The Oil and Gas Journal articles from September 2001

The Oil and Gas Journal archives from September 2001

Halliburton cementing crew sets new world records using Reverse Circulation method.
September 3, 2001... Wyoming--Two world records were eclipsed recently in a well operated by Denver-based Barrett Resources. Bullfrog Unit #9-13, located in Natrona County, was cemented using the Reverse Circulation method in conjunction with the ZoneSeal [TM]...

Successful ZoneSeal[TM] Isolation Process creates $2.9 million economic value and eliminates potential for lost circulation.
September 3, 2001... Nova Scotia -- During normal drilling operations on a well in the Thebaud field, off shore Sable Island, a channel formed between the conductor pipe and the surface hole. There was potential for losing both the well and the drilling jacket if...

Oil demand growth in second half uncertain.
September 3, 2001... OPEC has repeatedly cut output targets in an attempt to match the seasonal call on its oil, "micromanaging the market" to prevent oil stocks from rising and consequently lowering prices, said Centre for Global Energy Studies. The latest 1...

Oil price outlook: volatile stability.
September 3, 2001... DRI-WEFA sees the short-term outlook for oil markets as one of "relative" price stability. Such stability is relative because the forecast encompasses a high potential for volatility stemming from perceived or real mismatches in supply and...

US INDUSTRY SCOREBOARD -- 9/3.
September 3, 2001... US INDUSTRY SCOREBOARD -- 9/3 4 wk. 4 wk. avg. Change, YTD Latest week 8/24 average year ago 1 % average 1 Demand, 1,000 b/d Motor gasoline 9,404 8,739 7.6 8,676...

GULF OF MEXICO DAY RATES.
September 3, 2001... GULF OF MEXICO DAY RATES continue to weaken after already taking a measurable drop downward, contend analysts for Lehman Bros. "We believe rates will continue to slide near-term... The Gulf of Mexico could firm by the late fourth quarter;...

WEATHER DERIVATIVES.
September 3, 2001... WEATHER DERIVATIVES are attracting more energy company interest. Aquila has formed a strategic alliance with Australian investment bank Macquarie Bank to expand the global market for weather derivatives into Australia and New Zealand. ...

THE AUG. 22 LEASE SALE.
September 3, 2001... THE AUG. 22 LEASE SALE in the western Gulf of Mexico "didn't prove to be as spectacular as one might have thought," said J. Marshall Adkins, an analyst for Raymond James & Associates (see related story, p. 41). "While the turnout certainly...

PRODUCING US STATES.
September 3, 2001... PRODUCING US STATES received a record amount of mineral revenues--$656 million--during the first half of the year for their share of revenues collected from oil, gas, and other mineral development on federal onshore and offshore lands. "If...

TOPPING REFINING NEWS.
September 3, 2001... TOPPING REFINING NEWS, TotalFinaElf let three contracts worth a total 13 million euros to Bouygues Offshore unit Camom for three scheduled refinery shutdowns. Camom, along with partner GTI Electromechanical, is already well into the...

Chemical Market Associates Inc. (CMAI).
September 3, 2001... WILLIAMS has hired Houston-based Chemical Market Associates Inc. (CMAI) to perform an international marketing evaluation as part of an Alaskan petrochemical feasibility study. The planned study will gauge the economic feasibility of...

Methanex and BP.
September 3, 2001... In other petrochemical news, Methanex and BP have decided to proceed with construction of the $400 million, 1.7 million tonne/year Atlas methanol facility in Trinidad and Tobago. At the same time, Methanex postponed reopening of its Medicine...

COLOMBIA state oil firm Ecopetrol, PDVSA Gas, and Texaco.
September 3, 2001... COLOMBIA'S state oil firm Ecopetrol, PDVSA Gas, and Texaco inked a nonbinding memorandum of understanding to conduct a feasibility study to evaluate the construction of a natural gas pipeline linking Colombia and Venezuela. The proposed...

Pipeline Working Group.
September 3, 2001... In other pipeline news, a draft accord on pipeline planning through the Northwest Territories is scheduled for release by mid-October, Canada's National Energy Board reported. The Pipeline Working Group, composed of the boards and agencies...

PetroChina.
September 3, 2001... PetroChina plans to build a $36 million natural gas pipeline linking the northern city of Cangzhou and Zibo City in Shandong Province in the east. The 209 km, 508 mm line will move gas from PetroChina's Dagang field in the north to industrial...

IN ALTERNATE FUELS.
September 3, 2001... IN ALTERNATE FUELS action, Millennium Cell--a development-stage company that has created a proprietary technology generate and store hydrogen--has signed a joint development agreement with Air Products & Chemicals. The hydrogen generated...

