The Oil and Gas Journal articles from February 1999

The Oil and Gas Journal archives from February 1999

Newsletter.
February 1, 1999... Cold weather in North America and strong refiner crude purchases in the Far East have strengthened oil prices, but the rally cannot last, because market fundamentals are too weak. So says London's Centre for Global Energy Studies (CGES), which...

U.S. INDUSTRY SCOREBOARD 2/1.
February 1, 1999... U.S. INDUSTRY SCOREBOARD 2/1 4 wk. 4 wk. avg. % Year-to-date Latest week 1/22 average [year ago.sup.*] change [average.sup.*] Demand (1,000 b/d) Motor gasoline...

LETTERS.
February 1, 1999... Baku-Ceyhan oil pipeline, a rebuttal In their ardent criticism of the proposed "Baku-Ceyhan oil pipeline: bad economics, bad politics, bad idea," (OGJ, Oct. 26, 1998, p.29), Joe Barnes and Ronald Soligo quote scary statistics but overlook...

Oil also part of Florida's allure.
February 1, 1999... Florida is a favorite travel destination this time of year. People from many countries, including the U.S., go there to escape colder climes. It would be fair to say that practically every tourist who brings economic benefit to the state...

What's structural?
February 1, 1999... Is the current slump in oil prices structural? Everyone in the oil and gas industry wants to know. The market crisis might indeed have structural dimensions, which is not to say that prices will stay at current levels, or any level,...

Comparing Russian, Western major oil firms underscores problems unique to Russian oil.(part 2)(Company Profile)
February 1, 1999... Tina Obut is a petroleum engineer with Ryder Scott Co. Petroleum Engineers, a leading independent petroleum-reservoir evaluation firm based in Houston. She has performed reservoir studies throughout the world, including evaluations in Russia....

Exxon-Mobil faces Europe monopoly questions.
February 1, 1999... If Exxon Corp. and Mobil Corp. merge as planned, the combined companies will have the largest upstream portfolio in Europe and may face downstream monopoly questions from European authorities. This is the view of Wood Mackenzie Consultants...

Snyder and Santa Fe agree to form $1 billion company.(Brief Article)
February 1, 1999... Fort Worth's Snyder Oil Corp. and Houston's Santa Fe Energy Resources have revealed some of the details and expected benefits of their planned merger (OGJ, Jan. 18, 1999, Newsletter). The two independents signed a definitive agreement to...

Waiting game.
February 1, 1999... It's still unclear what the Clinton administration will propose to help U.S. producers survive the depression. patc@ogjonline.com U.S. Energy Sec. Bill Richardson has been examining a laundry list of proposals for more than a month to...

EIA says U.S. gas mergers growing.(Brief Article)
February 1, 1999... The value of U.S. gas industry mergers and acquisitions has risen nearly fourfold this decade, to $39 billion in 1997 from $10.4 billion in 1990, the U.S. Energy Information Administration reports. The increase parallels a surge in...

Drilling contract terminations mushroom.(Industry Overview)
February 1, 1999... Contract drillers have experienced a spate of early contract terminations in recent weeks, accelerating the financial deterioration of the oil field service/ supply sector. The cancellations were driven by extended low oil prices in many...

Unocal details offshore Indonesia drilling results.
February 1, 1999... Unocal Corp. has revealed the results of its continuing development drilling program in the deepwater Seno structure off East Kalimantan, Indonesia. Undaunted by low oil prices, the company has decided to pursue fasttrack development of...

Italian energy sector faces possible huge carbon taxes.
February 1, 1999... Italy's energy sector is the latest in Europe to face a possible massive "carbon tax" designed to cope with postulated catastrophic global warming. Late last year, the Italian ministers of industry and the environment announced at a summit...

Renewables immune.(Column)
February 1, 1999... davidk@ogjonline.com In previous periods of sustained low oil prices, the drift to power generation using alternate fuels has been slowed by the cheapness of oil. In Europe this time around, however, with oil prices at their lowest in...

