The Oil and Gas Journal articles from December 2000

The Oil and Gas Journal archives from December 2000

News letter.
December 4, 2000... Is OPEC's consideration of output cut warranted? The current outcry for another oil output increase notwithstanding, is OPEC's consideration of a production cut early next year warranted? The signs point to oil markets currently being...

US SEISMIC CREW COUNT.
December 4, 2000... IT MAY BE LATE 2001 BEFORE THE US SEISMIC CREW COUNT SEES A DRAMATIC TURNAROUND. The US seismic business is expected to gradually improve in the next 6-12 months, say analysts with Raymond James & Associates Inc., mainly with increased...

CANADIAN RESERVES.
December 4, 2000... CANADIAN RESERVES MAY NOT FILL THE GAS DEMAND GAP IN THE US A study by Canadian Energy Research Institute, Calgary, suggests that reliance on Canadian reserves to fill the gas demand gap in the US may be misplaced. "Western Canada's...

ALASKA GOV. TONY KNOWLES.
December 4, 2000... ALASKA GOV. TONY KNOWLES contends a pipeline to take North Slope gas to the Lower 48 should parallel the existing TAPS oil pipeline to Fairbanks, and then follow the Alaska Highway south. Knowles last month said that pipeline route would be...

UK OIL.
December 4, 2000... UK OIL MAJORS HAVE BEEN CLEARED OF CHARGES OF 'ANTICOMPETITIVE' BEHAVIOR. The UK Office of Fair Trading (OFT) has rejected claims first made by a number of independent fuel retailers in September that major oil companies were selling...

CHIEFTAIN.
December 4, 2000... CHIEFTAIN HAS EARMARKED $162 MILLION (CAN.) FOR 2001 THAT IS FOCUSED ON US GULF OF MEXICO EXPLORATION. The budget anticipates prices of $3.71/Mcf for gas and $24.55/bbl for oil, which will enable it to fund its drilling program with...

Agip China.
December 4, 2000... In other exploration news, Agip China will invest $8 million for gas exploration the next 2 years on the Sebei Block in northwestern China's Qaidam basin. Agip and China National Petroleum Corp. signed a deal in May of this year. Agip and...

Royal/Dutch Shell.
December 4, 2000... The Angolan E&P units of BP and Royal/Dutch Shell announced a fourth oil discovery on prolific deepwater Block 18 off Angola. The Paladio well was tested at a rate of 3,980 b/d of 31[degrees] gravity crude suggesting, according to the oil...

MMS.
December 4, 2000... MMS is planning an environmental impact statement for proposed appraisal drilling off Santa Barbara County, Calif. The EIS will identify and assess potential impacts and mitigation associated with proposals to drill five to eight delineation...

TWO DEEPWATER DEVELOPMENT CONTRACTS.
December 4, 2000... BP HAS AWARDED TWO DEEPWATER DEVELOPMENT CONTRACTS FOR ITS GULF OF MEXICO PROJECTS BP awarded $1 billion in offshore service contracts to J. Ray McDermott and a unit of Heerema Marine Contractors Holding for work on several of its...

CMS Oil & Gas.
December 4, 2000... In other development action, CMS Oil & Gas, a unit of CMS Energy, said that its Alba No. 8 well in Equatorial Guinea flowed on test at a rate of 27.5 MMcfd of gas and 2,040 b/d of condensate from a 46/64-in. choke with flowing tubing pressure...

UK'S PSC HEAVY LIFT LTD.
December 4, 2000... THE UK'S PSC HEAVY LIFT LTD. CLAIMS A WORLD RECORD FOR HEAVIEST OBJECT EVER LIFTED. PSC has again shattered the record for the heaviest object ever lifted, after lifting R&B Falcon's Deepwater Horizon RBS-8D semisubmersible deck--weighing...

OILSANDS PROJECTS.
December 4, 2000... OILSANDS PROJECTS TAKE CENTER STAGE THIS WEEK IN PRODUCTION NEWS OPTI Canada plans to file an application in December with Alberta regulators for a $450 million (Can.) oilsands project in the Fort McMurray region of northern Alberta. ...

