The Oil and Gas Journal articles from November 2001

The Oil and Gas Journal archives from November 2001

Market Movement.
November 5, 2001... OPEC seeks support The 10 members of OPEC currently bound by production quotas, which excludes Iraq, agreed to reduce output by a total of 3.5 million b/d, or 13%, on three separate occasions earlier this year. But the organization is...

US INDUSTRY SCOREBOARD -- 11/5.
November 5, 2001... US INDUSTRY SCOREBOARD -- 11/5 4 wk. 4 wk. avg. Change, YTD Latest week 10/26 average year ago [1] % average [1] Demand 1,000 b/d Motor gasoline 8,933 8,368 ...

OIL TANKER.
November 5, 2001... OIL TANKER rates seem to have bottomed out. Tanker time charter equivalent (TCE) rates, on average, have reached their low point for the year. In addition, TCE rates for the third quarter were down 30-40% from second quarter and 30-50%...

THE WORLD ENERGY COUNCIL.
November 5, 2001... THE WORLD ENERGY COUNCIL late last month unveiled a new electronic database that tracks energy company projects, coming on stream from 1999 to 2010, that are designed to reduce emissions of gases linked to purported catastrophic climate change....

THE US EPA.
November 5, 2001... THE US EPA wants to give refiners more flexibility to meet federal clean fuels programs. In an Oct. 24 letter to President Bush, EPA Administrator Christine Todd Whitman said her agency would propose rules that may help the nation's...

US ENERGY SEC.
November 5, 2001... US ENERGY SEC. Spencer Abraham Oct. 30 said the Bush administration is near a decision on whether to fill the nation's crude oil stockpile to its 700 million bbl capacity The Strategic Petroleum Reserve--which holds 544 million bbl in salt...

US DOE.
November 5, 2001... US DOE confirmed that BIA, its independent statistical agency, will soon provide weekly gas storage estimates. The move comes a few weeks after the American Gas Association announced it would discontinue its own weekly gas report at yearend...

Atlantia Offshore.
November 5, 2001... TWO TLP contracts have been awarded. Atlantia Offshore has given Keppel FELS a $22 million contract to build a tension leg platform hull for use in the Gulf of Mexico. The Keppel Group unit will build the TLP to Atlantia's proprietary...

Esso Exploration Angola awarded ABB.
November 5, 2001... In addition, Esso Exploration Angola awarded ABB a contract to design, build, and commission a deepwater TLP for the Kozomba A project on deepwater Block 15 off Angola. ABB, in partnership with Heerema, will complete the work by third quarter...

Kerr-McGee.
November 5, 2001... In other development news, Kerr-McGee has approved development of Gunnison field in 3,100 ft of water in the Gulf of Mexico, using the Kerr-McGee Global Producer VII truss spar. Gunnison and Durango fields are estimated to have reserves...

Tanzania.
November 5, 2001... Tanzania says that all financing is now in place for the Songo Songo gas development project--which includes installation of facilities for transporting and marketing 1 tcf of natural gas reserves on the small island of Songo Songo and in...

OUTAGES.
November 5, 2001... OUTAGES top this week's production happenings. Statoil was to halt production from the Gullfaks A and B platforms in the North Sea Nov. 1-2 to upgrade process security systems and perform scheduled upgrading and maintenance on Gullfaks A....

Petrobras.
November 5, 2001... Meanwhile, the 5-day strike of Brazilian oil workers has ended after causing Petrobras $85 million in losses and dropping national oil production 60%. The strike held up production of 4.2 million bbl of oil. Upon restarting operations Oct....

Suncor Energy.
November 5, 2001... Production also has resumed at Suncor Energy's oil sands base plant near Fort McMurray, Alta. It had been shut in for a week due to mechanical problems, maintenance, and repairs to the fractionator. The unit was down 7 days, and Suncor said the...

WILLIAMS.
November 5, 2001... WILLIAMS marks progress on a couple of major pipelines in the US heartland. Williams received Interior approval to build a petroleum products line from Bloomfield, NM, to Salt Lake City. The approval process took almost 3 years. The line...

Western Frontier Pipeline.
November 5, 2001... In addition, Williams unit Western Frontier Pipeline has applied to FERC for a permit to construct a 400-mile, 30-in. natural gas pipeline from Colorado to Oklahoma. The $365 million line would transport up to 540 MMcfd from the Cheyenne...

