The Oil and Gas Journal articles from July 1999

The Oil and Gas Journal archives from July 1999

Newsletter.(Statistical Data Included)
July 5, 1999... With the benchmark U.S. oil price nearing the $20/bbl mark, the petroleum industry's faith that the price recovery is sustainable is growing. In New York trading, Nymex crude for August delivery closed at $19.29/bb1 on June 30. By...

U.S INDUSTRY SCORBOARD 7/5.(Statistical Data Included)
July 5, 1999... U.S INDUSTRY SCORBOARD 7/5 4 wk 4 wk. avg. % Year-to-date Latest week 6/25 average year ago [*] change average [*] Demand (1,000 b/d) Motor gasoline 8,389...

LETTERS.
July 5, 1999... NRC report misleading? In seeking a validation of its own anti-oxygenate bias, Oil and Gas Journal positions a recent report authored by the National Research Council (NRC) Committee on "The Ozone-Forming Potential of Reformulated...

We get letters.
July 5, 1999... As any faithful reader of this publication is aware, serving our readers is the top editorial mission at Oil & Gas Journal. This function, however, is a two-way street. This is manliest in the many letters to the editor published in the...

The urge to spend.
July 5, 1999... The cycle works like this: * In times of general prosperity, governments accumulate more money from taxes than they need to support existing services. * Politicians spend the surplus and more on new services to curry favor with voters....

China's natural gas industry awakening, poised for growth.(Statistical Data Included)
July 5, 1999... Chris Ellsworth is the manager of the natural gas practice at Energy Security Analysis Inc. (ESAI) in Washington, D.C. With more than 20 years of industry experience as an economist and exploration geologist, he works with domestic and...

India's gas infrastructure plan builds steam.
July 5, 1999... India's plans to create a gas pipeline supply grid are gathering momentum as the result of an announcement by Gas Authority of India Ltd. (GAIL). Following a similar declaration by Houston's Enron Corp., GAIL has said it will lay a gas...

Deepwater exploration heats up off Israel.(Statistical Data Included)
July 5, 1999... Deepwater exploration is heating off Israel, with new licenses awarded amid reports of a significant gas discovery off the hydrocarbon-poor nation. Samedan Mediterranean Sea, a subsidiary of Noble Affiliates Inc., Ardmore, Okla., and its...

Unocal eyes another Thai gas development.
July 5, 1999... Unocal Thailand Ltd. is eyeing development plans after the recent completion of appraisal drilling has further confirmed the commerciality of its Pakarang gas field in the Gulf of Thailand. With the successful drilling of four delineation...

Subsea production market poised to double.
July 5, 1999... The global market for subsea production equipment is expected to double from its 1998 level over the next 5 years, to almost $12 billion in 2003. This is the forecast of Douglas-Westwood Ltd., Canterbury, U.K., which calculates that subsea...

U.K. firm marks progress in coalbed methane.
July 5, 1999... Coalgas (U.K.) Ltd., Mansfield, U.K., has begun gas production from two abandoned coal mines and plans to bring 40 more small coalbed methane (CBM) projects into operation in the next 5 years. The company found a novel way of exploiting...

Exporters refute U.S. dumping claims.
July 5, 1999... Venezuela, Mexico, and Saudi Arabia are protesting allegations levied against them and Iraq that the oil exporters dumped cheap crude oil supplies on the U.S. market, ostensibly resulting in some U.S. oil producers being driven out of business....

The P0G0 mess.
July 5, 1999... The POGO controversy continues to broaden, miring the U.S. Minerals Management Service's effort to promulgate a controversial oil royalty reform regulation. It was disclosed in May that two federal employees might have had a vested...

BP Amoco, ARCO say merger benefits Alaska.
July 5, 1999... BP Amoco plc and ARCO are trying to allay Alaska's fears about their pending merger. Officials from both companies testified at a recent U.S. Senate energy committee oversight hearing that the merger would benefit the state where they are...

