The Oil and Gas Journal articles from November 1998

The Oil and Gas Journal archives from November 1998

OGJ Newsletter.
November 30, 1998... Oil markets were hinging little hope on the outcome of last week's OPEC oil ministers' meeting in Vienna, which was under way at presstime. Brent crude futures hit a record low in London trading on Nov. 24--the day before the meeting....

Leveraging data.(Brief Article)
November 30, 1998... The latest computer software and hardware, coupled with real progress in integrating disciplines and information, make possible a far better understanding of an oil or gas reservoir. When followed by proper conclusions and appropriate...

Nigeria and neutrality.
November 30, 1998... Nigeria has stepped onto a long and difficult road toward national legitimacy--with international oil companies shuffling alongside. Its progress will help measure success of the developing role for companies in host-country politics. As...

Petronas growth plans threatened by Asian economic crisis, oil price woes, cash drain.
November 30, 1998... Among the most respected and sophisticated of Asia's state oil concerns, Petroliam Nasional Bhd. (Petronas) has long been seen as one of the few truly integrated oil companies in the region. Over the past decade, Malaysia's state oil...

Independents advance Chinese developments.
November 30, 1998... Two North American independents are marking development progress in oil fields in northeastern China. Sunwing Energy Ltd., Calgary, has completed its first quarter of oil production from Zhaozhou field under a pilot program and is...

Oil price fall threatens Norway development.
November 30, 1998... The continuing slump in oil prices has cast doubts on the likelihood of near-term development of some of Norway's portfolio of discoveries. Wood Mackenzie Consultants Ltd., Edinburgh, notes that several current Norwegian developments,...

Growing use of floating production units seen.
November 30, 1998... Offshore operators are considering using floating producing systems (FPSs) in 135 potential developments expected to come forward worldwide over the next 5 years. John Westwood, partner at Douglas-Westwood Associates, Canterbury, U.K.,...

U.K. firm unveils new platform design.
November 30, 1998... Arup Energy, the offshore engineering unit of Over Arup & Partners, London, has unveiled a low-cost "self-installing" oil production platform concept. The design comes in five different versions for water depths up to 110 m and comprises...

Strong growth seen in offshore oil prodution.
November 30, 1998... Worldwide offshore oil production is expected to rise by about 17% to 1.23 billion metric tons (24.6 million b/d) in 2000. The increase to that level averages 4.4%/year during 1998-2000, which is double the growth projected for the oil...

U.S. stocks log biggest 1-month gain since 1990.
November 30, 1998... U.S. crude oil inventories have logged their biggest 1-month gain since 1990, American Petroleum Institute reported. U.S. crude oil inventories jumped 7.4% in October to 343.2 million bbl and were 8.6% higher than the same time a year...

Chevron scaling back Point Arguello amid exit.
November 30, 1998... Saddled with an unprofitable onshore oil and gas processing plant and declining oil production, Chevron Corp. is scaling back its Point Arguello project in California's Santa Barbara Channel to process oil on platforms offshore and reinject...

DOE funds more oil recovery research work.
November 30, 1998... The U.S. Department of Energy will fund research projects at six universities to improve oil recovery technologies. DOE's Office of Fossil Energy will provide $5.5 million in funding and the universities $2.2 million. Projects will last...

DOE project eyes San Juan basin.
November 30, 1998... The U.S. Department of Energy has awarded a $1.5 million contract to the New Mexico Institute of Mining and Technology at Socorro to determine the best way to boost San Juan basin gas production. DOE said that natural fracturing can cause...

DOE widens gas recovery project to Gull of Mexico.
November 30, 1998... The U.S. Department of Energy has expanded a southern Texas gas recovery program to include the northern Gulf of Mexico. DOE and the University of Texas' Bureau of Economic Geology (BEG) at Austin will join with gas producers in a $9...

Central gulf sale set for Mar. 17.
November 30, 1998... The U.S. Minerals Management Service has scheduled a central Gulf of Mexico lease sale for Mar. 17 in New Orleans. Sale 172 will offer 3,758 blocks covering 20.13 million acres 32-00 miles off Louisiana, Mississippi, and Alabama. MMS...

