The Oil and Gas Journal articles from February 1999

The Oil and Gas Journal archives from February 1999

Newsletter.
February 22, 1999... With dated Brent crude oil trading below $l0/bbl again, the oil price gains of January have evaporated, and the outlook for producers is bleak. This is the view of London's Centre for Global Energy Studies (CGES), which said oil...

'Killing for oil?'.
February 22, 1999... For years, Chevron Corp. has run advertisements that focus on its environmental initiatives. These are often vignettes of the firm taking special care not to disrupt an endangered species' habitat in the course of operations. They all have...

Richardson's good month.
February 22, 1999... From the perspective of the U.S. oil and gas industry, it has been a good month for Energy Sec. Bill Richardson. It began with meetings in Saudi Arabia, after which Richardson described the types of projects the Saudis might open to...

Newfield balances experience, technology for success in the Gulf of Mexico region.(Company Profile)
February 22, 1999... Newfield Exploration Co. is competing in the Gulf of Mexico with companies that are much larger and that have much greater resources. And the company is doing more than merely surviving. The Houston-based Newfield, launched only a decade...

Independents told to reorient in order to grow.
February 22, 1999... U.S. independent natural gas producers will have to reorient their businesses, bolster their returns on equity, and essentially regain control over the flow of their commodity to ensure a stronghold in the industry for the foreseeable future....

DOE acts to help producers through crisis.
February 22, 1999... The U.S. Department of Energy has offered to let U.S. oil companies store crude in the government's Strategic Petroleum Reserve (SPR). That program was one of five that DOE announced last week to help U.S. producers survive the oil price...

IPAA urges tax relief for 50 b/d wells.(Brief Article)
February 22, 1999... The Independent Petroleum Association of America has urged the U.S. Department of Interior to consider royalty reductions or other relief for all wells producing 50 b/d or less. "With oil prices now at record lows, wells producing 50 b/d...

Lower 48 output falls to 50-year low.(Brief Article)
February 22, 1999... U.S. Lower 48 oil production was 4.8 million bid in January, the lowest in more than 50 years and down 6% from January 1998, the American Petroleum Institute said. Alaska, which accounts for a fifth of U.S. production, saw its output...

Fighting back: Caltex launches food supermarket chain in Australia.(Brief Article)
February 22, 1999... The petroleum industry has fired a broadside in response to the growing incursion into retail gasoline sales by supermarkets worldwide. Caltex Australia Ltd., one of Australia's top refiner-marketers, has launched a direct challenge to...

No obituaries yet, says BP Amoco chief.
February 22, 1999... In his first major public speech as Chief Executive Officer of new super-major BP Amoco plc, John Browne pointed out the dark clouds currently passing over the industry, but also a faint silver lining. "Because restructuring usually...

Ultradeepwater drillship spuds first well.
February 22, 1999... Conoco Inc.'s and R&B Falcon Corp.'s next-generation drillship, the Deepwater Pathfinder, spudded its first well Jan.30 in the Gulf of Mexico. This is the second ultradeepwater (>5,000 ft of water) drillship to enter the gulf fleet since the...

MMS expects smaller U.S. gulf sale.(Brief Article)
February 22, 1999... U.S. Minerals Management Service predicts the Mar. 17 Central Gulf of Mexico lease sale in New Orleans will be smaller than in previous years. MMS Deputy Director Tom Kitsos said, "We understand that the fall in world oil prices has...

S. Africa to get new-design ester plant.(Brief Article)
February 22, 1999... South Africa's Sasol Ltd. is to build an ethyl acetate plant based on a new alcohol-to-ester process developed by Kvaerner Process Technology, a unit of Kvaerner AS, Oslo. Kvaerner said Sasol Chemical Industries is to build a 50,000...

Solex Gas Liquids Ltd.(Brief Article)
February 22, 1999... Solex Gas Liquids Ltd., Calgary, reported that the fire and explosions at its Taylor, B.C., natural gas liquids plant last month resulted from an accidental release of hydrocarbons (OGJ, Feb. 8,1 999, p. 34). Evidence indicates the release...