Ruhr Oel GmbH.
July 5, 1999... Ruhr Oel GmbH, a joint venture of Veba Oel AG and Petroleos de Venezuela SA, signed a letter of intent to license Neste Engineering Qy's Nexethers etherification process for Ruhr's Gelsen-kirchen, Germany, refinery. Ruhr aims to produce 160,000...

Indian Oil Corp.
July 5, 1999... Indian Oil Corp. (IOC) and Japan's Mitsubishi Corp. signed a memorandum of understanding regarding construction of a $480 million, 500-MW power plant at Salvi, in western India's Gujarat state. Each firm will hold a 26% interest in the project;...

Enron International.
July 5, 1999... Enron International, a unit of Enron Corp., Houston, signed a 20-year power purchase agreement with the Palestine Electric Authority to supply electric power from a planned 136-MW combined-cycle plant in Palestine. Initially, the plant, to be...

Enron Europe Ltd.
July 5, 1999... Enron Europe Ltd. signed a 20-year agreement to supply electric power to the Croatian state utility Hrvatska Flektroprivreda. Enron plans to build a 240-MW combined-cycle, gas-fired plant at Jertovec, north of Zagreb, at a cost of $175 million....

The Oklahoma Supreme Court.
July 5, 1999... The Oklahoma Supreme Court denied Chevron Corp.'s petition for a rehearing of the court's earlier decision that awarded Occidental Petroleum Corp. unit Oxy USA Inc. $742.2 million in a breach-of-contract case (OGJ, Mar. 15, 1999, p. 30)....

Elf Aquitaine.
July 5, 1999... Elf Aquitaine unit Elf Exploration Angola and Angola state oil firm Sonangol made another oil discovery on Block 17 off Angola (see map, OGJ, June 7,1999, p. 33). Elf said the find opens up a new prospective area. On test, Tulipa-1, drilled in...

BHP Petroleum Pty. Ltd.
July 5, 1999... BHP Petroleum Pty. Ltd.disclosed test results for an appraisal well drilled near the Zamzama discovery well on the Dadu license area in southern Pakistan's Sindh province. Zamzama-2 was drilled 3.5 km south of the discovery well to a total...

Petroleum Development Oman.
July 5, 1999... Petroleum Development Oman (PDO) disclosed an oil find in southern Oman that it says may be its most significant discovery in 5 years. Ghafeer-1 flowed more than 6,500 b/d of oil on test and confirms the presence of a major new hydrocarbon...

Qatar's Ras Laftan LNG Co.
July 5, 1999... Qatar's Ras Laftan LNG Co. (Rasgas) began exporting liquefied natural gas from Doha for delivery to the Lake Charles, La., LNG import terminal of CMS Energy Corp., Dearborn, Mich. The shipment of 125,000 Cu m of LNG is the first of two such...

A relief well is planned.
July 5, 1999... A relief well is planned to aid in the control of the Thibodaux 2 natural gas well, about 2 miles southeast of Amelia, La., which blew out and caught fire when lightning struck it June 25. Operator Meridian Resource Corp., Houston, reported the...

U.S. Minerals Management Service.
July 5, 1999... U.S. Minerals Management Service delayed until Aug. 16 a decision on whether to extend the suspension on seven oil companies' 40 leases off the central California coast (OGJ, June 22, 1998, p. 32). MMS suspended the leases in 1993, pending...

Venoco Inc.
July 5, 1999... Venoco Inc.'s Holly platform in the Santa Barbara Channel is back in production after fulfilling regulators' conditions to reduce incidents of gas venting and leaking. The 30-year-old platform, in state waters 20 miles north of Santa Barbara,...

The Hibernia consortium.
July 5, 1999... The Hibernia consortium says it expects to increase production by 20% this fall at its Hibernia field platform off Newfoundland. The project has a production capacity of 150,000 b/d of oil, but that is expected to increase to 180,000 b/d when...