Kinder Morgan Liquids Terminals.
September 3, 2001... KINDER MORGAN plans a $16.3 million expansion project a its Houston-area liquids terminals. The project will expand tank storage capacity at Kinder Morgan Liquids Terminals' Pasadena and Galena Park, Tex., facilities by 830,000 bbl from...

Energy merchant Aquila.
September 3, 2001... Energy merchant Aquila and ArcLight Energy Partners Fund will jointly purchase for $220 million a company that is building a natural gas storage facility in northern California. Western Hub Properties owns the Lodi gas storage facility, one of...

GLITNE OIL FIELD.
September 3, 2001... GLITNE OIL FIELD--the smallest Norwegian continental shelf discovery to be developed independently--has been brought on stream, said field partner Statoil. The Norwegian firm said the Glitne development was based on the experiences gained...

ExxonMobil.
September 3, 2001... Among other production milestones, the first shipment of upgraded crude oil from the $790 million Cerro Negro extra heavy crude oil upgrader complex in eastern Venezuela left port or the 182,500 b/d Chalmette, La., refinery late last month,...

Statoil.
September 3, 2001... Failure of a weld in Asgard field prompted Statoil to shut down the Asgard B platform in the Norwegian Sea until mid-October and postpone test production from another field. Earlier this year, Statoil discovered 72 weak welds in hubs on Asgard...

Sonatrach.
September 3, 2001... Elsewhere in storage news, Sonatrach has awarded Sofresid, a subsidiary of Bouygues Offshore, a turnkey contract for the expansion of the Mesdar oil terminal in Algeria. The 42 million euro contract covers engineering, procurement,...

Letters.
September 3, 2001... More about climate change The letter titled "Climate change" (OGJ, July 30, 2001, p. 10) from engineering consultant T.S. Dickerman reminds us that no matter how diligently the Society of Petroleum Engineers seeks to educate its members to...

Pipeline economics lessons.
September 3, 2001... The upsurge in natural gas prices that started last year has accelerated interest in delivering Alaskan North Slope gas to the Lower 48 (OGJ, Aug. 6,2001, p. 20). Current feasibility studies are examining various strategic approaches toward...

Surplus and incentives.
September 3, 2001... US producers of oil and gas face new resistance to tax measures that are long overdue. Shrinkage of the federal budget surplus makes Congress unlikely to change taxation in ways that would boost production. Producers should press the issue...

Kerr-McGee hedges deepwater GODM strength.
September 3, 2001... With broader global portfolio, onshore US gas acquisition Kerr-McGee Corp. continues to broaden its offshore exploration and production portfolio around the world while it consolidates its deepwater Gulf of Mexico base. Since 1947, the...

EPA eases air regs in wake of Citgo refinery outage.
September 3, 2001... Concerns over US Midwest gasoline supplies have resurfaced because of another refinery outage in the region, and those fears are being quelled by a relaxation of federal air quality regulations. The US Environmental Protection Agency last...

Friendly neighbors.
September 3, 2001... Today's energy worries are a hemispheric, not a country-specific problem. Brazil is a dramatic case in point. It is suffering from a full-blown energy crisis, a result of both natural forces and human error. About 90% of Brazil's...

EPA action.
September 3, 2001... Citgo executives praised the quick response by EPA officials. "It means that we should be able to meet all of our contractual agreements with our branded marketers of RFG and conventional gasoline products. It also demonstrates what can...

California Energy Commission delays vote on gas infrastructure report.
September 3, 2001... The California Energy Commission has delayed until Sept. 12 consideration of a staff report recommending California natural gas utilities be required to maintain a 15-20% reserve margin, or "slack capacity." The final draft of an...

El Paso defends actions during California crisis to FERC.
September 3, 2001... El Paso Corp., Houston, concluding its defense of an affiliate abuse complaint pending at the US Federal Energy Regulatory Commission, claimed its units El Paso Natural Gas and El Paso Merchant Energy Co. did not withhold pipeline capacity from...

Canadian gas exports not expected to glut US market.
September 3, 2001... Canadian natural gas exports to the US are projected to rise by only about 1.1 bcfd in the second half of this year, compared with the same period in 2000. That figure represents a little more than half the expected available pipeline...

US wants changes to UN oil--for-aid contracts.
September 3, 2001... The US has asked the United Nations to tighten contract terms of the Iraq oil-for-aid program to make it harder for Iraq to circumvent restrictions that give the country little say in how petrodollars are spent. The program directed over...

Service company consolidation trend continues apace.
September 3, 2001... The worldwide consolidation trend among service and supply companies continues apace, while several exploration and production companies recently disclosed some cross-border acquisitions of their own. In service company news, Lone Star...

PERSONNEL MOVES AND PROMOTIONS.
September 3, 2001... Enron adds two company vets to chairman office Following the surprise resignation of Jeff Skilling as CEO and president last month, Enron Corp. early last week promoted two company veterans from its wholesale services group to help lead the...

