The Oil and Gas Journal articles from July 1998

The Oil and Gas Journal archives from July 1998

Newsletter.uly 6/y'98/?n27
July 6, 1998... OPEC's production cuts, pledged at the Vienna meeting last month (OGJ, June 29, 1998, p. 28), are starting to materialize. That meeting yielded promises of cuts for 1 year totaling 1.355 million b/d, in addition to cuts totaling 1.245 million...

U.S. INDUSTRY SCOREBOARD 7/6.(Illustration)
July 6, 1998... U.S. INDUSTRY SCOREBOARD 7/6 4 wk. 4 wk. avg. % Latest week 6/26 average year [ago.sup.*] change Demand (1,000 b/d) Motor gasoline 8,300 8,250 0.6...

Multilateral linguistics.(multilateral oil wells)
July 6, 1998... It's amazing how fast new language develops in the petroleum industry. A case in point is the terminology used to describe the interacting elements within a multilateral well. With the complexity of this technology evolving to the point where...

Why OPEC cuts will work.
July 6, 1998... Key members of the Organization of Petroleum Exporting Countries will succeed where they have failed before. They will make enough of the production cuts they promised in Vienna this month to return benchmark crude prices to levels they find...

Potential boom taking shape in developing Northeast Asian natural gas supply network.
July 6, 1998... Arlon R. Tussing is professor of economics at the University of Alaska Anchorage with which he has been associated since 1965. He is also president Of ARTA Inc., an economic consulting firm based in Seattle, which specializes in oil and gas...

Price fall, Saudi row follow OPEC meeting.
July 6, 1998... The crucial June 24 meeting of Organization of Petroleum Exporting Countries (OPEC) oil ministers has been followed by a fall in crude oil prices and Saudi criticism of fellow members. The fall in prices was expected, as the market is still...

OPEC'S deal is 1986 revisited.
July 6, 1998... The recent fall in oil prices has not been viewed as a crisis, unlike 1986. This lack of panic must to some extent be attributable to deja vu. Organization of Petroleum Exporting Countries ministers met last month, as in 1986, to set production...

Japan marketers to swap supplies.(Nippon Oil Co. and Japan Energy Corp.)
July 6, 1998... Nippon Oil Co and Japan Energy Corp. expect to save a combined [yen]400 million/year on distribution costs through a cross-supply agreement to take effect in October. Nippon Oil will supply Japan Energy service stations on the northern island...

Process industry registers fieldbus devices.
July 6, 1998... Process control equipment manufacturers have registered seven fieldbus devices with the Fieldbus Foundation. The move--the first official registration of fieldbus instruments--augurs a new era of standardized process control communications....

U.K. refinery closure has little effect.
July 6, 1998... Last month's decision by Shell U.K. Ltd. to close its Shell Haven refinery in Essex, U.K., is likely to have little effect on the U.K. refining industry. This is the view of Wood Mackenzie Consultants Ltd., Edinburgh, which noted that the...

U.K. plans gas curbs after energy review.
July 6, 1998... The U.K. government has drawn preliminary conclusions after a review of energy sources for power generation and plans to crack down on gas-fired schemes. The Department of Trade & Industry (DTI) said that interested parties have until July 20...

Asian crisis dampened by falling oil prices.
July 6, 1998... Historically, Asian economies in the aggregate have been relatively insensitive to changes in oil prices, but the recent fall in currency values in some key Asian countries is partly counterbalancing the effects of falling oil prices. This is...

Devon Energy to acquire Canada's Northstar.
July 6, 1998... Devon Energy Corp., Oklahoma City, has agreed to acquire Northstar Energy Corp., Calgary, in a $1.3 billion (Canadian) stock and debt assumption merger offer. The new company, with 47% of its reserves in Canada and 53% in the U.S., would have...

TransCanada, Nova shareholders okay merger.
July 6, 1998... Shareholders of TransCanada Pipelines Ltd. and Nova Corp., both of Calgary, have voted almost unanimously to merge the companies. The merged company, with assets of $21 billion (Canadian) and revenues of $15.6 billion, will be the fourth...