Global Offshore International Ltd.
July 5, 1999... Global Offshore International Ltd., Houston, completed construction of the Banzala A platform and associated pipelines off the Cabinda enclave of Angola for Chevron Corp.'s Cabinda Gulf Oil Co. unit. Banzala field is expected to start...

Canada's National Energy Board.
July 5, 1999... Canada's National Energy Board approved the joint application by Imperial Oil Resources Ltd. and Boston Gas Co. to export natural gas from Sable Island off Nova Scotia to Massachusetts from Nov. 1, 1999, to Mar. 31, 2007 (OGJ, Feb. 8, 1999, p....

An explosion and fire.
July 5, 1999... An explosion and fire that occurred June 23 at Phillips Petroleum's plastics plant at Pasadena, Tex., killed two contract workers, the company said. The explosion took place during maintenance at the Houston chemical complex's Kresin facility....

The Borouge joint venture.(hires Tecnimont to construct polyethylene plant)(Brief Article)
July 5, 1999... The Borouge joint venture of Abu Dhabi National Oil Co. and Borealis AS, Copenhagen, let contract to Tecnimont SpA, Milan, for the construction of two polyethylene plants at Borouge's Ruwais petrochemicals complex in Abu Dhabi. Each plant will...

Optimal Chemicals (Malaysia) Sdn. Bhd.(will have plants built to produce butanol)(Brief Article)
July 5, 1999... Optimal Chemicals (Malaysia) Sdn. Bhd. let contract to the Malayisan unit of Bechtel for the design, procurement, and construction of units to produce butanol and its derivatives at Kerteh, Terengganu, Malaysia. Optimal Chemical is a joint...

Emarati Investor Co.(planning to build formaldehyde plant in Abu Dhabi, United Arab Emirates)(Brief Article)(Statistical Data Included)
July 5, 1999... Emarati Investor Co. (FIG), Abu Dhabi, plans to build a plant to produce formaldehyde and its derivatives in Abu Dhabi's Mussafah industrial area. The plant will have a capacity of 42,000 tons/year of formaldehyde and 57,000 tons/year of urea...

An Alberta court.(Canadian Natural Resources Ltd. awarded Blue Range Resources)(Brief Article)
July 5, 1999... An Alberta court awarded sale of Blue Range Resources Corp., Calgary, to Canadian Natural Resources Ltd. (CNR), Calgary, for $235 million (Canadian). CNR was one of four bidders for Blue Range, which has been operating under court protection...

Tuboscope Inc.(will merge with Newpark Resources Inc.)(Brief Article)
July 5, 1999... Tubascope Inc., Houston, and Newpark Resources Inc., Metairie, La., signed a definitive merger agreement valued at about $1.3 billion. According to the deal-which has been approved by both companies' boards-New-park shareholders 0.65 common...

XCL-China Ltd.(trying to remove Apache China from operating position in Bohai Bay project)(Brief Article)
July 5, 1999... XCL-China Ltd., a unit of XCL Ltd., Lafayette, La., is trying to remove Apache Corp. unit Apache China LOG from its operator position on the Zhao Dong Block project in Bohai Bay (see map, OGJ, Nov. 30,1998, p. 22). As chief reasons for the...

Suez Lyonnaise des Eaux.(to acquire Calgon Corp. and Nalco Chemical Co.)(Brief Article)
July 5, 1999... Suez Lyonnaise des Eaux plans to acquire water treatment service firm Nalco Chemical Co., Naperville, Ill., for about $4.1 billion in cash. Through a tender offer, Suez Lyonnaise will purchase all of Nalco's outstanding common shares. The...

Range Resources Corp.(in joint venture with FirstEnergy Corp.)(Brief Article)
July 5, 1999... Range Resources Corp. and FirstEnergy Corp. signed a 50-50 joint venture agreement to combine their assets in the Appalachian basin. The joint venture will have collective proven reserves of about 450 bcfe, 90% of which will be natural gas and...

