The Oil and Gas Journal articles from December 1999

The Oil and Gas Journal archives from December 1999

Newsletter.
December 20, 1999... Oil market fundamentals are continuing to improve--to the point of overheating, according to London's Centre for Global Energy Studies. "The price of oil is on fire," said CGES in its latest monthly market report. "Dated Brent [surged]...

US INDUSTRY SCOREBOARD12/20.(Statistical Data Included)(Brief Article)
December 20, 1999... US INDUSTRY SCOREBOARD 12/20 4 wk. 4 wk. avg. % Year-to-date YTD avg. Latest week 12/10 average year age [1] change average [1] year ago [1] Demand (1,000 b/d) Motor...

Closing with a bang.(Editorial)(Brief Article)
December 20, 1999... With this issue, Oil & Gas Journal closes out the year, the decade, the century, and the millennium with a bang. As you can see, the issue is bigger than normal, a double issue. But what makes it a double issue is nothing new. In...

Oil price cosmetics.
December 20, 1999... "Right now, I believe that oil prices are too high." When someone speaking from the consumer's perspective makes that statement, a follow-up test question is in order: "Have you cut the rate at which you purchase oil products?" If...

Emerging 'triple bottom line' model for industry weighs environmental, economic, and social considerations.
December 20, 1999... At the confluence of corporate environmental, economic, and social engagement, a new paradigm has emerged: the triple bottom line (TBL). What is the relevance of this approach to the oil and gas sector? Is it just didactic tub-thumping...

ExxonMobil sells properties, organizes.(BP Amoco PLC)
December 20, 1999... BP Amoco PLC and ExxonMobil Corp. have agreed to dissolve their European fuels and lubricants joint venture and split the assets in line with their equity stakes. To satisfy the European Commission's conditions for the merger of Exxon...

Abundant oil.(Brief Article)
December 20, 1999... A recent Center for Strategic & International Studies conference in Washington, DC, on energy geopolitics saw few problems with oil supply and demand. But it was the unforeseen problems that worried speakers. A CSIS draft study said...

Lehman: World E&P outlays to rise 10% in 2000.
December 20, 1999... Worldwide exploration and production budgets will increase by 10.2% in 2000 vs. those for 1999. This increase will be largely driven by US and Canadian independents stepping up their natural gas E&P activities through increased drilling in...

TransCanada to retrench, offload key assets.
December 20, 1999... TransCanada PipeLines Ltd., Calgary, has decided to return to its core business by selling all assets not associated with its $21 billion (Can.) pipelining, power generation, and marketing activities in Canada and the northern US. This means...

North Sea fears.(Brief Article)(Statistical Data Included)
December 20, 1999... The price for dated Brent crude oil has settled around $24-25/bbl, the Organization of Petroleum Exporting Countries is holding back production, and inventories are falling. So why is the North Sea oil industry gloomy? As far as OPEC is...

Controversy over MTBE in gasoline rages on.(methyl tertiary butyl ether)(Statistical Data Included)
December 20, 1999... California's pending ban of the gasoline additive methyl tertiary butyl ether is continuing to cause controversy among refiners, oxygenate producers, and other stakeholders in the debate. California Coy. Gray Davis issued an executive...

Erika, a Maltese-registered tanker.(tanker spills 10,000-18,000 tons of oil off French coast)(Brief Article)(Statistical Data Included)
December 20, 1999... Erika, a Maltese-registered tanker, broke in half in stormy Atlantic seas Dec. 12 about 100 km off the northwestern coast of France and spilled 10,000-18,000 tonnes of heavy fuel oil. At presstime, a fuel oil slick was being blown at 2 km/hr...

Six people were killed.(explosion at Thai Oil Co. refinery near Bangkok)(Brief Article)(Statistical Data Included)
December 20, 1999... Six people were killed in an explosion and fire late Dec. 2 at Thai Oil Co.'s Sri Racha refinery about 125 km southeast of Bangkok. The fire, which burned for 35 hr, consumed 40 million I. of fuel. Damages are estimated at 500 million baht...