Nigerian focus.(Brief Article)
November 30, 1998... Petroleum-rich Nigeria is facing its worst domestic crisis since the Biafran civil war of the late 1960s, with serious consequences for the U.S. Paul Michael Wihbey of the Institute for Advanced Strategic and Political Studies,...

Petrobras unit to explore block off Cuba.
November 30, 1998... The international upstream arm of Brazil's state oil company has signed a contract with Cuba's state oil company covering exploration off the island nation. Petroleo Brasileiro SA (Petrobras), through its international subsidiary...

Second NW Shelf line postponed.
November 30, 1998... Australia's North West Shelf Project (NWSP) partners have delayed building a second offshore gas pipeline to shore after downgrading forecasts for Western Australia's gas market. Meantime, a "make-or-break" window is approaching for...

Oil Industry's cost dilemma.
November 30, 1998... A confession is in order: Although the concept of outsourcing has been explained to me many times, I have never been fully convinced of its logic. Somewhere in the explanation there has always been a justification of outsourcing along...

Amoco Power Resources Corp.
November 30, 1998... Amoco Power Resources Corp., Amoco Canada Petroleum Co. Ltd., and CU Power International Ltd. commissioned an 84-MW cogeneration facility at Amoco's Primrose heavy oil operation 186 miles northeast of Edmonton. Total capital cost of the...

Elk Point Resources Inc.
November 30, 1998... Elk Point Resources Inc., Calgary, said East Lost Hills Bellevue 1 well, 45 miles northwest of Bakersfield, Calif., blew out Nov. 23. Boots and Coots Inc., Houston, arrived on the scene early Nov. 24 to bring the well under control. At...

Syria's Petroleum Ministry.
November 30, 1998... Syria's Petroleum Ministry signed a gas development service contract with equal partners Elf Aquitaine and Conoco Inc. The firms will spend $430 million to utilize associated gas now flared in the Deir ez Zor area and to develop Elf's Tabiyeh...

Hungary's MOL.
November 30, 1998... Hungary's MOL capped a 3-day carbon dioxide leak on Nov. 17 at an oil well at Nagylengyel in Zala county, western Hungary. The leak, from 6,900 ft at -22[degrees] F. at 224 bar, was mainly [CO.sub.2] with some hydrogen sulfide. A total volume...

CEP International Petroleum.
November 30, 1998... CEP International Petroleum, Calgary, completed a participation agreement with Kamchatgasprom to drill two wells on a 200 sq km license area on the Kamchatka Peninsula of far eastern Russia. Under terms of the agreement, CEP will earn a 75%...

Statoil.
November 30, 1998... Statoil reported that bad weather prevented the installation of a production platform in Sin field off Denmark, which will prolong the start of production until early 1999. Statoil intended to begin producing Sin oil in November. The...

Ramco Energy plc.
November 30, 1998... Ramco Energy plc, Aberdeen, received consent from Azerbaijan to rehabilitate onshore Muradkhanli field. The production-sharing agreement gives Ramco a 50% interest and operatorship of the project, with State Oil Co. of the Azerbaijan Republic...

Norsk Hydro AS.
November 30, 1998... Norsk Hydro AS agreed to pay Umoe Oil & Gas AS, Haugesund, Norway, an additional 480 million kroner to complete Visund platform and an additional 610 million kroner to complete Troll C platform. This will take total costs to build the Visund...

Qatar General Petroleum Co.
November 30, 1998... Qatar General Petroleum Co. unit National Oil Distribution Co. (Nodco) secured about $510 million in financing from a banking group led by Barclay's of the U.K. for the expansion and modernization of its 57,500 b/d refinery at Umm Said,...

U.S. Environmental Protection Agency.
November 30, 1998... U.S. Environmental Protection Agency said Balko Inc., Conrad, Mont., and its president, John Balkenbush III, were indicted in U.S. District Court at Great Falls, Mont., for allegedly injecting production wastes into abandoned wells without...