Correction.(Correction Notice)
February 1, 1999... The inset maps for the Campos and Espirito Santo basins were transposed on the map of Brazil's exploration acreage offering (OGJ, Jan. 25, 1999, p. 39).

BP Australia.(Brief Article)
February 1, 1999... BP Australia agreed to plant 300 hectares of trees in Western Australia in a pilot scheme designed to offset some of the [CO.sub.2] emissions it produces at its oil refinery at Kwinana, south of Perth. The program is the first of its kind in...

Shell U.K. Ltd.(Brief Article)
February 1, 1999... Shell U.K. Ltd. plans to introduce low-sulfur diesel fuel to 80% of its service stations throughout the U.K. by the end of March and to convert the remainder as soon as possible. Shell Pura diesel has a sulfur content at least 90% lower than...

Norway's Statoil AS.(Brief Article)
February 1, 1999... Norway's Statoil AS launched an internal inquiry after a gas flare pipeline broke off its foundation on Jan. 16 at the Karsto gas treatment terminal north of Stavanger. The incident occurred after a power outage required large quantities of gas...

Chevron Chemical Co. LLC.(Brief Article)
February 1, 1999... Chevron Chemical Co. LLC began production from its $215 million lubricants additives plant at the Jurong Island chemical complex in Singapore. The plant, built on a 22-hectare site, is the largest in the Asia-Pacific region, said Chevron, and...

Gulf Canada Resources Ltd.
February 1, 1999... Gulf Canada Resources Ltd. applied to the Alberta Energy and Utilities Board to suspend natural gas production in the area near its planned $1 billion (Canadian) Surmont oilsands project in Alberta. The company wants producers to suspend gas...

Gasoducto Cruz del Sur SA.
February 1, 1999... Gasoducto Cruz del Sur SA, a joint venture of BG plc and Pan American Energy LLC, let contract to Intec Engineering Inc., Houston, for engineering work on the Uruguay-to-Brazil natural gas pipeline project. Under terms of the contract, Intec...

Petro-Canada.
February 1, 1999... Petro-Canada, Calgary, reported a significant natural gas discovery in the Benjamin Creek area of the Alberta foothills, about 90 km northwest of Calgary. On test, the Benjamin Creek 16-2828-7 W5M well flowed 35 MMcfd of gas from net pay of 147...

Petroleo Brasileiro SA Bolivia.
February 1, 1999... Petroleo Brasileiro SA Bolivia made a major natural gas discovery on the San Alberta block in the Gran Chaco province of southern Bolivia. The block's partners include operator Petrobras 35%, Empresa Petrolera Andina 50%, and Total 15%. The...

Oil Search Ltd.
February 1, 1999... Oil Search Ltd. discovered gas with its Kimu 1 wildcat, drilled on the PPL193 permit in the foreland region of Papua New Guinea. Kimu 1, the first of a two-well program in the permit, is the first to test commercial flow rates in Alene...

LL&E Algeria Ltd.
February 1, 1999... LL&E Algeria Ltd., a unit of Burlington Resources Inc., Houston, and Talisman Energy Inc. unit Talisman (Algeria) BV tested the MLN-5 appraisal well on the Menzel Lejmat Block 405 in Algeria's Berkine basin. On test, the well flowed 6,820 b/d...

Bayer AG.
February 1, 1999... Bayer AG let contract to Jacobs Engineering Group Inc., Pasadena, Calif., for the design, procurement, and construction management of a $50 million synthetic rubber plant revamp at Port Jerome, France. The polymerization system is scheduled for...

Canadian Occidental Petroleum Ltd.
February 1, 1999... Canadian Occidental Petroleum Ltd., Calgary, acquired Shell Corp.'s working interest in Eugene Island Block 18 field for $30 million (U.S.). The purchase gives CanOxy about 90% working interest in the field's reserves. The field, in about 8 ft...

