The Oil and Gas Journal articles from March 1999

The Oil and Gas Journal archives from March 1999

Newsletter.
March 1, 1999... Energy companies are continuing to refocus, restructure, and retrench as they seek shelter from an extended period of depressed demand and low prices (see stories, pp. 23, 27). Royal Dutch/Shell has announced plans to shed some of its...

Letters.
March 1, 1999... Laherrere and Hubbert Regarding "World oil supply--what goes up must come down, but when will it peak?" (OGJ, Feb. 1, 1999, p. 57), the topics in Jean H. Laherrere's article are timely and important. The article, however, contains two...

Publishing technology and boat anchors.
March 1, 1999... When my wife's 95-year old grandmother died not long ago, we had to help clean out her house so it could be sold. Inside, the relatives dug through mounds of artifacts and photographs of almost 100 years. But nothing much was being...

Attention to oil supply.
March 1, 1999... Attention of the world oil industry fixes on supply this month as the Organization of Petroleum Exporting Countries meets to argue about cutting production. Yet output of crude oil everywhere else in the world is more interesting. Non-OPEC...

Nippon-Mitsubishi merger speeds overhaul of Japanese refining-marketing industry.
March 1, 1999... The restructuring of Japan's refining-marketing industry is gathering speed. The catalyst for this fresh momentum is the imminent merger of Nippon Oil Co. Ltd. and Mitsubishi Oil Co. Ltd., Japan's second and sixth largest oil companies,...

Major energy distribution firms plan mergers.
March 1, 1999... Two major planned mergers have been announced that point to accelerating competition and consolidation in the natural gas, power, and energy services sectors. Sempra Energy and KN Energy Inc. have signed a definitive merger agreement that...

Shell, BP trim sails.
March 1, 1999... Royal Dutch/Shell and BP Amoco plc have furled their sails in anticipation that oil prices will stay becalmed at $10-11/bb1, with BP Amoco preparing for further reductions in its crew. Disclosing results for 1998, both blamed dramatically...

Low oil prices squeeze Caspian Sea projects.
March 1, 1999... Investment in Caspian Sea oil and gas projects is likely to be delayed by low oil prices, but the region is still set to become a significant producer. This was the message presented at a London conference on Feb. 18 by Robert Priddle,...

Norway reports massive development project cost overruns.
March 1, 1999... Many of Norway's offshore projects have been completed far over budget in the past 5 years, despite a push by operators to reduce development costs. In September 1998, Norway's Ministry of Petroleum and Energy announced a review of its...

Troll hull arrives amid North Sea start-ups.
March 1, 1999... Norsk Hydro AS has marked progress in the construction of a third platform for installation in Troll oil and gas field in the Norwegian North Sea. The 14,000 metric ton lower hull structure recently arrived from its construction yard in...

BHP's Minerva gas field project marks progress.
March 1, 1999... The proposed $150-200 million (Australian) development of BHP Petroleum Pty. Ltd.'s Minerva natural gas field in the Otway basin off western Victoria has moved a step closer to reality with the publication of the project environmental impact...

Seeking scapegoats.
March 1, 1999... Some U.S. producers think dismal oil prices are partially the result of market manipulation by foreign producers. Oklahoma Gov. Frank Keating recently told the National Governors Association foreign producers are dumping crude "considerably...

Growth slows in independent power market.
March 1, 1999... The international market for independent power projects has grown during the past 12 months, although less so than it would have if not for the Asian financial crisis. This is the conclusion of Hagler Bailly Consulting, Arlington, Va.,...

Ventech Process Equipment Inc.
March 1, 1999... Ventech Process Equipment Inc., Pasadena, Tex., suspended the relocation of its Calgary refinery to Russia due to Russia's current economic crisis. Ventech, which acquired the refinery from Shell Canada Products Ltd. last year, expected to have...

Enron Corp.
March 1, 1999... Enron Corp. let three contracts worth a combined $242 million to units of Kvaerner AS, Oslo, to design, procure, and build liquefied natural gas supply facilities for a power station being built by Dabhol Power Co. on India's west coast. The...