Suncor Inc.(Brief Article)
February 22, 1999... Suncor Inc., Calgary, created an alliance of contractors to work on its $2 billion (Canadian) Millennium oilsands expansion project near Fort McMurray, Alta. The alliance includes Bantrel Inc., Fluor Daniel Canada Inc., SNC-Lavalin Engineers...

Alberta Energy and Utilities Board.(Brief Article)
February 22, 1999... Alberta Energy and Utilities Board (AEUB) approved a bid by Shell Canada Ltd., Calgary, to develop a $1.4 billion (Canadian) oilsands project near Fort McMurray, Alta. A final decision on the Muskeg River Mine project will be made in summer...

Daewoo Heavy Industries Ltd.(Brief Article)
February 22, 1999... Daewoo Heavy Industries Ltd., Seoul, began drydock construction of a floating production, storage, and offloading (FPSO) vessel for the Terra Nova oil field development project off Newfoundland. The FPSO is scheduled to be completed by...

Hibernia oil field.(Brief Article)
February 22, 1999... Hibernia oil field operators expect to reach peak production of 135,000 b/d of crude oil from the platform off Newfoundland in March. The platform is producing 100,000 b/d, and a new gas-injection well was added to the platforms three oil...

Total.(Brief Article)
February 22, 1999... Total and Norsk Hydro AS each transferred a 5% interest in Kharyaga oil field, under development in Russia's Nenets autonomous region, to Nenets Oil Co. Total now holds a 50% stake in the field, Norsk Hydra 40%, and Nenets 10%. A...

Statoil AS.(Brief Article)
February 22, 1999... Statoil AS let a $95 million contract to Kvaerner Oil & Gas AS, Oslo, to build a wellhead platform topsides for development of Huldra discovery on Block 30/2a in the Norwegian North Sea. Development will involve an unmanned wellhead platform...

Unocal Corp. unit.(Brief Article)
February 22, 1999... Unocal Corp. unit Unocal Makassar Ltd.'s and Mobil Makassar Inc.'s deepwater appraisal well in West Seno field off East Kalimantan, Indonesia, flowed at a combined rate of 19,344 b/d of oil and 18.6 MMcfd of gas from three intervals totaling...

Russia oil firm Yukos.(Brief Article)
February 22, 1999... Russia's oil firm Yukos plans to invest more than 70 million rubles to develop several oil fields in the Khanty Mansi autonomous region of Russia. Yukos began drilling operations at the Western Malo-Balyk and Medium Balyk oil fields. The...

Australia Federal Court.(Brief Article)
February 22, 1999... Australia's Federal Court cleared the way for Victoria's gas consumers to sue over last year's shutdown of Esso Australia Ltd.'s Longford gas plant (OGJ, Feb. 15, 1999, p. 38). The claimed $1 billion (Australian) action, initially brought by...

Oil Search Ltd.(Brief Article)
February 22, 1999... Oil Search Ltd. disclosed that its Kimu 1 gas discovery, drilled on the PPL193 permit in the foreland region of Papua New Guinea, is capable of producing more than 50 MMcfd. Kimu 1 encountered a 100 ft column of gas-saturated sands in the...

Sherritt International Corp.(Brief Article)
February 22, 1999... Sherritt International Corp., Calgary, discovered oil after drilling the Canasi 1 wildcat to 2156 m on Block 7 in Cuba. The well's potential flow rate is put at 1,500 b/d. The pay zone was crossed horizontally over 400 m with no interruption...

Phillips Petroleum Co. U.K. Ltd.(Brief Article)
February 22, 1999... Phillips Petroleum Co. U.K. Ltd. announced test results for a new-pool wildcat drilled in 250 ft of water on U.K. North Sea Block 30/7a by the Santa Fe 135 semi-submersible rig. The well flowed 4,000 b/d of oil and 42 MMcfd of gas through a...

Petroleos Mexicanos.(Brief Article)
February 22, 1999... Petroleos Mexicanos let contract to a consortium led by Mexico's Grupo. Tribasa SA to revamp its Ciudad Madero refinery (OGJ, Jan. 18,1999, p. 22). Other consortium members include South Korea's Sunkyong Group and Germany's Siemens AG. The...