Shell U.K. Ltd.
February 1, 1999... Shell U.K. Ltd. divested its 50% interests in North Valiant gas field and in the Block 15125a in the U.K. North Sea to Conoco (U.K.) Ltd. Conoco was operator and 50% interest holder in the two blocks prior to the divestment. In return, Conoco...

Conoco Inc.
February 1, 1999... Conoco Inc. and Exxon Corp. exchanged their respective interests in 59 deepwater blacks in the Gulf of Mexico. Conoco acquired a 50% interest in 29 of Exxon's blocks, and Exxon acquired a 50% interest in 30 of Conoco's blocks. Conoco, the sole...

Eastern Group.(Brief Article)
February 1, 1999... Eastern Group became the first British company to secure a gas supply license in Germany. The company set up a trading and retail office in Frankfurt and secured the license from the Energy Ministry of Hessen, the regional energy authority....

Sui Northern Gas Pipeline Ltd.(Brief Article)
February 1, 1999... Sui Northern Gas Pipeline Ltd. (Sngpl) cut off gas supply to all fertilizer units in Pakistan's Punjab province, including those of Pak-Arab Fertilizers Co. No reason for the cutoff was disclosed, but industry sources told OGJ that the...

Temperature and gamma scans identify problems in crude tower.
February 1, 1999... Mayela Perez is a process engineer with Pdvsa Marketing & Manufacturing at the El Palito refinery in Venezuela. She ho1ds a chemical engineering degree from Carabobo University Venezuela. Ricardo Duane is a process engineer with Pdvsa...

NELSON-FARRAR COST INDEXES.
February 1, 1999... NELSON-FARRAR COST INDEXES Refinery construction (1946 Basis) (Explained on p. 145 of the Issue of Dec. 30, 1985) 1962 1980 1995 Pumps, compressors, ...

NMR-derived permeability aids frac design.
February 1, 1999... Stephen Suhubarth is a technology leader for Halliburton Energy Services in Houston. Prior to joining Halliburton, he worked for both major and independent oil producers, and consulting companies Most of his career has been involved in the...

Alternative methods clean UP filter cake.
February 1, 1999... New investigations into breaker-based and physical flow-back methods provide further insights into the principles of breaching filter cakes, allowing for less restricted pathways needed to increase well productivity. This is the second in...

World oil supply-what goes up must come down, but when will it peak?
February 1, 1999... Jean H. Laherrere is a petroleum consultant residing in Paris, France. He retired in 1991 after 37 years with Total CFP and subsidiaries. He participated with Total in the discovery of supergiant Hassi Messaoud and Hassi R'Mel fields in the...

New pipe camera inspection system.
February 1, 1999... A new pipe camera inspection system is designed for long-run piping. The system camera head at the distal end, with its compact color video camera, is capable of penetrating as far as 100 ft inside piping of different diameters and sending...

New valve interlock.
February 1, 1999... The new CGV and CBV valve interlocks come with a novel mounting system designed to fit almost any make and size of valve without modification. Suited for handwheel and 900 wrench operated valves, the new interlocks are standardized and...

Oil-free process gas screw compressor.
February 1, 1999... Two new oil-free process gas screw compressor systems built by this firm were recently installed in Russia. Each is a 50% capacity unit, with both normally operating in parallel. Extreme cold weather conditions mandated the use of...

Hygrometer for pipeline drying applications.
February 1, 1999... The latest version of the Cermet hygrometer promises accurate, continuous measurement of humidity in process and chemical pipeline drying applications. It can be used throughout the drying process, helping to ensure that the correct conditions...

Nearby finds brighten outlook for Equatorial Guinea and Namibia.
February 1, 1999... Henley-on-Thamas, U.K. Exploration Consultants Ltd Richard Bray is a petroleum geologist with 20 years of experience in the oil and gas exploration industry. Since graduating from the University of Hull, England, with a BSc (Hons) in...

U.S. CRUDE PRICES.
February 1, 1999... U.S. CRUDE PRICES ([$/bbl.sup.*]) 1-22-99 Alaska-North Slope 27[degrees] 6.61 Southern Louisiana Light 10.25 California-Kern River 13[degrees] 7.25 Lost Hills...