Mobil North Sea Ltd.
November 30, 1998... Mobil North Sea Ltd. sold U.K. North Sea assets with combined net reserves of 11 million boe to Canada's Bow Valley Energy Ltd. unit Bow Valley Petroleum (U.K.) Ltd. The assets include a 20% interest in Northwest Hutton field, an 0.5% stake...

BHP Petroleum Pty. Ltd.
November 30, 1998... BHP Petroleum Pty. Ltd. sold its U.K. southern North Sea exploration and production assets to electricity and gas utility Eastern Group plc, lpswich, U.K., for [pounds]100 million. The deal included BHP's 18% and 30.11% respective interests...

Houston Exploration Co.
November 30, 1998... Houston Exploration Co., Houston, plans to acquire certain producing assets off Texas from Chevron USA Inc. for $85.28 million. The assets include 100% working interests in three adjacent lease blocks totaling 17,280 net acres in the Mustang...

Finland's Fortum Corp.
November 30, 1998... Finland's Fortum Corp., created by the merger of state petroleum firm Neste Oy and power utility Imatran Voima Oy (OGJ, Dec. 29, 1997, p. 23), is being floated through an institutional share offering that opened Nov. 23. A total of 160...

Malaysian state firm Petronas.
November 30, 1998... Malaysian state firm Petronas signed a 1-year crude oil supply contract with Indonesia's Pertamina, to begin Jan. 1, 1999. Petronas will supply Pertamina with 20,000 b/d of Malaysian oil, with Pertamina having the option to receive an...

Maxus Bolivia Inc.
November 30, 1998... Maxus Bolivia Inc., a unit of Argentina's YPF SA, successfully tested the Margarita 1-X exploration well in southern Bolivia, said license partner BG Exploration & Production Ltd. The well lies on Caipipendi block in the foothills of the...

UOP LLC.
November 30, 1998... UOP LLC, Des Plaines, Ill., gained exclusive rights to sell Tokyo-based Toray Industries Inc.'s TAC-9 process and catalyst outside of Japan and South Korea. The process uses an advanced catalyst to produce a high yield of mixed xylenes from a...

Shell Petroleum Development Co. of Nigeria Ltd.
November 30, 1998... Shell Petroleum Development Co. of Nigeria Ltd. let a $43 million contract to Bouygues Offshore for engineering, procurement, installation, and start-up of a gas pipeline system in the Niger Delta region, between Ekulama field and the Soku...

British Columbia Ministry of Energy and Mines.
November 30, 1998... British Columbia Ministry of Energy and Mines granted Unocal Canada Ltd. the right to increase maximum storage capacity at Aitken Creek natural gas storage reservoir. Unocal initially will increase working capacity by 20%, to 48 bcf, by...

Centrica plc.
November 30, 1998... Centrica plc signed an agreement with South Coast Power Ltd., a joint venture of electricity utility Scottish Power and CSW International, to provide gas for a power station to be built near Brighton, U.K. The 400-MW combined-cycle, gas-fired...

FROM G&G To S&S: WATERSHED CHANGES IN EXPLORATION-DEVELOPMENT WORK FLOW.(geologic and geophysical, stratigraphy and structure)
November 30, 1998... THE AUTHOR Steven Tobias founded Energy Outpost Co. in 1996 after leaving his position as international exploration manager at Pogo Producing Co. Energy Outpost performs work flow design and implementation services for a wide range of...

QUANTITATIVE TOOLS LINK PORTFOLIO MANAGEMENT WITH USE OF TECHNOLOGY.
November 30, 1998... THE AUTHORS Roger N. Anderson is executive director of Columbia University's Energy Research Center. He was a founder and sits on the board of directors of Bell Gespace Inc. Albert Boulanger is chief information officer of Columbia...