Pacific Gas & Electric.
November 5, 2001... In other US pipeline action, Pacific Gas & Electric has begun expansion of its Line 401 pipeline system in northern California. The $39.5 million Redwood Path pipeline will add a total of 14.1 miles of line--in two separate sections in Shasta...

Alaska.
November 5, 2001... Alaska has tightened security along the 800-mile trans-Alaska oil pipeline route, responding last week to a US national alert against possible terrorist attacks. Alaska Gov. Tony Knowles increased Alaska state trooper presence on the highway...

ExxonMobil Chemicals.
November 5, 2001... PROCESSING news this week leads off with a lawsuit update. A federal appeals court has upheld ExxonMobil Chemical's patent for a polyethylene manufacturing process, confirming the patent on metallocene catalysts used to manufacture polyethylene...

Foster Wheeler.
November 5, 2001... In other processing action, Chiles state oil firm ENAP let contract to a Foster Wheeler subsidiary to build a $300 million delayed coker at its 94,350 b/d Concon refinery in Chile. Foster Wheeler will perform basic engineering, followed by a...

BG GROUP.
November 5, 2001... BG GROUP of the UK and Italy's Edison International have confirmed the largest gas column discovered in Egypt, improving prospects for an Egyptian LNG export project. (OGJ Online, Apr. 9, 2001). The two companies drilled the Sapphire 3,...

Armstrong Resources.
November 5, 2001... In other exploration news a sale of Alaskan North Slope and Beaufort Sea state leases drew $12.88 million in high bids Oct. 24. In the North Slope sale, bidders offered apparent high bids of $7,445,081 for 110 tracts totaling 469,760 acres....

Letters.
November 5, 2001... America needs American oil America needs American oil. We even have bumper stickers that say so. We have each been to the Arctic National Wildlife Reserve (ANWAR), but not in the same year. Neither of us has ever received or...

Something to think about.
November 5, 2001... There once was an engineer who wanted a pond dug on his property but didn't have equipment to dig it nor the money to hire a contractor. He analyzed the situation and devised a plan to get his pond dug for free. Because he and his...

US-Saudi relations adrift.
November 5, 2001... The petroleum industry should prepare for a future in which relations between the oil market's two behemoths differ sharply from what they were before international terrorism struck America on Sept. 11. Ever-touchy relations between Saudi...

WEC: Sound energy development key to sustaining global economy.
November 5, 2001... Sound energy development is the key to global economic sustainability. That message emerged loud and clear in speeches and panel discussions at the 18th World Energy Congress held in Buenos Aires Oct. 21-25. The theme of the congress...

Back home.
November 5, 2001... Oil companies may lose an important Washington, DC, ally soon. Sen. Frank Murkowski (R-Alas.), until recently the chairman of the Committee on Energy and Natural Resources, will run for Alaska governor next year. He told reporters he will...

TLP shopping.
November 5, 2001... At this time of the year in much of the world, thoughts turn to holiday gift-giving. But what to give the oilman (or oilwoman) who has everything? The answer could be sitting in the North Sea with an undisclosed price tag. It is a piece of...

How to bid successfully in a changed marketplace.
November 5, 2001... The first part of this article discussed typical discount rates for winning bids in today's environment (OGJ, Oct. 29, 2001, p. 42). This demonstrated far lower economic returns of 10-12% net present value (NPV) for high quality properties than...

Reed-Hycalog: US rig fleet utilization hits 20-year high.
November 5, 2001... US land and marine drilling rig fleet utilization hit a 20-year high of 93% in second quarter 2001, up from 74% last year, according to the 49th annual Schiumberger Ltd. Reed-Hycalog Rig Census, presented at the recent International Association...

Desander protects downhole pump.
November 5, 2001... Field tests in Canada demonstrated the effectiveness of a downhole desander to protect electric submersible pumps (ESPs) from failure caused by the production of formation sand. An abrasive environment can cause radial wear of the pump...

Is ethylene approaching its lifecycle's maturity?
November 5, 2001... A scenario in which the ethylene lifecycle matures and enters decline Within the next 30 years is plausible and is ignored in long-term planning at one's peril. In such a scenario, the trend growth rates in the medium term will also start...