REFINED PRODUCT PRICES.
February 1, 1999... REFINED PRODUCT PRICES 1-15-99 ([cent]/gal) Spat market product prices Motor gasoline (Conventional-regular) New York Harbor ...

SMITH RIG COUNT.
February 1, 1999... SMITH RIG COUNT 1-22-99 1-23-98 Proposed depth Rig % Rig % (ft) count [footage.sup.*] count [footage.sup.*] ...

WORLD CRUDE PRICES.
February 1, 1999... WORLD CRUDE PRICES ([$/bbl.sup.*]) 1-15-99 United Kingdom-Brent 38[degrees] 10.95 Russia-Urals 32[degrees] 10.85 Saudi light 34[degrees] 10.65...

PAGE REFINING MARGINS.
February 1, 1999... PAGE REFINING MARGINS Nov. Dec. Jan. Jan. % 1998 1998 1999 1998 Change Change $/bbl U.S. Gulf Coast West Texas Sour ...

U.S. NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD.
February 1, 1999... U.S. NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD Oct. Total YTD Oct. Sept. Oct. Change YTD Change 1998 1998 1997...

WORLDWIDE NGL PRODUCTION.
February 1, 1999... WORLDWIDE NGL PRODUCTION 10 month Chg. vs. average previous Oct. Sept. Production ...

U.S. HEATING DEGREE [DAYS.sup.*].
February 1, 1999... U.S. HEATING DEGREE [DAYS.sup.*] 1998% change Total degree days Nov. Nov. from July 1 through Nov. 30 ...

OXYGENATES.
February 1, 1999... OXYGENATES Nov. Oct. YTD YTD 1998 1998 Change 1998 1997 Change 1,000 bbl Fuel ethanol Production 2,912 3,180...

New view on global warming.
February 8, 1999... The science of global warming changed course last October, even if the politics of global warming did not. "Our most fateful new challenge is the threat of global warming," declared U.S. President Bill Clinton last month in his...

Asia-Pacific gas projects hit the wall amid regional economic slump.
February 8, 1999... After more than a decade of robust economic growth and expansion that caused natural gas consumption to surge, the Asian economic crisis is squeezing every aspect of the Asia-Pacific gas sector, from exploration to downstream feedstock demand,...

Clinton budget hits SPR purchases, producers.
February 8, 1999... President Bill Clinton has proposed a $1.8 trillion budget for fiscal year 2000 that omits funding for further purchases of oil for the Strategic Petroleum Reserve. Independent producers have urged the U.S. government to buy crude for the...

Olisands projects under scrutiny.(Brief Article)
February 8, 1999... Timing of expansion plans for some oilsands plants in northern Alberta are coming under scrutiny because of continuing weak oil prices. Shell Canada Ltd., Calgary says plans for a $3.4 billion (Canadian) upgrader project in Alberta will now...

Congress hears industry woes, files bills.
February 8, 1999... The U.S. Congress is beginning to react with legislation to help smaller producers survive the current crude oil price depression. Rep. Wes Watkins (D-Okla.) reified his bill that would allow marginal production a maximum $3/bbl tax credit...

FERC agenda.(Brief Article)
February 8, 1999... Patc@ogjonline.com FERC will continue to promote competitive markets for energy in 1999, says James Hoecker, Federal Energy Regulatory Commission chairman. He contends that energy products and services are increasingly commoditized,...

Exxon to lease two SPR pipelines.
February 8, 1999... The U.S. Department of Energy has signed a contract leasing two pipelines from its Bryan Mound, Tex., Strategic Petroleum Reserve site to Exxon Pipeline Co. A 40-in., 46-mile line extends to the ARCO Pipeline Co. tank farm at Texas City...

Mitsui to proceed with Singapore petchem project.
February 8, 1999... Mitsui Petrochemical Industries Ltd., Japan's second largest petrochemical company, has decided to proceed with plans for a $180 million phenol plant on Jurong Island, site of Singapore's massive new petrochemical complex under development. ...