China National Petroleum Corp.(plans natural gas pipeline)(Brief Article)
March 1, 1999... China National Petroleum Corp. (CNPC) plans to build a 503-km, 660-mm natural gas pipeline from Sichuan basin in southern China to Jinzhou, Hubei province, in central China in 1999. The line, with a planned capacity to transport 3 billion...

A consortium.(Westech Energy Corp. and Qest are planning gas pipeline construction)(Brief Article)
March 1, 1999... A consortium comprised of Westech Energy Corp., Denver, and Qest (formerly Enerco New Zealand Ltd.), Auckland, plans to lay a $60 million gas pipeline from Frasertown, New Zealand, near Wairoa, to Napier-Hastings. Start of construction is...

Belgium's Distrigaz SA.(acquires stake in Interconnector (UK) Ltd.)(Brief Article)
March 1, 1999... Belgium's Distrigaz SA and Germany's Ruhrgas AG each acquired from BG plc a 5% interest in Interconnector (U.K.) Ltd., operator of the Interconnector gas pipeline from the U.K. to Belgium. The 5% shares are valued at [pounds]5 million ($8.25...

U.K. Health and Safety Executive.
March 1, 1999... U.K. Health and Safety Executive (HSE) published the results of a study of blast injuries among building occupants caught in vapor cloud explosions. The study, performed by the Defense Evaluation and Research Agency, Porton Down, U.K.,...

Mexico's Comision Reguladora de Energia.(issues permit to Transportadora Industrial de Gas S.A. to supply gas to Mexican power plant )(Brief Article)
March 1, 1999... Mexico's Comision Reguladora de Energia issued a "self-use" natural gas transportation permit to Transportadora Industrial de Gas SA (Tigsa) to supply gas to its Energia de Rio Colorado power plant in Mexico's Sonora state. Tigsa, a combine of...

Mobil Producing Nigeria Unlimited.(to build power plant in Nigeria)(Brief Article)
March 1, 1999... Mobil Producing Nigeria Unlimited plans to build a 350-MW power plant at Bonny, Rivers State, Nigeria. Construction of the plant, estimated to cost $390 million, is expected to last 18 months and begin by mid-1999. The plant will increase the...

Rudgil SA.(contract with Friede & Goldman Ltd. for semisubmersible construction)(Brief Article)
March 1, 1999... Rudgil SA, a unit of Brazil's Schahin Engenharia e Comercio Ltda., let contract to Friede Goldman International Inc. subsidiary Friede & Goldman Ltd., New Orleans, for the design and construction of the deepwater semisubmersible Millennium SA....

Exxon Corp.(unit Esso Production Malaysia Inc. starts oil production offshore Malaysia)(Brief Article)
March 1, 1999... Exxon Corp. unit Esso Production Malaysia Inc. began production from the Tapis E oil platform in 200 ft of water 120 miles off Terengganu, Peninsular Malaysia. Production is expected to reach a peak of 25,000 b/d of oil. Esso is developing the...

Talisman North Sea Ltd.(plans oil exploration in North Sea)
March 1, 1999... Talisman North Sea Ltd. gained approval from the U.K. Department of Trade and Industry for its plan to develop Orion discovery on North Sea Block 30/18e. The find will be developed as a subsea satellite of Talisman's Clyde platform, 16 km away....

Phillips Petroleum Co. U.K. Ltd.(starts oil and gas production in UK North Sea)(Brief Article)
March 1, 1999... Phillips Petroleum Co. U.K. Ltd. began production from Renee field at a rate of 15,000 b/d of oil and 7.5 MMcfd of associated gas. U.K. North Sea Block 15/27 Renee field and nearby Block 15128b Rubie field are being developed jointly with a...

Scimitar Hydrocarbons Corp.(Company Business and Marketing)(Brief Article)
March 1, 1999... Scimitar Hydrocarbons Corp., Calgary, began production at its Issaran oil field in Egypt with the reactivation of two of nine existing wells. Initial production is more than 930 b/d of oil and is expected to stabilize at 650 b/d. More wells...