MANAGING E&P ASSETS FROM A PORTFOLIO PERSPECTIVE.(exploration and production)
November 30, 1998... THE AUTHORS John I, Howell III is chief Executive officer of Portfolio Decisions Inc. and was formerly at Shell Oil Co. for 21 years. Roger N. Anderson is executive director of Columbia University's Energy Research Center and was a...

COLLABORATIVE EFFORT SEEKS COMPUTING PLATFORM FOR SHARED EARTH MODELING.
November 30, 1998... Acoordinated industry project in its formative stages highlights major change looming for the work methods of exploration and production asset teams. The project's core is a concept called shared earth modeling (SEM). Under development...

Tank cleaning system removes sludge on-line.
November 30, 1998... THE AUTHORS Randy Borne is solid and hazardous waste coordinator at BP Oil Co. He is responsible for handling solids processing, SARA reporting, and emergency response at the Alliance Refinery. During his 27 year career, Borne has...

Use of hot taps for gas pipelines can be expanded.
November 30, 1998... THE AUTHORS John Mclligott is the vice-president and general manager of TransCanada Hot Taps, a wholly owned subsidiary of TransCanada Pipelines Services Ltd., Calgary. He Joined TransCanada in 1990 and has worked in the right-of-way...

Chemical company orders new compression equipment.(Dow Chemical Co. contract with Dresser-Rand Co.)
November 30, 1998... DRESSER-RAND CO., OLEAN, N.Y., HAS BEEN AWARDED A CONTRACT TO supply more than $10 million in compression equipment to Dow Chemical Co.'s ethylene plant in Freeport, Tex. This project, according to Dresser-Rand, will revamp three existing...

U. S./Russian alliance to focus on big Siberian field.(Tyumen Oil Co., Halliburton Energy Services alliance)
November 30, 1998... One of Russia's largest and most financially stable oil companies, Tyumen Oil Co., has signed an alliance with Halliburton Energy Services (HES). Aim of the alliance is to optimize and enhance production from four western Siberian fields...

Huge pumpsets headed for Sudanese pipeline.
November 30, 1998... FINAL TESTING TAKES place on a giant pumpset being supplied to the Mugland basin, Sudan oil field by Weir Pumps, Glasgow. The contract, worth about [pounds] million, says Weir, will supply, twelve, 80-ton, high-power crude-oil pumps with...

A first for steel catenary risers.(available for floating projects)
November 30, 1998... New technology is allowing operators to install steel catenary risers (SCR) on floating production systems (FPS). According to Oil States Industries Inc., its FlexJoint technology will accommodate FPS motion. SCRs have previously been...

Hammer UNION pressure transmitter.
November 30, 1998... Here's the PTX 661 Series range of pressure transmitters designed for drilling uses. The device is configured with the WECO wing union fitting with NACE sour gas compatibility. The new transmitters utilize piezoresistive silicon...

Wall thickness gangs.
November 30, 1998... The new Check-line Model Ti-40 ultrasonic gauge measures the wall thickness and extent of corrosion on all metals, ceramics, and most rigid plastics--even when only one side of the material is accessible.The Ti-40's measuring range is 0.040-8...

Industrial PC.
November 30, 1998... The new Diablo series flat panel computer system is designed for Class I, Division 2 uses. Suited for harsh duty in explosion hazard zones, the series also meets the criteria of NEMA 4 and IF 66 for protection from flying particle and...

Multiphase pump.
November 30, 1998... The R&M Tri-Phaze System is a patented, progressing cavity solution for multiphase pumping applications. The system allows all fluids produced at the well site (oil, water, gas, sand) to be transported simultaneously through one pipeline...

MOVES AND PROMOTIONS.
November 30, 1998... Ambar, INC., Houston, Tex., has named F.B. (Bud) Hamilton vice president overseeing Ambar Production Services. Hamilton has 36 years experience with Baker Hughes, Inc. Hamilton recently served as vice president of minerals and...

Advances, needs highlighted for deep U.S. gas drilling.
November 30, 1998... Economics of U.S. deep gas exploration and production have improved significantly the past 3 years, one speaker told Gas Research Institute's Second Deep Gas Forum in Denver in mid-October. Purpose of the 2 day meeting was to discuss the...