China Petrochemical Corp.(retail of leaded gasoline to stop by January 1, 2000)(Brief Article)(Statistical Data Included)
December 20, 1999... China's refineries must stop producing leaded gasoline as of Jan. 1. About 90% of China's estimated 36 million tonnes of 1999 gasoline production was unleaded. And by July 1, 46 major cities in China had stopped selling leaded gasoline. A ban...

Clark USA Inc.(acquisition of Equilon Enterprises L.L.C refinery cancelled)(Brief Article)(Statistical Data Included)
December 20, 1999... Clark USA Inc., St. Louis, was unable to reach an agreement on terms and conditions to purchase Equilon Enterprises LLC's 295,000 b/d Wood River, III., refinery and has discontinued negotiations with Equilon, a joint venture of Shell Oil Co....

Reliance Petroleum Ltd.(begins exporting naphtha)(Brief Article)(Statistical Data Included)
December 20, 1999... India's Reliance Petroleum Ltd. (RPL) made the first products export from its newly operational, 27 million tonne/year refinery at Jamnagar, Gujarat. The international buyer of the 30,000-tonne cargo of naphtha was not identified, but company...

Mitsubishi Gas Chemical Co.(discovers oil and gas at Niigata, Japan)(Brief Article)(Statistical Data Included)
December 20, 1999... Mitsubishi Gas Chemical Co. made an oil and gas discovery at Niigata, Japan. It drilled two wells on the prospect. The first, drilled jointly with Japan Petroleum Exploration Co., flowed 7 MMcfd of gas and 566 b/d of oil. A second well,...

Gabon.(to begin licensing round for oil fields)(Brief Article)(Statistical Data Included)
December 20, 1999... Gabon will launch its ninth upstream licensing round in second quarter 2000 as part of a plan to stem falling oil production in the country. The round will involve about 20 blocks covering areas onshore and in shallow and deep waters. Paul...

Cooper-Eromanga basin.(bids to explore Australia basin)(Brief Article)(Statistical Data Included)
December 20, 1999... Nineteen companies submitted 47 bids to South Australia for eight exploration licenses in the Cooper-Eromanga basin. The bids will be evaluated on a work program basis; winners will be announced early in 2000. The blocks comprise the second...

PTT Exploration & Production PLC.(Thailand)
December 20, 1999... PTT Exploration & Production PLC (PTTEP), a unit of Petroleum Authority of Thailand, made a natural gas discovery on Block 15A in the Gulf of Thailand. On test, Arthit 15-1X flowed 41 MMcfd of gas and 1,657 b/d of condensate from five zones....

Petronet LNG.(marketing agreements with Gas Authority of India Ltd, Indian Oil Corp, and Bharat Petroleum Corp Ltd)
December 20, 1999... India's Petronet LNG signed LNG marketing agreements with Gas Authority of India Ltd. (GAIL), Indian Oil Corp. (lOC), and Bharat Petroleum Corp Ltd. (BPCL). The three firms had been vying separately to obtain the country's LNG marketing...

El Paso Merchant Energy Co.
December 20, 1999... El Paso Merchant Energy Co., a unit of El Paso Energy Corp., Houston, acquired interests in 11 gas-fired power generation plants in California from Dynegy Inc., Houston, for $255 million. The plants have a combined generating capacity of...

Unocal Corp.
December 20, 1999... Unocal Corp. will merge its oil and gas exploration and production assets in the Permian and San Juan basins with Titan Exploration Inc. into a new company called Pure Energy Resources Inc. Unocal will hold 65% of Pure Energy, which will have...

Kerr-McGee Corp.(acquisition)
December 20, 1999... Kerr-McGee Corp. plans to acquire the upstream UK North Sea operations from a unit of Repsol-YPF SA for $555 million. The sale of the assets--which comprise all of Repsol-YPF's UK North Sea holdings--is part of the state firm's $2.5 billion...

