The Oil and Gas Journal articles from November 1999

The Oil and Gas Journal archives from November 1999

OGJ Newsletter.
November 1, 1999... Even developed nations with significant oil export revenues will suffer if global climate change treaty targets are to be met, warns OPEC. But developing nations that export oil will suffer the most, with OPEC alone expected to lose $23...

U.S. INDUSTRY SCOREBOARD11/1.
November 1, 1999... U.S. INDUSTRY SCOREBOARD11/1 4 wk. 4 wk. avg. % Year-to-date Latest week 10/22 average year ago [*] change average [*] Demand (1,000 b/d) Motor gasoline 8,866 ...

LETTERS.
November 1, 1999... Nonconformists I enjoyed Mr. Lair's column (OGJ, Oct. 4, 1999, p. 21). It provides me with a segue into commenting on OGJ's use of energy unit abbreviations. "Mw" (megawatt) should be "MW," as "W" is named for James Watt, the Scottish...

Human rights decade.
November 1, 1999... If the 1990s have been the "Decade of the Environment" as far as the petroleum industry is concerned, then the next decade is likely to be the "Decade of Human Rights." Just as the Decade of the Environment kicked off with a low point for...

Gore's drilling ban.
November 1, 1999... In Al Gore's America, it's okay to drill for and produce hydrocarbons from marine locations off Texas, Louisiana, Mississippi, and Alabama, but immoral to do so anywhere else. Al Gore's America is not one that Americans should relish. ...

BP Amoco-ARCO merger hits snags in Alaska; concessions required.(Statistical Data Included)
November 1, 1999... Since BP Amoco PLC announced its planned takeover of ARCO in early April, the company has made few public pronouncements about the deal, which is pending approval by US, Alaskan, and European authorities. The deal values ARCO at $26.8...

TotalFina completes exchange offer for Elf.(Statistical Data Included)
November 1, 1999... TotalFina SA has acquired 95.93% of Elf Aquitaine SA's total capital stock, following the close of its public exchange offer for its long-time rival. Totalfina claims it is the largest firm on the Paris exchange in terms of market...

Samedan unit to develop gas field off Ecuador.(Brief Article)(Statistical Data Included)
November 1, 1999... Energy Development Corp., a unit of Samedan Oil Co., has released details of its development plan for Amistad gas field in the Gulf of Guayaquil off Ecuador. EDC signed a 15-year production-sharing contract with state firm Petro-ecuador...

GTL crux point.
November 1, 1999... One striking fact about the recent megamergers is how gas portfolios seem to grow in importance through the deals. Royal Dutch/Shell created the matrix: huge gas reserves and an array of processes-including LNG, gas-to-liquids (GTL),...

Deepwater Gulf of Mexico production rising.
November 1, 1999... Production of oil and gas from the deepwater areas of the Gulf of Mexico reached an all-time high in 1998, says the US Minerals Management Service. In the last 5 years, Gulf of Mexico oil production from water depths greater than 1,000 ft...

BG farms into Israeli exploration blocks.
November 1, 1999... BG International Ltd. acquired a 50% interest in five exploration tracts in the Mediterranean Sea off Israel through a $10 million farmout deal with current operator Isramco Inc. The tracts cover a total 2,000 sq km and comprise: Med Yavne,...

Shell okays field development off Nigeria.
November 1, 1999... Shell Petroleum Development Co. of Nigeria Ltd. flashed the green light for a $1 billion development of the EA oil and gas field in the Niger Delta. The field lies 90 km south of Warn in shallow water and is one of a number of Nigerian...

Drilling off California hits new roadblocks.
November 1, 1999... Owners of 40 leases off central California are being stymied yet again in their attempts to develop viable plans for tracts that the US Minerals Management Service estimates hold more than 1 billion bbl of oil and 500 bcf of gas. The oil...

Caspian options.
November 1, 1999... A major Caspian Sea oil export pipeline proposal, the Baku-Ceyhan route through Turkey, seems to be making progress at last. BP Amoco PLC recently endorsed the project, according to some unconfirmed press reports (OGJ, Oct. 25, 1999,...

