The Oil and Gas Journal articles from December 1999

The Oil and Gas Journal archives from December 1999

Newsletter.
December 6, 1999... Topping the radar screen for skittish oil markets this week are the Y2K bug and Saddam Hussein. In hopes of injecting confidence in oil market stability at a time when oil prices are already high and poised to rise further, some key oil...

US INDUSTRY SCOREBOARD 12/6.
December 6, 1999... US INDUSTRY SCOREBOARD 12/6 4 wk. 4 wk. avg. % Year-to-date Latest week 11/26 average year ago [1] change average [1] Demand (1,000 b/d) Motor gasoline 8,713 ...

LETTERS.
December 6, 1999... Strike a deal Conerning the Editorial, "Strike a deal, any deal" (OGJ, Nov. 8, 1999 p. 19), there's much, much more that can be said. Why the media's and Clinton's big ruckus about Congress killing the test ban treaty? (The military was...

Greens add spice.
December 6, 1999... Writing about the petroleum industry is fascinating, but as a journalist, one sometimes yearns for a dash of color or, better still, a whiff of controversy. Down the years, environmental campaign group Greenpeace has been a reliable...

The US-Iran stalemate.
December 6, 1999... A wonder of global affairs is the ability of two great cultures to mutually spoil potential for a relationship from which both would benefit. So it is with the US and Iran. The US can't move past enmity that developed when Iranian radicals...

Norway introduces industry-boosting measures to offset expected decline in E&P investments.(Statistical Data Included)
December 6, 1999... While the Norwegian government is anticipating increased production and earnings from petroleum revenues, it is concerned over the "drought" that is threatening the country's oil companies and their suppliers. Oslo expects to rake in 85...

FTC finally clears Exxon-Mobil merger.
December 6, 1999... The US Federal Trade Commission has voted 4-0 to allow Exxon Corp. to acquire Mobil Corp. for $81 billion but will require the firms to shed many assets. Reports also said approval of the Exxon-Mobil combination will make it harder for BP...

Royalty rule reproposal.
December 6, 1999... For the fourth time, the US Minerals Management Service plans to revise its controversial rule for valuing oil produced from federal leases. MMS said it would revise and reissue the regulation in mid-January, examine comments on the...

Intelligent completions advances poised to catapult production technology forward.
December 6, 1999... A new generation of intelligent downhole technologies has long been heralded as the future of the upstream petroleum industry. A number of oil field service firms are developing such technologies, aimed at moving to the wellbore much of the...

Petrobras to acquire Bolivia's refineries.
December 6, 1999... A 70-30 joint venture of Brazil's Petroleo Brasileiro SA and Argentina's Perez Companc have won the bidding to acquire Bolivia's two refineries, owned by the Bolivian state oil company Yacimientos Petroliferos Fiscales Bolivianos (YPFB). The...

Shell slates Aussie refinery for closure.
December 6, 1999... Shell Australia Ltd. is likely to close its Clyde refinery in Sydney by 2006. "On present industry outlook, it is difficult to see a future for our Clyde refinery beyond 2006," said Shell Australia Chairman and Chief Executive Peter Duncan...

Iraqi exports ploy.
December 6, 1999... Iraq's brief suspension of oil exports in defiance of the United Nations pushed the price of dated Brent crude above $26/bbl for the first time since the Persian Gulf crisis of 1990. While the price has fallen since--dated Brent closed at...

Canada approves Sable Island natural gas line.
December 6, 1999... Canada's National Energy Board has approved the $1 billion (Canadian) natural gas pipeline system from Sable Island off Nova Scotia to New England markets. The board had earlier approved the Maritimes & Northeast Pipeline system but was...

Iran's National Petrochemical Co.(Brief Article)
December 6, 1999... Iran's National Petrochemical Co. and Elenac GMBH, Kehl, Germany, signed a letter of intent to jointly build and operate a 300,000 tonne/year low-density polyethylene plant at an olefins complex to be built at Bandar Imam, Iran (OGJ, Aug. 16,...

