The Oil and Gas Journal articles from July 1997

The Oil and Gas Journal archives from July 1997

As concerns mount over world oil supplies, access to resources, and markets, Japan has suffered another offshore oil spill. (supertanker hits Tokyo Bay reef, spills approximately 100,000 barrels of fuel oil)(Brief Article)
July 7, 1997... As concerns mount over world oil supplies, access to resources, and markets. Japan has suffered another offshore oil spill--the worst in its history, officials are saying. The spill comes as Japan seeks to toughen regulations governing...

IEA's chief "regrets" a decision by the U.S. House appropriations committee. (International Energy Agency director Robert Priddle questions Strategic Petroleum Reserve sale)(Brief Article)
July 7, 1997... IEA's chief "regrets" a decision by the U.S. House appropriations committee to sell $209, million of U.S. oil from the Strategic Petroleum Reserve in fiscal 1998. "Earlier, U.S. government stocks were over 90 days," said Robert Priddle,...

Iraq is ready to resume oil sales. (United Nations Security Council must approve country's plan for distribution of aid)(Brief Article)
July 7, 1997... Iraq is ready to resume oil sales once officials submit an aid-distribution plan to the U.N. for Security Council approval. The council earlier approved a new 6-month oil-for-aid program for Iraq, allowing it to sell $2 billion in oil...

Arrieta says OPEC is ignoring key market signals. (Venezuelan minister Erwin Arrieta criticizes production quota of Organization of Petroleum Exporting Countries)(Brief Article)
July 7, 1997... OPEC has lost whatever control it once had exerted on world oil markets, says Erwin Arrieta, Venezuela's energy and mines minister, whose country came under fire at the June 25 OPEC meeting in Vienna. Commenting on the meeting where...

Moody's Investors Service and Standard & Poor's have issued downgrades or credit watch notices. (for Chesapeake Energy Corp.)(Brief Article)
July 7, 1997... Moody's Investors Service and Standard & Poor's have issued downgrades or credit watch notices on Chesapeake Energy's credit and senior unsecured debt ratings. Oklahoma City-based Chesapeake has been a major player in the Louisiana...

After board of directors' review, Pennzoil is telling its shareholders to reject Union Pacific Resources' $4.2 billion tender offer.(Brief Article)
July 7, 1997... After board of directors' review, Pennzoil is telling its shareholders to reject Union Pacific Resources' $4.2 billion tender offer (OGJ, June 30, 1997, p. 30). Pennzoil says the UPR offer "does not reflect the inherent value of Pennzoil," and...

More Canadian gas may be finding its way to markets in Canada and the U.S. (plans for two new pipelines)(Brief Article)
July 7, 1997... More Canadian gas may be finding its way to markets in Canada and the U.S. Calgary's IPL Energy says it will build a $650 million (Canadian) natural gas pipeline from a Chicago hub to markets in eastern Canada and the Northeast U.S. ...

Privatization of state oil companies continues. (Pakistan's Ministry of Petroleum and Natural Resources setting up financial holding company)(Brief Article)
July 7, 1997... Privatization of state oil companies continues. A holding company is being created by the Pakistan Ministry of Petroleum and Natural Resources. The holding company, a financial concern, will use its capital to acquire about 51%...

Teetering on which edge? (political leaders warn of vague environmental threats from economic progress)(Editorial)
July 7, 1997... It is now reasonable to consider global prosperity. There can be a day when no person's life needs to be consumed by mere survival, when no person's actions need to be motivated solely by resistance to starvation. There can be hope. In a...

South Korea's refining/petrochemical capacity expansion push continues to gather momentum.
July 7, 1997... The last 2 decades have seen South Korea undergo massive and profound changes as it has transformed itself from an economic backwater into one of the region's "tigers. " With this transformation has come a huge expansion in both the...

Big Canadian miscible CO2 EOR project, pipeline advance. (PanCanadian Petroleum Ltd. to use carbon dioxide for enhanced oil recovery)
July 7, 1997... Incremental oil output from the massive Weyburn pool in southeastern Saskatchewan stands to advance after 2000. Ending a process that has been years in the planning stages, Weyburn unit operator PanCanadian Petroleum Ltd., Calgary, and 36...

India advancing LNG for power generation initiative. (government promotes liquefied natural gas for power plants)
July 7, 1997... India has launched a major initiative centering on the use of liquefied natural gas as fuel for future power generation projects. According to official estimates of future electric power demand, India needs to install nearly 57,000 MW of...