Canadian Natural Resources Ltd.
December 4, 2000... Canadian Natural Resources Ltd. (CNRL) will drill 200 core-holes this winter on leases in northern Alberta, where it plans to develop a major oilsands project. CNRL Vice-Pres. Real Doucet said the company plans to produce 300,000 b/d of oil by...

Statoil.
December 4, 2000... Elsewhere on the production front, the licensees at Statoil's Yme field have decided to close down production from the small Norwegian North Sea development next summer, on the basis of new production and oil price forecasts that make Yme...

ExxonMobil.
December 4, 2000... ExxonMobil confirmed reports last month that it would raise its natural gas production from the Sable Offshore Energy Project in Canada to 600 MMcfd from its current production of 500 MMcfd when two pipelines linking Sable Island gas to Nova...

TOPPING PIPELINE.
December 4, 2000... TOPPING PIPELINE NEWS THIS WEEK, Sonatrach awarded two major construction contracts, valued at a combined $185 million, to build an 822-km pipeline between the southeast Haoud El Hamra oil field and the northwest port of Arzew. The project has...

INDIA'S GOVERNMENT.
December 4, 2000... INDIA'S GOVERNMENT HAS APPROVED THE EXPANSION OF TWO REFINERIES The Indian government approved the expansion of Kochi Refineries Ltd.'s plant at Ambalamugal to 13.5 million tonnes/year from 7.5 million at a cost of 43.7 billion rupees....

CORRECTION.
December 4, 2000... In the right panel of Fig. 4, (OGJ, Nov. 13, 2000, P. 22) the left axis should have contained the following values, from top to bottom, in million b/d: 1.5; 1,2; 0.9; 0.6; 0.3; and 0.

Letters.
December 4, 2000... OPEC decision for $30 crude oil Wall Street Journal carried the following headline and comment regarding this subject: "OPEC thinks the world can afford $30 oil," and "OPEC members are becoming increasingly comfortable with crude oil...

Diagnosing underperforming wells.
December 4, 2000... Deciding on which wells are best candidates for having their performance improved is not always easy. As pointed out in a recent Gas Technology Institute workshop on restimulation technology, one key problem is that many operators make...

The collapse of Kyoto.
December 4, 2000... Collapse of climate-change talks in The Hague last month gives the oil and gas industry reprieve but no reason to rest. Political forces supporting the probably doomed Kyoto Protocol have not subsided. Pressure builds to sacrifice human...

GEI index indicates global energy performance holding steady.
December 4, 2000... In the second quarter of 2000, energy performance indicators for 20 countries in the Global Energy Investment (GEI) index reached a plateau. The average GEI score for the 20 countries tracked in the index held constant at 53, sustaining...

US-Iranian relations thawing, but hurdles remain.
December 4, 2000... Diplomatic relations between Iran and the US are expected to thaw, as US trade sanctions against Iran are relaxed and Iran begins removing internal barriers for trade with outside investors. But foreign energy companies seeking business in Iran...

Ecuador's solutions.
December 4, 2000... Economic pressures continue for Ecuador, and increasing oil revenues is its best hope for relief. Oil exports are Ecuador's leading source of foreign earnings. In the first 9 months of the year, those exports injected $1.6 billion into the...

Camisea project green light hits another delay.
December 4, 2000... A final green light for Peru's Camisea natural gas megaproject has run into another last-minute delay just as the winning consortia were preparing to sign the final contracts. Those signatures have been put on hold in order to evaluate...

Green politics in a harsh climate.
December 4, 2000... Any legally binding international agreement on the reduction of greenhouse gas emissions was last week in danger of being scuppered completely by political infighting as the Conference of the Parties on Climate Change (COP-6) in The Hague wound...