Potomac Capital Investment Corp.(Brief Article)
December 6, 1999... Potomac Capital Investment Corp. (PCI), an unregulated unit of Potomac Electric Power Co., Washington, DC, acquired 17 natural gas transmission and distribution networks from four Dutch municipality-owned businesses for $525 million. PCI will...

BP Amoco PLC.(Brief Article)
December 6, 1999... BP Amoco PLC and Shell Deepwater Development Inc. began oil and gas production from the Marlin tension-leg platform on Viosca Knoll Block 915 in the Gulf of Mexico (OGJ, May 3,1999, p. 89). The TLP lies 125 miles southeast of New Orleans in...

Hungary's MOL Rt.(Brief Article)
December 6, 1999... Hungary's MOL Rt. inked a deal Nov. 20 with Russian oil firm Yukos for joint development of a 175 million bbl oil field in the Khanty-Mansiysk autonomous region of Western Siberia, near Nefteyugansk (OGJ, Nov. 1, 1999, p. 47). Supported by...

Petroleos Mexicanos.(Brief Article)
December 6, 1999... Petroleos Mexicanos let an $18 million contract to Halliburton de Mexico SA de CV for well stimulation services using the Cape Hawke vessel. Cape Hawke will provide acid and non-acid stimulation, frac-acid, nitrogen, and pumping services in the...

Kuwait Foreign Petroleum Exploration Co.(Brief Article)
December 6, 1999... Kuwait Foreign Petroleum Exploration Co. (KUFPEC) signed a memorandum of understanding with Indonesian state firm Pertamina for the renewal of an oil exploration contract on Ceram Island, Indonesia. KUFPEC is to start development of Oseil oil...

Enterprise Oil PLC.
December 6, 1999... Enterprise Oil PLC, London, and Brazilian partner Odebrecht Ltda. signed an agreement to acquire from Petroleo Brasileiro SA a farmout on Bijupira and Salema fields in 450-800 m of water in the Campos basin off Brazil. Based on the...

ATAM Elektrik Sanayi ve Ticaret AS.(Brief Article)
December 6, 1999... ATAM Elektrik Sanayi ve Ticaret AS, Istanbul, plans to build a $194 million, 206-Mw natural gas-fired power plant at Zonguldak, Turkey. The project, to be codeveloped by ATAM and GE Power Systems, is slated to begin commercial operations in...

Three contract workers.
December 6, 1999... Three contract workers were killed and another injured Nov. 21 when a storage tank they were cleaning at Chinese Petroleum Corp.'s Ta-Lin refinery exploded. The explosion and resulting fire seriously damaged the 34,000-kl, tank, but CPC says...

CPC.(Brief Article)
December 6, 1999... CPC is studying the feasibility of an $82 million normal paraffin plant. If it decides to go ahead with the project, the 130,000 tonne/year plant could come on stream in 4 years. Ho Tung Chemical Corp. is Taiwan's only normal paraffin producer,...

Texaco Ltd.(Brief Article)
December 6, 1999... Texaco Ltd. selected the technologies of Catalytic Distillation Technologies (CDTECH), Pasadena, Tex., for its 200,000 b/d Pembroke, UK, refinery. Texaco will use CDTECH'S CDHydro and CDHDS technologies to treat naphtha from a 90,000 b/d fluid...

Alberta Energy and Utilities Board.(Brief Article)
December 6, 1999... Alberta Energy and Utilities Board (AEUB) will look into whether 61 older sour gas plants must be upgraded to reduce sulfur emissions. The plants, started up before 1988, are exempt from the stringent control requirements placed on newer ones....

Burlington Resources Inc.(Brief Article)
December 6, 1999... Burlington Resources Inc.'s (BR) planned acquisition from ARCO of Villano field on Ecuador's Block 10 was halted when Agip SPA-ARCO's partner in the field--exercised its preemptive right to acquire ARGO's interest in the service contract for...