LNG scheme proposed in British Columbia. (Westcoast Energy Inc. plans facility for liquefied natural gas processing, storage)(Brief Article)
July 7, 1997... A new liquefied natural gas scheme has been developed to meet anticipated increases in gas demand during peak winter heating periods in southern British Columbia. Westcoast Energy Inc., Vancouver, B.C., proposes to build and operate a...

AGA: Gas industry adapting to rapid change. (American Gas Association urges flexibility by gas utilities)
July 7, 1997... The American Gas Association says U.S. local distribution companies met the challenge of an unusual weather pattern in 1996-97, in part because they have adapted their gas supply strategies to the rapidly changing marketplace. Paul...

Amoco to boost Romanian gas output. (Amoco Romania Petroleum Co. seeks government permission for large production increase)(Brief Article)
July 7, 1997... Amoco Romania Petroleum Co. has submitted a proposal to the Romanian government for boosting production in 20 gas fields in the Transylvanian basin. Amoco plans to work with state companies Petrom and Romgaz to boost combined output by 2-4...

Triton seeks second Colombian giant. (Triton Energy Ltd. explores for petroleum in Andes foothills in Colombia)(Watching the World)(Column)
July 7, 1997... Professional gamblers and exploration companies tend to play to a system. To succeed, both must also know when to cut their losses. Tom Finck is chairman and CEO of Triton Energy Ltd., Dallas. Triton's system is to target high-risk,...

OPEC rolls over output quotas, vows restraint. (Organization of Petroleum Exporting Countries maintains daily production limit of 25.033 million barrels)(Brief Article)
July 7, 1997... As expected, Organization of Petroleum Exporting Countries (OPEC) energy ministers voted in Vienna on June 26 to maintain their production quota total at 25.033 million b/d. Unexpectedly, OPEC announced that members reiterated a firm...

Utah sues U.S. government over trust lands. (dispute involves new Grand Staircase-Escalante National Monument)
July 7, 1997... Utah's School and Institutional Trust Lands Administration (Usitla) has filed a federal lawsuit against the U.S. government in a land use dispute stemming from a national monument designation by President Clinton in 1996. Usitla is an...

Shell orders ultradeepwater semi for Gulf of Mexico work. (Shell Deepwater Development Inc. seeks semi-submersible drilling rig from Reading & Bates Corp.)(Brief Article)
July 7, 1997... Shell Oil Co. unit Shell Deepwater Development Inc. (SDDI), New Orleans, has asked Reading & Bates Corp. (R&B), Houston, to build a moored semisubmersible drilling unit with ultradeepwater drilling capability for work in the deepwater Gulf of...

More deepwater exploration slated in gulf. (Enserch Exploration Inc., Enterprise Oil PLC in deal to explore Gulf of Mexico)(Brief Article)
July 7, 1997... Deepwater exploration continues to advance in the Gulf of Mexico. Enserch Exploration Inc. (EEX), Dallas, and Enterprise Oil plc, London, have agreed to participate in an exploration venture covering about 80 blocks in the deepwater Gulf of...

Seagull to develop Egyptian fields. (Seagull Energy Corp. in lease arrangement with Egyptian General Petroleum Corp.)(Brief Article)
July 7, 1997... Seagull Energy Corp., Houston, signed a development lease with state-owned Egyptian General Petroleum Corp (EGPC) to develop the Wadi El Sahl discoveries on Egypt's South Hurghada concession (OGJ, Apr. 28, 1977, p. 88). Seagull and EGPC...

Global warming impasse. (industry representatives praise President Bill Clinton's resistance to specific emissions limits)(Watching Government)(Column)
July 7, 1997... A recent United Nations Earth Summit ended with delegates stalemated on what to do about the perceived global warming issue, much to the relief of industry groups. They were pleased President Bill Clinton continued to resist pressure from...

Hungary's MOL will invest in a delayed coker. (company to spend $450 million to upgrade petroleum refinery)(Brief Article)
July 7, 1997... Hungary's MOL will invest in a delayed coker for residue upgrading at its Duna refinery, with work starting early in 1998 and ending late in 2000, spending $450 million to convert heavy fuel oils into 10,000 b/d of products, mainly gasoline and...