Lone Star, North Star.
September 3, 2001... Lone Star Technologies said North Star's tubular steel division has plants in Houston and Youngstown, Ohio. The division makes line, standard, and mechanical pipe; coupling stock; and casing used primarily in the oil and gas exploration and...

AIPC-ITAG acquisition.
September 3, 2001... ITAG said the acquisition by a Middle Eastern leader would open new markets it could not gain access to on its own. AIPC Pres. Jaber A. Al-Marri said, "The Middle East, with its huge oil and gas reservoirs, will be the future market for...

ABB-FIP deal.
September 3, 2001... ABB intends to market FIP products and services worldwide. FIP supplies wellheads and gate valves. The terms of the deal were not disclosed. "The acquisition will broaden ABB's product range as well as open new markets for ABB products in...

Baker Hughes-OCRE buy.
September 3, 2001... Baker Hughes said its acquisition of Aberdeen-based OCRE is expected to enhance Baker Hughes's deepwater completion capabilities by adding another interventionless oil and gas well completion product. OCRE specializes in interventionless...

PGS-DGSC deal.
September 3, 2001... PGS, which also has offices in Houston acquired DGSC in exchange for stock and cash. During the last 7 years, DGSC has exclusively marketed much of PGS's Gulf of Mexico multiclient library. PGS historically has used companies such as...

Jacobs-McDermott purchase.
September 3, 2001... Jacobs is acquiring McDermott Engineers & Constructors (Canada) Ltd., including the latter's Delta Catalytic and Delta Hudson Engineering units. Executives declined to disclose the terms, but they expect the deal to be finalized this fall....

Flotek-CESI merger.
September 3, 2001... The boards of both Flotek and CESI have approved the merger that will create a company with pro forma revenues of $25 million for calendar 2001. The deal will be accretive for Flotek shareholders. Flotek's preferred shareholders will...

Sandvik-Smith JV.
September 3, 2001... The joint venture of Sandvik and Smith will involve Sandvik Tamrock's roller cone bit business in Koping, Sweden, and the Smith Bits Mining & Industrial Tools division of Smith International. The new company--Sandvik Smith, will be a 50:50...

Layne Christensen deals.
September 3, 2001... Layne Christensen will pay $2.5 million in exchange for Ausdrill's stake in WADS. In addition, Layne Christensen is surrendering--by way of an Ausdrill share repurchase agreement--6 million shares of Ausdrill. The agreement is subject...

M-I, BW purchase.
September 3, 2001... M-I will integrate BW into its existing UK operations. The purchase price was not disclosed. BW reported revenues of $11.3 million for the first half of 2001. M-I Pres. and CEO Loren Carroll said, "The acquisition, along with the...

Weatherford acquisition.
September 3, 2001... Financial terms of Weatherford's purchase were not disclosed. American Casedhole Specialists provides cased hole wireline services, particularly in deep, high-pressure, high-temperature wells. The acquisition will help expand Weatherford's...

SIS's DAEX buy.
September 3, 2001... SIS's acquisition of DAEX from Oilfield Systems enhances the company's exploration and production data integration products and services, executives said. Terms of the transaction were not disclosed. "A solid data transfer framework helps...

GEOS JV.
September 3, 2001... Gwich'in Development will own 51% of GEOS, while Ensign Group will hold 49%. The joint venture's initial plans are to negotiate oil and natural gas drilling contracts for projects within the Gwich'in Settlement Area. The 22,422 sq km...

PPL, P&A purchase.
September 3, 2001... SOS will continue to offer fueling services to offshore vessels. The 50:50 jointly owned acquisition consortium has formed Sabine Shipyards Inc., which will repair rigs. The JV will use more than 200 acres and more than 1,600 ft of bulkhead...

Talisman-Lundin buy.
September 3, 2001... Talisman acquired all shares and warrants of Lundin Oil. Jim Buckee, Talisman president and CEO, said, "We are ready to further align and consolidate our core areas in the North Sea." The acquisition involved all of Lundin's assets in...

Lukoil-Permtex acquisition.
September 3, 2001... Upon completion of the transaction, Lukoil will hold 100% of Permtex. Lukoil will also guarantee Permtex's $11 million in obligations to the European Bank for Reconstruction and Development (EBRD). Permtex owns licenses to develop several...

Yukos-Marathon alliance.
September 3, 2001... As part of the Yukos-Marathon alliance, a joint business development group will be formed and based in London. Marathon Oil Pres. Clarence Cazalot said, "An integral part of our strategy is to develop profitable new core areas in...

Independents and deep water rule western.
September 3, 2001... Gulf of Mexico lease sale The eastern reaches of the Garden Banks area drew the largest concentration of bids at the Aug. 22 sale of US federal oil and natural gas leases in the western Gulf of Mexico. Discoveries, developments, and...

