The Oil and Gas Journal articles from January 1998

The Oil and Gas Journal archives from January 1998

Newsletter.(Statistical Data Included)
January 26, 1998... The Iraq/U.N. oil-for-aid deal appears to be under threat once more, as Baghdad continues to interfere with weapons inspections. Oil prices recovered a little from their recent low as conflicting stories emerged about the status of...

LETTERS.
January 26, 1998... Imminent peak challenged Five years ago, an oil company chief economist asked me what I would do, now that I had converted everyone's belief in the abundance of crude oil and in long-term weak oil prices. I assured him of my faith in the...

Past reflections.(reflections of a newspaper-turned-trade-journal reporter)(Column)
January 26, 1998... Hi. My name is Bill, and I'm a recovering daily newspaper reporter. After nearly 14 years of business and political writing for daily newspapers, wire services, and general interest magazines, I switched jobs for what some of my...

EDITORIAL.(impact of Asian economic crisis)(Editorial)
January 26, 1998... The setback in Asia So far, the best way to be wrong about Asia has been to expect a quick end to the region's financial crisis. Conditions keep getting worse. No one wants to sound alarmist. No one wants to add worldwide panic to...

Time ripe to end U.S.--Iran impasse.(Statistical Data Included)
January 26, 1998... Adapted from a speech given at the Conference on Political Islam and the West in Nicosia, Cyprus, Oct. 30-31, 1997. It is difficult to address the topic of oil in U.S.-Iran relations, because there are no U.S-Iran relations to speak of...

API to target more independents as members.(American Petroleum Institute)(Statistical Data Included)
January 26, 1998... The American Petroleum Institute plans a major restructuring to attract new members and make itself more useful to existing ones. Red Cavaney, the new API president and CEO, said the group's management and public policy committees have...

Russo-foreign group plans big Russian pipeline.(Statistical Data Included)(Brief Article)
January 26, 1998... A group of Russian and foreign oil companies have disclosed plans to develop a pipeline network from the Timan-Pechora oil fields in Russia's Komi republic and Nenets autonomous okrug either to a new port at Primorsk near Leningrad or to the...

OPEC's weak ray of hope.(Statistical Data Included)
January 26, 1998... Reports suggest some members of the Organization of Petroleum Exporting Countries regret increasing production quotas in November. Since its ministerial meeting in Jakarta, when OPEC hiked total quotas to 27.5 million bid of oil from...

Russia to see its first merger of oil majors.(Statistical Data Included)
January 26, 1998... The merger and acquisition trend has moved into Russia with the planned consolidation of two integrated oil companies, both of which have already acquired former state-owned units. Yukos Oil Corp. and Siberian Oil Co. (Sibneft) have...

Ukraine's woes.(Statistical Data Included)
January 26, 1998... Foreign oil firms interested in the Ukraine complain of a gamut of legal, political, and commercial problems. The basic conflict is between the Ukrainian approach of handling each deal on a case-by-case basis and the desire of western...

Cakerawala OK heads Malay-Thai action.(gas field exploration in Gulf of Thailand)(Statistical Data Included)
January 26, 1998... The Malaysia-Thailand Joint Authority (MTJA) has endorsed development of the first gas field in the Malay-Thai shared waters of the Gulf of Thailand. Cakerawala was first of eight gas fields discovered by Carigali-Triton Operating Co....

Shell claims record for ESP tie-back.(Shell U.K. Exploration & Production, electrical submersible pump)(Brief Article)(Statistical Data Included)
January 26, 1998... Shell U.K. Exploration & Production claims it has completed the world's longest subsea tie-back of an electrical submersible pump (ESP). Gannet E oil field, brought on stream on Jan. 13, sends produced oil to Gannet A platform 14 km away...

Shell clears GTL process after explosion.(Royal Dutch/Shell's gas-to-liquids plant, Indonesia)(Brief Article)
January 26, 1998... Royal Dutch/Shell reports that the recent blast at its Bintulu gas-to-liquids plant in Sarawak, Indonesia, was not caused by the plant's proprietary technology. Twelve people were hurt, none seriously, in an explosion and fire at the...