EU study of Caspian area oil, gas pipelines compares routes, costs.
November 5, 2001... Under auspices of the European Union, two studies of pipeline transportation out of Caspian Sea producing areas have concluded that such systems are technically, economically, and environmentally feasible but depend critically on route...

Ultradeepwater play paces gulf, North America.
November 5, 2001... With the discovery of giant Crazy Horse and Atlantis fields, as well as Mad Dog, Holstein, and Trident, the ultradeepwater Gulf of Mexico play has become front-page news. In our view, this is the most important exploration play in North America...

Deepwater drilling activity remains steady.
November 5, 2001... The number of wells drilled in the deepwater Gulf of Mexico (GOM) continues to advance steadily In 2001, operators have drilled 96 wells through the third quarter. If the present pace continues, currently operating rigs should drill up to 120...

Tool adds to deepwater flow-assurance flexibility.
November 5, 2001... A subsea intervention system with a standardized connector system, currently being developed by Paragon Engineering Services Inc., Houston, will allow remediation of subsea flow blockages from a surface vessel with a tool that connects directly...

Full-scale test of deepwater hot-tap system set fur early 2002.
November 5, 2001... Williams Gas. Inc., Tulsa, and three other companies have spent 4 years and about $5 million to conceive and design a diverless, deepwater hot-tapping system that will undergo full-scale testing this spring on a Williams pipeline in the US Gulf...

Hand-held computer used in corrosion control.
November 5, 2001... The Allegro Field Computer, a handheld unit, is designed for corrosion control applications. It offers data logging capabilities and has been designed to measure, record, and integrate information needed to manage corrosion control systems...

Turnkey gas delivery system.
November 5, 2001... The new turnkey CEMStation gas delivery system is designed to support continuous emission monitoring systems (CEMS). They provide self-contained high-pressure gas cylinder restraint and pressure reduction for leak-free, uninterrupted delivery...

Heated rubber mat helps keep feet warm.
November 5, 2001... The Footwarmer, a large, heated rubber mat, radiates thermostat-controlled warmth to a 3-ft-long area. It's suited for larger work areas, especially previously unheated areas: shipping tables, desks, security posts, warehouses, assembly...

New line of marine duty motors.
November 5, 2001... A new line of marine duty motors is designed to meet such demanding specifications as IEEE 45, US Coast Guard, American Bureau of Shipping, and IEC 60092. In addition, the company offers an IEEE-841 motor that meets API RP14F requirements for...

Global Industries Ltd.
November 5, 2001... Carlyss, La., has named Eddie J. Evans as vice-president, health and safety; James F. Gallagher as area vice-president, West Africa; and Richard D. Porter as area vice-president, Middle East/India. Evans has over 24 years of experience in...

Oceaneering International Services Ltd.
November 5, 2001... Aberdeen, has promoted Lawrence Watt to have responsibility for all of its SMART technology and products within the Eastern Hemisphere. Watt's background is in subsea engineering. He will provide marketing and engineering support for a...

John Wood Group PLC.
November 5, 2001... Aberdeen, has acquired Production Services Group (PSG). The PSG companies--Coastal Production Services, Production Systems Inc., ProSafe Inc., and RMC Technology Corp.-will trade as Wood Group Production Services. PSG provides a broad...

OGJ CRACK SPREAD.
November 5, 2001... OGJ CRACK SPREAD 10-26-01 [*] 10-27-00 [*] Change Change, $/bbl % SPOT PRICES Product value 25.19 42.15 -16.95 ...

API CRUDE AND PRODUCT STOCKS.
November 5, 2001... API CRUDE AND PRODUCT STOCKS Motor gasoline Blending Crude oil Total comp. [2] PAD I ...

API REFINERY REPORT--OCTOBER 26, 2001.
November 5, 2001... API REFINERY REPORT--OCTOBER 26, 2001 REFINERY OPERATIONS Total Input refinery Crude to crude Operable ...

API IMPORTS OF CRUDE AND PRODUCTS.
November 5, 2001... API IMPORTS OF CRUDE AND PRODUCTS Districts 1-4 District 5 10-26 10-19 [1] 10-26 2001 2001 2001 ...

OGJ GASOLINE PRICE.
November 5, 2001... OGJ GASOLINE PRICE Price Pump Pump ex tax price [*] price 10-24-01 10-24-01 10-25-00 ...