Kelley Oil & Gas Corp.(changes name to Contour Energy Co.)(Brief Article)
July 5, 1999... Kelley Oil & Gas Corp., Houston, changed its name to Contour Energy Co.

Gaz de France.(buys UK North Sea block)(Brief Article)
July 5, 1999... Gaz de France (GdF) acquired Ranger Oil Ltd.'s 17.5% share in Block 44/17-A in the U.K. North Sea for 250 million francs. The assets include two undeveloped fields-Errol and McAdam-and ultimately adds to GdF's recent purchases of the adjacent...

A Nigerian pipeline blast.
July 5, 1999... A Nigerian pipeline blast on June 20 killed 15 people who were allegedly attempting to pilfer fuel from state-owned Pipelines & Products Marketing Co.'s Akute-Odo oil pipeline, according to local reports. The victims reportedly vandalized the...

U.S. Federal Energy Regulatory Commission.
July 5, 1999... U.S. Federal Energy Regulatory Commission created a bureau, the Office of Energy Projects, which will issue certificates for gas pipeline and hydroelectric projects. It will include functions formerly exercised by FERG's hydropower licensing...

Giant Industries Inc.
July 5, 1999... Giant Industries Inc., Scottsdale, Ariz., opened a 78,000 bbl product terminal east of Flagstaff, Ariz. The new terminal can load 10,000 b/d of product for distribution. Giant says it has entered into sales contracts with several companies and...

Commission blames Esso for Longford disaster.
July 5, 1999... The royal commission set up to investigate last year's explosion and fire at the Longford gas processing facilities in southeastern Victoria state has laid the bulk of the blame squarely at the door of plant operator Esso Australia Ltd. ...

Pdvsa, Petrobras to form binational company.
July 5, 1999... Petroleos de Venezuela SA and Petroleos Brasileiro SA have signed a letter of intent covering the joint development of downstream and upstream energy projects in Venezuela and Brazil. The accord, signed by Pdvsa Vice-Pres. Hector Ciavaldini...

Aussie refiners grappling with bleak market.
July 5, 1999... Australia's oil refiners are being forced into drastic action by the continuing slump in refining margins in Asian markets. Within a week of each other, Caltex Australia Ltd. and then Mobil Oil Australia Ltd. said that there would have to...

Strategy to survive lubricants turmoil.
July 5, 1999... The lubricants sector has long been considered mature, even staid, but there is growing evidence that major market turmoil is ahead. While lubricants rarely grabs the headlines in the same way as, say, exploration and production, lubes...

BP Amoco, Elf establish two polypropylene JVs.
July 5, 1999... The petrochemicals units of BP Amoco plc and Elf Aquitaine SA have set up two joint ventures in polypropylene, one for manufacturing and marketing in Europe and one for global research and development. Operations JV BP Amoco Chemicals...

Fiber optics, advanced technologies complete ERD producer/injector.
July 5, 1999... THE AUTHORS Russell Miller is a region engineer for Baker Oil Tools in Great Yarmouth, England. He has held a variety of quality assurance, operational, and engineering positions at Baker. Miller hold a degree in mechanical engineering and...

High-torque gear reducer expands turbodrill capabilities.
July 5, 1999... Nikolai D. Derkach is general director of the Research Development Co--Neftegastechnika, in Perm, Russia. He was previously with the Kungur Machine Building plant (1961-1964) as a turbodrill designer and with the Perm branch of Vniibt...

New gasoline-blending unit started at Poland refinery.
July 5, 1999... Andrzej Popkoski is vice-manager of the fuel-production complex at the Petrochemia Plock SA refinery, where he is responsible for the distillation, cracking, and blending complexes. Popkowski has more than 30 years' refining experience. He...

How Nelson-Farrar indexes of chemical costs have changed.
July 5, 1999... The costs of two important chemicals used in crude-oil refining changed very little during the period, 1996-1998, while the costs of three others dropped significantly. The two stable chemicals were hydrofluoric acid, with Nelson-Farrar...