Two major shareholders.(Brief Article)
December 6, 1999... Two major shareholders of Cultus Petroleum NL, Sydney, accepted a revised takeover offer from Austrian bidder OMV AG (OGJ, June 28, 1999, p. 32). The two shareholders--New Zealand merchant bank Fay Richwhite and local institution Portfolio...

Beta Oil & Gas Inc.(Brief Article)
December 6, 1999... Beta Oil & Gas Inc., Newport Beach, Calif., signed an agreement to acquire Red River Energy Inc., Tulsa, for $23.5 million, which will include $7.6 million in assumed debt and issuance of 2.25 million shares of Beta common stock. Red River...

Australia Worldwide Exploration Ltd.
December 6, 1999... Australia Worldwide Exploration Ltd. (AWE) acquired the Australian assets of Premier Oil PLC. AWE will issue its own shares and convertible notes in return for Premier's exploration interests in the Carnarvon, Perth, and Bass basins. AWE gains...

Flowserve Corp.(Brief Article)
December 6, 1999... Flowserve Corp., Dallas, signed a definitive agreement to acquire Innovative Valve Technologies Inc. for about $100 million. Flowserve will issue a cash tender offer of $1.62/share for the outstanding 9.7 million shares of Invatec common stock...

Royal Dutch/Shell.(Brief Article)
December 6, 1999... Royal Dutch/Shell will sell 60% of its interest in Bukat Block off East Kalimantan, Indonesia, to three firms: ARGO (37.5%), Lasmo PLC (12.5%), and Unocal Corp. (10%). Shell will retain a 40% interest in the block. The partners plan to shoot a...

Alberta Energy Co.
December 6, 1999... Alberta Energy Co. unit AEC International (AECI) and two Perthbased explorers, West Oil NL and Norwest Energy NL, signed an agreement to acquire a farmout on Permit AC/P22 in the Timor Sea. The partners are to drill the Puffin 5 appraisal on...

Ecuador.
December 6, 1999... Ecuador began using a new pricing formula for its oil in December in an effort to make the commodity more competitive, says state oil company Petroecuador. The new pricing method is based on the US benchmark crude West Texas Intermediate, minus...

Canada's National Energy Board.
December 6, 1999... Canada's National Energy Board approved a $92.7 million (Can.) natural gas lateral pipeline by Maritimes & Northeast Pipeline LP. The 16-in. St. John, NB, lateral will extend 63 miles from a mainline near Big Kedron Lake, NB, to St. John (see...

Pakistan Oil & Gas Development Co. Ltd.(Company Business and Marketing)(Brief Article)
December 6, 1999... Pakistan Oil & Gas Development Co. Ltd. made an oil and gas discovery in Kohat, North West Frontier province, on the Shakardarra exploration license, which covers 943 sq km in Punjab and North West Frontier Chanda 1 was drilled to 4,850 m TD...

Santos Ltd.
December 6, 1999... Santos Ltd. found an extension to Meranji gas field in South Australia's Cooper-Eromanga basin. Appraisal well Meranji East 1 the second drilled on PPL 35, cut 15 m of gas pay in Permian mid-Patchawarra. The well, cased and suspended as a...

Enron Corp.
December 6, 1999... Enron Corp., Houston, signed a definitive agreement to acquire the wholesale energy trading operations of Columbia Energy Services (CES), Houston. The sales price was less than $40 million, says Enron. The transaction includes gas storage...

Phillips Oil Co. Australia Ltd.
December 6, 1999... Phillips Oil Co. Australia Ltd. and Epic Energy Ltd. formed an alliance for transportation of natural gas from BayuUndan fields in the Timor Gap area between Australia and Indonesia (OGJ, Nov. 8,1999, p. 34). One option is to bring gas ashore...

CMS Energy.
December 6, 1999... CMS Energy plans to purchase seven shipments of LNG--totaling 500,000 tonnes--in 2000 from Qatargas in a spot sale from the state firm's production surplus. No value for the deal was disclosed. The transaction marks the third of its kind for...