Morocco.
November 30, 1998... Vanco Energy Inc., Houston, let a contract to Schlumberger/Geco Prakla for a 1,850 km 2D seismic survey on the Safi Haute Mer reconnaissance permit off Essaouira. The company said the permit, extending from shore into 3,000 m of water,...

Thailand.
November 30, 1998... Pogo Producing Co. said two wells 4.3 miles apart indicate that a large graben system west of existing production in Benchamas field in the Gulf of Thailand will provide for considerable future development. The Benchamas 22 well on the...

Nova Scotia.
November 30, 1998... Canada-Nova Scotia Petroleum Board conditionally accepted bids for two parcels north and northeast of Sable Island. Mobil and Shell combined to bid $3.256 million for 254,500 acre Parcel 1, about 120 km east-northeast of the Banquereau...

California.
November 30, 1998... Benton Oil and Gas Co., Carpinteria, Calif., updated results of its first Molino project exploratory well off Santa Barbara County. The 2199 No. 7 well was drilled to the Gaviota anticline to test four distinct and objective sandstone...

Kansas.
November 30, 1998... Steamflooding could begin in Peru-Sedan field, Chautauqua County. Thermal Gas Production Ltd., an affiliate of U.S. Crude Ltd., Colton, Calif., acquired 960 acres with 33 wells in shallow Pennsylvanian Wayside at about 1,200 ft. The tract...

Tennessee.
November 30, 1998... Tengasco Inc., Knoxville, said it has established deliverability of 20 MMcfd of gas from 14 wells in the Swan Creek field on the Eastern Overthrust Belt in Hancock County. Proved reserves attributed to the wells total 53.4 bcf of gas and...

Utah.
November 30, 1998... Conoco Inc. staked two more remote wildcats in its southern Utah program. The Garfield County locations are the 1-36 Studhorse-State, in 36-33s-7e, projected to 6,393 ft, and the 1-32 Death Hollow-State, in 32-34s-7e, staked for 6,615...

Wyoming.
November 30, 1998... Pennaco Energy Inc., Denver, and CMS Oil & Gas Co. spudded the first of about 40 coalbed methane wells to be drilled by yearend in the Powder River basin. The first well, 4 miles south of Gillette, targeted Cretaceous Fort Union/Anderson...

OGJ GASOLINE PRICES.
November 30, 1998... OGJ GASOLINE PRICES Price Pump ex tax [price.sup.*] ...

REFINED PRODUCT PRICES.
November 30, 1998... REFINED PRODUCT PRICES 11-13-98 ([cent]/gal) Spot market product prices Motor gasoline (Conventional- regular) New York Harbor ...

BAKER HUGHES RIG COUNT.
November 30, 1998... BAKER HUGHES RIG COUNT 11-20-98 11-21-97 Alabama 4 3 Alaska 10 9 Arkansas 1 8 California 25...

SMITH RIG COUNT.
November 30, 1998... SMITH RIG COUNT 11-20-98 11-21-97 Proposed depth (ft)Rig % Rig % (ft) count [footage.sup.*] count [footage.sup.*] ...

OGJ PRODUCTION REPORT.
November 30, 1998... OGJ PRODUCTION REPORT [11-20-98.sup.*] [11-21-97.sup.+] (1,000 bld) (Crude oil and lease condensate) Alabama ...

U.S. CRUDE PRICES.
November 30, 1998... U.S. CRUDE PRICES [($/bbl).sup.*] 11-20-98 Alaska-North Slope 27[degrees] 8.90 Southern Louisiana Light 11.00 California-Kern River 13[degrees] 7.00 Lost Hills...

WORLD CRUDE PRICES.
November 30, 1998... WORLD CRUDE PRICES [($/bbl).sup.*] 11-13-98 United Kingdom-Brent 38[degrees] 11.76 U.S.S.R.-Export blend 32[degrees] 11.16 Saudi light 34[degrees] ...