Russia's Tatarstan Republic let a contract worth more than $100 million to ABB Lummus Global.(Brief Article)
July 7, 1997... Russia's Tatarstan Republic let a contract worth more than $100 million to ABB Lummus Global, Bloomfield, N.J., to build a middle distillates hydrotreating complex at the Nizhnekamskneftekhim refining/petrochemical complex at Nizhnekamsk, 1,200...

Shell (China) Ltd. and Singapore's Keppel Industrial Engineering Corp. formed a joint venture to meet LPG demand. (liquefied natural gas project)(Brief Article)
July 7, 1997... Shell (China) Ltd. and Singapore's Keppel Industrial Engineering Corp. formed a joint venture to meet LPG demand under phases two and three of China's expanding Suzhou Industrial Park, about 80 km west of Shanghai. An initial 448 b/d LPG plant...

Trinidad and Tobago awarded Conoco Inc. exploration and production-sharing contracts. (offshore project)(Brief Article)
July 7, 1997... Trinidad and Tobago awarded Conoco Inc. exploration and production-sharing contracts for offshore Blocks 4a and 4b east of Trinidad. The blocks cover about 300,000 acres combined and lie in water 200-2,500 ft deep. Conoco will conduct 3D seismic...

Gabon's government signed an exploration and production-sharing contract with Ocelot Energy Inc. (petroleum project)(Brief Article)
July 7, 1997... Gabon's government signed an exploration and production-sharing contract with Ocelot Energy Inc., Calgary, for Maghena Permit Area G4182. The permit covers 1,064 sq km between the Panthere Nze and M'Bindji permits previously awarded to Ocelot...

Epsilon Products Co. (hires Bechtel Corp. for design, construction of polypropylene facility in Garyville, Louisiana)(Brief Article)
July 7, 1997... Epsilon Products Co., Marcus Hook, Pa., let contract to Bechtel Corp., Houston, to design and build an 800 million lb/year polypropylene plant at Garyville, La. The plant will use Union Carbide's Unipol process and is elated for completion in...

Imperial Oil Ltd. (sells historic oil field in Alberta, Canada, for over 45 million Canadian dollars)(Brief Article)
July 7, 1997... Imperial Oil Ltd., Toronto, sold Leduc oil field, the foundation of the modern Canadian industry, to Probe Exploration Inc., Calgary, for more than $45 million (Canadian). The Leduc No. 1 well, which tapped a reef structure near Edmonton, was...

A unit of Bitech Petroleum Corp. (enters agreement with Archangelgeoldob in Russia)(Brief Article)
July 7, 1997... A unit of Bitech Petroleum Corp., Ontario, signed a protocol with Archangelgeoldob, a joint stock company, for exclusive rights to evaluate the Peschano-Ozer field on Kolguev Island in Russia's Nenets autonomous district. Subject to evaluation...

Parker Drilling Co. (caps a natural gas well that blew out, for Denbury Resources Inc.)(Brief Article)
July 7, 1997... Parker Drilling Co., Tulsa, capped a natural gas well being drilled for Denbury Resources Inc., Dallas, that blew out June 16 in a southern Louisiana bayou, killing four workers, and extinguished a fire in the surrounding area (OGJ, June 23,...

Occidental Petroleum Corp. (plans to drill relief well, Mugrachhara gas field, Bangladesh)(Brief Article)
July 7, 1997... Occidental Petroleum Corp. is preparing to drill a relief well to seal the 1 Moulavi Bazar wildcat that blew out June 15 in Mugrachhara gas field in the Sylhet region of northeastern Bangladesh (OGJ, June 23, 1997, p. 28). Flames were still...

Shell U.K. exploration & production. (in the United Kingdom North Sea Block 21/30 Gannet F field)(Brief Article)
July 7, 1997... Shell U.K. Exploration & Production began production from U.K. North Sea Block 21/30 Gannet F field, which has estimated reserves of 19 million bbl of oil and is expected to produce as much as 12,000 b/d of oil. It was developed in conjunction...

Amerada Hess AS. (contract with Brown & Root Ltd., offshore oil production platform)(Brief Article)
July 7, 1997... Amerada Hess AS let a $270 million contract to Brown & Root Ltd., London, to design, build, and install a production platform in South Arne field off Denmark. The platform will have a concrete storage base, with 550,000 bbl oil capacity, and a...