REFINED PRODUCT PRICES.
November 5, 2001... REFINED PRODUCT PRICES 10-19-01 [cts.]/gal Sport market product prices Motor gasoline (Conventional-regular) New York Harbor 59.10 Gulf...

BAKER HUGHES RIG COUNT.
November 5, 2001... BAKER HUGHES RIG COUNT 10-26-01 10-27-00 Alabama 8 8 Alaska 16 11 Arkansas 0 8 California ...

SMITH RIG COUNT.
November 5, 2001... SMITH RIG COUNT 10-26-01 10-27-00 Proposed depth, Rig Percent Rig Percent ft count footage [*] count footage [*] 0-2,500 56 1.7 ...

OGJ PRODUCTION REPORT.
November 5, 2001... OGJ PRODUCTION REPORT 10-26-01 10-27-00 1,000 b/d (Crude oil and lease condensate) Alabama 25 27 Alaska ...

US CRUDE PRICES.
November 5, 2001... US CRUDE PRICES $/bbl [*] 10-26-01 Alaska-North Sope 27[degrees] 16.50 South Louisiana Sweet 20.75 California-Kern River 13[degrees] 14.50 Lost Hills 30[degrees] ...

WORLD CRUDE PRICES.
November 5, 2001... WORLD CRUDE PRICES $/bbl [1] 10-19-01 United Kingdom-Brent 38[degrees] 19.80 Russia-Urals 32[degrees] 20.35 Saudi Light 34[degrees] 19.80 Dubai Fateh...

US NATURAL GAS STORAGE [1].
November 5, 2001... US NATURAL GAS STORAGE [1] 10-19-01 10-12-01 Change Bcf Production region 861 857 4 Consuming region east 1,823 1,807 16...

PACE REFINING MARGINS.
November 5, 2001... PACE REFINING MARGINS Aug. Sept. Oct. Oct. 2001 2001 2001 2000 Change $/bbl US Gulf Coast West Texas...

US NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD.
November 5, 2001... US NATURAL GAS BALANCE DEMAND/SUPPLY SCOREBOARD July July June July change 2001 2001 2000 ...

US COOLING DEGREE DAYS [1].
November 5, 2001... US COOLING DEGREE DAYS [1] 2000% change Aug. Aug from 2001 2000 ...

WORLDWIDE NGL PRODUCTION.
November 5, 2001... WORLDWIDE NGL PRODUCTION 7 month average July June Production ...

OXYGENATES.
November 5, 2001... OXYGENATES Aug. July YTD YTD 2001 2001 Change 2001 2000 1,000 bbl Fuel ethanol Production 3,526...

Market Movement.
November 12, 2001... Oil demand slumps It is clear now that there remains little prospect of significant recovery In oil demand growth this year. After the Sept. 11 terrorist attacks on the US, prospects for global recession have deepened, taking oil demand...

US INDUSTRY SCOREBOARD -- 11/12.
November 12, 2001... US INDUSTRY SCOREBOARD -- 11/12 4 wk. 4 wk. avg. Change, YTD Latest week 11/2 average year ago [1] % average [1] Demand, 1,000 b/d Motor gasoline 9,124 ...

Industry Trends.
November 12, 2001... INVESTMENT prospectiveness in Latin America's oil and gas sector may advance rapidly with several un- folding developments. While Pemex considers programs to entice foreign companies to develop Mexico's natural gas (see related story, p....

Government Developments.
November 12, 2001... OFFSHORE LEASING efforts are marking progress in the US and Canada. The US Minerals Management Service scheduled calls for 20 sales during 2002-07, with the usual central and western gulf sales to be held annually and eastern gulf sales in...

Shell E&P.
November 12, 2001... OREGANO field in the deepwater Gulf of Mexico has started production. Shell E&P brought the oil field on stream Oct. 17, a month ahead of schedule and $10 million under budget. Oregano cost $120 million to develop, excluding lease...

Petrobras.
November 12, 2001... In other production news, Petrobras has rebutted allegations that its administrative errors contributed to the loss of the P-36 platform in the Campos basin off Brazil in March. Eleven workers died during the explosions and fire on the $500...

Chevron-Texaco.
November 12, 2001... Chevron-Texaco began oil production from the deepwater Kuito field Phase 1C development on Block 14 off Ango1a. The new phase added more than 30,000 b/d, bringing the field's output to 85,000 b/d. Production in 2002 is expected to average...