Syntroleum unveils hydrate recovery process.
November 1, 1999... Collecting and recovering methane hydrates--the ice-like solids formed by the entrapment of natural gas molecules in ice at very low temperatures--and doing so economically has long been a major challenge for the oil and gas industry. ...

Texaco, CMS to study W. Australia gas line.
November 1, 1999... Texaco Australia Pty. Ltd. and energy utility group CMS Energy Corp., Dearborn, Mich., have joined forces to study the commercial feasibility of a second gas pipeline along the coast of Western Australia, from Onslow to Geraldton. ...

Thai Oil Co. launches huge debt restructuring.
November 1, 1999... After some delays, key creditors have finally reached a milestone agreement to accept Thai Oil Co.'s $2.25 billion proposed debt-restructuring plan. Representatives of more than 120 creditors of Thailand's largest refiner signed a...

Exxon unit starts up Thai aromatics complex.
November 1, 1999... Esso (Thailand) PLC, an affiliate of Exxon Corp., has started production at its new aromatics complex on Thailand's eastern seaboard. Start-up was 2 months ahead of schedule, arid the first commercial product shipment left the complex in early...

Shell/BASF JV opens Dutch petrochem plant.
November 1, 1999... A joint venture of Shell Nederland Chemie NV and BASF Nederland BV officially opened a new styrene monomer and propylene oxide (SM-PO) plant at Moerdijk, the Netherlands. The two companies hold equal interests in the plant, which was built at a...

Correction.
November 1, 1999... The gas processing section of the World wide Construction Update misidentified the contractor for a 350 MMscfd cryogenic gas plant expansion at the Williams Energy Services facility at Opal, Wyo. (OGJ, Oct. 11, 1999, p. 92). The contractor is...

Saudi Yanbu Petrochemical Co.(Statistical Data Included)
November 1, 1999... Saudi Yanbu Petrochemical Co., a joint venture of Saudi Basic Industries Corp. and Mobil Corp., began start-up of a major expansion project at its complex in Yanbu, Saudi Arabia. The project cost over $2 billion and included new units with...

Exxon Corp.(Statistical Data Included)
November 1, 1999... Exxon Corp. unit Esso Italiana SPA plans to integrate its Augusta refinery in Italy with the neighboring Priolo refinery, owned by Italy's Agip Petroli SPA. The $110 million integration and rationalization project will create a refining complex...

Phillips Petroleum Co.(Statistical Data Included)
November 1, 1999... Phillips Petroleum Co. plans to build a 6,000 b/d semicommercial gasoline desulfurization unit at its Borger, Tex., refinery Construction of the unit, which will use Phillip's novel S Zorb sulfur-removal process, will begin during first quarter...

US District Judge.(Former Natural Gas Supply Association president sentenced for embezzlement.)(Statistical Data Included)
November 1, 1999... US District Judge Emmet Sullivan sentenced Nicholas Bush, former Natural Gas Supply Association president, to 41 months in prison for embezzling more than $3 million from NGSA over 16 years (OGJ) Mar. 1, 1999, Newsletter). Sullivan ordered Bush...

Petrolera Argentina San Jorge.(Statistical Data Included)
November 1, 1999... Petrolera Argentina San Jorge announced an oil discovery on Rio Negro Norte Block in Argentina's Rio Negro province. On test, the El Latigo Este well flowed 3,880 b/d of 39[degrees] gravity oil from reservoirs in multiple Upper Jurassic Punta...

Conoco Indonesia Inc.(Statistical Data Included)
November 1, 1999... Conoco Indonesia Inc. made another oil and gas discovery on Block B in the South Natuna Sea (OGJ, Aug. 16, 1999, P. 36). On test, North Belut 3 flowed 2,480 b/d of oil and 38 MMcfd of natural gas from three zones. The well was drilled to 9,082...

An agreement was reached.(Statistical Data Included)
November 1, 1999... An agreement was reached in a dispute between Shell Australia Pty. Ltd. and the Australian government over a $75 million (Aus.), 35-well, unfinished exploration program at Cornea oil field in the Browse basin (OGJ, May 31,1999, Newsletter)....

