...

THE BOHAI CENTURY FPSO IS SET TO DEVELOP AN OIL FIELD OFF CHINA.
August 13, 2001... One of the world's largest floating, production, storage and offloading (FPSO) vessels, the Bohai Century was designed and built in less than 2 years. The vessel, 287 m long and 51 m wide, has a shallow draft of 14 m. Texaco and partners...

Sinopec.
August 13, 2001... Elsewhere in China, Sinopec said a recent horizontal well has upgraded the production capacity of Jiannan gas field near southwestern China's Chongqing City. Sinopec unit Jianghan Oilfield drilled Jianping-1 to 4,646 m in late July. It...

Total Libye.
August 13, 2001... In other development action, Total Libye, a TotalFinaElf subsidiary, has awarded two turnkey contracts for facilities in Field B on Block 137 off Libya to two consortiums. The field was discovered in 1975 and confirmed in 1998. Total Libye...

SPINNAKER EXPLORATION DISCOVERED GAS AND CONDENSATE AT ITS STIRRUP PROSPECT IN TEXAS GULF OF MEXICO STATE WATERS.
August 13, 2001... The Mustang Island 861 No. 1 was drilled to 17, 123 ft in 54 ft of water 25 miles south of Corpus Christi. After stimulation, one sand flowed on test at a rate of 21.1 MMcfd of gas and 130 b/d of condensate at more than 11,000 psi flowing...

Canadian Natural Resources (CNR).
August 13, 2001... In other exploration news, Canadian Natural Resources (CNR) said a recently drilled well in the Ladyfern area of British Columbia is capable of producing more than 100 MMcfd from the Slave Point formation. The d-74-G/94-H- 1 well is similar in...

EGYPT AND LIBYA HAVE FORMED A $ 100 MILLION OIL AND GAS PIPELINE COMPANY.
August 13, 2001... After more than 5 years of negotiations, the two countries created the Arab Co. for Oil & Gas Pipelines to transport crude to Egypt and gas to Libya. Egypt's General Authority for Investments approved formation of the joint company. Work...

Shell Petroleum Development.
August 13, 2001... In other pipeline happenings, Shell Petroleum Development awarded a consortium led by Stolt Offshore a contract for offshore pipelines associated with construction of Shell's gas gathering system off Nigeria. The consortium includes DSNL, a...

Sonatrach.
August 13, 2001... Sonatrach awarded a $70 million contract to ABB Lummus Group for the extension and renovation of oil pipeline pump stations in Algeria. The project, scheduled to be completed in 30 months, is part of government efforts to increase Algeria's...

Petroecuador.
August 13, 2001... Ecuador and Peru have resumed talks on the possibility of Petroecuador using surplus capacity in Peru's 200,000 b/d North Peruvian pipeline to pump crude oil from its fields near Peru's northern border to the Bayovar marine terminal on Peru's...

DYNEGY PLANS TO BUILD A SECOND NATURAL GAS PROCESSING PLANT IN CHICO, TEX.
August 13, 2001... The 150 MMcfd facility will be built next to an existing plant and will bring capacity at Chico to 250 MMcfd. Commercial operation will begin in second quarter 2002. Dynegy executives said the new plant is a response to processing...

Statoil.
August 13, 2001... In other gas processing developments, the Statpipe joint venture led by Statoil has tentatively awarded M.W. Kellogg a gas plant upgrade contract. The Statpipe system links fields off Norway to the continental European gas market. The 70...

PETROCHINA PLANS TO BUILD THREE CATALYTIC REFORMERS AND SIX HYDROTREATERS.
August 13, 2001... In a restructuring of its downstream division, PetroChina has outlined a construction program while it also plans to close several refineries with a combined capacity of 320,000 b/d by 2005 (OGJ Online, July 31, 2001). The nameplate...

Motiva Enterprises.
August 13, 2001... In other refining news, US EPA has ordered Motiva Enterprises to take several steps to protect public health and environmental safety following a refinery fire and sulfuric acid spill July 17 in Delaware City, Del. EPA ordered Motiva to...

Valero Energy.
August 13, 2001... Valero Energy took down a 62,000 b/d FCC unit at its Houston refinery Aug. 9 for unscheduled repairs. Valero said the repairs, estimated to take 8 days, involve the FCC's faulty electrostatic precipitator. Other segments of the 124,000 b/d...

CHEVRON BEGINS PRODUCING TYPHOON FIELD IN THE US DEEPWATER GULF OF MEXICO.
August 13, 2001... Chevron USA expects Typhoon field to reach production of 40,000 b/d of oil and 60 MMcfd of gas during the fourth quarter. The field is in 2,100 ft of water on Green Canyon Blocks 236 and 237 off Louisiana. Typhoon field was discovered...

PetroIran Development.
August 13, 2001... Elsewhere on the production scene, Iranian government officials expect within a month to finalize negotiations on a $359 million buy-back deal with PetroIran Development. The arrangement would triple production from Foroozan field and Esfandiar...

CNOOC.
August 13, 2001... China plans to spend 50 billion yuan ($6 billion) over the next 5 years to boost production in the Bohal Sea. CNOOC will drill 1,100 production wells and build 50 platforms and other offshore facilities to boost production to 400,000 b/d by...

Letters.
August 13, 2001... Inadequate America As California goes, so goes the rest of the country. The energy problems in California will soon impact the rest of the country. The infrastructure for generating and transmitting electrical power has reached maximum...

MTBE debate marches on.
August 13, 2001... Recent actions taken by the US Environmental Protection Agency--as well as those taken by certain state governments--have thrust the debate over the use of methyl tertiary butyl ether as a gasoline additive back into the public spotlight yet...