Australia to tender more offshore acreage.(Brief Article)
January 26, 1998... Australia's Department of Primary Industries and Energy (DPIE), Canberra, is in the final stages of determining which offshore areas it will open for exploration in 1998. DPIE is considering releasing more than 50 areas. The majority of...

Anadarko/Agip swap buoys African exploration.(Anadarko Eritrea Corp.)(Brief Article)(Statistical Data Included)
January 26, 1998... Units of Anadarko Petroleum Corp. and Agip SpA have agreed to exchange interests in two northern Africa blocks, propelling exploration in hot plays in Tunisia and Eritrea. Under the accord, Anadarko Eritrea Co. will gain 50% of operator...

Farmouts spurring Trinidad exploration work.(petroleum exploration)(Statistical Data Included)
January 26, 1998... A flurry of acquisition and farmout agreements involving a Toronto independent spotlights more exploration under way in Trinidad and Tobago. Mantaur Petroleum Corp. agreed to pay $1.3 million (U.S.) in cash and company stock to purchase...

Ranger group to explore off Cote d'Ivoire.(Ranger Oil Ltd., petroleum exploration)(Brief Article)(Statistical Data Included)
January 26, 1998... A group led by Ranger Oil Ltd., Calgary, has obtained two new exploration licenses off Cote d'Ivoire. Operator Ranger; Clyde Expro plc, a unit of Gulf Canada Resources Ltd., Calgary; Gentry Resources Ltd., Calgary; and TC Petroleum Inc.,...

Gaz de France.(forms joint venture with Air Liquide)(Brief Article)
January 26, 1998... Gaz de France and Air Liquide agreed to form a 50-50 joint venture (JV) to supply and market natural gas for motor fuel use in heavy vehicles. The JV will offer turnkey packages for construction of service stations and purchase of natural gas...

Marathon Oil Co.(forms Marathon Ashland Petroleum LLC in parnership with Ashland Inc.)(Brief Article)(Statistical Data Included)
January 26, 1998... Marathon Oil Co. and Ashland Inc. formed Marathon Ashland Petroleum LLC, a new refining and marketing company, this month (OGJ, May 26, 1997, p. 27). Marathon holds a 62% share, and Ashland has a 38% interest.

ENOC Condensate Co.(to increase refinery capacity)(Brief Article)(Statistical Data Included)
January 26, 1998... Dubai's ENOC Condensate Co. will expand its new condensate refinery. The decision was made before construction of the plant was completed. Technip SA, Paris, is building the 60,000 b/d, $137 million condensate refinery for ENOC. ENOC asked...

Oil & Natural Gas Corp.
January 26, 1998... India's Oil & Natural Gas Corp. is planning a $30 million oil refinery in the state of Andhra Pradesh, at Tatipaka near Rajahmundry. The refinery will have capacity of 1,500 b/d.

Hindustan Petroleum Corp. Ltd.
January 26, 1998... Hindustan Petroleum Corp. Ltd.'s fire-ravaged 90,000 b/d Visakhapatnam, India, refinery resumed operations Jan. 15 (OGJ, Oct. 6,1997, p. 40). The refinery was cleared by India's oil industry safety directorate following 4 months of repairs,...

ARCO Chemie Nederland Ltd.
January 26, 1998... ARCO Chemie Nederland Ltd. let contract to the P0-il construction partnership of ABB Lummus Global and JOG Corp. to build a petrochemical plant at Maasvlakte, Netherlands. The partnership is responsible for engineering, procurement, and...

European Union.
January 26, 1998... European Union approved a planned merger of the European polyethylene businesses of BASF AG and Shell International Chemicals Ltd. The new venture will be called Elenac and is expected to begin operating Mar. 1 at Kehl, Germany. Elenac will...

Occidental at Albania Ltd.
January 26, 1998... Occidental at Albania Ltd., a subsidiary of Occidental Petroleum Corp., signed production-sharing contracts with Albania's National Petroleum Agency for three blocks covering more than 1.1 million acres. Interests are operator Oxy 50% and...

Mantaur Petroleum Corp.
January 26, 1998... Mantaur Petroleum Corp. Calgary, signed production-sharing contracts for the Ergel Block XII and Bayantumen Block XVII with the Petroleum Authority of Mongolia. The contracts were ratified by the government of Mongolia prior to yearend 1997....