Azerbaijan International Operating Co. (let contract to BJ Service Co. Ltd., leak testing for helium and nitrogen)(Brief Article)
July 7, 1997... Azerbaijan International Operating Co., a group led by BP Exploration Operating Co. Ltd., let contract to BJ Service Co. (U.K.) Ltd. for nitrogen and helium leak testing of process pipework and nitrogen dewatering and inerting of the export...

Norsk Hydro AS. (contracts with Rockwater AS/Saipem SpA joint venture, DSND Subsea AS, subsea equipment)(Brief Article)
July 7, 1997... Norsk Hydro AS let two contracts for subsea equipment for Troll C platform, due to begin producing oil from the giant Norwegian field's central gas province in September 1999 (OGJ, Jan. 27, 1997, p. 34). One $14.2 million contract calls for...

Texaco Inc. (coalbed methane exploration contract in Poland, Upper Sillesian coal basin)(Brief Article)
July 7, 1997... Texaco Inc. won a license to explore for coalbed methane on a 100 sq mile concession in southern Poland's Upper Silesian coal basin. The company intends to begin appraisal drilling immediately and follow this up with extended production testing....

Norway's. (Statoil to sell to Deutsche Shell AG 48 German gasoline stations)(Brief Article)
July 7, 1997... Norway's Statoil agreed to sell its 48 gasoline stations in Germany to Deutsche Shell AG. Statoil said its limited network is too small to be efficient in a competitive market but fits well with Shell's long-term strategy in this market. This...

NGC Corp. (agreement with NOVA Corp. to close restructuring of natural gas and gas liquids operations that are owned by both firms)(Brief Article)
July 7, 1997... NGC Corp., Houston, and NOVA Corp. closed the restructuring of the companies' jointly owned Canadian natural gas and gas liquids operations. The agreement allows NGC to pursue its midstream gas business independently in Canada and replicate the...

U.S. Federal Energy Regulatory Commission. (approves merger of Enova Corp. and Pacific Enterprise)(Brief Article)
July 7, 1997... U.S. Federal Energy Regulatory Commission conditionally approved the merger of Pacific Enterprises and Enova Corp., which owns San Diego Gas & Electric Co. (OGJ, Mar. 24, 1997, p. 36). FERC will require measures for Pacific Enterprise's Southern...

FERC. (gives approval to NGC Corp.'s plan to acquire Destec Energy Inc., Federal Energy Regulatory Commission)(Brief Article)
July 7, 1997... FERC approved NGC Corp.'s $1.27 billion acquisition of Destec Energy Inc., and at presstime the deal was expected to close soon (OGJ, Apr. 21, 1997, p. 19). Destec is a large independent power producer with interests in 24 projects having...

Tarragon Oil Gas Ltd. (to purchase NuGas Ltd.)(Brief Article)
July 7, 1997... Tarragon Oil Gas Ltd., Calgary, will buy NuGas Ltd., Calgary, in an $85.9 million (Canadian) deal. Tarragon will assume $18.4 million in debt and finance the deal through an existing credit line and sale of as much as $50 million worth of noncore...

Mobil North Sea Ltd. (contract with AMEC Process & Energy Ltd.)(Brief Article)
July 7, 1997... Mobil North Sea Ltd. let a $40 million contract to AMEC Process & Energy Ltd., London, to build a compression plant at U.K.'s Bacton gas terminal, operated by Phillips Petroleum Co. U.K. Ltd. The plant will handle gas from Mobil's Lancelot area...

How evolving new fuel specs are challenging Asia's refiners.(Asia's Downstream Expansion)(Industry Overview)
July 7, 1997... LG-Caltex Oil Corp.'s 600,000 b/d refinery at Yocheon, South Korea, is one of the world's largest. South Korea's and other Asian refiners face a complex array of challenges as growing demand for petroleum products and tightening environmental...

Asian refiners may see relief on margins as capacity additions ease.(Asia's Downstream Expansion)(includes a related article on Chinese lubricants)
July 7, 1997... Continued weak Asian refining margins in 1996 prompted postponements of planned capacity additions, which may ease pressure on the region's refiners. That's the conclusion of a report by the Honolulu think tank East-West Center. ...

Japan's refiner/marketers continue to grapple with downstream deregulation.(Asia's Downstream Expansion)
July 7, 1997... Japan's refiner/marketers continue to grapple with a domestic downstream sector thrown into the early stages of deregulation. The government's efforts to deregulate imports of refined products, after a decade of mulling energy...