McMoRan Exploration Co.(Company Business and Marketing)(Brief Article)
March 1, 1999... McMoRan Exploration Co., New Orleans, began production from two Gulf of Mexico wells: Vermilion Block 160 No.4 sidetrack well and Vermilion Block 159 No. 3 well. Combined gross production from the wells is about 53 MMcfd of gas and 1,760 b/d of...

Azerbaijan International Operating Co.(Company Business and Marketing)(Brief Article)
March 1, 1999... Azerbaijan International Operating Co. (AIOC) secured $200 million in loans from both the European Bank for Reconstruction & Development and International Finance Corp. to help fund the early oil project in Chirag field in The Caspian Sea off...

Malaysia's Petronas.(Company Business and Marketing)(Brief Article)
March 1, 1999... Malaysia's Petronas signed an agreement with South Africa's Polifin Ltd. and the Netherlands' DSM Polyethylenes BV to build a 255,000 metric ton/year low-density polyethylene plant at Kertih, Terengganu, on the northeast coast of Peninsular...

Talisman Energy Inc.(Company Business and Marketing)(Brief Article)
March 1, 1999... Talisman Energy Inc., Calgary, reported several major natural gas discoveries in three core operating areas in western Canada. An exploration test in the Monkman area of northeastern British Columbia flowed at a rate of 58 MMcfd. Four wells...

Petrolera Argentina San Jorge SA.(Company Business and Marketing)(Brief Article)
March 1, 1999... Petrolera Argentina San Jorge SA, Buenos Aires, announced an oil discovery on Rio Negro Norte block in Argentina's Neuquen basin. On test, Anticlinal de Maria i flowed 1,264 b/d of 470 gravity oil from Jurassic Lajas at 9,006-9,246 ft and 1786...

MOL Pakistan Oil & Gas Co. BV.(Company Business and Marketing)(Brief Article)
March 1, 1999... MOL Pakistan Oil & Gas Co. BV, a unit of Hungary's MOL Rt., acquired from Austria's OMV AG a farmout on the Khanpur block exploration license in Pakistan, where OMV is operator. OMV unit OMV Pakistan Exploration GmbH has a 75% interest in the...

California Public Utilities Commission.(application from Lodi Gas Storage)(Government Activity)(Brief Article)
March 1, 1999... California Public Utilities Commission will review an application from Western Hub Properties unit Lodi Gas Storage LLC for the development of a natural gas storage field and the building of a natural gas pipeline that would connect it to the...

Nipsco Industries Inc.(will acquire TPC Corp)(Company Business and Marketing)(Brief Article)
March 1, 1999... Nipsco Industries Inc. will acquire PacifiCorp's Houston-based natural gas marketing and storage company, TPC Corp., for $132.5 million, plus a payment for working capital to be determined on the date of closing the deal. The deal is expected...

Weatherford International Inc.(Company Business and Marketing)(Brief Article)
March 1, 1999... Weatherford International Inc., Houston, and GE Capital, Stanford, Conn., formed a joint venture of their compression groups--Weatherford Compression and Global Compression Services Inc. Weatherford will own 64% of the new company, called...

PrimeWest Energy Trust.(Brief Article)
March 1, 1999... PrimeWest Energy Trust, Calgary, increased an offer for Starcor Energy Royalty Fund but will allow a bid for Orion Energy Trust to lapse. PrimeWest earlier offered $200 million (Canadian) for the two trusts, with about $95 million offered for...

Greece.
March 1, 1999... Greece wants to double its imports of Russian natural gas through Bulgaria after 2001. Bulgaria is calling for a three-party agreement among the countries and plans to bolster the capacity of its main line to ensure the delivery of 3 billion cu...

Exxon Chemical Olefins Inc.(Brief Article)
March 1, 1999... Exxon Chemical Olefins Inc. let contract to Jacobs Engineering Ltd. to provide engineering, procurement, and construction for work involving the steam section of the power project at Exxon's Fife ethylene plant at Mossmoran, Scotland. Jacobs...