EIA hikes estimate of US energy demand in 2020.
December 4, 2000... The US Energy Information Administration has ratcheted up its estimate of US energy demand in 2020. The agency now projects US energy demand will rise to 127 quadrillion btu (quads) in 2020 from 96 quads in 1999. That's an increase of 5%...

Shell faces a tussle in Woodside takeover bid.
December 4, 2000... Major oil and gas companies continue to add to their global portfolios or restructure their businesses upstream and downstream in an effort to maintain a competitive edge in high-growth regions of the world. Some of the biggest companies...

PERSONNEL MOVES AND PROMOTIONS.
December 4, 2000... Alaska state agencies get new appointees Alaska's top two state petroleum-related agencies have received two new appointees. And two Houston upstream independents have new presidents. Alaskan appointments Alaska Gov. Tony...

Central Algerian In Salah project aims to deliver first gas in 2003.
December 4, 2000... In the year 2003, a new gas province will come on stream when gas production commences from the fields of the In Salah Gas Project in District 3 area of central Algeria. The In Salah Gas Project is a partnership between Sonatrach and BP...

Blocks taken off Viet Nam.
December 4, 2000... Samedan Viet Nam Ltd., a wholly owned indirect subsidiary of Noble Affiliates Inc., entered a production sharing agreement with Petrovietnam for rights on blocks 12W and 12E in the Nam Con Son basin off Yiet Nam. Block 12W is 250 miles...

Alaska operators start Alpine field, take more leases.
December 4, 2000... Two US international oil companies started up Alpine oil field in mid-November on Alaska's North Slope, with one calling it "the standard by which all future Arctic developments will be measured" because of attention to technical and...

Magellan Petroleum Australia Ltd.
December 4, 2000... Magellan Petroleum Australia Ltd. said a third party has agreed to pay $300,000 (Aus.) for additional seismic data, acquired during September 2000, on 670,000-acre exploration permit ATP 613P in the Maryborough basin in southeastern Queensland....

OGJ Online.
December 4, 2000... The government plans to offer 25-30 blocks in its upcoming exploration licensing round, including some coalbed methane prospects. The round, the second under India's New Exploration Licensing Policy, will be launched in December (OGJ...

Mines & Energy.
December 4, 2000... The Ministry of Mines & Energy issued V/O Zarubezhgeologia of Russia a 2-year reconnaissance license on 6 blocks in the Walvis basin. The Russian firm was to spend almost $3 million surveying blocks 2011, 2012, 2013, 2111, 2112, and 2113....

Phillips-Arco group.
December 4, 2000... A Phillips-Arco group was assessing strategy earlier this year after drilling two noncommercial wells in 1999-2000 in the La Vela embayment in the Caribbean Sea off northwestern Venezuela and east of the Paraguana Peninsula. LVC-28X tested...

Berkley Petroleum Corp.
December 4, 2000... A group led by Berkley Petroleum Corp. suspended drilling and set 7 in. production casing to 17,650 ft at a well at East Lost Hills in the San Joaquin basin. The 2 East Lost Hills penetrated about 1,250 ft of the Temblor formation. Berkley...

Kinderhook Oil & Gas Co.
December 4, 2000... Kinderhook Oil & Gas Co., Des Moines, plans to drill next year in the Forest City basin. The company hopes to drill in June 2001 east of Shambaugh in southeastern Page County. Kinderhook, a private company with oil production in Oklahoma,...

Southwestern Energy Co.
December 4, 2000... Southwestern Energy Co., Fayetteville, Ark., plans to hook up a discovery in Lafayette Parish around yearend. The 1 Robertson stabilized at 7 MMcfd of gas with 245 b/d of condensate from Nodosaria at about 14,500 ft. TD is 16,850 ft MD. ...

Trenton/Black River Groups.
December 4, 2000... The state solicited proposals by Jan. 16, 2001, for projects that would demonstrate application of advanced technology and-or geological analysis to 5 less-explored formations on its soil. Projects could qualify for up to $75,000 in state...

