The Oil and Gas Journal articles from November 2000

The Oil and Gas Journal archives from November 2000

Low gasoline stocks bolster refiners' margins.
November 6, 2000... US refiners face a combination of ever-tightening environmental strictures and growing capacity constraints that has created a basic imbalance in the market structure. Following on the heels of a market downturn, US refiners last year had...

OPEC production hike barely moves oil prices.
November 6, 2000... Oil prices responded weakly to OPEC's announcement of yet another production increase, this time triggered by its price-band mechanism (see related story, p. 24). The day of the OPEC announcement, crude futures prices in New York and...

Industry Trends.
November 6, 2000... THIRD QUARTER EARNINGS for a selected group of US oil and gas companies showed marked gains over third quarter 1999 (see table). Earnings also continue to illustrate an upward trend when compared with previous quarters this year (OGJ, Aug. 14,...

Government Developments.
November 6, 2000... THE RENEWED ISRAELI-PALESTINIAN CONFLICT IS NOT EXPECTED TO DISRUPT OIL SUPPLIES. Robert Morris at Salomon Smith Barney said he doesn't expect a major disruption of Middle East oil, short of a widespread war in that area. Violence...

CHEVRON AND SASOL PLAN TO INVEST MORE THAN $5 BILLION IN GTL TECHNOLOGY OVER THE NEXT 5-10 YEARS.
November 6, 2000... Their 50-50 JV for GTL technology development, Sasol Chevron Holdings, will actively pursue application of GTL technology for selected Chevron and Sasol gas reserves, for third-party gas reserves, and on behalf of host countries seeking to...

BRAZIL PLANS TO OPEN ITS REFINING SECTOR TO PRIVATE INVESTMENT.
November 6, 2000... Brazil is expected to attract new refineries through foreign investment by 2005, said David Zylberstajn, executive director of the National Petroleum Agency. The director said the expansions will likely occur after Petrobras's oil...

Tyumen Oil.
November 6, 2000... In other refining action, Tyumen Oil signed an agreement for a $198 million loan guarantee to modernize the Ryazan refinery, 120 miles southeast of Moscow, the company said last month. The deal was part of a delayed $672 million loan package....

PLUSPETROL'S PERUVIAN UNIT FACES A HEFTY FINE FOR AN OIL SPILL.
November 6, 2000... Peru's organization for the supervision of the energy industry, Osinerg, ordered Pluspetrol Peru to pay a fine of 600 tax units--1,640,000 soles, or about $470,000--for a 5,500-bbl crude oil spill in the Maranon riverbed. A barge carrying...

NEXT YEAR, PETROBRAS WILL INK CONTRACTS WITH THE PRIVATE SECTOR TO BUILD FOUR OIL TANKERS.
November 6, 2000... Petrobras is negotiating with Eisa, Maua, and Verolme shipyards in Rio de Janeiro to build two 130,000 dwt Suezmax oil tankers and two Panamax 60,000 dwt tankers at a cost of $150 million. These new investments will result from easier financing...

COFLEXIP STENA PLANS TO BUILD A RIGID PIPE SPOOL BASE.
November 6, 2000... Coflexip Stena Offshore Group said that one of its units, Coflexip Stena Offshore Inc. (CSOI), will build a rigid pipe spool base at Mobile, Ala., to support its offshore pipelay and construction work with the CSO Deep Blue and CSO Apache...

Buccaneer Gas Pipeline.
November 6, 2000... In other pipeline news, Buccaneer Gas Pipeline--a joint project of Duke Energy and Williams--said Pasco County, Fla., approved Buccaneer's landfall. The 674-mile gas pipeline will cross the Gulf of Mexico from Mobile Bay to a point just north...

BP.
November 6, 2000... BP HAS BEGUN A $100 MILLION/YEAR, 4D SEISMIC PROGRAM for its North Sea fields that will last at least the next 5 years, said BP. The supermajor said a $10 million, 4-year seismic processing contract awarded last month to Cie. Generale de...

Swift Energy New Zealand.
November 6, 2000... In other exploration news, Swift Energy New Zealand entered into agreements with subsidiaries of Fletcher Challenge Energy (FCE) to earn participating interests in properties in New Zealand's Taranaki basin. Swift will earn a 20% interest in...