Improved gas lift proposed for Hungarian field. (gas-lifted oil wells)(Technical)
July 7, 1997... Changes in parameters such as tubing size, wellhead type, and gas lift pressures can improve the profitability of gas-lifted oil wells. As an example, using field data and computer calculations, optimum tubing size and injection pressure...

Underbalanced drilling model simulates dynamic well bore conditions.(Underbalanced Drilling, part 2)
July 7, 1997... Underbalanced drilling simulators (UBD) can optimize dynamic flow conditions to maintain underbalanced well bore conditions. This conclusion in a series of two articles that began June 16, 1997, describes how a simulator can utilize...

NGL recovery being hiked by natural-gasoline recirculation.
July 7, 1997... Construction will be completed later this year at two compression plants operated by Lagoven, S.A., to install natural-gasoline recirculation to improve NGL recovery. The project is the result of a study of condensate-stream...

How Nelson-Farrar indexes of chemical costs have changed.(cost of chemicals used to refine petroleum)(Brief Article)
July 7, 1997... The costs of two important chemicals used in crude-oil refining changed very little during the period, 1994-1996, while the costs of three others cycled significantly. The two stable chemicals were hydrofluoric acid, with Nelson-Farrar...

Daniel Industries, Inc.(new CEO, president)(Brief Article)
July 7, 1997... Daniel Industries, Inc., Houston, Tex., today named its Chairman, Ronald C. Lassiter, to the additional post of chief executive officer. Thomas Alex Newton has been named president and chief operating officer. Lassiter joined Daniel...

The Dow Chemical Co. and Aspen Technology, Inc. have announced a strategic alliance.(Brief Article)
July 7, 1997... The Dow Chemical Co. and Aspen Technology, Inc. have announced a strategic alliance between the two companies. The agreement emphasizes business processes by which they can jointly identify and apply AspenTech software and service for process...

Maritime Hydraulics. (acquisition of Drilltech and Promeco companies)(Brief Article)
July 7, 1997... Maritime Hydraulics, part of the Aker Maritime group, has entered into agreements to take over the Kristiansand-based companies Drilltech and Promeco and their 150 employees, and the site of the bankrupt Westamarin yard just outside...

National Tank Co. (acquisition of Total Engineering Services Team from Weatherford Enterra)(Brief Article)
July 7, 1997... National Tank Co. (NATCO), Houston, Tex., has announced the signing of a purchase agreement with Weatherford Enterra to buy their subsidiary Total Engineering Services Team (TEST). TEST provides instrumentation and electrical control systems...

Central-northern Appalachian coalbed methane flow grows.
July 7, 1997... Over the past decade in the U.S., coalbed methane (CBM) has become an increasingly important source of unconventional natural gas. The most significant CBM production occurs in the San Juan basin of Colorado and New Mexico and the Black...

Ghana's government signed a production-sharing contract with Santa Fe Energy Resources Inc. (for oil exploration in Volta River delta)(Brief Article)
July 7, 1997... Ghana's government signed a production-sharing contract with Santa Fe Energy Resources Inc., Houston, for exploration on Keta Block in the Volta River delta, about 100 km east of Accra. The 2.5 million acre block is about 80% offshore....

As a war of words escalates over Union Pacific Resources' tender offer for Pennzoil, oil and gas company ranks continue to shrink.(Brief Article)
July 14, 1997... As a war of words escalates over Union Pacific Resources' tender offer for Pennzoil, oil and gas company ranks continue to shrink. UPR lambasting Pennzoil board's rejection of its offer (OGJ, July 7, 1997, Newsletter), says it's "another...

Meridian Resource Corp. (MRC), Houston, formerly Texas Meridian Resources, and Cairn Energy USA, Dallas, plan to merge in a pooling-of-interests/stock transaction valued at about $212 million.(Brief Article)
July 14, 1997... Meanwhile, Meridian Resource Corp. (MRC), Houston, formerly Texas Meridian Resources, and Cairn Energy USA Dallas. plan to merge in a pooling-of-interests/stock transaction valued at about $212 million. The deal, covered by a definitive merger...