ATCO Group.(Brief Article)
March 1, 1999... ATCO Group, Calgary, has commissioned a 180-MW cogeneration plant with Boral Energy Resources Ltd., Sydney, at Adelaide in South Australia. The natural gas-fired cogeneration plant-the largest cogeneration facility in Australia-will supply...

Alternative Fuel Systems Inc.(Brief Article)
March 1, 1999... Alternative Fuel Systems Inc., Calgary, signed an agreement with Beijing to study the feasibility of using natural gas vehicles in the city, where smog is a serious environmental problem. Beijing plans to convert its large public transit fleet...

EuroGas Inc.(Brief Article)
March 1, 1999... EuroGas Inc., New York, signed a memorandum of understanding with Erdol-Erdgas Gommern GmbH to build a gas gathering, processing, and transmission system in western Poland. The system will tie together four Polish Oil & Gas Co. (POGC) gas...

Myanmar pipeline project hits major snag.
March 1, 1999... Plans to build an offshore/onshore natural gas pipeline in Myanmar have hit a snag after that country's prime minister ordered the scheme's configuration expanded to what project sponsors view as not commercially viable. Myanmar Premier...

Metal contents in crudes much lower than expected.
March 1, 1999... THE AUTHORS Chris Dekkers is senior policy advisor in the Air & Energy Directorate of the Ministry of Environment, The Netherlands. He is responsible for the development of strategy and policy decisions on industrial air emission...

Real-time geo-pressure analysis reduces drilling costs.
March 1, 1999... THE AUTHORS Eamonn F. Doyle William P. Kenda is the division drilling and completions engineer for Santa Fe Energy Re sources Inc. in Houston. He is responsible for drilling and completion operations far the shelf and deepwater...

Visualization facilitates large volume, complex 3D seismic interpretation.(Brief Article)
March 1, 1999... A new visualization center in Houston allows explorationists to view and manipulate massive amounts of 3D seismic data, covering large geographic regions. Veritas DGC Inc. opened the center in December 1998. Veritas expects prestack depth...

BOOKS.
March 1, 1999... Economics and Policy Issues In Climate Change, edited by William D. Nordhaus. Published by Resources for the Future, 1616 P Street NW, Washington, DC 20036. 336 pp., $45. An extensive report by the U.N.'s Intergovernmental Panel on Climate...

NELSON-FARRAR COST INDEXES.
March 1, 1999... NELSON-FARRAR COST INDEXES Refinery construction (1946 Basis) (Explained on p. 145 of the Issue of Dec. 30, 1985) Nov....

Guidelines offered for choosing cryogenics or absorption for gas processing.
March 1, 1999... THE AUTHORS Yuv R. Mehra is president and chief operating officer of Advanced Extraction Technologies Inc., Houston, and was previously with the El Paso companies (1978-86) and, Fluor Daniel (1975-78). He holds 27 U.s.. patents and an MS...

East Texas gas plant improves efficiencies with operations analysis.
March 1, 1999... THE AUTHORS Robert E. Dunn is vice-president, gathering and processing, for Union Pacific Fuels Inc., Ft. Worth. From 1995 to 1997, he was general manager, natural-gas processing. From 1982 to 1995, Dunn worked for Union Pacific Resources...

New process control software update.(Brief Article)
March 1, 1999... Version 1.1 is a further development of MSPC+, which is a multivariate statistical process control software package that provides operators and plant management with information required to monitor the process effectively, provide early warning...

Plant model viewer.(ReviewLE)(Brief Article)
March 1, 1999... Review LE, an entry level plant viewing system, brings interactive walk-through of 3D process plant models to the desktop The system allows users to fly through and evaluate process plants created using this firm's plant design management...

Mud pump discharge strainer.
March 1, 1999... A new mud pump discharge strainter is tested and rated at as much as 5,060 psi working pressure. It features compact, lightweight design for ease of handling. It ease of access to strainer cartridges helps provide faster, more frequent...

Managing sonar data.
March 1, 1999... CODA-DA-200 manages large volumes of ocean side scan sonar and shallow seismic data. It features a magneto optical drive option. The image processing system is suited for pipeline inspection, route survey, site survey, dredging survey,...