US Federal Trade Commission.(Statistical Data Included)
November 1, 1999... US Federal Trade Commission approved El Paso Energy Corp.'s $6 billion purchase of Sonat Inc., provided assets are sold to ensure competition in gas shipments from the Gulf of Mexico to southeastern US states. El Paso will sell its wholly owned...

A group of investors.(Statistical Data Included)
November 1, 1999... A group of investors plans to acquire MidAmerican Energy Holding Co., Des Moines, for about $2.35 billion in cash and assumed debt. Berkshire Hathaway Inc., MidAmerican's largest individual stockholder Walter Scott, and MidAmerican Chairman and...

Burlington Resources Inc.(Statistical Data Included)
November 1, 1999... Burlington Resources Inc. (BR) will acquire Villano field on Block 10 in Ecuador and other undeveloped properties in Colombia and Peru from ARCO for $214 million plus $90 million in closing adjustments. The firms began negotiating on the assets...

Abu Dhabi's International Petroleum Investment Co.
November 1, 1999... Abu Dhabi's International Petroleum Investment Co. signed an agreement with South Korea's Hyundai group to acquire a 50% interest in Hyundai Oil Refining Co. (HDO) through the acquisition of about $500 million worth of newly issued HDO shares....

Texaco Inc.
November 1, 1999... Texaco Inc. signed an agreement to acquire 45% of the Malampaya deepwater natural gas project in the Philippines from Royal Dutch/Shell units Shell Philippines Exploration BV and Shell Philippines LLC. As part of the deal, Texaco will assist...

Russian oil firm Yukos.
November 1, 1999... Russian oil firm Yukos said it is evaluating setting up an exploration consortium with Hungary's MOL Rt. in about 6 months. Yukos is studying MOL's proposal to explore on a parity basis areas where MOL holds licenses--particularly Angola,...

The Portuguese government.(will partially privatize state firm Petroleos e Gas de Portugal via share issue)
November 1, 1999... The Portuguese government will partially privatize state firm Petroleos e Gas de Portugal (Petrogal) through an issue of as many as 65.4 million shares of new stock. The issue is expected to generate capital of 829 million euros. The new shares...

Carlos R. Leffler Inc.(to pay penalty for inadequate oil safety preparations)
November 1, 1999... Carlos R. Leffler Inc., Richland, Pa., will pay a $435,000 penalty and spend an additional $110,000 to improve 15 acres of developed property in Juniata County, Pa., based on an Oct. 20 federal court settlement of an oil spill prevention case....

BHP Petroleum Great Britain PLC.(renegotiates gas supply contract with PowerGen UK)
November 1, 1999... BHP Petroleum Great Britain PLC renegotiated the gas supply contract for the Liverpool Bay fields development in the UK Irish Sea with electric power generator PowerGen UK PLC. License interests in the fields are: operator BHP, 46.1%; Lasmo...

Malaysia's Petronas Carigali Sdn. Bhd.(and Sarawak Shell Bhd. signed an agreement with Comalco Malaysia Pty. Ltd. for the supply of natural gas)
November 1, 1999... Malaysia's Petronas Carigali Sdn. Bhd. and Sarawak Shell Bhd. (SSB) signed an agreement with Comalco Malaysia Pty. Ltd. for the supply of natural gas to Comalco's proposed alumina refinery at Similajau, Sarawak. Gas sellers Petronas, Petronas...

Conoco Inc.(to not pursue oil and natural gas field in Caspian Sea near Azerbaijan)
November 1, 1999... Conoco Inc. decided not to pursue a project with State Oil Co. of Azerbaijan Republic (SOCAR) to improve oil and natural gas recovery from Guneshli field in The Caspian Sea off Azerbaijan. Conoco said, "After numerous discussions and...

Shell Temir Petroleum Development BV.(Saigak field in Kazakhstan beginning to produce oil)
November 1, 1999... Shell Temir Petroleum Development BV disclosed first oil from Saigak field in Kazakhstan, where it is operator of a 60-40 joint venture with Veba Oel Kasachstan GMBH under a production-sharing contract. The Saigak-2 well is being developed with...