GTL technology augments gas production options.
December 6, 1999... Natural gas (methane) converted to a liquid, primarily for fuel use, is being touted as a new option for accelerating exploitation of the world's natural gas resources, especially accumulations that are commonly termed "stranded," in the...

Value added synthetic fluids key to Mossgas' success.(gas to liquid ventures)
December 6, 1999... While most economic analyses of the gas-to-liquid (GTL) ventures focus on feed costs and investment capital, Mossgas' experience suggests that the ability to make value-added products is the key to commercial GTL profitability. ...

Reducing scale, increasing flexibility are targets of new LNG designs.
December 6, 1999... Recent years have seen advancement of several transportation schemes aimed at making natural gas production from smaller and remote or scattered offshore fields more economic. For the most part, these efforts have focused on liquefaction in...

Traditional oil, gas shipping patterns face changes for the 21st Century.
December 6, 1999... Changing trade patterns and evolving technologies will alter traditional shipping patterns and fleet changes in liquid petroleum product, LPG, and LNG carriers into the 21st Century. Eastern economies reviving from a recent sharp downturn...

Pulse fracturing tests show mixed results.
December 6, 1999... The US Department of Energy's (DOE) extreme overbalance (EOB) and high-energy gas fracturing (HEGF) tests were disappointing overall, but the improved understanding of each process may be still be useful in improving deliver-ability from gas...

NELSON-FARRAR COST INDEXES.
December 6, 1999... NELSON-FARRAR COST INDEXES Refinery construction (1946 Basis) (Explained on p. 145 of the Issue of Dec. 30, 1985) Aug. ...

Durable hammer-union transmitter improves mud-pulse response.
December 6, 1999... An innovative hammer-union pressure transmitter, which can be easily repaired or replaced on location, has improved the accuracy and response time for mud-pulse communications used in most directional-drilling operations. This sensor,...

New complex to provide utilities to Gulf Coast plants.
December 6, 1999... IN ITS LARGEST SINGLE U.S. INDUSTRIAL INVESTment, Air Liquide America Corp. started up the first of two air-separation units (ASUs), part of a $150 million air-separation and cogeneration complex in Geismar, La., at the end of October. The...

Electric sampler extracts accurate liquid measurement.
December 6, 1999... A new electric-powered sampler is designed for accuracy in liquid measurement. The ELSCS electric sampler extracts a true isokinetic sample, yielding accurate, reliable, and repeatable results, the company says. Featuring a simple and...

Wellbore cleanup system.
December 6, 1999... This firm has added a wellbore cleanup system that complements the company's completion services. Designed and made in Aberdeen, Scotland, the line includes the Well Patroller, the clutch-type multifunction circulating tool, the Razor Back...

Fuel analyzer.
December 6, 1999... This new portable FOx FTIR fuel analyzer is an accurate and comprehensive unit suited for analysis of gasoline, diesel, jet fuels, and kerosine. It can measure a variety of oxygenates in real world fuels and at the same time report benzene...

Switch monitors flow, level, and temperature.(FCI Fluid Components' FLT93B)(Brief Article)(Product Announcement)
December 6, 1999... The new Model FLT93B flow, level, and temperature switch features a design that monitors flow or level and temperature simultaneously. It is designed to comply with process industry requirements for the precision monitoring of gas or liquid...

Trading and scheduling system.(Sungard Energy Systems' Epsilon Energy)(Brief Article)(Product Announcement)
December 6, 1999... The Epsilon Energy solutions suite is an integrated risk management, trading, and physical commodities scheduling system for the energy industry. Featuring straight-through processing, from risk management to delivery of natural gas and power,...

MOVES AND PROMOTIONS.
December 6, 1999... 21st Century Energy Advisors has been established in Houston to develop business intelligence for energy companies and other companies entering the energy market. The firm provides energy market analysis, special competitive and...

NKK Corp.
December 6, 1999... NKK Corp. of Japan and Siderca S.A. of Argentina have signed a letter of intent pursuant to which they have agreed to build a strategic alliance that would combine their marketing and technological strengths in relation to the manufacture and...