Amoco group plans Turkmenistan-Turkey gas line.
July 6, 1998... A group led by Amoco Corp. plans to develop a $2.4 billion. 750-mile pipeline project to transport natural gas from Turkmenistan to markets in Turkey and Europe. Construction time is put at 3 years. The group consists of Amoco and a new...

Congress approves one-call legislation.
July 6, 1998... The U.S. Congress has passed a broad transportation appropriations bill that will facilitate a national "one-call" system for locating underground utilities, including oil and gas pipelines. The U.S. pipeline industry has been working for...

Mexican natural gas pipeline action continues to heat up.
July 6, 1998... Three groups have been shortlisted in the bidding process for the hotly contested rights to distribute natural gas in Mexico City and Valle Cuautitlan-Texcoco. Meanwhile, units of Petroleos Mexicanos and El Paso Energy Corp. have agreed in...

Cantarell megaproject logs milestones.
July 6, 1998... In a major step toward securing financing for Mexico's keystone upstream project, expanded development of the Cantarell oil field complex in the Bay of Campeche, Japan's Export-Import Bank has approved a $1 birnon dollar untied loan to Mexico's...

Another major natural gas line slated for U.S. Midwest.
July 6, 1998... Four U.S. natural gas companies plan to develop yet another major pipeline to deliver gas to markets in the U.S. Midwest. Latest to join the lineup of projects aimed at bringing gas from Western Canada and major U.S. supply basins to the U.S....

DOE to fund eight EOR research projects.(Dept of Energy, enhanced oil recovery)
July 6, 1998... The U.S. Department of Energy has awarded partial funding for eight research projects that will seek to develop technologies to improve secondary recovery. DOE said many U.S. oil fields are in danger of being abandoned even though they retain...

EuroGas Inc.
July 6, 1998... EuroGas Inc. and Makyivs'ke Girs'ke Tovarytstvo, a privately held Ukrainian company, formed a 50-50 joint venture--Eurodongas--to explore and develop coalbed methane gas (CBM) in the Donez coal basin in eastern Ukraine. Eurodongas plans to drill...

Two ARCO units.
July 6, 1998... Two ARCO units and China United Coalbed Methane Corp. (Cucmc) signed production-sharing contracts authorizing ARCO to evaluate commercial potential of three coalbed methane prospects in China's Shaanxi Province. The concessions cover 1,930 sq...

Apache Corp.
July 6, 1998... Apache Corp. and Oryx Energy Co. formed an alliance with Cinergy Corp., Cincinnati, following the latter's purchase of Producers Energy Marketing LLC (ProEnergy) from Apache and Oryx. Under the terms of the alliance, Cinergy will continue to...

Amoco Corp.
July 6, 1998... Amoco Corp. agreed to develop several gas fields in the In Amenas area of southern Algeria with state-owned oil and gas company Sonatrach. Amoco and Sonatrach will drill additional wells in the fields, build the pipeline infrastructure, and...

Ringer Oil Ltd.,.
July 6, 1998... Ringer Oil Ltd., Calgary, reported start-up of oil production from Kiame field on Block 4 off Angola at a rate of 7,000 bid. Kiame field proven reserves are estimated at 8.5 million bbl. The field was developed with two horizontal sub-sea wells...

Pennzoil Venezuela Corp. SA.
July 6, 1998... Pennzoil Venezuela Corp. SA was to begin operating B2X-68/79 and B2X70/80 blocks in Venezuela on July 1. Pennzoil and partners acquired the blocks in Venezuela's third marginal fields bidding round in 1997. The blocks are in eastern Lake...

Australian Geological Survey Organization.
July 6, 1998... Australian Geological Survey Organization (AGSO) reported a large gas hydrates resource beneath the Tasman Sea between Australia and New Caledonia. Seismic analysis indicated deposits on the eastern edge of the Lord Howe rise 800 km northeast of...