Toymakers' PVC fear.
February 8, 1999... davidk@ogionline.com In Europe, polyvinyl chloride (PVC) has been phased out for food contact applications, but now the anti-PVC lobby has turned on the toy industry. Environmental group Greenpeace said, "The production and disposal...

Heavy rains in Buenos Aires.
February 8, 1999... Heavy rains in Buenos Aires caused rising floodwaters in the Rio de la Plata estuary to break through a barrier built to contain crude oil that was spilled Jan. 15 when a Royal Dutch/Shell tanker collided with a German container ship (OGJ, Jan....

Several explosions.
February 8, 1999... Several explosions on Jan. 27 at a natural gas liquids fractionation plant near Taylor, B.C., operated by Solex Gas Liquids Ltd., Calgary, created a 300-ft fireball. Three men were taken to a Fort St. John hospital; two were retained for burn...

Houston Industries Inc.,.
February 8, 1999... Houston Industries Inc., Houston, changed its name to Reliant Energy. The company's four local distribution companies were renamed Reliant Energy-HL&P, Reliant Energy-Arkla, Reliant Energy-Entex, and Reliant Energy-Minnegasco.

Ruhrgas AG.
February 8, 1999... Ruhrgas AG plans to increase its 2.5% stake in Russia's Gazprom after another 2.5% of the company's shares are placed up for bid by midyear. Ruhrgas gained its present holding during Gazprom's first share auction with a $660 million bid (OGJ,...

Coplex Resources NI.,.
February 8, 1999... Coplex Resources NI., Hobart, and Norwegian drilling company Northern Offshore ASA got into a dispute after Coplex sold its $50 million (Australian) semisubmersible rig, Galaxy Driller, to Northern Offshore in April 1998 and then leased it back...

BHP Group Resources Ply. Ltd.,.
February 8, 1999... BHP Group Resources Ply. Ltd., Melbourne, plans to convert its 50% working interest in the Prirazolmnoye oil field, off northern Russia, to a 5% fully paid, free carried interest. Under terms of the deal signed by BHP and its Russian partners...

Calpine Corp.,.
February 8, 1999... Calpine Corp., San Jose, acquired a 20% interest in 82 bcf of Sacramento basin gas reserves with a $15 million investment in a unit of Sheridan Energy Inc., Houston. The investment will help fund Sheridan's purchase of oil and gas properties...

CMS Energy Corp.
February 8, 1999... CMS Energy Corp. unit CMS Continental Natural Gas Inc., Dearborn, Mich., acquired the 750-mile Breckenridge crude oil gathering system in north central Texas from Koch Industries Inc. unit Koch Hydrocarbon Co., Wichita, for an undisclosed sum....

CACT Operators Group.
February 8, 1999... CACT Operators Group started up Huizhou (HZ) 32-5 oil field in the Pearl River Mouth basin off China. The first South China Sea project to use a subsea tie-back to a platform, HZ 32-5 is expected to reach flow of 27,000 b/d of oil from three...

Apache Corp.
February 8, 1999... Apache Corp. and partners expect production to start up at 30 MMcfd of gas in the first quarter from Foxtrot natural gas/condensate field oft Ivory Coast. Production is expected to reach at least 50 MMcfd in 2001. The first production well,...

Woodside Energy Ltd.,.
February 8, 1999... Woodside Energy Ltd., Perth, let a $35 million (Australian) contract to Kvaerner Oil & Gas Asia Pacific, a Perth-based unit of Oslo's Kvaerner AS, to provide maintenance services on its Northern Endeavor floating production, storage, and...

The Apache reel pipelay vessel.
February 8, 1999... The Apache reel pipelay vessel arrived in Australia's Bass Strait from the North Sea to lay 23 km of production pipeline from 3 subsea wellheads in the deepwater Blackback oil field to the existing Mackerel field platform. The line will be laid...