TransContinental Refining Corp.(Brief Article)
February 22, 1999... TransContinental Refining Corp., formerly TransAmerican Refining Corp., changed its name to Orion Refining Corp. At its Norco, La., refinery, Orion is currently operating its crude unit, vacuum unit, 75,000 b/d delayed coker, three...

Turkmenneftegas State Trade Corp.(Brief Article)
February 22, 1999... Turkmenistan's Turkmenneftegas State Trade Corp. licensed Montell Polyolefins Co. NV's Spheripol polypropylene (PP) process. The state firm plans to build an 80,000 metric ton/year polypropylene plant at Turkmenbashi. The plant,...

Australian Gas Light Co.(Brief Article)
February 22, 1999... Australian Gas Light Co. (AGL) plans to lay a $96 million (Australian) natural gas pipeline in central New South Wales beginning in 2000. The Central Ranges pipeline will include a 300-km extension from Dubbo--which itself is a spur from the...

East Breaks Gathering Co. LLC.(Brief Article)
February 22, 1999... East Breaks Gathering Co. LLC signed an agreement with Exxon Co. U.S.A. and BP Amoco plc to own and operate a new 85-mile, primarily 20-in, natural gas pipeline extending from Exxon's and BP Amoco's Alaminos Canyon Block 25 production...

Columbia Gulf Transmission Co.
February 22, 1999... Columbia Gulf Transmission Co., Houston, received approval from the Federal Energy Regulatory Commission to add to its main line 309 MMcfd of new firm transportation service. New facilities needed for the expansion include three Solar...

Blue Stream Project.(Brief Article)
February 22, 1999... Blue Stream Project partners Saipem SPA and Gazprom let an $8 million engineering contract to Bouygues Offshore SA for the first phase of the $3 billion, 400-km natural gas pipeline to be laid across the Black Sea from Russia to Turkey (OGJ,...

Kaneb Pipe Line Partners LP.(Brief Article)
February 22, 1999... Kaneb Pipe Line Partners LP's U.K. terminal subsidiary ST Services Ltd. acquired six terminals in the U.K. from GATX Terminals Ltd. for [pounds]22.6 million and the assumption of certain debts. The terminals, with an aggregate tank capacity...

Shell Bangladesh Exploration & Development BV.(Brief Article)
February 22, 1999... Shell Bangladesh Exploration & Development BV took over operatorship of Blocks 15 and 16 off Bangladesh from Cairn Energy plc, Edinburgh. This foilows the establishment of an alliance between the two companies to operate assets mainly owned...

Azerbaijan.
February 22, 1999... Azerbaijan granted Canada's Alberta Energy Co. (AEC) a 5% stake in the existing multinational consortium Azerbaijan International Oil Co. (AIOC), comprised of BP Amoco, State oil AS, Azerbaijan state oil firm Socar, and a Turkish oil group....

Scotoil Group plc.
February 22, 1999... Scotoil Group plc, Aberdeen, is to open the city's first drill cuttings recycling plant, with plant throughput of 45,000 metric tons/year and demand from U.K. offshore operators initially expected to amount to 30,000 tons/year. The plant...

Marubeni Corp.
February 22, 1999... Japan's Marubeni Corp. signed a [yen]50 billion, 3-year supply contract with ARCO for at least 500,000 tons of steel tubular goods to be used in its oil and gas fields worldwide. Marubeni will procure the goods from Kawasaki Steel Corp. and...

EuroGas Inc.
February 22, 1999... EuroGas Inc., New York, will form a 50-50 joint venture with Poland Oil & Gas Co. to acquire a 50% interest in four natural gas fields in western Poland. EuroGas plans to build a gathering system to connect the fields to a proposed power...

U.S. Minerals Management Service.
February 22, 1999... U.S. Minerals Management Service wants to amend its rules on the delegation of federal mineral auditing responsibilities to states. The 1997 rules, implementing the Federal Oil and Gas Royalty Simplification and Fairness Act, require...