Statoil.
November 12, 2001... Statoil awarded ABB Group Zurich a $23 million contract to tie in Sigyn field oil and gas production to Sleipner A platform in the Norwegian North Sea. ABB has begun work on the engineering, construction, and installation of a deck structure....

BP.
November 12, 2001... BP signed a letter of intent for design, fabrication, and transport of what BP claims will be the world's largest semisubmersible drilling-production unit. Daewoo Shipbuilding & Marine Engineering wan the $380 million contract for a semi...

BHP Billiton.
November 12, 2001... Elsewhere on the development front, BHP Billiton plans to invest $620 million in oil and gas development projects in Algeria, including $430 million for the Ohanet gas project. The company holds 45% interest in Ohanet. Woodside Petroleum has...

DeepStar.
November 12, 2001... The DeepStar consortium let contract for a conceptual engineering study of a spar-deep draft caisson vessel that could work in 10,000 ft of water in the Gulf of Mexico. Halliburton KBR, formerly Kellogg Brown & Root, began work on the project...

Talisman Energy.
November 12, 2001... TRINIDAD AND TOBAGO has awarded a lease for offshore Block 3a to a group of companies led by BHP Petroleum (Americas). Partner Talisman Energy says the award remains subject to final approvals and execution of a production-sharing...

Apache.
November 12, 2001... Elsewhere in exploration news, Apache said the JG-1X discovery in Egypt's Northeast Abu Gharadig Concession flowed on test at a rate of 4,190 b/d of oil and 5 MMcfd of gas. The Western Desert wildcat was tested through a 48/64-in. choke with...

CHEVRON NIGERIA.
November 12, 2001... CHEVRON NIGERIA has awarded Foster Wheeler a $20 million front-end engineering and design (FEED) contract for a gas-to-liquids project. Foster Wheeler will be responsible for the FEED and the preparation of the invitation to tender for the...

BG.
November 12, 2001... In LNG shipping news, BG has agreed to a 20-year charter for a new LNG ship from Golar LNG. The 138,000 cu m capacity ship is under construction at South Korea's Daewoo yard and is scheduled for delivery in March 2003. The agreement secures...

THE FIRST BURIED SUBSEA ARCTIC PIPELINE.
November 12, 2001... THE FIRST BURIED SUBSEA ARCTIC PIPELINE has started transporting crude oil. BP's Northstar project off Alaska produced first oil, MMS reported, noting that it is Alaska's first outer continental shelf development project (OGJ, Aug. 6,...

Enterprise Oil.
November 12, 2001... In other pipeline news, Enterprise Oil reports first oil flow through a pipeline linking the Val d'Agri oil center at Viggiano in Italy's Southern Apennines to Taranto. The 20 in., 136 km line has capacity of 150,000 b/d and moves crude from...

Letters.
November 12, 2001... Kizomb "A" project You recently published an article (OGJ, Oct. 1, 2001, p 56) on the Kizomba "A" project. Your article describes the production scheme for Kizomba "A" and in both the text and a graphic the article refers to a deep-draft...

OGJ Online changes.
November 12, 2001... Oil & Gas Journal Online, this magazine's web site, has taken several important steps in recent months. Most recently, it added a research area that includes a link to the treasury of industry statistics available through OGJ Energy...

Dowstream energy policy.
November 12, 2001... While upstream controversies attract most attention in debates over US energy policy, downstream issues likely to be settled within the next year will greatly affect the supplies and prices of oil products. New attention to downstream...

Climate change projections hinge on global [CO.sub.2], temperature data.
November 12, 2001... The petroleum industry stands at center stage amid issues over climate change and emissions of greenhouse gases (GHGs), while consumers worldwide expect the industry to provide inexpensive fuel for transportation, heat, and electricity. ...

Small world.
November 12, 2001... When it comes to climate change policy, US energy executives worry. They fret over when or how the United Nations will enforce a treaty. They are anxious billion-dollar investments may not make sense if the rules keep changing. Yet even more...

Congress grappling over US energy legislation approach.
November 12, 2001... US congressional leaders say they remain focused on energy policy issues this fall but concede it will be hard to predict what the final legislation will look like. Senate Republican leaders last week said they want a pending Senate...