Drainage pierces ANWR in Alaska study scenario.
July 5, 1999... Arlon R. Tussing has been affiliated with the University of Alaska as professor of economics and in other positions since 1965 and is president of ARTA Inc., economic consultants. He has been chief economist of the U.S. Senate Committee on...

Cab mounted radiator helps end plugging problem.
July 5, 1999... A Komatsu crawler tractor working in northern Alberta's oilsands was plagued with radiator plugging until the radiator was relocated to the cab canopy and out of the way of oil and water saturated sand. The design, developed by the maker...

High pressure homogenizers.
July 5, 1999... New high pressure homogenizers and positive displacement pumps for chemical and petrochemical operations help create stable emulsions and dispersions, and help mix, improve chemical reaction processes, and enhance extraction. A full range...

Cooling tower splash till.
July 5, 1999... This new splash fill is designed for use in counterflow and crossflow cooling towers in refinery and petrochemical plant operations. The new Turbosplash PAC has thermal efficiency two times greater than grid fills or other splash fills,...

Power transmission couplings.
July 5, 1999... New Metastream T Series power transmission couplings incorporate an all metal flexible element design. Metastream couplings are suited for a range of uses, from pump and general machinery drives to high speed turbo-machinery. The TSK/TSC...

MOVES AND PROMOTIONS.
July 5, 1999... Baker Petrolite has completed their new $20-million world headquarters in Sugar Land, Tex. Baker Petrolite, a subsidiary of Baker Hughes, provides specialized chemicals to the oil industry to enhance or assist in various industrial...

Arizona-New Mexico [CO.sub.2]-helium deposit detailed.
July 5, 1999... The St. Johns-Springerville area of eastern Arizona and western New Mexico could prove to be a substantial discovery of naturally occurring carbon dioxide. That conclusion is possible if 13 wells still being tested justify construction of a...

Peru.
July 5, 1999... Repsol SA let a $10 million contract to Cie. Generale de Geophysique to acquire 1,000 line km of 2D seismic data on mountainous blocks 34 and 35 in the Ucayali basin (see map, OGJ, July 6, 1998, p. 84). Heliportable equipment will be used.

Arizona.
July 5, 1999... Ridgeway Petroleum Corp., Calgary, was negotiating a letter of intent in late June with a large U.S. corporation for the development of Ridgeway's helium and [CO.sub.2] reserves in Arizona and New Mexico. The company in negotiations, which was...

Texas.
July 5, 1999... Southwest The Exploration Co., San Antonio, said logs indicated that its 1-52E Paloma in the Maverick basin cut 80 ft of Cretaceous Glen Rose reef that appear to be gas productive. It is the firm's ninth consecutive successful well in...

API IMPORTS OF CRUDE AND PRODUCTS.
July 5, 1999... API IMPORTS OF CRUDE AND PRODUCTS Districts 1-4 District 5 Total U.S. 6-25 6-18 [*] 6-25 6-18 [*] 6-25 ...

OGJ CRACK SPREAD.
July 5, 1999... OGJ CRACK SPREAD 6-25-99 [*] 6-26-98 [*] Change % $/bbl change SPOT PRICES Product value 19.79 17.54 2.25 12.8...

API CRUDE AND PRODUCT STOCKS.
July 5, 1999... API CRUDE AND PRODUCT STOCKS Motor gasoline Blending Jet fuels Crude oil Total Comp. [+] Naphtha...

API REFINERY REPORT--JUNE 25, 1999.
July 5, 1999... API REFINERY REPORT--JUNE 25, 1999 REFINERY OPERATIONS Total Input refinery Crude to crude Operable % District ...

OGJ GASLINE PRICES.
July 5, 1999... OGJ GASLINE PRICES (Approx. prices for self-service unleaded gasoline) Price Pump Pump ex tax price [*] price 6-23-99...

BAKER HUGHES RIG COUNT.
July 5, 1999... BAKER HUGHES RIG COUNT 6-25-99 6-26-98 Alabama 4 5 Alaska 4 11 Arkansas 1 5 California 18 29...