U.S. Environmental Protection Agency.
February 22, 1999... U.S. Environmental Protection Agency plans more health tests regarding Ethyl Corp.'s manganese-based gasoline additive MMT. EPA said that, because of continuing uncertainties regarding the public health effects of MMT and the potential of...

Ecuador's pinch.
February 22, 1999... Low oil prices are hurting oil-exporting nations, and Ecuador is a prime example. It posted its largest trade deficit ever last year, $957 million, due to double blows from El Nino and the collapse of world oil prices. In 1997, it had...

Economic turmoil squeezing demand for big tankers.
February 22, 1999... Operators of very large crude carriers (VLCCs) and ultralarge crude carriers (ULCCs) will be hit in the near term by continued fleet expansion and lower demand in Asia. Ocean Shipping Consultants Ltd. (OSC), Chertsey, U.K., estimates...

MONITORING AND EDUCATION HELP SEISMIC CREW PROTECT ENVIRONMENT IN TRANSITION-ZONE SURVEY.
February 22, 1999... A. Frank Perkins is HSE supervisor for Western Geo-physical-Southeast U.S. operations responsible for coordination of HSE programs and environmental-compliance monitoring for field crews operating from New Orleans. Active in the seismic...

CRUDE OIL GREENHOUSE GAS LIFE CYCLE ANALYSIS HELPS ASSIGN VALUES FOR [CO.sub.2] EMISSIONS TRADING.
February 22, 1999... Tom McCann and Phil Magee together have more than 70 years of Canadian and world refinery planning, operations, and capital experience. Their models have been used for capital planning at over 1 million b/d combined, existing refinery...

ENZYME-BASED DIESEL DESULFUKIZATION PROCESS OFFERS ENERGY, [CO.sub.2] ADVANTAGES.
February 22, 1999... Larry Linguist is a research engineer in the Process Development Group for energy BioSystems Corp of The Woodlands Tex. His work includes recovery of chemical by products of the biodesulfurization process and process simulation of...

CAMISEA CASE STUDY: WORKING WITH ENVIRONMENTAL CONCERN.
February 22, 1999... On July 16, 1998, Shell Prospecting and Development Peru issued an unexpected announcement. Alongside Mobil, its partner, SPDP was withdrawing from Camisea, Peru, after more than $250 million had been invested in exploration, appraisal...

Penetration rates optimized by aligning torque and rotary speed.
February 22, 1999... Troy Whittington is a drilling foreman for Unocal Corp (Spirit Energy 76), currently working in Mobile Bay He has been with Unocal since 1992 Whittington is a graduate of Louisiana State University in Baton Rouge, La and holds a degree in...

Petroleum markets' turmoil spawns tanker glut.
February 22, 1999... The vicious economics at work in crude-oil markets in 1998 and early 1999 are likely to be reflected in petroleum tanker markets by mid-1999 or early 2000. In 1998, crude-oil prices suffered from economic uncertainty and currency...

Linear models help refiners develop RFG recipes.
February 22, 1999... Bruce T Narman is vice-president. management science, of Bonner & Moore Associates Inc. He has over 20 years of experience in planning, scheduling, and optimization of plant operations. Narman holds a BS in mathematics from Spring Hill...

Production log runs while perforating well.
February 22, 1999... To obtain virgin reservoir data, Mobil North Sea Ltd. ran a memory production log while perforating a horizontal development well. The well is in the Mobil-operated Nevis field, U.K. sector of the North Sea. Schlumberger Oilfield Services...

Biopolymers At Interfaces.
February 22, 1999... Biopolymers At Interfaces, edited by Martin Malmsten. Published by Marcel Dekker, 270 Madison Ave., New York, NY 10016-0602. 680 pp., $235. Number 75 in the publisher's surfactant series. This book attempts to fill some of the gaps in the...

Fire and Explosion Hazards Handbook of Industrial Chemicals.
February 22, 1999... Fire and Explosion Hazards Handbook of Industrial Chemicals, by Tatyana A. Davletshina and Nicholas P. Cheremisinoff. Published by No yes Publications, 369 Fairview Ave., Westwood, NJ 07675. 484 pp., $86. This book is a compendium of...