Four geologic settings dominate oil, gas fields of Italy, Sicily.
December 6, 1999... The oil and gas fields of Italy and Sicily produce a variety of oil and gas types from a wide range of traps. The major oil and gas fields of Italy can be divided into four general structural/stratigraphic settings. These zones, which extend...

Costa Rica.(Brief Article)
December 6, 1999... Harken Energy Corp., Houston, is acquiring 100 sq km of 3D seismic data on Block 12 in the Caribbean. It plans to interpret the data in first half 2000 and spud an offshore well in second half 2000 (see map, OGJ, July 13, 1998, p. 84).

Kazakhstan.(Brief Article)
December 6, 1999... American International Petroleum Corp., New York, plans to re-examine Jurassic oil potential on License 953 in the North Ustyurt basin. The company will focus on the 11,500 acre Begesh structure on the southwestern part of the block in...

British Columbia.(Brief Article)
December 6, 1999... The government will defer royalties for three years from an experimental gas lift project at Beaver River gas field in the northeastern part of the province. Beaver River, discovered in 1961, contains nearly 1.5 tcf, making it the second...

Indiana.
December 6, 1999... Team Energy LLC, Bridgeport, Ill., applied to re-enter a well in Sullivan County and deepen it to test Cambro Ordovician Knox. The 1 Ridge, in 19-7n-8w, originally drilled a false seismic structure caused by a local velocity increase above...

New York.(Brief Article)
December 6, 1999... More operators are joining an Ordovician Trenton gas play in western New York. Pennsylvania General, Warren, Pa., staked a 10,300 ft Trenton wildcat in Steuben County. The 1300 Howe, 5 miles north of Corning, would be among the deepest...

Texas.(Brief Article)
December 6, 1999... West Reliance Oil & Gas Inc., Seguin, staked a remote wildcat in the Marfa basin. The 1 Thomas, in Presidio County 8 miles northwest of Marfa, is projected to 9,000 ft.

API IMPORTS OF CRUDE AND PRODUCTS.
December 6, 1999... API IMPORTS OF CRUDE AND PRODUCTS District 1-4 District 5 11-26 11-19 [1] 11-26 11-19 [1] 1999 1999 1999 ...

API CRUDE AND PRODUCT STOCKS.
December 6, 1999... API CRUDE AND PRODUCT STOCKS Motor gassoline Blending Jet Fuels Crude oil Total Comp. [2]...

API REFINERY REPORT--NOVEMBER 26, 1999.
December 6, 1999... API REFINERY REPORT--NOVEMBER 26, 1999 REFINERY OPERATIONS Total Input refinery Crude to crude Operable %...

OGJ CRACK SPREAD.(Brief Article)
December 6, 1999... OGJ CRACK SPREAD 11-26-99 [*] 11-27-98 [*] Change % $/bbl change SPOT PRICES Product values 30.61 13.60 17.01...

OGJ GASOLINE PRICES.
December 6, 1999... OGJ GASOLINE PRICES Price Pump ex tax price [*] ...

BAKER HUGHES RIG COUNT.
December 6, 1999... BAKER HUGHES RIG COUNT 11-26-99 11-27-98 Alabama 6 5 Alaska 4 10 Arkansas 2 0 California...

OGJ PRODUCTION REPORT.
December 6, 1999... OGJ PRODUCTION REPORT 11-26-99 [1] 11-26-98 [2] (1,000 b/d) (Crude oil and lease condensate) Alabama 34 ...

REFINED PRODUCT PRICES.
December 6, 1999... REFINED PRODUCT PRICES 11-19-99 ([cent]/gal) Spot market product prices Motor gasoline (Conventional-regular) New York Harbor ...

SMITH RIG COUNT.(statistics)(Brief Article)(Statistical Data Included)
December 6, 1999... SMITH RIG COUNT 11-26-99 11-27-98 Proposed depth Rig % Rig % (ft) count footage [*] count footage [*] 0-2,500 19 15.7 ...