The petroleum industry has lost 870,000 employees since 1982 and now faces a 'very serious shortage of youthful, energetic talent.' (survey by John S. Herold)(Brief Article)
July 14, 1997... The petroleum industry has lost 870,000 employees since 1982 and now faces a very serious shortage of youthful, energetic talent. That's the conclusion of John S. Herold, Stamford, Conn., based on job losses by the 25 largest companies...

More cuts are ahead in the U.S. refining and chemical sectors. (operational costs and labor cutting)(Brief Article)
July 14, 1997... More cuts are ahead in the U.S. refining and chemical sectors. Koch Industries' Koch Refining unit is implementing a 2-year restructuring/upgrading program at its Corpus Christi, Tex., and Rosemount. Minn., refineries to improve...

MMS has revised its proposed crude oil valuation rule to make it friendlier for small producers who must calculate royalties owed the federal government. (U.S. Minerals Management Service)(Brief Article)
July 14, 1997... MMS has revised its proposed crude oil valuation rule to make it friendlier for small producers who must calculate royalties owed the federal government (OGJ, June 30, 1997, p. 25). Revisions broaden eligibility of using arm's-length...

Operating in part of Wyoming could get tougher - if not impossible. (Bureau of Land Management)(Brief Article)
July 14, 1997... Operating in part of Wyoming could get tougher -- if not impossible. Numerous oil and gas companies and the Petroleum Association of Wyoming remain at odds with BLM over air quality restrictions associated with gas development in the...

Natural Gas Supply Association's preliminary gas deliverability survey indicates U.S. production capacity utilization rose 1 percentage point to 95.1% in 1996.(Brief Article)
July 14, 1997... Natural Gas Supply Association's preliminary gas deliverability survey indicates U.S. production capacity utilization rose 1 percentage point to 95.1% in 1996. It says annual maximum feasible capacity utilization for the 102 producers...

Proliferating Canadian gas pipeline projects (see related story, p.24) are starting to shake out.(Brief Article)
July 14, 1997... Proliferating Canadian gas pipeline projects (see related story, 24) are starting to shake out. Calgary backers of the proposed $550 million (Canadian) Alberta Pipeline Project (APP) have shelved the line because of insufficient producer...

Greenpeace, which says it will expand into Southeast Asia, is still working to stop U.K. Atlantic Frontier developments.(Brief Article)
July 14, 1997... Greenpeace. which says it will expand into Southeast Asia. is still working to stop U.K. Atlantic Frontier developments. After recent protests against BP, Shell, and Conoco over West of Shetland projects, Greenpeace has in recent days held up...

In the U.K., environmental protection accounts for about 3.2-4.9% of capital outlays and 4% of operating costs for offshore oil and gas development. (Smith Rea Energy Analysts)(Brief Article)
July 14, 1997... In the UK., environmental protection accounts for about 3.2-4.9% of capital outlays and 4% of operating costs for offshore oil and gas development. That's the finding of Smith Rea Energy Analysts, Canterbury, which reports environmental...

Britain's recently privatized gas, electricity, telecommunications, and water industries face a review by the new Labour government.(Brief Article)
July 14, 1997... Britain's recently privatized gas, electricity, telecommunications, and water industries face a review by the new Labour government. Officials want to know if they provide value, quality, and choice to consumers. Margaret Beckett, Board...

Japan is pushing for new energy technologies, as officials look to other sectors for tax revenue to pay for environmental protection.(Brief Article)
July 14, 1997... Japan is pushing for new energy technologies, as officials look to other sectors for tax revenue to pay for environmental protection. A new breed of LNG power plant is in the wings. Mitsubishi Heavy Industries attained the world's highest...

The MMS royalty proposal. (U.S. Minerals Management Service, oil valuation overhaul for federal royalties)(Editorial)
July 14, 1997... The U.S. Minerals Management Service stretches too far with its proposal to overhaul oil valuation for federal royalties (OGJ, June 30, 1997). Worried by the theoretical ability of producers to delay realization of oil values until after...

Gulf of Mexico subsalt exploration frontier still on learning curve.
July 14, 1997... A tight rig market and the challenges of operating in a geological environment are dampening some of the enthusiasm industry once exhibited in the subsalt play in the Gulf of Mexico. Because of the high costs that can be involved, subsalt...

Poseidon pipeline expands in Gulf of Mexico. (Poseidon Oil Pipeline Co., LLC)
July 14, 1997... More crude oil pipeline infrastructure is planned or has been completed in the Gulf of Mexico to accommodate mounting production. Poseidon Oil Pipeline Co. LLC, which has the capacity to move as much as 400,000 b/d of crude to Gulf Coast...