1999 Directory of Courthouses & Abstract and Title Companies, USA.
February 22, 1999... 1999 Directory of Courthouses & Abstract and Title Companies, USA, Fifth Edition, published by Harbors international 7020 S. Yale Ave., Suite 208, Tulsa, OK 74136. Softcover. Up-to-date listings of counties, parishes, and boroughs in the...

The Trillion-Dollar Enterprise.
February 22, 1999... How The Alliance Revolution Will Transform Global Business, by Cyrus Freidheim. Published by Perseus Books, 10 E. 53rd St., New York, NY 10022. 253 pp., $25. The author feels a new form of global business is emerging, and it is changing...

Free supply catalog.
February 22, 1999... The free January 1999 Safety & Industrial Supplies catalog of nearly 2,000 pages offers a selection of safety and industrial supplies. There's more than 200 pages of new products, including hand tools, first aid, material handling,...

New software characterizes hydrocarbons.
February 22, 1999... A new version of Carburane software processes chromatographic data for hydrocarbon characterization. Carburane automates detailed analyses of light hydrocarbons by gas chromatography. Several hundred constituents can be analyzed...

New field configurable indicator/totalizer.
February 22, 1999... Here's the new VisiPak Model V437 field configurable, frequency or pulse input, digital indicator with TouchCal. This 1/8 DIN digital panel meter is suited for indication, control, and alarming for any pulse or frequency signal. The 0.56 in.,...

Backhoe loaders upgraded.
February 22, 1999... Increased lift capacity, smoother ride characteristics, and enhanced performance highlight an upgrade to these C-Series backhoe loaders. New features include: * Larger bore boom cylinder and heavy duty boom structure that boosts...

New wellheads.
February 22, 1999... New Hercules aboveground and submergible casing and tubing heads are available for use in PC, ESP, and beam pump applications. Wellheads feature a patented slip element with a positive mechanical stop that limits slip travel and reduces...

MOVES AND PROMOTIONS.
February 22, 1999... Belmont Constructors, Inc., a subsidiary of Stone & Webster, Houston, Tex., has named Steve M. Watkins president. Watkins has 25 years of project management and construction experience. Prior to joining Belmont Constructors, Watkins was...

Pipeline Integrity International.(Brief Article)
February 22, 1999... Pipeline Integrity International (PII) has launched a new service that is the first of its kind in the world. Transverse Field Inspection (TFI) will enable operators to detect seam-weld cracks, long axial defects and mechanical damage....

MG Generon.(Brief Article)
February 22, 1999... MG Generon, Malvern, Pa. has announced a joint venture with Air Drilling Services Inc. (ADS) in the formation of International Nitrogen Services LLC. This limited liability company will distribute and operate non-! cryogenic nitrogen...

Play disaggregation reveals key Texas gas growth trends.
February 22, 1999... Eugene M. Kim is a postdoctoral fellow at the Bureau of Economic Geology in Austin. He is involved in oil and gas ultimate recovery growth studies play analysis resource assessments and economic evaluations. He holds a BSE degree in-mineral...

Sudan.
February 22, 1999... Talisman Energy Inc., Calgary, reported progress in southern Sudan, where it holds 25% of three exploration and two development blocks covering a combined 12.2 million acres in the Muglad basin. Five fields-Heglig, Unity, El Toor, El Nar,...

Viet Nam.
February 22, 1999... Anzoil (Asia) Pte. Ltd. was moving in a Parker Drilling Co. rig in early February to spud the first of three wells in Song Tra Ly (1)14) gas field. The second well is to be an exploratory well between D14 and Tien Hal gas fields. The...

Mississippi.
February 22, 1999... Two more drilling locations are proposed in the state's deep Ordovician gas play in the Maben field area. Fina Oil & Chemical Co., Houston, won pooling approval for the 1 Love Heirs, in 22-19n-12e, and I Richardson, 35-19n-12e, Oktibbeha...