Phillips China Inc.
January 26, 1998... Phillips China Inc. and Union Texas Bohai Ltd. made a second oil discovery in the Bozhong block of China's Bohai Bay, 35 miles southwest of a November discovery (OGJ, Nov. 17, 1997, P. 30). The Bozhong 36-2-1 well was drilled to 8,491 ft TD...

Maharashtra State Electricity Board (MSEB).
January 26, 1998... India's Maharashtra State Electricity Board (MSEB) will purchase up to a 30% equity share in a 2,184-MW power plant under construction by Enron Corp. at Dabhol, India. MSEB will be the principal buyer of the 740 MW generated during the...

Pemex Gas & Petrochemical SA.
January 26, 1998... Pemex Gas & Petrochemical SA (PGP) signed a natural gas pipeline technical agreement with Energia Mayakan SRL de CV, a joint venture of TransCanada Pipelines Ltd., Mexico's Gutsa Construcciones, and Bechtel Corp. unit International Generating...

Canada's National Energy Board.
January 26, 1998... Canada's National Energy Board received an application from Northstar Energy Corp., Calgary, for a 4.5-mile, $6.5 million, natural gas pipeline from British Columbia to Alberta. The line will connect Northstar's Coleman, Alta., gas plant with...

Conoco Inc.
January 26, 1998... Conoco Inc.'s natural gas and gas products unit acquired and recommissioned a 160-mile, 10-in. former Dow Chemical Co. pipeline to transport crude oil, condensate, and natural gas liquids from Baton Rouge, La., to refineries at Beaumont,...

U.S. Minerals Management Service.
January 26, 1998... U.S. Minerals Management Service (MMS) set Jan. 27 workshops in Denver to explain punitive fine assessments on companies for chronic erroneous reporting of royalty data and appeals under the 1996 Federal Oil and Gas Royalty Simplification and...

MMS.
January 26, 1998... MMS issued final rules setting terms under which it will grant royalty suspensions for new and existing leases on the U.S. Outer Continental Shelf. The rules implement provisions of the 1995 Deepwater Royalty Relief Act.

U.S. Department at Energy.
January 26, 1998... U.S. Department at Energy let $750 million in contracts to install energy efficient and renewable energy technology systems at federal facilities in southeastern states. Six companies will finance the energy-related capital improvements and...

The U.S. Justice Department.
January 26, 1998... The U.S. Justice Department said federal and state judges fined Eklof Marine Corp. $3.5 million for a January 1996 fuel oil spill off Matunuck, RI The $7 million in fines is in addition to Eklof's agreement to pay $1.5 million for land...

Mapco Inc.
January 26, 1998... Mapco Inc. and Williams Gas. Inc., both of Tulsa, will hold special shareholder meetings Feb. 25 to vote on proposals that would allow Mapco to become a wholly owned subsidiary of Williams (OGJ, Dec. 1,1997, p. 48). The companies agreed to...

Union Texas Petroleum.
January 26, 1998... Union Texas Petroleum, the Houston independent whose five employees were slain while traveling in Karachi late last year (OGJ, Nov. 17, 1997, Newsletter), will move its head office and 250 employees to Islamabad from Karachi by yearend,...

Shell Oil Co.
January 26, 1998... Shell Oil Co. and Texaco Inc. started up their joint venture, Equilon Enterprises LLC, combining major elements of their western and midwestern U.S. refining and marketing businesses and their nationwide trading, transportation, and...

Enran Ventures Carp.
January 26, 1998... Enran Ventures Carp. agreed to purchase a 15% minority interest in Catalytica Combustion Systems Inc. (CCSI) for $30 million in cash. Enron Ventures will receive a 3-year option to purchase another 5% of CCSI for $14.4 million cash. CCSI, a...

Paramount Resources Ltd.
January 26, 1998... Paramount Resources Ltd. Calgary, completed a $73 million (Canadian) acquisition of natural gas producing properties from Reserve Royalty Corp. The properties, in Alberta and Saskatchewan, produce 42 MMcfd of gas and include undeveloped...

Indian Oil Corp.
January 26, 1998... Indian Oil Corp., India, will construct a lube blending plant at Asaoti in Haryana state, Faridabad district, to meet growing demand for lubricants in northern India. The plant will blend 24 grades of lubes and have an installed capacity of...