U.S. CRUDE PRICES.(crude oil)(Brief Article)(Statistical Data Included)
December 6, 1999... U.S. CRUDE PRICES ($/bbl) [*] 11-26-99 Alaska-North Slope 27[degrees] 17.83 Southern Louisiana Light 25.75 California-Kern River 13[degrees] 20.75 Lost Hills...

WORLD CRUDE PRICES.(crude oil)(Brief Article)(Statistical Data Included)
December 6, 1999... WORLD CRUDE PRICES ($/bbl) [l] 11-19-99 United Kingdom-Brent 38[degrees] 25.08 Russia-Urals 32[degrees] 24.38 Saudi light 34[degrees] 24.15...

AGA NATURAL GAS STORAGE [*].(Brief Article)
December 6, 1999... AGA NATURAL GAS STORAGE [*] 11-19-99 11-12-99 Change (bcf) Producing region 843 847 -4 Consuming region east 1,711 1,730 -19 Consuming...

PACE REFINING MARGINS.(Brief Article)(Statistical Data Included)
December 6, 1999... PACE REFINING MARGINS Sept. Oct. Nov. Nov. % 1999 1999 1999 1998 Change change $/bbl U.S. Gulf Coast West Texas Sour 2.44...

U.S. NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD.(Brief Article)(Statistical Data Included)
December 6, 1999... U.S. NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD Aug. Total YTD Aug. July Aug. change YTD change ...

WORLDWIDE NGL PRODUCTION.(natural gas liquids statistics)(Brief Article)(Statistical Data Included)
December 6, 1999... WORLDWIDE NGL PRODUCTION 8 month Chg. vs. average previous Aug. July Production year...

OXYGENATES.(Fuel ethanol and Methyl tert-butyl ether market statistics)(Brief Article)(Statistical Data Included)
December 6, 1999... OXYGENATES Sept. Aug. YTD YTD 1999 1999 Change 1999 1998 Change 1,000 bbl Fuel ethanol Production 2,917 2,884 33 25,669 23,831...

U.S. COOLING DEGREE DAYS [1].(weather temperatures in U.S. regions)(Brief Article)(Statistical Data Included)
December 6, 1999... U.S. COOLING DEGREE DAYS [1] Total 1999 % degree days change Jan. 1 throught ...

Petroleum's brave new world.(Brief Article)
December 13, 1999... With apologies to Shakespeare (and Aldous Huxley), "brave new world" is an apt way to try to describe the shape and form of the global petroleum industry in the 21st century. But it is always risky to try to predict the future. So it...

Petroleum industry faces tectonic shifts changing global energy map.
December 13, 1999... People in the petroleum industry remember the current times as one of the most difficult, unpredictable, and promising periods in its history. But it isn't price volatility that is causing most of the excitement and anxiety. It is the...

Maturing planet, tougher terms change upstream landscape.
December 13, 1999... These are dramatic times upstream--more competitive and demanding. Geological potential is not as exciting, and contract/fiscal terms are tougher relative to the dwindling potential. Furthermore, exploration acreage has taken on the...

How climate change policy could shrink the federal budget surplus and stifle US economic growth.
December 13, 1999... The Kyoto Protocol to the United Nations Framework Convention on Climate Change, which the US negotiated in December 1997, calls for industrial economies such as the US, Canada, Europe, and Japan (called Annex I or Annex B countries) to reduce...

Climate change issue a litmus test for oil company survival.
December 13, 1999... One theory current among paleontologists is that the age of the dinosaurs was ended comparatively abruptly by dramatic climate change brought about by the impact of a huge meteor in the Gulf of Mexico area. A further theory is that all the...

Seismic progress: where the trends might lead.
December 13, 1999... Projecting trends forward to predict future conditions is always dangerous. Trends never last. And projections can't account in advance for the changes that make this so. For anyone who has paid attention to progress of the past 2 decades,...