OGJ PRODUCTION REPORT.
July 5, 1999... OGJ PRODUCTION REPORT (Crude oil and lease Condensate) 6-25-99 [*] 6-26-98 [+] (1,000 b/d) Alabama 32 37 Alaska 1,100 ...

U.S. CRUDE PRICES.
July 5, 1999... U.S. CRUDE PRICES ($/bbl) [*] 6-25-99 Alaska-North Slope 27[degrees] 9.99 Southern Louisiana Light 16.75 California-Kern River 13[degrees] 11.50 Lost Hills...

REFINED PRODUCT PRICES.
July 5, 1999... REFINED PRODUCT PRICES 6-18-99 ([cent/gal) Spot market product prices Motor gasoline (Conventional-regular) New York Harbor ...

SMITH RIG COUNT.
July 5, 1999... SMITH RIG COUNT 6-25-99 6-26-98 Proposed depth Rig % Rig % (ft) count footage [*] count footage [*] 0-2,500 20 25.0...

WORLD CRUDE PRICES.
July 5, 1999... WORLD CRUDE PRICES ($/bbl) [*] 6-18-99 United Kingdom-Brent 38[degrees] 16.03 Russia-Urals 32[degrees] 14.83 Saudi light 34[degrees] 15.70...

AGA NATURAL GAS STORAGE [*].
July 5, 1999... AGA NATURAL GAS STORAGE [*] 6-18-99 6-11-99 Change (bcf) Producing region 675 651 24 Consuming region east 956 906 50 Consuming region...

PACE REFINING MARGINS.
July 5, 1999... PACE REFINING MARGINS Apr. May June June % 1999 1999 1999 1998 Change change $/bbl U.S. Gulf Coast West Texas Sour ...

U.S. NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD.
July 5, 1999... U.S. NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD Mar. Total YTD Mar. Feb. Mar. change YTD change...

U.S. HEATING DEGREE DAYS [*].
July 5, 1999... U.S. HEATING DEGREE DAYS [*] 1999% change Total degree days Apr. Apr. from July 1 through Apr. 30 ...

WORLDWIDE NGL PRODUCTION.
July 5, 1999... WORLDWIDE NGL PRODUCTION 3 month Chg. va. average previous Mar. Feb. Production ...

OXYGENATES.
July 5, 1999... OXYGENATES Apr. Mar. YTD YTD 1999 1999 Change 1999 1998 Change 1,000 bbl Fuel ethanol Production 2,975 3,163 -188 12,079...

Pivotal Relationship 98 Integrates CERA'S Client Data.
July 5, 1999... The energy industry--particularly the oil and gas sector--is a volatile business. The fundamentals of demand, supply, and price can fluctuate wildly due to a variety of interdependent factors including intense competition, global political...

Microsoft-based Website Database Manages Crude Oil Quality.
July 5, 1999... The volume of crude oil traded in the world is the largest of any commodity. Some $250 billion per year of business is transacted between oil producers and oil refiners. Its price is influence by its refining value, which is determined by its...

Pennzoil Handles Growth.
July 5, 1999... With SAP R/3, Windows NT and SQL Server 7.0 Houston-based Pennzoil Company is a $2.7 billion energy company with three primary business operations-oil and gas exploration and production, manufacturing and marketing of motor oil and other...

E-Commerce Streamlines Vessel Chartering For BP Chemicals.(Company Profile)
July 5, 1999... BP is a major international manufacturer and marketer of a wide range of petrochemicals, intermediates, plastics and specialties. It sells nearly 7 million tonnes of these products each year and has large-scale manufacturing plants throughout...

Energy Monitoring and Control Bring Shell/Texaco Join Venture Big Savings.
July 5, 1999... The Martinez Refining Company (MRC), a division of Equilon Enterprises - a joint venture of Shell and Texaco - is projected to save about $375,000 over a 5-year period on reporting errors alone as a result of implementing its new Microsoft...