Amoco Colombia Petroleum Co.
January 26, 1998... Amoco Colombia Petroleum Co. and partners began natural gas deliveries from their Opon association contract area in the Middle Magdalena Valley, about 125 miles north of Bogota. Amoco said that, under the terms of the gas sales contract,...

Elf Exploration Inc.
January 26, 1998... Elf Exploration Inc. started development of its Virgo discovery on Viosca Knoll Block 823 in the Gulf of Mexico (OGJ, Sept. 1,1997, p. 23). First production is expected by yearend 1999. An appraisal well, Viosca Knoll 823-3, confirmed the...

Australian subsidiary.
January 26, 1998... Alcoa's Australian subsidiary signed a 15-year natural gas supply contract with partners in the North West Shelf production group, led by Woodside Petroleum Ltd. Under terms of the $3 billion (Australian) contract, Woodside and partners will...

Canada-Newfoundland Offshore Petroieum Board.
January 26, 1998... Canada-Newfoundland Offshore Petroieum Board conditionally approved the Terra Nova oil field project off Newfoundland. Petro-Canada Ltd. and partners will make a final decision in the next few weeks on whether to proceed with the project....

U.S. Environmental Protection Agency.
January 26, 1998... U.S. Environmental Protection Agency modified a rule that requires testing of reformulated gasoline carried in tank trucks. Instead, trucks will meet EPA's compliance requirements if drivers receive training on how to prevent the commingling...

Los Angeles-based Energy Pacific.
January 26, 1998... Los Angeles-based Energy Pacific, a joint venture of Pacific Enterprises Inc. and San Diego-based Enova Corp., signed a partnership and operating agreement with Frontier Utilities of North Carolina. The JV, Frontier Energy, was formed to...

British Petroleum Co. plc.
January 26, 1998... British Petroleum Co. plc and local Chinese partners in the BP Ningbo Huadong LPG Co. Ltd. joint venture let a front-end engineering contract to Kvaerner AS, Oslo. The project involves design of a new LPG terminal at Ningbo, in Zhenijeng...

DEMAND GROWTH To CONTINUE FOR OIL, RESUME FOR GAS THIS YEAR IN THE U.S.(Industry Overview)(Statistical Data Included)
January 26, 1998... Demand for petroleum products and natural gas in the U.S. will move up again this year, stimulated by economic growth and falling prices. Economic growth, although slower than it was last year, will nevertheless remain strong. ...

GROWTH IN WORLD DEMAND FOR OIL To EASE IN 1998.(Statistical Data Included)
January 26, 1998... Increasing international supplies of oil and slowing demand growth threaten to weaken prices this year. In 1997, worldwide demand for petroleum products, boosted by an early-year stock build, grew faster than did supply from outside the...

DIP IN DRILLING LIKELY FOR THE U.S., CANADA IN 1998.(Statistical Data Included)
January 26, 1998... Drilling activity in the U.S. and J Canada may fall slightly 1998. This follows record drilling in Canada in 1997. Several economic factors will cut U.S. drilling by 3.5% this year from the estimated level of 1997: more than sufficient...

Sand, gravel properties Key to optimum designs.(Statistical Data Included)
January 26, 1998... Successful gravel packed Sand screen well completions require a knowledge of sand as well as gravel textural properties. These completion methods keep sand and fines from entering the well bore, so that long-term production capacity of the...

BHA reconfiguration reduces costs in Austin Chalk.(bottom hole assembly)(Statistical Data Included)
January 26, 1998... Redesigning the bottom-hole assembly (BHA) has reduced horizontal drilling costs in the Austin Chalk. More than 30 runs have been made with a new design in which an adjustable stabilizer is placed ahead of a straight,...

Compressor-recycle valve design meets severe noise and operating specs.(Statistical Data Included)
January 26, 1998... The design of the new compressor recycle valve at the Chevron El Segundo refinery's alkylation unit took into account four main considerations: noise, fugitive emissions, rapid stroking, and fire protection. CCI, Rancho Santa Margarita,...