Reliant Energy.(increased its ownership interest in Dutch firm NV Energieproduktiebedrijf UNA)
December 20, 1999... Reliant Energy, Houston, increased its ownership interest to 52% from 40% in Dutch firm NV Energieproduktiebedrijf UNA for $490 million, acting on a plan it announced earlier this year to increase its ownership of the power generation company...

Apache Canada.(purchase of Shell Canada Ltd assets in Western Canada)
December 20, 1999... Apache Canada completed a $761 million (Can.) purchase of Shell Canada Ltd. assets in Western Canada (OGJ, Oct. 11, 1999, P. 46). Most of the properties contain conventional oil wells, but Apache says it will focus on natural gas. It plans to...

Keppel Oil & Gas Services Pte.(acquires an additional 5.4% of Singapore Petroleum Co. Ltd)
December 20, 1999... Keppel Oil & Gas Services Pte. (KOGS), a unit of Singapore's Keppel Fels Ltd., acquired an additional 5.4% of Singapore Petroleum Co. Ltd. (SPC), raising its interest to 30%. KOGS also signed a conditional agreement with Japan's ltochu...

MDU Resources Group Inc.(a natural gas marketing firm called Sage Gas Alliance LLC)
December 20, 1999... MDU Resources Group Inc. unit Prairielands Energy Marketing Inc., Bismarck, ND, and Preston Reynolds & Co. Inc., Denver, formed a natural gas marketing firm called Sage Gas Alliance LLC. Sage Gas will market gas supplies from the Rocky...

Petroleos de Venezuela SA.(selects Pace Global Energy Services LLC to conduct a natural gas market study)
December 20, 1999... Petroleos de Venezuela SA selected Pace Global Energy Services LLC to conduct a natural gas market study for the feasibility of a pipeline serving Margarita Island and the city of Cumana in eastern Venezuela. The proposed line is one of the...

Chevron Pipe Line Co.(commences Texas operation)(Brief Article)
December 20, 1999... Chevron Pipe Line Co. unit West Texas Gulf Pipe Line Co. plans to begin northbound operation of its Wortham-to-Nederland, Tex., line section on Mar. 1, 2000. Work to reverse the Trinity booster station piping and to upgrade a number of...

Guardian Pipeline project partners.(file application for new pipeline)(Brief Article)
December 20, 1999... Guardian Pipeline project partners filed an application with the US Federal Energy Regulatory Commission to construct, own, and operate their proposed 149-mile interstate natural gas line (OGJ, Mar. 29, 1999, p. 27). Guardian will transport...

Florida Gas Transmission Co.(expands transmission system)(Brief Article)
December 20, 1999... Florida Gas Transmission Co. (FGT), a subsidiary of Citrus Corp., Houston, filed an application with FERC to expand its 4,800-mile natural gas transmission system by laying 231 miles of pipeline and adding about 90,000 hp of compression and...

Western Canada gas producers.(increase gas production)(Buyers Guide)(Statistical Data Included)
December 20, 1999... Western Canada gas producers are expected to increase natural gas production in response to concerns that there will not be enough gas to fill new export pipeline capacity to the US, according to a study by Canadian Energy Research Institute....

Gulf Canada Resources Ltd.(to develop Suban natural gas field)(Brief Article)
December 20, 1999... Gulf Canada Resources Ltd. plans to develop Suban natural gas field in South Sumatra, Indonesia, and invited bids for mechanical, civil, and electrical work for installing facilities in the field, which is expected to produce 300 MMcfd of gas...

Elf Explaration Inc.(Virgo field production begins)(Brief Article)(Statistical Data Included)
December 20, 1999... Elf Explaration Inc. began production from Virgo field in 345 m of water in the Gulf of Mexico (OGJ, Nov. 22, 1999, p. 68). The Virgo field covers four blocks located in the Viosca Knoll area off Louisiana. Production is expected to reach...