Phillips Petroleum Co.
November 1, 1999... Phillips Petroleum Co. said it is uncertain when production from giant Norwegian North Sea oil and gas field Ekofisk will restart. A gas leak Oct. 22 closed the field, which normally produces 330,000 b/d of oil and 12.5 million cu in/day of...

State oil firm Petroecuador.
November 1, 1999... State oil firm Petroecuador drilled a successful delineation well in Huamayacu field, southeast of Sacha field, in Ecuador. Huamayacu 3, drilled in T sandstone, flowed 3,101 b/d of 29[degrees] gravity oil. Huamayacu 2 is being drilled to the...

A gas pipeline explosion.(on Sui Northern Gas Pipelines Ltd. in Pakistan)
November 1, 1999... A gas pipeline explosion Oct. 23 on two of the three main pipelines supplying gas to Faisalabad, Pakistan, and other cities killed 13 people and injured 35 others, according to local press reports. The explosion took place on Sui Northern Gas...

US Environmental Protection Agency.(finds few issues with proposed Longhorn Partners pipeline across Texas)
November 1, 1999... US Environmental Protection Agency and the US Department of Transportation's Office of Pipeline Safety issued an environmental assessment that concludes there would be no significant impact from construction of the proposed 700-mile Longhorn...

INTEGRATED APPROACH TO PROPERTY EVALUATION IMPROVES DECISION-MAKING FOR BOTH PARTIES.
November 1, 1999... Sophisticated evaluation of a farm-in exploration deal should reflect two characteristics not always evident in routine transactions. One characteristic is analysis by each party from the perspectives of both sides of the deal under...

CREATING SUPPLY ADVANTAGE FOR OIL AND GAS COMPANIES WITH STRATEGIC PROCUREMENT.
November 1, 1999... In 1998, the rich, historic epic of the oil and gas industry entered a new era--one defined by mergers of breathtaking scope and scale and high-stakes positioning for the world-class projects of the future. "Shareholder value" is the clear...

PETROLEUM AND HUMAN RIGHTS: THE NEW FRONTIERS OF DEBATE.
November 1, 1999... Petroleum and politics have always made a combustible mixture, and human rights controversies have long been part of the brew. Past examples include criticisms of the oil industry's relationship with the Shah of Iran and his notorious...

Model simplifies filter cake lift-off pressure determination.
November 1, 1999... A simple, effective model is available for estimating filter cake lift-off pressure, an important factor affecting the productivity of horizontal wells. Filter-cake cleanup during flow back is crucial because complete cake removal...

CAM, intranet technologies shorten manufacturing cycle time.
November 1, 1999... Computer-assisted manufacturing (CAM), aided by a versatile workforce, information technologies, and efficient queue management, has reduced polycrystalline diamond compact (PDC) bit production times by more than 50% over the last 5 years. ...

Cost, lay method major factors in subsea coiled-tubing pipeline.
November 1, 1999... The experience of the Gulf of Suez Petroleum Co. (Gupco), Cairo, supports use of coiled tubing for certain subsea pipeline applications. Gupco is a joint venture of Egyptian General Petroleum Corp. and BP Amoco. Primary drivers for the...

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

MOVES AND PROMOTIONS.
November 1, 1999... First Wave/Newpark Shipbuilding, Houston, Tex., has named Frank R. Pierce corporate vice president and chief financial officer. Pierce has more than twenty years of experience, in which the last sixteen were managing financial reporting,...

Howe-Baker International, Inc.
November 1, 1999... Howe-Baker International, Inc. has acquired Matrix Engineering, Inc. and its subsidiaries. Matrix Engineering and its principal construction subsidiary, A&B Builders, Inc., has been an engineering and construction firm for twenty-five...

Northeast gulf's James, Andrew exploration history outlined.
November 1, 1999... Outer Continental Shelf hydrocarbon exploration of Lower Cretaceous carbonates began in 1968, with the James limestone and Andrew formation as targets. Six fields were declared in this carbonate trend: the James limestone formation's Viosca...