Texas.
February 22, 1999... Gulf Coast A fourth completed well in Eagle Bay field north of Texas City substantiated extension of the field into a second productive fault block. The well improves the potential that further fault blocks may be productive, said...

OGJ CASOLINE PRICES.
February 22, 1999... OGJ CASOLINE PRICES Price Pump Pump ex tax [price.sup.*] price 2-10-99 2-10-99...

REFINED PRODUCT PRICES.
February 22, 1999... REFINED PRODUCT PRICES 2-5-99 ([cent]/gal) Spot market product prices Motor gasoline (Conventional-regular) New York Harbor ...

AGA NATURAL GAS [STORAGE.sup.*].
February 22, 1999... AGA NATURAL GAS [STORAGE.sup.*] 2-5-99 1-29-99 Change (bcf) Producing region 620 638 -18 Consuming region east 1,006 1,069 -63 Consuming region...

BANKER HUGHES RIG COUNT.
February 22, 1999... BANKER HUGHES RIG COUNT 2-12-99 2-13-98 Alabama 2 5 Alaska 6 12 Arkansas 3 6 California ...

SMITH RIG COUNT.
February 22, 1999... SMITH RIG COUNT 2-12-90 2-13-98 Proposed depth Rig % Rig % (ft) count [footage.sup.*] count [footage.sup.*] 0-2,500...

OGJ PRODUCTION REPORT.
February 22, 1999... OGJ PRODUCTION REPORT [2-12-99.sup.*] [2-13-98.sup.+] (1,000 b/d) (Crude oil and lease condensate) Alabama ...

U.S. CRUDE PRICES.
February 22, 1999... U.S. CRUDE PRICES [($/bbl).sup.*] 2-12-99 Alaska-North Slope 27[degrees] 5.03 Southern Louisiana Light 10.50 California-Kern River 13[degrees] 7.00 Lost Hills...

WORLD CRUDE PRICES.
February 22, 1999... WORLD CRUDE PRICES [($/bbl).sup.*] 2-5-99 United Kingdom-Brent 38[degrees] 10.18 U.S.S.R.-Export blend 32[degrees] 9.18 Saudi light 34[degrees] 10.53...

WORLD OIL BALANCE.
February 22, 1999... WORLD OIL BALANCE 1998 1997 2nd 1st 4th 3rd 2nd 1st qtr. qtr. qtr. qtr. qtr. qtr. ...

U.S. PETROLEUM IMPORTS FROM SOURCE COUNTRY.
February 22, 1999... U.S. PETROLEUM IMPORTS FROM SOURCE COUNTRY Chg. vs, Average previous Oct. Sept. YTD year ...

[OECD.sup.*] NET OIL IMPORTS.
February 22, 1999... [OECD.sup.*] NET OIL IMPORTS Chg. vs. previous Aug. July June Aug. year ...

[OECD.sup.*] IMPORTS FROM OPEC.
February 22, 1999... [OECD.sup.*] IMPORTS FROM OPEC Chg. vs. previous Aug. July June Aug. year ...

OIL STOCKS IN [OECD.sup.*] COUNTRIES.
February 22, 1999... OIL STOCKS IN [OECD.sup.*] COUNTRIES Chg. vs. previous Sept. Aug. July Sept. year ...

OGJ Newsletter.
February 15, 1999... Arthur Andersen and Cambridge Energy Research Associates (CERA) are laying responsibility for the current oil price climate squarely on the shoulders of reduced demand. In their annual joint report, World Oil Trends, the firms said, "The...

U.S. INDUSTRY SCOREBOARD 2/15.(Illustration)
February 15, 1999... U.S. INDUSTRY SCOREBOARD 2/15 4 wk. 4 wk. ave. % Year-to-date Latest week 2/5 average year [ago.sup.*] change [average.sup.*] Demand (1,000 b/d) Motor...

LETTERS.
February 15, 1999... Domestic production We have been subscribers to the Oil & Gas Journal for over 30 years. Specifically, over the past few years, the magazine has gotten skinnier, and the information has become quite suspect. As an independent producer...