A FIRE HALTED PRODUCTION AT WOODSIDE ENERGY'S NEWEST PRODUCING FIELD OFF AUSTRALIA.
November 6, 2000... Woodside Energy said a fire last month caused it to shut down production from the Laminaria and Corallina fields, but flow disruption is expected to be minimal. The company has begun an investigation into the blaze on the Northern...

Emerald Energy.
November 6, 2000... Elsewhere on the production front, Emerald Energy said that the Gigante No. 1A well in the Upper Magdalena Valley in Colombia is back in production following remedial work to clean up the site after a blowout and fire earlier this year (OGJ...

Shell Canada.
November 6, 2000... Shell Canada warned that it expects costs to rise at its $4.1 billion Muskeg River oilsands project near Fort McMurray in northern Alberta. Shell said there is potential for a 10% cost increase in the upgrader portion of the project, originally...

STATOIL TAKES CENTER STAGE THIS WEEK IN DEVELOPMENT NEWS.
November 6, 2000... Statoil said it is mulling over a plan to develop a marginal 6-7 million bbl oil structure 9 km east of its Danish North Sea Siri field. Statoil is developing Siri with a production jack up platform mounted on a 14,500-ton storage tank,...

Statoil.
November 6, 2000... Meanwhile, Statoil confirmed an extension of the Agbami structure in Offshore Production License 217 off Nigeria with a recently completed well. A production test of one oil-hearing zone in the Ekoli-1 discovery well flowed 4,800 b/d....

Kufpec Indonesia.
November 6, 2000... In other development action, Kufpec Indonesia awarded contracts to a consortium of PT Istana Karang Laut (IKL) and Daewoo Corp. for development of Oseil oil field off Indonesia. The contract covers Phase I engineering, procurement,...

Rockies a 'Persian Gulf' of gas.
November 6, 2000... An OGJ Special Report issue that contains a wrapup on the deepwater Gulf of Mexico might seem an unlikely place for a column about natural gas in the Rocky Mountains. But if US gas consumption is to grow from 22 tcf/year now to 30 tcf by...

The economy and oil prices.
November 6, 2000... Oil's role in the US economy, including the so-called new economy, received enlightening attention last month from one of the world's most widely watched economic authorities. The attention came in an Oct. 19 speech, at a Cato Institute...

New Russian tax code legislation changes expat obligations.
November 6, 2000... Radical changes to the Russian Tax Code, put into place by Pres. Vladimir Putin last August, will soon alter the way in which expatriate workers are taxed within the Russian Federation. The principle changes include a much lower, flat rate...

Supermajors shift SE Asia focus.
November 6, 2000... The wave of corporate consolidation that led to the creation of the big four Western supermajors and is, in the process, changing most every rule in the oil and gas game, now promises to start a paradigm shift in Southeast Asia upstream...

OPEC price-band trigger spawns output hike again.
November 6, 2000... The Organization of Petroleum Exporting Countries has agreed to boost oil production by another 500,000 b/d, effective Oct. 31, in a further effort to ease high oil prices. While crude oil futures prices fell in response to the call Oct. 30...

Surge in Canadian M&A activity continues.
November 6, 2000... Merger and acquisition activity among Canadian exploration and production firms continues at a fairly moderate pace. Meanwhile, Canadian pipeline companies are buying and selling assets worldwide in efforts to reorient their global portfolios....

Army generals named to top slots at PDVSA, Citgo.
November 6, 2000... In a surprise move, Venezuelan Pres. Hugo Chavez has announced a "profound" restructuring of Petroleos de Venezuela SA, naming an army general to the helm of the company. Chavez appointed Gen. Guaicaipuro Lameda Montero as the third...

The army and oil.
November 6, 2000... It should be no surprise that Venezuelan Pres. Hugo Chavez, a former army paratrooper, has turned to the army to help him manage state oil company Petroleos de Venezuela SA. In his election campaign, Chavez had characterized PDVSA as an...

Greater Persian Gulf Permian-Triassic stratigraphic nomenclature requires study.
November 6, 2000... Carbonates of the Dalan and Khuff formations, which are essentially of Permian age, form extensive gas reservoirs in the Greater Persian Gulf area (Iran, Iraq, Saudi Arabia, and the eastern portion of the Arabian Peninsula, Fig. 1). These...