Daniel Measurement Services, Inc., (DMS), together with its partner Anglo Venezuelan Engineering and Controls, C.A. (AVECO), have formed METCO Services Venezuela, C.A., a jointly owned company established to provide energy measurement services to the hydrocarbon production, processing and transmission markets in Venezuela.
November 1, 1999... METCO Services Venezuela will operate under license from DMS's wholly owned subsidiary, METCO Services Limited, an Aberdeen, Scotland-based provider of independent liquid and gas flow measurement services to the North Sea, UK and Asian energy...

Bibliography.
November 1, 1999... Donoghue, W., Reserve field files, Main Pass 253, U.S. Department of the Interior, Minerals Management Service, Office of Resource Evaluation, New Orleans, 1989. James, Noel P., Reef environment, in Carbonate depositional environments,...

Morocco.
November 1, 1999... A second 2D seismic survey was starting in October on the 2.8 million acre Ras Tafelney reconnaissance permit in 100-2,000+ ft of water on the Tafelney Plateau (OGJ, Aug. 16, 1999, p. 90). Vanco Energy Co., Houston, took a farmout from Lasmo...

Wyoming.(Brief Article)
November 1, 1999... Infinity Inc., Chanute, Kan., signed an interim agreement with Babcock & Brown Energy, San Francisco, for coalbed methane pilot work in the Green River basin. BBE will obtain permits, drill a well, evaluate production, and coordinate the...

PERSONALS.
November 1, 1999... Richard D. (Rick) Fritz has been named executive director of the American Association of Petroleum Geologists, Tulsa. He is president of Masera Corp. Gary R. Christopher has been amed CEO of PetroCorp Inc., Houston. He has been a director...

OGJ CRACK SPREAD.
November 1, 1999... OGJ CRACK SPREAD 10-22-99 [*] 10-23-98 [*] Change % $/bbl change SPOT PRICES Product value 25.57 16.98 8.59...

API IMPORTS OF CRUDE AND PRODUCTS.
November 1, 1999... API IMPORTS OF CRUDE AND PRODUCTS Districts 1-4 District 5 10-22 10-15 [*] 10-22 10-15 [*] 1999 1999 ...

API CRUDE AND PRODUCT STOCKS.
November 1, 1999... API CRUDE AND PRODUCT STOCKS Motor gasoline Blending Jet fuels Crude oil Total ...

API REFINERY REPORT--OCTOBER 22, 1999.
November 1, 1999... API REFINERY REPORT--OCTOBER 22, 1999 REFINERY OPERATIONS Total Input refinery Crude to crude Operable % District ...

OGJ GASOLINE PRICES.
November 1, 1999... OGJ GASOLINE PRICES (Approx. prices for self-service unleaded gasoline) Price Pump Pump ex tax price [*] price ...

REFINED PRODUCT PRICES.
November 1, 1999... REFINED PRODUCT PRICES 10-15-96 ([cent]/gal) Spot market product prices Motor gasoline (Conventional-regular) New York Harbor 62.15...

BAKER HUGHES RIG COUNT.
November 1, 1999... BAKER HUGHES RIG COUNT 10-22-99 10-23-98 Alabama 5 5 Alaska 5 11 Arkansas 4 2 California 23...

SMITH RIG COUNT.
November 1, 1999... SMITH RIG COUNT 10-22-99 10-23-98 Proposed depth Rig % Rig % (ft) count footage [*] count footage [*] 0-2,500 24...

OGJ PRODUCTION REPORT.
November 1, 1999... OGJ PRODUCTION REPORT 10-22-99 [*] 10-23-98 [+] (1,000 b/d) (Crude oil and lease Condensate) Alabama 34 ...

U.S. CRUDE PRICES.
November 1, 1999... U.S. CRUDE PRICES ($/bbl) [*] 10-22-99 Alaska-North Slope 27[degrees] 15.18 Southern Louisiana Light 21.50 California-Kern River 13[degrees] 17.50 Lost Hills...