Two Canadian gas pipelines mark progress. (Alliance Pipeline group, Trans Quebec & Maritimes Pipeline Inc., exports of natural gas, going through regulatory process)(Brief Article)
July 14, 1997... Two export-oriented Canadian natural gas pipeline projects have moved forward in the regulatory process with applications to the National Energy Board. The Calgary-based Alliance Pipeline group filed a bid to build a 1,864-mile line from...

Cleanup continues on downgraded Japan spill. (Tokyo Bay oil spill)
July 14, 1997... Japanese authorities were continuing to contain and clean up a big oil spill in Tokyo Bay last week. It was the second major tanker oil spill off Japan this year -- albeit a fraction of the volume first reported, which would have made it...

Global refining industry on verge of rebound. (oil refining)
July 14, 1997... The global oil refining industry is on the verge of a major rebound after about 15 years in economic doldrums. Capacity closures and rationalizations have driven utilization rates up near the maximum, while planned capacity expansions...

Statoil, Conoco dedicate giant Norweigian methanol plant. (Den norske stats oljeselskap AS)(Brief Article)
July 14, 1997... Norway's Den norske stats oljeselskap AS (Statoil) and Conoco Inc. have dedicated a $1 billion methanol plant at Tjeldbergodden, Norway, providing a customer for about 22 bcf/year of associated gas production from giant Heidrun field off...

U.K. utilities hit by 'windfall' taxation plan. (United Kingdom, utilities privatized under Conservative party)
July 14, 1997... U.K.'s new Labour government has carried out an election promise to impose a "windfall" tax on utilities privatized under the previous Conservative regime. Gordon Brown, Chancellor of the Exchequer, said in his budget speech July 2 that...

Energy czar. (First Deputy Prime Minister Boris Nemtsov, Russia)(Column)
July 14, 1997... Russia's First Deputy Prime Minister Boris Nemtsov is quickly making his mark on Russia's energy sector. President Boris Yeltsin appointed Nemtsov, who looks younger than his 37 years, energy minister last Apr. 24. Yeltsin had...

First progress seen for Russian PSA legislation. (production-sharing agreement, oil and gas)
July 14, 1997... First evidence that Russia is making progress with passage of production-sharing agreement (PSA) legislation appears with news of approval of seven field developments by the lower house of parliament, or Duma. The lower house has...

Georgia awards PSC with downstream aspects. (production-sharing contract)
July 14, 1997... Drilling and development activity and downstream infrastructure stand to advance in the Kura basin of Georgia with that government's award of a production-sharing contract (PSC) that includes rights to construct a new refinery. Georgian...

Calgary firm slates Siberian drilling. (Black Sea Energy Ltd., Tura Petroleum Co.)(Brief Article)
July 14, 1997... Exploratory and development drilling is advancing in western Siberia's Kalchinskoye field area. Black Sea Energy Ltd., Calgary, said three rigs are working on the Tura project, and another five rigs soon will begin drilling for Tura...

W. Africa success spurs UMC to hike outlays. (United Meridian Corp.)
July 14, 1997... Buoyed by its drilling success off West Africa to date, United Meridian Corp., Houston, has increased its 1997 capital operating budget by $50 million to $300 million. The spending hike was prompted by stepped-up activity off Equatorial...

Governments eye gas incentives. (gas development incentives)(Brief Article)
July 14, 1997... Attractive fiscal and contract terms by host governments are creating incentives for natural gas development projects that exploration and production companies might have avoided in the past. That's a key finding of Geneva-based...

Bangladesh is buzzing. (gas and oil exploration activity)(Watching the World)(Column)(Brief Article)
July 14, 1997... On July 15, bidding will close in the second exploration licensing round organized by the government of Bangladesh and state petroleum company Petrobangla. After a long period of political volatility, which made the country a no-go area...

Correction. (June 9, 1997 issue)(incorrect chart, Canadian wells are red bars and US wells are blue bars)(Brief Article)(Illustration)
July 14, 1997... A chart incorrectly reversed data on U.S. and Canadian well depths (OGJ, June 9, 1997, p. 21). The depths denoted by the red bars should be Canadian wells, and the blue bars represent U.S. wells,