Titanium capabilities brochure.
March 1, 1999... A free brochure describes this firm's capabilities in titanium, zirconium, clad, and special alloy materials. It features pressure vessels, columns, and heat exchangers. Engineering, design, quick turn around, and field service capabilities are...

Oil evaluation software.(Brief Article)
March 1, 1999... The new Z-BaSIC crude oil distillation simulator evaluates crude by simulating tis ASTM D-2892 and D-l160 distillation behavior. The program botains fraction yields, densities, and composition by type and carbon number through n-[C.sub.21]...

MOVES AND PROMOTIONS.
March 1, 1999... Waukesha Engine Div., Waukesha, Wisc., has named Lloyd S. Beauchamp director-North American sales. Beauchamp will be responsible for original equipment and aftermarket sales for both gas compression and power generation through...

T.H. Russell Co.
March 1, 1999... T.H. Russell Co., Tulsa, Okla., and Maloney Industries, Inc., Calgary, Alberta, Canada, have completed a merger with Applied Process Solutions, Inc. T.H. Russell Co., Maloney Industries, Inc., and Maloney Industries (UK), Ltd., will operate as...

Tuboscope Inc.(acquires WEston Oilfield Engineering Ltd.)
March 1, 1999... Tuboscope Inc., Houston, Tex., has acquired Weston Oilfield Engineering Limited, a provider of engineering, manufacturing and refurbishment services for coiled tubing units and cryogenic equipment used to remediate oil and gas wells. The...

Further growth lies ahead for South Texas Wilcox plays.(natural gas )
March 1, 1999... Ultimate recovery growth modeling by plays in Texas Railroad Commission Dist. 4 (RRC-4) has revealed significant growth for Wilcox natural gas plays. As a whole, major natural gas fields of RRC-4 are experiencing and hold future potential...

Bolivia.(Vintage Petroleum's oil reserves)
March 1, 1999... Vintage Petroleum Inc., Tulsa, Okla., said its Bolivian reserves more than doubled in 1998 to 459 bcfe. Nupuco X-103, a new field discovery on the Chaco concession, cut 108 ft of net pay in Carboniferous San Telmo and flowed 13.5 MMcfd of...

Brazil.
March 1, 1999... Agencia Nacional de Petroleo awarded the first license for a nonexclusive seismic survey off Brazil, a 2D regional well-tie grid in the Santos, Campos, and Espirito Santo basins (see map, OGJ, Jan. 25, 1999, p. 39). The survey will total...

Pakistan.(awards oil and gas field exploration license)
March 1, 1999... The government awarded an exploration license in Tal Block 3370 to a joint venture led by MOL Oil & Gas Co. BV of Hungary, Pakistan Petroleum Co., Oil and Gas Development Co., and government holdings. Tal Block covers 4,644 sq km in Kohat...

California.(Tri-Valley Oil ad Gas Co.'s leases in Kern County)
March 1, 1999... Tri-Valley Oil & Gas Co., Bakersfield, took leases that could lead to deep exploratory drilling in Kern County. The company leased all or part of 26 sq miles between Lost Hills field southeast to 7 miles southwest of Shafter. It hopes to...

Texas.(Collins and Ware Inc. acquires oil and gas properties)
March 1, 1999... South Collins & Ware Inc., Midland, Tex., completed acquisition of South Texas properties on which it sees numerous opportunities for further development and exploration. The acquired reserves total 12.3 million bbl of oil and 223.3...

OGJ CRACK SPREAD.
March 1, 1999... OGJ CRACK SPREAD [2-19-99.sup.*] [2-20-98.sup.*] Change % $/bbl Change SPOT PRICES Product value 12.50 ...

API CRUDE AND PRODUCTSTOCKS.
March 1, 1999... API CRUDE AND PRODUCT STOCKS Motor gasoline Blending Crude oil Total...

API REFINERY REPORT--FEBRUARY 19,1999.
March 1, 1999... API REFINERY REPORT--FEBRUARY 19, 1999 REFINERY OPERATIONS Total Input refinery Crude to crude Operable % District...

OGJ GASOLINE PRICES.
March 1, 1999... OGJ GASOLINE PRICES Price Pump ex tax [Price.sup.*] ...