PRODUCTION LOGGING--1: Friction affects fluid-density logs in high-rate wells.
December 4, 2000... One needs downhole in situ monitoring to diagnose what and, even more importantly, where a problem lies in a producing well. The well's behavior over its life cannot be managed by monitoring surface measurements alone. Management of a...

Modular, integrated subsea system selected for deepwater Malampaya wells.
December 4, 2000... To produce the deepwater Malampaya gas field, Shell Philippines Exploration BV selected a subsea production system consisting of a cluster well development, initially with five horizontal trees, connected to a central production manifold. ...

Light intervention vessel perforates North Sea wells.
December 4, 2000... The light well-intervention vessel CSO Seawell re-entered and reperforated two active subsea water-injection wells in Statoil's Heidrun field, offshore Norway. Coflexip Steno Offshore Norge AS, operator of the vessel, says one of the wells...

High dogleg severity, wear ruptures Chinese casing string.
December 4, 2000... A combination of high dogleg severity, swelling shales, and internal casing wear led to a ruptured casing string in the Tarim oil field of the Xinjiang Province, China. Acting upon this information, personnel from China National Petroleum...

Storage gaps threaten US winter propane supply.
December 4, 2000... Analysis of US propane inventory components--primary, secondary, and tertiary--in advance of the 2000-2001 heating season has indicated that, during periods of severe cold weather, supplies may be unable to meet demand. On the macro level,...

Refining, wholesale businesses should play strengths.
December 4, 2000... Despite a grim outlook for the average US downstream competitors those downstream companies that have consistently created value in the industry have been rewarded with a good return on their investments. Particularly, those refiners and...

IMO phase-out proposals to hit Aframax, Panamax tankers hard.
December 4, 2000... Aframax and Panamax oil tankers will be hit hard by phase-out timetables proposed for single-hull tankers by the International Maritime Organization. The effect will be even more drastic than on the industry's workhorse, the very large...

Tube monitors water vapor or levels in gas pipelines.
December 4, 2000... A new length-of-stain detector tube can monitor water vapor levels in natural gas pipelines in the range of 2-12 lb of water per MMcf of gas. The direct reading tube No. 177UR has been improved to reduce the interference effect from glycol...

Alarm monitoring system for remote operations.
December 4, 2000... DiaLog, a new alarm monitoring system, notifies producers immediately when a compressor station goes down. The system automatically notifies appropriate personnel whenever alarm conditions exist. Notification over phone, cell phone, pager, or...

Monitor expands detection ca abilities.
December 4, 2000... The new Model 3800 infrared gas unit monitors toxic and combustible gases at ranges from as low as 0-10 ppm, with detection sensitivity as low as 0.1 ppm, to as much as 100% by volume. Nearly 100 compounds can now be detected by the 3800....

Ronningen-Petter.
December 4, 2000... Portage, Mich., has named Lawrence D. Sullivan regional sales manager for petroleum products. Sullivan will represent eastern US and Canada, Middle East, Africa, and India. He will be responsible for the development of systems and services to...

US INDUSTRY SCOREBOARD - 12/4.
December 4, 2000... [TABLE HAS BEEN CLIPPED]

NELSON-FARRAR COST INDEXES.
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API IMPORTS OF CRUDE AND PRODUCTS.
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OGJ CRACK SPREAD.
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API CRUDE AND PRODUCT STOCKS.
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API REFINERY REPORT -- NOVEMBER 24, 2000.
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OGJ GASOLINE PRICES.
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BAKER HUGHES RIG COUNT.
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OGJ PRODUCTION REPORT.
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U.S. CRUDE PRICES.
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REFINED PRODUCT PRICES.
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SMITH RIGH COUNT.
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WORLD CRUDE PRICES.
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AGA NATURAL GAS STORAGE [*].
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PACE REFINING MARGINS.
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U.S. NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD.
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WORLDWIDE NGL PRODUCTION.
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OXYGENATES.
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U.S. COOLING DEGREE DAYS [1].
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Market shrugs off Iraqi oil stoppage, watches weather.
December 11, 2000... Oil prices fell last week as markets refused to be rattled by another stoppage of Iraqi crude exports. NYMEX crude fell through the $30/bbl watershed last week for the first time in 4 months, closing at $29.53/bbl Dec. 5 vs. topping $35/bbl...