Deepwater drillers, MMS tackle issues of accidental riser disconnects.
November 6, 2000... In cooperation with the US Minerals Management Service (MMS), the International Association of Drilling Contractor's (IADC) Deepwater Well Control Task Force (OGJ, Mar. 8,1999, p. 58) has quickly responded to conditions that initiated three...

Independents set on developing Rocky Mountain region.
November 6, 2000... Anadarko Petroleum Corp., Barrett Resources Corp., and Devon Energy Corp. are among a growing number of independents mounting major natural gas development projects in the Rocky Mountains. Rocky Mountain basins are at the forefront of US...

Toppled platform in-place creates reef in US gulf.
November 6, 2000... To abandon the Main Pass (MP) Block 254 platform in 280-ft water, Spirit Energy 76 cut the jacket at -- 100 ft subsea and toppled the upper portion, next to the remaining structure. This was the company's first in-place toppling of a...

ExxonMobil finds multiple uses for emulsion-treatment technology.
November 6, 2000... After experiencing firsthand the benefits of a novel emulsion-breaking technology, ExxonMobil Research & Engineering Co. (EMRE) has signed a marketing agreement with the developer of the technology--Houston-based Imperial Petroleum Recovery...

Global demand for linear alkylbenzene outpaces demand for branched alkylbenzene.
November 6, 2000... Global consumption of linear alkylbenzene (LAB) will grow at an annual rate of 3.6% between 1999 and 2010, while branched alkylbenzene (BAB) will decline at a rate of 8%/year during the same period. Both LAB and BAB are raw materials for...

Independent oil-tanker industry must solve commercial, environmental problems.
November 6, 2000... My charge is to trace the evolution of the tanker industry and of Intertanko. I will expand on that mandate somewhat and take a look at certain issues facing the oil tanking industry and the challenges for Intertanko in the years ahead. ...

Gulf of Mexico deepwater future looks bright as new plays result in major discoveries.
November 6, 2000... Deepwater wells, those in greater than 1,000 ft of water, are now producing more than 700,000 bo/d on the U.S. Gulf of Mexico (GOM) Outer Continental Shelf (OCS). For the first time deepwater oil production exceeds that of GOM shelf and...

Deepwater drilling steady over past 4 years.
November 6, 2000... Despite the amount of capital spent on new drilling vessels from 1997 to 1999, deepwater activity in the Gulf of Mexico (GOM) has remained steady at 91 to 94 wells a year. This year also appears on track with 72 deepwater wells drilled to...

Deep-draft caisson vessels expand deepwater production capabilities.
November 6, 2000... Spars or deep-draft caisson vessels (DDCVs) have enabled development of oil and gas production from reservoirs lying beneath great water depths. These floating cylindrical hulls, equivalent in height to about a 75-story building, allow...

Deepwater pipeline repair system uses proven tools.
November 6, 2000... After years of planning and design, Shell International Exploration & Production Co., Houston, has developed a deepwater pipeline repair system (DPRS) that uses proven technology. The repair system incorporates many of the tools and...

Load-bearing modular buildings.
November 6, 2000... Pivot-Lock load-bearing modular building systems support loads up to 125 lb/sq ft without the use of additional structural support columns. The strength of these modular systems stems from the inherent strength of the panel. Panels are...

Dual gradient riser designed for ultradeep water.
November 6, 2000... A new riser system is specifically designed for future dual gradient, ultradeepwater environments. This company's dual gradient drilling mud return marine riser system (DMRS) uses a new design to take advantage of dual gradient drilling...

Pipeline safety protocols and regulations.
November 6, 2000... Newly released Dakota Auditor Version 4.8 includes the new pipeline safety module, additional state regulatory coverage, guidelines from the Organization Resources Counselors regarding management of metal removal fluids, and other updated...

Aboveground fuel storage container.
November 6, 2000... Fire-Hoppers are designed for low profile, secondarily contained, fire-protected aboveground fuel storage. The UL-2085 listed unit is a double-wall steel tank with lightweight porous insulating material between the two walls, providing thermal...

Pinnacle Technologies Inc.
November 6, 2000... Houston, has named Kevin Fisher vice-president of business development. Pinnacle provides engineering consulting services, fracture design software, and field mapping for hydraulic fracturing optimization. The company has offices in Houston,...