Petroplus International Inc.,.
July 6, 1998... Petroplus International Inc., Rotterdam, is negotiating with Chevron UK Ltd. to purchase its Gulf Oil Refining Ltd. unit, with an option to buy the refinery process units and equipment associated with the 115,000 b/d refinery near Milford Haven,...

Nippon Petroleum Refining Co.
July 6, 1998... Nippon Petroleum Refining Co. let contract to UOP, Des Plaines, III to improve profitability of the company's 385,000 b/d refinery in Negishi, Japan. UOP will conduct surveys of process operations, utility usage, and equipment reliability.

Occidental Petroleum Corp.
July 6, 1998... Occidental Petroleum Corp. and Geon Co. signed a nonbinding letter of intent to combine their polyvinyl chloride (PVC) businesses in a joint venture owned 76% by Oxy unit OxyChem and 24% by Geon. The companies expect the alliance to cut costs by...

ARCO Chemical Technology IP.
July 6, 1998... ARCO Chemical Technology IP agreed to license its Superflex technology to M.W. Kellogg Technology Co., a unit of M.W. Kellogg Co., for enhancing propylene production from low-value olefins plant and refinery streams. ARCO's patented process uses...

BP Chemicals Ltd.
July 6, 1998... BP Chemicals Ltd. is studying options to expand ethyl acetate production capacity in Europe. BP produces 145,000 metric tons/year at Hull, U.K., and 55,000 tons/year under an agreement with Enichem SpA to use its Porto Marghera plant in Italy....

Williams Cos.,.
July 6, 1998... Williams Cos., Amoco Oil Co., and Enterprise Products Operating LP signed a letter of intent to form Wilprise Pipeline Co. LLC, a joint venture that plans to build a 30-mile, 12-in., 100,000 b/d pipeline that will deliver natural gas liquids from...

U.S. Transportation Department's.
July 6, 1998... U.S. Transportation Department's Research and Special Programs Administration scheduled public workshops to brief the industry, states, and public on a national pipeline mapping system. The workshops will be held July 14-15 in Houston, Sept. 12...

Union Texas Pakistan Inc.,.
July 6, 1998... Union Texas Pakistan Inc., Occidental Petroleum (Pakistan) Inc., and Pakistan's state-owned Oil & Gas Development Co. Ltd.(OGDC) reported that the Dabhi North No. 1 wildcat on test flowed 2,640 b/d through a 48/64-in, choke with flowing tubing...

Pioneer Natural Resources Co.,.
July 6, 1998... Pioneer Natural Resources Co., Dallas, signed an exploration and production-sharing agreement with Soekor Exploration & Production Pty. Ltd. for Block 9, which covers 3.5 million acres off South Africa in the Bredasdorp basin (OGJ, Feb. 23, 1998,...

Oman.
July 6, 1998... Oman signed a production-sharing agreement with Amoco Oman Gas BV for Blocks 15 and 44 covering 2,555 sq km in northern Oman. Operator Amoco 100% will explore for additional gas reserves on the blocks with production targeted for markets in...

TransCanada PipeLines Ltd.,.
July 6, 1998... TransCanada PipeLines Ltd., Calgary, took a position in the European midstream gas market with the purchase of Occidental Netherlands Inc., a unit of Occidental Petroleum Corp., for $275 million plus future contingent payments based upon price...

Enova Corp.
July 6, 1998... Enova Corp. and Pacific Enterprises Inc., California utility holding companies, completed their $6.2 billion merger creating Sempra Energy, a new San Diego-based energy services holding company (OGJ, Apr. 6,1998, p. 45). The integration of the...

Royalty summit.
July 6, 1998... A tentative July 9 meeting between oil company executives and Interior Department officials could defuse the bitter fight between industry and the Minerals Management Service on royalty policy. About eight CEOs from large, medium, and small oil...

Procedure allows calculation of ideal DRA levels in products line.(drag-reducing agent)
July 6, 1998... James T. Jefferson has been a consultant to, and software developer for, the U.S. pipeline industry since 1974. Previously he was employed by Shell Pipe Line Corp., Bonner & Moore Associates, then Pipe Line Technologies, all of Houston. He holds...