Natural gas withdrawal rates rising.
December 11, 2000... The return to normal winter weather suggests a hefty withdrawal rate throughout the next 4 months that will keep markets exceptionally tight and gas prices extremely volatile (but volatile at the high end of the range). Yet another price...

US ELECTRIC POWER PRODUCERS CONTINUE TO DRAW HEAVILY ON NATURAL GAS SUPPLIES THIS WINTER.
December 11, 2000... Increased consumption of natural gas by electric power producers coupled with low natural gas storage levels heading into the winter season could spell disaster, according to Raymond James & Associates Inc. The analyst noted that...

STAR PROGRAM.
December 11, 2000... EPA IS EXPANDING ITS STAR PROGRAM to promote cost-effective management practices that could save up to 25 bcf, or more than 70%, of the natural gas lost annually by the gathering and processing segment of the industry. The new program...

CONVENTIONAL OIL RESERVES.
December 11, 2000... CONVENTIONAL OIL RESERVES IN WESTERN CANADA CONTINUED TO DECLINE IN 1999, but remaining reserves of crude oil and oil equivalent increased by 2.1 billion bbl, says the Canadian Association of Petroleum Producers (CAPP). The CAPP reserves...

GULF OF MEXICO.
December 11, 2000... MMS IS PROPOSING NATURAL GAS DRILLING INCENTIVES FOR THE FEDERAL LEASE SALE IN THE GULF OF MEXICO next March that officials say could increase US gas production by 1 tcf within 6 years. During first quarter 2000, gulf gas production fell...

THE US DEPARTMENT OF JUSTICE.
December 11, 2000... THE US DEPARTMENT OF JUSTICE filed suit Nov. 28 against Colonial Pipeline, alleging the company violated the Clean Water Act (CWA) by spilling about 3 million gal of oil and petroleum products from its 5,349-mile pipeline over 20 years. ...

WOODSIDE ENERGY AND PHILLIPS HAVE JOINED FORCES ON THE TIMOR SEA GAS PROJECT.
December 11, 2000... Woodside Energy and Phillips Petroleum have put their names to an "in-principle" deal that will see the two firms cooperate in moving ahead on development of their respective Timor Sea gas resources, the Greater Sunrise and Bayu-Undan...

Lasmo.
December 11, 2000... In other development news, Lasmo signed a revised agreement with Pakistan's Petroleum Ministry for the development of Bhit gas field in Sindh Province. Lasmo and partners Kirthar Pakistan and Oil & Gas Development Co. will invest $260 million...

India's Oil & Natural Gas Corp.
December 11, 2000... TOPPING PRODUCTION NEWS THIS WEEK, India's Oil & Natural Gas Corp. awarded a $27 million contract to National Petroleum Construction Co., a unit of Abu Dhabi National Oil Co., for a platform and the laying of subsea pipelines in the Bombay High...

Coflexip Stena Offshore (CSO).
December 11, 2000... Elsewhere on the production front, Petrobras awarded Coflexip Stena Offshore (CSO) and Premier Marche's Brazilian unit Flexibras a contract to design and install 566 km of flexible risers, flowlines, and umbilicals to tie back 21 satellite...

Samedan Oil.
December 11, 2000... Samedan Oil, a subsidiary of Noble Affiliates, said last week that production has begun from its 12-block Viosca Knoll 252 Unit. The project consists of four wells, producing 106 MMcfd of gas, 42 MMcfd of which is net to Noble's interest. The...

Fort Hills.
December 11, 2000... The Fort Hills JV signed a licensing agreement with Syncrude Canada to use technologies employed by Syncrude at its North Aurora oil sands mine. Fort Hills is in Alberta's Athabasca oil sands region 90 km north of Fort McMurray. Syncrude will...