The Libyan unit of Agip Gas BV.(gives new contract to Technip SA)(Brief Article)
December 20, 1999... The Libyan unit of Agip Gas BV let a $100 million contract to Technip SA, Paris, for basic design and project management services on the Western Libya Gas Project (WLGP). WLGP involves development of the Wafa onshore gas field on Block NC169...

Worldwide refining capacity creeps upward, most growth in Asia-Pacific.(Illustration)(Statistical Data Included)
December 20, 1999... Refining crude-distillation capacity has grown to 81.5 million b/cd during 1999, a 1.5% increase. OGJ previously reported 80.3 million b/cd worldwide capacity in Jan. 1, 1999 (OGJ, Dec. 21, 1998, p. 41). The most significant regional...

1999 Worldwide Refining Survey.(Illustration)(Statistical Data Included)
December 20, 1999... All figures in barrels per calendar day All figures are as of January 1, 2000 LEGEND Numbers identify processes in table Coking 1. Fluid coking 2. Delayed coking 3. Other Thermal Processes 1. Thermal...

Decline in world crude reserves is first since '92.(Statistical Data Included)
December 20, 1999... Worldwide reserves of crude oil declined slightly while natural gas reserves rose in 1999. For oil, it was the first decline since 1992. Reserves of crude oil fell by 18.2 billion bbl during the year, and natural gas reserves were 1.5 tcf...

Phillips drills entire 0DM exploratory well with vacuum-cuttings system.(Illustration)(Statistical Data Included)
December 20, 1999... A specially designed waste management system, which capitalizes on emerging vacuum cuttings-handling technology and a sophisticated hydraulic-monitoring program, played key roles in drilling an exploratory well offshore Norway almost entirely...

LNG projects' cost, competition analyzed in new study.(Statistical Data Included)
December 20, 1999... A recent analysis of LNG projects' costs and their costs of service (COS) indicates that, despite low energy prices, most expansion projects and several grassroots projects are economic under conservative pricing scenarios. The study of...

GOM area is site of extensive pipeline re-route.(Brief Article)
December 20, 1999... A 20-IN. PIPELINE HAS BEEN re-routed through a platform on Gulf of Mexico Main Pass Block 69 for Shell Oil Co. affiliate Equilon Enterprises LLC, Houston. Global Divers & Contractors Inc., a subsidiary of Global Industries, Houston,...

New economics approach evaluates gas storage deliverability enhancement.(Statistical Data Included)
December 20, 1999... A new approach can better address the issues related to evaluating the economic benefits of different methods for stimulating gas storage wells. This fourth and concluding part of a four-part series (Part 1, OGJ, Nov. 15, 1999, p. 43;...

Correction.(Brief Article)
December 20, 1999... Colors were inadvertently switched in two diagrams in "Analysis suggests economic viability of trans-Caspian Sea gas line" (OGJ, Nov. 15, 1999, p. 51). In Fig. 4 (p. 53), red should represent Turkey; green, Azerbaijan. In Fig. 5 blue...

Container system for topping oils, lubricants.(Brief Article)
December 20, 1999... The new OilSafe family of closed, ergonomic containers is available for on-site topping oils and lubricant delivery. The product is designed to help prevent lubricant contamination and reduce lubricant waste. Available in 3 and 5 qt...

Data system helps with lab-quality checks.(Brief Article)
December 20, 1999... The Cerity networked data system is designed for chemical quality assurance and quality control. The sample-centric software is designed for laboratory personnel involved in routine QA and QC testing in natural gas, refining, and...

Real time logging-while-drilling geopressure estimation.(Brief Article)
December 20, 1999... The new pWell automatically computes and monitors formation pressure while drilling from logging-while-drilling data. The product is based on this firm's well log analysis package GeoPressure Estimation Software. The new product is an...

Transmitter for digital video.(Brief Article)
December 20, 1999... The RS-1000 packetized digital video transmitter is available for security uses at oil field sites. The unit uses FLYCodec to send real-time full color digital video at 30 frames/sec over TCP/IP, fiber, frame relay, UDP, VSAT, cellular,...