Compositional modeling reduces crude-analysis time, predicts yields.(part 1)
July 6, 1998... Solomon M. Jacob is a licensing executive will Mobil Technology Co. He has more than 31 years of experience in the petroleum industry and has held various management positions within Mobil. Jacob holds a PhD in chemical engineering from North...

NELSON-FARRAR COST INDEXES.(Illustration)
July 6, 1998... NELSON-FARRAR COST INDEXES Refinery construction (1946 Basis) (Explained on p 145 of the issue of Dec 30 1985) 1962 1980 1995 1996 1997 Pumps compressors,...

Flow models predict 40 suitability. (4-dimensional seismic modelling of geophysical reservoirs)
July 6, 1998... THE AUTHOR John R. Fanchi is the owner of Fanchi Enterprises, Houston. His oil and gas industry work revolves around reservoir modeling, both in simulator development and practical reservoir management applications. He will be joining the...

How indexes have changed.
July 6, 1998... Nelson-Farrar indexes for finished steels changed randomly during the period 1994-1997. Generally speaking, the alloy steels changed less than carbon steel products. Alloy bars started the period with an index value of 851.0 and finished at...

Pioneering work, economic factors provide insights into Russian drilling technology.
July 6, 1998... In Russia and America, individual ingenuity and economic forces have produced a variety of drilling technologies, resulting in the development of disparate drilling systems. Endeavors by the U.S. Department of Energy, the Gas Research...

Oil companies underscore importance of geodetic positioning.
July 6, 1998... Martin Rayson is a geodesist and a director of Quality Engineering & Survey Technology Ltd. (Quest). He holds a BS in applied sciences from the University of Kingston (1984), an MS in geophysics and planetary physics from the University of...

Storage tank mixing system.
July 6, 1998... Using jets to maintain or resuspend solids, the JetMix vortex mixing system offers an alternative to conventional mechanical tank mixers. The system is engineered to take advantage of a tank's natural hydraulic characteristics to achieve mixing...

Monitor, notification system.
July 6, 1998... The ADAS DiaLog alarm monitoring and notification system automatically phones or pages as many as 16 numbers from a single or series of alarm conditions. It continues to call, giving user recorded messages, until all alarms are acknowledged,...

Exploration interest high in Peru's Ucayali basin.
July 6, 1998... Peru's Ucayali basin is experiencing so much interest that it ranks as one of South America's busiest exploration areas. Fourteen exploration contracts are in force in the basin. The operators are Shell, Chevron, Phillips, Elf, Anadarko, ARCO,...

Reef mounds indicate timing of hydrocarbon charge off Seychelles.
July 6, 1998... Phillip S. Plummer is the head of resource management for Seychelles National Oil Co. Ltd. He previously worked as a geographical interpreter in exploration ventures for Shell International onshore Oman and Tanzania and off Gabon, as well as in...

New Zealand East Coast gas finds spur seismic.
July 6, 1998... The first hydrocarbon discoveries in New Zealand's nonproducing East Coast basin are giving way to several seismic surveys in the region. Seismic data acquired over onshore PEP 38328 have confirmed the Maimai, Scinde Island, and Haumoana...

Oxy sale creates large Kansas oil producer.
July 6, 1998... MV Energy LLC, Wichita, has become operator of 10% of Kansas crude oil production with purchase of Kansas and Colorado properties from OXY USA Inc. for $74 million. MV Energy is a partnership of Murfin Drilling Co., Vess Oil Corp., both...

Publication.
July 6, 1998... Geological Considerations of Waterflooding: A Workshop, Special Publication 98-3, by Kurt Rottmann, published by Oklahoma Geological Survey, 100 E. Boyd, Room N-131, Norman, 0kla. 730190628. 171 p., $10 plus shipping. This ring binder contains...