Emerson Electric Co.
November 6, 2000... Clayton, Mo., announced the formation of Emerson Valve Automation, a new operating division that consolidates the company's valve automation products and services. The new division brings together Bettis Actuators & Controls, El-0-Matic...

ABB Group and Schlumberger Oilfield Services.
November 6, 2000... Houston, announced they have signed a memorandum of understanding to form a joint venture aimed at improving the economics of subsea oil and gas development. This includes the development of the new technologies and services that will be needed...

US INDUSTRY SCOREBOARD -- 11/6.
November 6, 2000... [TABLE HAS BEEN CLIPPED]

API IMPORTS OF CRUDE AND PRODUCTS.
November 6, 2000... [TABLE HAS BEEN CLIPPED]

OGJ CRACK SPREAD.
November 6, 2000... [TABLE HAS BEEN CLIPPED]

API CRUDE AND PRODUCT STOCKS.
November 6, 2000... [TABLE HAS BEEN CLIPPED]

API REFINERY REPORT--OCTOBER 27, 2000.
November 6, 2000... [TABLE HAS BEEN CLIPPED]

OGJ GASOLINE PRICES.
November 6, 2000... [TABLE HAS BEEN CLIPPED]

BAKER HUGHES RIG COUNT.
November 6, 2000... [TABLE HAS BEEN CLIPPED]

OGJ PRODUCTION REPORT.
November 6, 2000... [TABLE HAS BEEN CLIPPED]

U.S. CRUDE PRICES.
November 6, 2000... [TABLE HAS BEEN CLIPPED]

WORLD CRUDE PRICES.
November 6, 2000... [TABLE HAS BEEN CLIPPED]

REFINED PRODUCT PRICES.
November 6, 2000... [TABLE HAS BEEN CLIPPED]

SMITH RIG COUNT.
November 6, 2000... [TABLE HAS BEEN CLIPPED]

AGA NATURAL GAS STORAGE [*].
November 6, 2000... [TABLE HAS BEEN CLIPPED]

PACE REFINING MARGINS.
November 6, 2000... [TABLE HAS BEEN CLIPPED]

U.S. NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD.
November 6, 2000... [TABLE HAS BEEN CLIPPED]

U.S. COOLING DEGREE DAYS [1].
November 6, 2000... [TABLE HAS BEEN CLIPPED]

WORLDWIDE NGL PRODUCTION.
November 6, 2000... [TABLE HAS BEEN CLIPPED]

OXYGENATES.
November 6, 2000... [TABLE HAS BEEN CLIPPED]

US heating oil outlook remains uncertain.
November 13, 2000... US heating oil stocks remain stubbornly low despite record distillate production levels, and concerns about this winter's supply may rest more in the perception of shortage than in reality (see related story, p. 20). Heating oil stocks...

But now concerns arise over propane shortages.
November 13, 2000... Meanwhile, a Houston consultant says low US propane stocks in secondary and tertiary storage have set the stage for spot shortages in the Midcontinent region during periods of extreme cold this winter. Dan Lippe, of Petral Consulting, made...

Undervalued stocks to fuel more M&A action.
November 13, 2000... The surge in oil and natural gas prices hasn't given the stocks of all energy companies a boost, according to PricewaterhouseCoopers's recent mergers and acquisitions (M&A) forecast for 2001. The lack of translation between high commodity...

US NATURAL GAS PIPELINE CAPACITY.
November 13, 2000... US NATURAL GAS PIPELINE CAPACITY constraints and bottlenecks could arise during severe weather this winter, but for the most part, capacity appears adequate to serve the needs of the upcoming heating season, says EIA. By the end of the...

ESTIMATES OF BRITISH COLUMBIA'S NATURAL GAS RESOURCES.
November 13, 2000... ESTIMATES OF BRITISH COLUMBIA'S NATURAL GAS RESOURCES ARE DROPPING DESPITE A DRILLING RECOVERY. Estimates of undiscovered natural gas resources for northeastern British Columbia have dropped to 30.8 tcf from 33.2 tcf over the past 5 years,...

Bill Lockyer.
November 13, 2000... CALIFORNIA MAY GET ITS OWN STRATEGIC GASOLINE RESERVE. It has enacted bills to study the feasibility of creating a state-owned strategic gasoline reserve and the possibility of importing more gasoline from the Gulf Coast via pipeline. ...