Reservoir and production simulator.(TurboSim)(Brief Article)
December 20, 1999... TurboSim is a new reservoir and production simulator able to solve quickly a variety of oil production problems. It is a Windows based, "quick look" simulator. A minimum configuration of 8 Mb is recommended. TurboSim has been...

Servomex plc.(Brief Article)
December 20, 1999... Servomex plc, Norwood, Mass., providers of gas analysis, including its U.S. subsidiary Servomex, Inc., has been acquired by the UK based company Fairey Group, plc. Fairey Group is comprised of sixteen autonomous companies that are specialists...

Norton Chemical Process Products Corp.(Brief Article)
December 20, 1999... Norton Chemical Process Products Corp., Akron, Ohio, has entered into a joint service agreement with Synetix Services, the provider of Tracerco scanning technology, to better serve mass transfer customers worldwide. The agreement combines...

Landmark Graphics Corp.(Brief Article)
December 20, 1999... Landmark Graphics Corp., Houston, Tex., a wholly-owned business unit of Halliburton Co., has acquired Economic Analysis Systems, a Houston-based company that provides software programs and consulting services for portfolio planning and risk...

Yokogawa Electric Corp. and Dresser Equipment Group, Inc. (DEG).(Brief Article)
December 20, 1999... Yokogawa Electric Corp. and Dresser Equipment Group, Inc. (DEG), a business unit of Halliburton Company, are entering into a customer-focused alliance to develop and market [FOUNDATION.sup.TM] fieldbus products, integrated systems and...

Apennines productive sequences identified off southern Italy.
December 20, 1999... New seismic data indicate that all three of Italy's major productive sequences are present and prospective in the deepwater areas offshore. No direct well ties were available for this interpretation, but the overall sequences can be...

API IMPORTS OF CRUDE AND PRODUCTS.(Statistical Data Included)
December 20, 1999... API IMPORTS OF CRUDE AND PRODUCTS Districts 1-4 District 5 Total U.S. 12-10 12-3 [1] 12-10 12-3 [1] 12-10 ...

OGJ CRACK SPREAD.
December 20, 1999... OGJ CRACK SPREAD 12-10-99 [*] 12-11-98 [*] Change % $/bbl change SPOT PRICES Product value 28.94 12.67 16.27...

API CRUDE AND PRODUCT STOCKS.
December 20, 1999... API CRUDE AND PRODUCT STOCKS Motor gasoline Blending Jet fuels Crude oil Total Comp....

API REFINERY REPORT--DECEMBER 10, 1999.
December 20, 1999... API REFINERY REPORT--DECEMBER 10, 1999 REFINERY OPERATIONS District Total Input refinery Crude to crude Operable % ...

OGJ GASOLINE PRICES.
December 20, 1999... OGJ GASOLINE PRICES (Approx. prices for self-service unleaded gasoline) Price Pump Pump ex tax price [*] price 12-8-99 ...

BAKER HUGHES RIG COUNT.
December 20, 1999... BAKER HUGHES RIG COUNT 12-10-99 12-11-98 Alabama 7 5 Alaska 5 13 Arkansas 1 3...

OGJ PRODUCTION REPORT.
December 20, 1999... OGJ PRODUCTION REPORT (Crude oil and lease condensate) 12-10-99 [1] 12-11-98 [2] (1,000 b/d) Alabama 33 32 Alaska 1,110...

U.S. CRUDE PRICES.
December 20, 1999... U.S. CRUDE PRICES ($/bbl) [*] 12-10-99 Alaska-North Slope 270[degrees] 17.28 Southern Louisiana Light 26.00 California-Kern River 13[degrees] 19.50 Lost Hills...

WORLD CRUDE PRICES.
December 20, 1999... WORLD CRUDE PRICES ($/bbl) [1] 12-3-99 United Kingdom-Brent 38[degrees] 26.00 Russia-Urals 32[degrees] 26.00 Saudi light 34[degrees] 24.23...