Angola.
July 6, 1998... Ranger Oil Ltd., Calgary, started up Kiame field in 465 ft of water on Block 4 on June 21. It stabilized at 7,000 b/d from 8.5 million bbl of reserves in Tertiary Iabe at about 10,500 ft. Two horizontal subsea wells are tied back to the 30,000...

Netherlands.
July 6, 1998... Elf Petroland BV let a contract to Hollandsche Staalbouw Mij. BV to design and build a platform to develop L4 field in 135 ft of water on the Dutch North Sea continental shelf 56 miles northwest of Den Helder. The four pile unit will handle 106...

Nigeria.
July 6, 1998... Chevron Nigeria Ltd. started up Dibi oil and gas field in the western Niger delta, with production scheduled to build to more than 65,000 b/d by 2000. Found in 1995, Dibi uses facilities previously employed in Benin River field. Full...

Nova Scotia.
July 6, 1998... PanCanadian Petroleum Ltd. came up dry with a wildcat on the 80,306-acre Grand Pre Block about 15 miles west of Sable Island. The company subcontracted the Rowan Gorilla 2 rig for the $15 million drilling project on acreage it acquired in May,...

California.
July 6, 1998... Aspen Exploration Corp., Denver, said a well in Denverton Creek field of the Sacramento basin may have cut more than 200 ft of net pay in Cretaceous Bunker, Starkey, McCormick, and Martinez. The 35-1 Emigh in Solano County flowed 5-7 MMcfd of...

New Mexico.
July 6, 1998... Burlington Resources Oil & Gas Co. said two San Juan basin wildcats drilled in 1997 confirmed the presence of reservoir and hydrocarbon sourcing in Pennsylvanian sediments below 11,000 ft. Finding structural or stratigraphic traps is the...

Texas.
July 6, 1998... Panhandle Rosewood Resources Inc., Dallas, staked a wildcat in northeastern Dallam County. Mississippian at 5,700 ft is permitted depth at the 1 Judd, 3 miles west-northwest of Stratford oil and gas field in Sherman County, PI reported....

Wyoming.
July 6, 1998... Tom Brown Inc., Midland, Tex., reported success at one of its first two wells in an exploration program targeting basin centered plays in five formations in the Wind River basin. The 24-32 Tribal Sand Mesa well, 11 miles east of Muddy Ridge and...

PERSONALS.
July 6, 1998... Philip J. Carroll will retire as president and CEO of Shell Oil Co., Houston. Jack F. Little has been nominated to succeed Carroll as president and CEO. Arthur L. Smith has been appointed chairman and CEO of Torch Energy Advisors Inc.,...

DEATHS.(Obituary)
July 6, 1998... Carl Elbert (Doc) Rawlins, 83, retired manager of the materials engineering and testing branch of Phillips Petroleum Co.'s engineering department, died May 12 in Bartlesville, Okla. David L. Cox, 50, secretary and director of American Energy...

API IMPORTS OF CRUDE ANDPRODUCTS.(Illustration)
July 6, 1998... API IMPORTS OF CRUDE ANDPRODUCTS Distrcts 1-4 Distrct 5 6-26 [6-19.sup.*] 6-26 1998 1998 1998 Total...

OGJ CRACK SPREAD.(Illustration)
July 6, 1998... OGJ CRACK SPREAD [6-26-98.sup.*] [6-27-97.sup.*] Change % -----$/bbl----- Change SPOT PRICES Product value 17.54 ...

API CRUDE AND PRODUCTSTOCKS.(Illustration)
July 6, 1998... API CRUDE AND PRODUCTSTOCKS ---Motor gasoline--- Crude oil Total PAD I 17,436 64,127 PAD II ...

API REFINERY REPORT--JUNE26, 1998.(Illustration)
July 6, 1998... API REFINERY REPORT--JUNE26, 1998 REFINERY OPERATIONS Total Input refinery Crude to crude Operable District...

OGJ GASOLINE PRICES.(Illustration)
July 6, 1998... OGJ GASOLINE PRICES Price ex tax 6-24-98 (Approx....