WORLD CRUDE PRICES.
November 1, 1999... WORLD CRUDE PRICES ($/bbl) [*] 10-15-99 United Kingdom-Brent 38[degrees] 21.75 Russia-Urals 32[degrees] 21.15 Saudi light 34[degrees] 21.65...

AGA NATURAL GAS STORAGE [*].
November 1, 1999... AGA NATURAL GAS STORAGE [*] 10-15-99 10-8-99 Change -(bcf)- Producing region 860 852 8 Consuming region east 1,688 1,656 32...

PACE REFINING MARGINS.
November 1, 1999... PACE REFINING MARGINS Aug. Sept. Oct. Oct. % 1999 1999 1999 1998 Change change $/bbl U.S. Gulf Coast West Texas Sour 3.01...

U.S. NATURAL GAS IN UNDERGROUND STORAGE.
November 1, 1999... U.S. NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD July Total YTD July June July change YTD Change ...

U.S. COOLING DEGREE DAYS [*].
November 1, 1999... U.S. COOLING DEGREE DAYS [*] 1999% change Total degree days Aug. Aug. from Jan. 1 through Aug. 31 ...

WORLDWIDE NGL PRODUCTION.
November 1, 1999... WORLDWIDE NGL PRODUCTION 7 month Chg. vs. average previous July June Production year ...

OXYGENATES.
November 1, 1999... OXYGENATES Aug. July YTD YTD 1999 1999 Change 1999 1998 Change 1,000 bbl Fuel ethanol Production 2,884 2,399 485 22,752 20,905...

Exxon Corp.
November 1, 1999... Exxon Corp. affiliate Esso Norge AS and partners began oil production Oct. 25 from Jotun field on Blocks 25/8 and 25/7, about 200 km west of Stavanger. Jotun's initial production of 25,000 b/d is expected to increase to 100,000 b/d by early...

OGJ Newsletter.
November 8, 1999... BP Amoco's proposed purchase of ARCO may have hit a major snag mid unconfirmed press reports last week that federal antitrust enforcers threatened to sue to block the deal for fear that the combine would translate into elevated gasoline prices...

U.S. INDUSTRY SCOREBOARD 11/8.(crude and refined oil products)(Illustration)(Statistical Data Included)
November 8, 1999... U.S. INDUSTRY SCOREBOARD 11/8 4 wk. 4 wk. avg. % Year-to-date Latest week 10/29 average year ago [*] change average [*] Demand (1,000 b/d) Motor gasoline ...

The critical difference.
November 8, 1999... Articles in the annual Pipeline Report (p. 41) in this week's issue focus on quality (evaluating supplier performance) and system integrity (along a new pipeline in North America and an aging one in Russia). In fact, the petroleum and...

Strike a deal, any deal.(negotiating international treaties)
November 8, 1999... The response to last month's rejection by the US Senate of a nuclear test-ban treaty follows a disturbing pattern with implications for the Kyoto protocol on global warming. Reaction by treaty supporters in Europe and among Democrats in the US...

US gasoline supply system capable of meeting Y2K consumption surge.
November 8, 1999... Although fears about Year 2000 (Y2K) computer problems may cause the US public to buy more oil products in December, the likely demand scenarios appear to be within the supply capabilities of the US petroleum industry. Some government and...

Investigations continue on Olympic pipeline gasoline spill.(Olympic Pipe Line Co.)(Statistical Data Included)
November 8, 1999... State and federal agencies are continuing to investigate a products pipeline rupture June 10 in Bellingham, Wash. The Olympic Pipe Line Co. accident spilled about 250,000 gal of gasoline (OGJ, June 21, 1999, p. 34). The resulting fumes or...

Gazprom frets over gas prices amid expansion.
November 8, 1999... Faced with the need to make unprecedented capital outlays to finance a major expansion of Russia's gas production and transportation industry, state-owned natural gas giant Gazprom is concerned about European natural gas prices. Former...

Japan's downstream terms alliances.
November 8, 1999... Major Japanese oil companies Showa Shell Sekiyu and Japan Energy Corp. are winding up talks aimed at forming a broad business alliance. The partnership would be the second largest oil group in Japan, behind the combine announced earlier this...