Mobil Australia Resources Co. Pty. Ltd.
February 8, 1999... Mobil Australia Resources Co. Pty. Ltd. was awarded production license WA-17-L over the Athena gas and condensate discovery in the Carnarvon basin off Western Australia. Interests are operator Mobil and Phillips Oil Co. Australia 50% each. The...

Imperial Oil Resources Ltd.
February 8, 1999... Imperial Oil Resources Ltd. and Boston Gas Co. filed a joint application with Canada's National Energy Board for the export of natural gas from the Sable Offshore Energy Project to Boston Gas (OGJ, Oct. 19, 1998, p. 25). The contract's term...

Calpine.
February 8, 1999... Calpine plans to acquire a 75% interest in a geothermal steam field in the Geysers area of northern California from Unocal Corp. for $101 million. The purchase will add to Calpine's existing 25% interest in the 14,000-acre field, which fuels 12...

Elf Aquitaine.
February 8, 1999... Elf Aquitaine plans to invest 230 million francs in its Donges refinery in Brittany, France, to adapt it to meet new benzene specifications and reduce the sulfur content of diesel. Also, Elf will spend 75 million francs to install a gas-fired...

India's.
February 8, 1999... India's Reliance Petroleum Ltd. let a multi-million euro contract for to Shell Global Solutions, a unit of Royal Dutch/Shell, to provide technical advice and services at its Jamnagar refinery. The 350,000 b/d refinery is due to start up in...

China clay producer.(Brief Article)
February 8, 1999... EGG International plc, St. Austell, U.K., awarded a [pounds]12 million ($20 million), 10-year contract to BP Energy Ltd. to build and operate two combined-heat-and-power plants in the U.K. BP will install 3.7 MW gas turbines at ECCI's china...

Franchise Finance Corp. of America.(Brief Article)
February 8, 1999... Franchise Finance Corp. of America (FFCA), Scottsdale, Ariz., completed a $52 million sale-leaseback financing deal with Giant Industries Inc, also based in Scottsdale. FFCA purchased and leased back to Giant 83 convenience store and gasoline...

Murphy Oil Corp.(Brief Article)
February 8, 1999... Murphy Oil Corp., El Dorado, Ark., signed three production-sharing agreements for Malaysian Blocks SK 309, SK 311, and K. Blocks SK 309 and SK 311 cover 2.4 million contiguous acres in shallow water off Sarawak. Block K covers 4.1 million acres...

Seagull Energy Corp.(Brief Article)
February 8, 1999... Seagull Energy Corp., Houston, completed a discovery well in the East Cameron area in the Gulf of Mexico off Louisiana. Its East Cameron 152 No. 1 well was drilled to 9,990 ft TD and hit 43 ft of pay at 9,600-9,700 ft. On test, the well flowed...

Swift Energy Co.(Brief Article)
February 8, 1999... Swift Energy Co., Houston, completed a discovery well on its 70,000 acre prospect in central Texas. On test, the Rancho Cullen No. 1-H well flowed 17.5 MMcfd of gas through a 20/64-in. choke with 8,175 psi tubing pressure. The well was drilled...

Australia's Northern Territory.(Brief Article)
February 8, 1999... Australia's Northern Territory named the successful bidders for three new offshore petroleum permits. BHP, Woodside, and Shell Development (Australia) Pty. Ltd. were awarded permit NT98-1 in the Timor Sea, near the undeveloped gas discoveries...

Premier Oil plc.(Brief Article)
February 8, 1999... Premier Oil plc unit Premier Exploration Pakistan Ltd. discovered what it described as significant natural gas reserves in Pakistan with the Zarghoon South 1 gas well, about 40 km east of Quetta. The well was drilled to 2,172 m and flowed on...

Saudi Arabia's.(Brief Article)
February 8, 1999... Saudi Arabia's Eastern Petrochemical Co., a joint-venture affiliate of Saudi Basic Industries Corp., secured loans totaling $875 million to help finance expansion projects. The company is building a $1.25 billion ethylene glycol plant and...