REFINED PRODUCT PRICES.
December 20, 1999... REFINED PRODUCT PRICES 12-3-99 ([cent]/gal) Spot market product prices Motor gasoline (Conventional-regular) New York Harbor ...

SMITH RIG COUNT.
December 20, 1999... SMITH RIG COUNT 12-10-99 12-11-98 Proposed depth Rig % Rig % (ft) count footage [*] count footage [*] 0-2,500 18 ...

AGA NATURAL GAS STORAGE [*].
December 20, 1999... AGA NATURAL GAS STORAGE [*] 12-3-99 11-26-99 Change (bcf) Producing region 837 848 -11 Consuming region east 1,658 1,714 -56 Consuming...

INTERNATIONAL RIG COUNT.
December 20, 1999... INTERNATIONAL RIG COUNT Oct. 1999 Oct. 98 Region Land Off. Total Total WESTERN HEMISPHERE Argentina 41 0 41 37 Bolivia ...

ERNST & YOUNG WRIGHT KILLEN GASOLINE MARKETING MARGINS [1].
December 20, 1999... ERNST & YOUNG WRIGHT KILLEN GASOLINE MARKETING MARGINS [1] Aug. Sept. Aug. Sept.[2] Y-T-D 1998 1998 1999 1999 avg. ...

OIL IMPORT FREIGHT [COSTS.sup.*].
December 20, 1999... OIL IMPORT FREIGHT [COSTS.sup.*] Cargo Freight size (Spot rate) Source Discharge Cargo (1,000 bbl) worldscale ($/bbl) Caribbean ...

SPOT GAS PRICES.
December 20, 1999... SPOT GAS PRICES Dec. price Pipeline Receipt point ($/MMBTU) ANR Custer County, Okla. 2.05 ANR Eunice, La. ...

NATURAL GAS LIQUIDS PRICES [*].
December 20, 1999... NATURAL GAS LIQUIDS PRICES [*] Mont Belvieu, TX Conway, KS Oct. Nov. Oct. Nov. 1999 ...

ERNST & YOUNG WRIGHT KILLEN ETHYLENE MARGINS.
December 20, 1999... ERNST & YOUNG WRIGHT KILLEN ETHYLENE MARGINS E/P Light Propane mix naphtha Gas oil ([cent]/lb...

BAKER OIL TOOLS WORKOVER RIG COUNT [*].
December 20, 1999... BAKER OIL TOOLS WORKOVER RIG COUNT [*] Nov. Nov. % Region 1999 1998 change Gulf Coast 235 198 19 Mid Coninent 136...

ERNST & YOUNG WRIGHT KILLEN REFINING MARGINS.
December 20, 1999... ERNST & YOUNG WRIGHT KILLEN REFINING MARGINS Conversion Regional High Medium average ($bbl) August, 1999...

ERNST & YOUNG WRIGHT KILLEN GAS PROCESSING MARGINS.
December 20, 1999... ERNST & YOUNG WRIGHT KILLEN GAS PROCESSING MARGINS Nov. Oct. Y-T-D 1999 1999 avg. ...

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...

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...

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,...

WORLD EXPLORATION MILESTONES.
December 13, 1999... 1859 "Col." Edwin L. Drake discovers oil at 69 ft near Titusville, Pa. 1862 Discovery of Florence-Canon City, Colo., oil field, first in Rocky Mountains. 1867 Peru's first oil discovered at Zorritos field. 1871 Discovery of...

GEOLOGICAL GEOPHYSICAL, GEOCHEMICAL EXPLORATION MILESTONES.
December 13, 1999... 1870 First magnetometer built consists of a dip needle and compass. 1873 J.S. Newberry offers organic theory of the origin of petroleum. 1876 Gen. H.L. Abbot explodes dynamite, measures used velocity of seismic waves. 1879...

Exploration frontiers for new century determined by technology, politics.
December 13, 1999... Daniel Yargin, in his great book The Prize, described the 20th century as "the century of oil," arguing that petroleum has been a fundamental driver in the industrial, commercial, and political evolution of our society, especially during the...