Coiled tubing drilling system.(from Schlumberger Oilfield Services)(Brief Article)(Statistical Data Included)
January 26, 1998... The Viper coiled tubing drilling system can be used in a variety of applications. In addition to conventional coiled tubing drilling it can be used for through tubing and underbalanced drilling. The system uses an electromechanical...

Miniature gas sensor and transmitter.(from Gasalarm Systems)(Brief Article)(Statistical Data Included)
January 26, 1998... This new miniature gas sensor and transmitter detects most dangerous combustible gases. The sensor uses electrocatalytic bead technology combined with a new energy saver circuit, which helps reduce the power required to about 100 ma. The...

Pressure vessel software.(from Computer Engineering)(Brief Article)
January 26, 1998... New "APV for Windows" incorporates the power of "Advanced Pressure Vessel," a pressure vessel design calculation software, with the added point and click convenience of Windows software programming. The new program includes the latest...

Thermocouple measurement.(from Mid-Atlantic Systems)(Brief Article)(Statistical Data Included)
January 26, 1998... Here's the EZ-View-TA Thermocouple Measurement and Data Acquisition System. It attaches to a standard printer port of a laptop or desktop computer. There are no addresses to set, no switches to change, and no accessory boards to install....

MOVES AND PROMOTIONS.(Statistical Data Included)
January 26, 1998... Foster Wheeler Corp., Clinton, N.J., has named Joseph J. Barba vice president, contract operations for Foster Wheeler USA Corp.'s (FWUSA) Northeast Operations. Barba, who will be based at Foster Wheeler world headquarters in Clinton, N.J.,...

Information Handling Services Group Inc.(acquires Petroleum Information/Dwights LLC)(Brief Article)
January 26, 1998... Information Handling Services Group Inc., Englewood, Cob., an international information database publishing group, has acquired Petroleum Information/Dwights L.L.C. ("PI/Dwights"), based in Houston with operations in Denver, Dallas, New...

Gas reserves growth boosts Sacramento basin.
January 26, 1998... Operators have discovered 153 gas fields in the Sacramento basin of northern California (Fig. 1). This study includes data from 114 fields; gas fields with less than 1 bcf of cumulative recovery were eliminated from the tabulations. ...

Geophysical.(Brief Article)
January 26, 1998... First marine 3D seismic survey in which a vessel towed 12 full-length streamers is well along off West Africa. The survey involved 3,000 sq km for a major operator. From early December 1997 through early January 1998, the vessel acquired...

France.(Brief Article)
January 26, 1998... Esso Rep and Elf Aquitaine have an Aquitaine basin discovery at the Tamaris wildcat on the Lege permit south of Arcachon bay and east of Les Arbousiers oil field. It produced 440 bbl of clean oil at rates of 755-1,070 b/d on a short test...

Thailand.(Brief Article)
January 26, 1998... Unocal, Total, and Statoil encountered only minimal hydrocarbons in a $30 million, 5 well program in the Andaman Sea. The slim hole wells went as deep as 10,340 ft in 1,6703,480 ft of water on blocks W8/38 and W8/39. The results...

British Columbia.(Brief Article)
January 26, 1998... B.C. Ministry of Employment and Investment and the National Energy Board will create a common data base to share gas and oil field geological and reservoir information. The database and geological maps will reside in Victoria, B.C. ...

Newfoundland.(Brief Article)
January 26, 1998... Canada-Newfoundland Offshore Petroleum Board awarded offshore blocks 5, 6, and 7 to Vulcan Minerals Inc., St. John's, subject to ministerial approval. The blocks are southwest and north of Parson's Pond (see map, OGJ, Oct. 27, 1997, p. 78).

Gulf of Mexico.(Brief Article)
January 26, 1998... McMoRan Oil & Gas Co., New Orleans, will develop a discovery and further evaluate the prospect on West Cameron Block 492. The No. 2 well will develop reserves discovered by the No. I well, which is being saved for future production. No. I...

Arizona.(Brief Article)
January 26, 1998... Ridgeway Petroleum Corp., Calgary, let a contract to Schlumberger 1PM for an initial reserves estimate and field development study for its 1994 St. Johns carbon dioxide/helium discovery in eastern Arizona-western New Mexico. Ridgeway...