Newsletter.
November 23, 1998... Are oil markets so depressed that even military action against Iraq would have caused only a temporary spike in oil prices? That's the view of London's Centre for Global Energy Studies (CGES), which says that any price hike from U.S. air...

U.S. INDUSTRY SCOREBOARD 11/23.
November 23, 1998... U.S. INDUSTRY SCOREBOARD 11/23 4 wk. 4 wk. avg. % Year-do-date Latest week 11/13 average year [ago.sup.*] change [average.sup.*] Demand (1,000 b/d) Motor gasoline ...

Gifts for geoscience.
November 23, 1998... Geoscience students and researchers have educational benefits in store as the result of recent donations by the oil industry. British Petroleum Co. plc, now in the process of merging with Amoco Corp., donated its Devine Test Site in...

German taxes and energy.
November 23, 1998... Watch Germany. Europe's industrial leader looks set to sacrifice work to environmentalism. It thus will blaze a trail for similarly inclined governments in Europe and elsewhere. The trail heads nowhere Germans--or anyone else--should...

Fallout from Asian crisis leaves wide range of outcomes possible in outlook for olefins.
November 23, 1998... THE AUTHOR Walter Sedriks is a technical director in the Chemicals & Energy Practice of SRI Consulting (E-mail:wsedrisk@sric.sri.com). In his 20 years at SRI, he has directed both the Process Economics Program and the Petrochemical...

Petrochem margins to bottom in 1999-2000.
November 23, 1998... The global petrochemical industry is expected to hit the low point in its cycle in 1999 and 2000, says Chem Systems Inc., Tarrytown, N.Y. Profit margins for U.S., Asian, and European producers were healthy through mid-1997, supported by...

Benzene demand to continue strong growth.
November 23, 1998... Benzene demand is expected to continue its strong growth during 1998-2003, averaging 3.9%/year and reaching 35.1 million metric tons in 2003 vs. 27.9 million tons in 1997. So says DeWitt & Co. Inc., Houston, citing an impressive growth...

Demand for PVC seen as weathering Asian downturn.
November 23, 1998... Worldwide demand for polyvinyl chloride is expected to grow 4.6%/year during 1996-2002. That growth rate will occur despite the short-term slow growth forecast for 1998-99 resulting from financial and currency crises in Asia, says...

BP slates more expansion at Grangemouth.
November 23, 1998... BP Chemicals Ltd.'s capacity expansion plans involving U.K. plants mark the company's latest efforts to consolidate its position in the European petrochemicals market. BP earlier this month disclosed expansion projects worth a combined...

U.S. signs Kyoto global warming treaty.
November 23, 1998... The U.S. signed the Kyoto global warming treaty Nov. 13, as representatives of 160 nations concluded a second round of negotiations in Buenos Aires. Peter Burleigh, acting U.S. ambassador to the United Nations, signed the pact at the...

Brent crude oil price hits all-time low.(Industry Trend or Event)(Brief Article)
November 23, 1998... The price of Brent crude oil has hit an all-time low, after a week in which the threat of renewed hostility between Iraq and the U.S. brought a brief respite for producers. London's International Petroleum Exchange (IPE) said Brent crude...

EIA sees no respite from low oil prices.(Industry Trend or Event)(Brief Article)
November 23, 1998... The U.S. Energy Information Administration predicts the East Asian economic crisis will continue to affect world oil prices well into the next decade, with prices for 2000 forecast to be as much as $5.50/bbl (1997 dollars) lower than...

Industry squeezes more from data.(Brief Article)
November 23, 1998... Computerized data management has not just replaced paperwork but also has brought operators a way of managing projects through their life cycle. Having realized the potential benefits of using data from preliminary design right through...

U.S. oil and natural gas demand to increase in 1999.
November 23, 1998... U.S. oil demand is expected to rise in 1999, following a modest increase this year. Oil production in the U.S., however, will continue to slide both years as it feels the bite of low oil prices. Natural gas demand in the U.S. will...