REFINED PRODUCT PRICES.
March 1, 1999... REFINED PRODUCT PRICES 2-12-99 ([cent]/gal) Spot market product prices Motor gasoline (Conventional-regular) New York Harbor ...

BAKER HUGHES RIG COUNT.
March 1, 1999... BAKER HUGHES RIG COUNT 2-19-99 2-20-98 Alabama 3 6 Alaska 5 11 Arkansas 4 9 California...

SMITH RIG COUNT.
March 1, 1999... SMITH RIG COUNT 2-19-99 2-20-98 Proposed depth Rig % Rig % (ft) count [footage.sup.*] count [footage.sup.*] ...

OGJ PRODUCTION REPORT.
March 1, 1999... OGJ PRODUCTION REPORT [2-19-99.sup.*] [2-20-98.sup.+] (1,000 b/d) (Crude oil and lease condensate) Alabama ...

U.S. CRUDE PRICES.
March 1, 1999... U.S. CRUDE PRICES [($/bbl).sup.*] 2-10-99 Alaska-North Slope 27[degrees] 5.03 Southern Louisiana Light 10.25 California-Kern River 13[degrees] 7.00 Lost Hills...

WORLD CRUDE PRICES.
March 1, 1999... WORLD CRUDE PRICES [($/bbl).sup.*] 2-12-99 United Kingdom-Brent 38[degrees] 10.06 Russia-Urals 32[degrees] 8.96 Saudi light 34[degrees] 9.68...

AGA NATURAL GAS [STORAGE.sup.*].
March 1, 1999... AGA NATURAL GAS [STORAGE.sup.*] 2-12-99 2-5-99 Change (bcf) Producing region 625 620 5 Consuming region east 963 1,006 -43 Consuming region...

PACE REFINING MARGINS.
March 1, 1999... PACE REFINING MARGINS Dec. Jan. Feb. Feb. % 1998 1999 1999 1998 Change Change $/bbl U.S. Gulf Coast West Texas Sour ...

U.S. NATURAL GAS BALANCE DEMAN/SUPPLY SCOREBOARD.
March 1, 1999... U.S. NATURAL GAS BALANCE DEMAN/SUPPLY SCOREBOARD Nov. Total YTD Nov. Oct. Nov. change YTD ...

WORLDWIDE NGL PRODUCTION.
March 1, 1999... WORLDWIDE NGL PRODUCTION 11 month Chg. vs. average previous Nov. Oct. Production ...

OXYGENATES.
March 1, 1999... OXYGENATES Dec. Nov. YTD YTD 1998 1998 Change 1998 1997 Change 1,000 bbl Fuel ethanol Production 3,105 2,912 193 33,028...

U.S. HEATING DEGREE [DAYS.sup.*].
March 1, 1999... U.S. HEATING DEGREE [DAYS.sup.*] 1998 % change Total degree days Dec. Dec. from July 1 through Dec....

U.S. INDUSTRY SCOREBOARD 3/1.
March 1, 1999... U.S. INDUSTRY SCOREBOARD 3/1 4 wk. 4 wk. avg. % Year-to-date Latest week 2/19 average year [ago.sup.*] change [average.sup.*] Demand (1,000 bid) Motor gasoline...

Newsletter.
March 8, 1999... A brief boost in oil prices was expected to subside at presstime, as news broke that an Iraqi oil export pipeline, briefly shut down as a result of a U.S. air strike, was restored to its full 1 million b/d capacity. The U.S. is stepping up...

U.S. INDUSTRY SCOREBOARD3/8.
March 8, 1999... U.S. INDUSTRY SCOREBOARD3/8 4 wk. 4 wk. avg. % Year-to-date Latest week 2/26 average year ago [*] change average [*] Demand (1,000 b/d) Motor gasoline 7,881...

LETTERS.
March 8, 1999... Crucial aspect I would like to bring to the attention of the Oil & Gas Journal's readers an aspect of the current oil price that is rarely, if ever, mentioned in any of the published information on this subject. This crucial aspect is, in...