Colorado.(Brief Article)
January 26, 1998... Lexam Explorations Inc., Toronto, signed a pact with an undisclosed U.S. independent to explore Lexam's San Luis basin holdings (see map, OGJ, Sept. 1, 1997, p. 78). Acquisition of 35 miles 2D seismic started in December. The pact covers...

New Mexico.(Brief Article)
January 26, 1998... Limark Corp., Midland, Tex., was drilling a Jurassic Entrada wildcat in the San Juan basin. The 1 Federal, in 27-20n-4w, Sandoval County, is projected to 6,000 ft. The site is 3 miles south-southwest of Rio Puerco Entrada oil field.

Oklahoma.(Brief Article)
January 26, 1998... Republic Energy Inc., Dallas, is pressing development of a 1997 Pennsylvanian Cherokee oil and gas discovery in Texas County of the panhandle. Three wells in 36-3nl5eCm each flowed 200-300 b/d of oil with casinghead gas and water from...

Texas.(Brief Article)
January 26, 1998... West BC Operating Inc., Midland, Tex., completed a discovery in Lynn County 5 miles from production. Fusselman perforations at 10,894-904 ft flowed 170 b/d of 38[degrees] gravity oil with 45 Mcfd of gas on a 24/64 in. choke with 66...

API NOVEMBER U.S. WELL COMPLETIONS [*].(Brief Article)(Illustration)(Statistical Data Included)
January 26, 1998... API NOVEMBER U.S. WELL COMPLETIONS[*] Oil Gas Dry Total wells Footage wells Footage holes Footage Wells[+] November 1997 707 3,360,781 627...

OGJ GASOLINE PRICES.(Brief Article)(Illustration)(Statistical Data Included)
January 26, 1998... OGJ GASOLINE PRICES (Approx. prices for self-service unleaded gasoline) Price Pump Pump ex tax price [*] price 1-14-98 ...

BAKER HUGHES RIG COUNT.(Brief Article)(Illustration)(Statistical Data Included)
January 26, 1998... BAKER HUGHES RIG COUNT 1-16-98 1-17-97 Alabama 5 4 Alaska 11 10 Arkansas 13 10...

OGJ PRODUCTION REPORT.
January 26, 1998... OGJ PRODUCTION REPORT (Crude oil and lease condensate) 1-16-98 [*] 1-17-97 [+] (1,000 b/d) Alabama 42 46 Alaska 1,300 ...

U.S. CRUDE PRICES.
January 26, 1998... U.S. CRUDE PRICES ($/bbl) [*] 1-16-98 Alaska-North Slope 27[degrees] 14.34 Cook Inlet (Drift River) 34[degrees] NA California-Kern River 13[degrees] ...

REFINED PRODUCT PRICES.
January 26, 1998... REFINED PRODUCT PRICES 1-9-98 ([cent]/gal) Spot market product prices Motor gasoline (Conventional-regular) New York Harbor 49.63...

SMITH RIG COUNT.
January 26, 1998... SMITH RIG COUNT 1-16-98 1-17-97 Proposed depth Rig % Rig % (ft) count footage [*] count footage [*] 0-2,500 33 ...

WORLD CRUDE PRICES.
January 26, 1998... WORLD CRUDE PRICES ($/bbl) [*] 1-9-98 United Kingdom-Brent 38[degrees] 15.29 Russia-Urals 32[degrees] 14.59 Saudi light 34[degrees] 13.95...

AGA NATURAL GAS STORAGE [*].
January 26, 1998... AGA NATURAL GAS STORAGE [*] 1-9-98 1-2-98 Change bcf Producing region 493 503 -10 Consuming region east 1,249 1,266 -17 Consuming region west...

WORLD OIL BALANCE.
January 26, 1998... WORLD OIL BALANCE 1997 1996 2nd 1st 4th 3rd 2nd 1st qtr. qtr. qtr. qtr. qtr. qtr. ...

U.S. PETROLEUM IMPORTS FROM SOURCE COUNTRY.
January 26, 1998... U.S. PETROLEUM IMPORTS FROM SOURCE COUNTRY Chg. vs. Average previous ...

OECD [*] NET OIL IMPORTS.
January 26, 1998... OECD [*] NET OIL IMPORTS Chg. vs. previous July June May July year ...