BAKER HUGHES RIG COUNT.(Illustration)
July 6, 1998... BAKER HUGHES RIG COUNT 6-26-98 6-27-97 Alabama 5 1 Alaska 11 12 Arkansas 5 10 California 29 28 Land...

OGJ PRODUCTION REPORT.(Illustration)
July 6, 1998... OGJ PRODUCTION REPORT [6-30-98.sup.*] [6-27-97.sup.+] (Crude oil and lease condensate) Alabama 39 40 Alaska 1,223 1,260...

U.S. CRUDE PRICES.(Illustration)
July 6, 1998... U.S. CRUDE PRICES [($/bbl).sup.*] 6-26-98 Alaska-North Slope 27[degrees] 7.96 Southern Louisiana Light 12.75 California-Kern River 13[degrees] 8.25 Lost Hills...

REFINED PRODUCT PRICES.(Illustration)
July 6, 1998... REFINED PRODUCT PRICES 6-19-98 (?/GAL) Spot market product prices Motor gasoline (Conventional-regular) New York Harbor ...

SMITH RIG COUNT.(Illustration)
July 6, 1998... SMITH RIG COUNT 6-26-98 6-27-97 Prosposed depth Rig $ Rig % (ft) count [footage.sup.*] count [footage.sup.*] 0-2,500 12 16.6 ...

WORLD CRUDE PRICES.(Illustration)
July 6, 1998... WORLD CRUDE PRICES ([$/BBL.sup.*]) 6-19-98 Wilted Kingdom-Brent 38[degrees] 10.90 Russia-Urals 32[degrees] 8.75 Saudi light 34[degrees] 11.13 Dubai Fatech...

AGA NATURAL GAS [STORAGE.sup.*].(Illustration)
July 6, 1998... AGA NATURAL GAS [STORAGE.sup.*] 6-19-98 6-12-98 Charge (bcf) Producing region 623 607 16 Consuming region east 1,028 973 55 Consuming...

PACE REFINING MARGINS.(Illustration)
July 6, 1998... PACE REFINING MARGINS Apr. May June June % 1998 1998 1998 1997 Change change $/bbl U.S. Gulf Coast West Texas Sour ...

U.S. NATURAL GAS BALANCEDEMAND/SUPPLY SCOREBOARD.(Illustration)
July 6, 1998... U.S. NATURAL GAS BALANCEDEMAND/SUPPLY SCOREBOARD Mar. Total Mar. Feb. Mar Change YTD 1998 1998 1997 1998-1997 1998 1997 ...

WORLDWIDE NGL PRODUCTION.(Illustration)
July 6, 1998... WORLDWIDE NGL PRODUCTION 3 month Chg. vs. average previous Mar. Feb. Production year ...

OXYGENATES.(Illustration)
July 6, 1998... OXYGENATES Apr. Mar. YTD YTD 1998 1998 Change 1998 1997 1,000 bbl Change Fuel ethanol Production 2,546 2,663 ...

U.S. HEATING DEGREE[DAYS.sup.*].(Illustration)
July 6, 1998... U.S. HEATING DEGREE[DAYS.sup.*] 1998% change Total degree days Apr. Apr. from July 1 through Apr. 30 ...

Japan marketers to swap supplies
July 6, 1998... Nippon Oil Co and Japan Energy Corp. expect to save a combined [yen]400 million/year on distribution costs through a cross-supply agreement to take effect in October. Nippon Oil will supply Japan Energy service stations on the northern island...

U.K. refinery closure has little effect
July 6, 1998... Last month's decision by Shell U.K. Ltd. to close its Shell Haven refinery in Essex, U.K., is likely to have little effect on the U.K. refining industry. This is the view of Wood Mackenzie Consultants Ltd., Edinburgh, which noted that the...

Devon Energy to acquire Canada's Northstar
July 6, 1998... Devon Energy Corp., Oklahoma City, has agreed to acquire Northstar Energy Corp., Calgary, in a $1.3 billion (Canadian) stock and debt assumption merger offer. The new company, with 47% of its reserves in Canada and 53% in the U.S., would have...