WINDFALL PROFITS.
November 13, 2000... OIL COMPANIES OPERATING IN THE UK FEAR A "WINDFALL PROFITS" TAX stemming from this year's oil price rise. Some analysts say that the amount levied could be as high as 10%, which would raise the UK government some $1.6 billion in revenue....

Alberta Energy Co.
November 13, 2000... OXY IS SEEKING TO BOOST E&D ON ITS ECUADOR BLOCK. Alberta Energy Co. agreed to farm into Oxy's Block 15 in Ecuador's Oriente region (see map). AEC will earn a 40% interest in the block and will assume certain capital costs through 2004. Oxy...

BP Canada.
November 13, 2000... In other exploration news, Canada-Nova Scotia Offshore Petroleum Board on Nov. 2 announced high bidders for eight exploration licenses off Nova Scotia. The board offered the tracts last June. The high bids represented what the winners would...

New Exploration Licensing Policy.
November 13, 2000... India will launch the second round of oil exploration license awards under the New Exploration Licensing Policy in December. The authorities also are considering giving domestic petroleum products marketing rights to private and foreign...

Pakistan Petroleum.
November 13, 2000... * Pakistan granted a petroleum exploration license to a JV of operator Pakistan Petroleum (95%) and Pakistan government holdings (5%) for Karsal Block 3272-8, which covers 625.26 sq km in the Chakwal district of Punjab Province. The block was...

Conoco.
November 13, 2000... Conoco said it would acquire half of the 80% interest held by two Royal Dutch/Shell subsidiaries in two exploration and production blocks off Malaysia. Conoco will gain access to more than 1.5 million acres and will commit to drill at least...

Energy Development Corp.
November 13, 2000... A NOBLE AFFILIATES UNIT IS MARKING PROGRESS ON ITS CHINA BOHAI BAY DEVELOPMENT. Energy Development Corp. (China) selected Paragon Engineering Services to assist it in developing Cheng Dao Xi Block A field in the southern half of China's Bohal...

Norsk Hydro.
November 13, 2000... In other development news, Norsk Hydro awarded Aker Verdal a 670 million kroner ($70.4 million) contract to construct the steel jacket for the Grane platform. This is the last major contract for the 15 billion kroner Grane project, which is in...

Unocal.
November 13, 2000... UNOCAL'S MAHONI FIELD WILL BE KEY IN HELPING OPEC MEMBER INDONESIA MEET ITS PRODUCTION QUOTA. Unocal has begun producing 4,700 b/d of oil from Mahoni field off Indonesia's Borneo Island. Production started from a single well in Balikpapan...

Mariner Energy.
November 13, 2000... In other production happenings, Mariner Energy began production of 10,000 b/d of oil and 4 MMcfd of gas from its Black Widow project on Ewing Bank Block 966 in the Gulf of Mexico. The oil and gas comes from a single subsea well in 1,890 ft of...

Chevron Canada.
November 13, 2000... Chevron Canada and partners have begun production from their M-25 well, near Fort Liard in Canada's Northwest Territories. Chevron said the well flowed 35 MMcfd of gas, which will increase to SO MMcfd by Nov. 9 and be held at that level for a...

ENI and Schlumberger.
November 13, 2000... A HORIZONTAL OIL WELL DRILLED IN ITALY'S VILLAFORTUNA-TRACATE FIELD MAY HAVE SET A WORLD RECORD. ENI and Schlumberger are claiming a record for the world's deepest producing horizontal well after reaching a TD of 6,421 m (21,066 ft) at an...

Unocal Thailand.
November 13, 2000... Elsewhere on the drilling front, Unocal Thailand on Nov. 2 issued a letter of intent to lease Smedvig Asia's T-7 self-erecting tender rig for 5 years. The contract is estimated at $75 million. The proposed contract includes an incentive...

Transocean Sedco Forex.
November 13, 2000... Transocean Sedco Forex said its Trident IX jack up was damaged while drilling off East Java in the Madura Straits, Indonesia, for Santos. Transocean said the damage, which is apparently limited to the drill floor area, occurred due to "an...

PetroChina.
November 13, 2000... PETROCHINA WILL SOON BEGIN CONSTRUCTION OF A NEW OIL PRODUCTS PIPELINE. China has approved the construction of the proposed major oil products pipeline in the western part of the country. PetroChina plans to begin construction before...