Research projects to address oil, gas recovery, processing.
September 3, 2001... The US Department of Energy plans to provide partial funding for 20 research projects to enhance oil and gas production in the US. The National Petroleum Technology Office in Tulsa will manage the projects. The Office of Fossil Energy plans...

'Oil equivalent': A recurrent fable.
September 3, 2001... "Oil equivalent" is widely used to measure the total hydrocarbons in a reservoir at a given moment, or produced over some period by a company, etc. Gas is converted to liquids at 6,000 cu ft/bbl. Companies have generally stayed close to...

In situ seismic shockwaves.
September 3, 2001... stimulate oil production A new technology uses seismic pulses to mobilize oil left behind in reservoirs. Developed by Applied Seismic Research Inc. (ASR), Piano, Tex., the in situ seismic stimulation (ISS) creates elastic waves of...

Gorilla VII walks to water.
September 3, 2001... Rowan Gas. Inc. has completed initial construction on the Gorilla VII jack up rig at its LeTourneau Inc. yard in Vicksburg, Miss., and is currently moving the rig to Sabine Pass, Tex., for final completion, expected by yearend 2001. ...

Expandable liner saves casing string in Oman well.
September 3, 2001... Petroleum Development Oman LLC (PDO) installed a 29-m section of alternative borehole liner (ABL) in the Fahud-335 well, 276 m below the 9 5/8-in. casing shoe, selectively isolating a problematic shale interval (Fig. 1). Weatherford...

Asia-Pacific regional refining, product market growing.
September 3, 2001... By the end of the 1990s, expansion of distillation capacity in the Asia-Pacific region appeared to be continuing. During 2000 and early 2001, an additional 0.5 million bid crude distillation unit (CDU) capacity expansion came online in the...

Safety group pushes revised fire code for propane storage sites.
September 3, 2001... US propane facilities with more than 4,000 gal on site would be required to prepare written fire-safety analyses under a revised Code for Liquefied Petroleum Gas published in April by the National Fire Protection Association (NFPA). The...

Profitable 2000, higher demand push US natural gas construction plans.
September 3, 2001... Caught off guard by demand spikes and infrastructure squeezes in winter 2000-01, US natural gas interstate pipelines have increased plans for construction, according to applications filed before the US Federal Energy Regulatory Commission...

OIL PIPELINES.
September 3, 2001... OIL PIPELINES Miles of Pipeline Trunk Company Gathering Crude All American Pipeline...

GAS PIPELINES.
September 3, 2001... GAS PIPELINES Miles of pipeline Company Transmission Field Storage Alaskan Northwest Natural Gas Transportation Co. 1 -- -- ...

New portal aids oil vessel schedulers, traders.
September 3, 2001... PortMaster, a web-based communications workbench, manages and limits risk exposure surrounding a marine vessel's port calls by providing a centralized interface and data repository for schedulers, agents, inspectors, and ship owners. It...

Wireless data logging system.
September 3, 2001... The new RemoteLinc wireless data logging system is available for use with this firm's line of compact precision data loggers. Data loggers are available for monitoring temperature, thermocouples, relative humidity voltage, and current. The...

System performs on-line sulfur analysis.
September 3, 2001... This new 682-LS low sulfur analyzer allows users to remotely self-diagnose sulfur levels with an interface to control the system that allows constant monitoring. Suited for petrochemical applications, the on-line analyzer also offers...

Add-on expands machinery alignment system ability.
September 3, 2001... This new DCU- 100 computer interface and software module enables measurements from the company's Laser Microgage system to be recorded and analyzed on a PC or laptop. The Laser Microgage is a laser transmitter and digital receiver system...

Jet-Lube Inc.
September 3, 2001... Houston, has announced election of Greg L. Havelka as president and chief executive officer. Havelka has been with the company for 24 years, most recently serving as vice-president and general manager. In his new position, he will oversee...

Petroleum Geo-Services ASA (PGS).
September 3, 2001... Oslo and Houston, has announced acquisition of Houston-based Diamond Geophysical Service Corp. Diamond specializes in designing, acquiring, processing, and marketing 3D multi-client seismic surveys in areas with complex imaging problems, and...

Randall & Dewey Inc.
September 3, 2001... Houston, has named Roger W. Lemons as manager, projects. Prior to joining Randall & Dewey, Lemons was vice-president for Texas Liquids LLC, and was with Unocal for 16 years in various management positions. He holds a BS in petroleum engineering...

Allenergy Inc.
September 3, 2001... Santa Ana, Calif., has signed an agreement to purchase Ackara Corp., a private company incorporated in Louisiana. Prior Ackara management, including Warren D. Caudle, founder and president, will remain in place and be based in Lafayette La....

Cajun Tubular Services.
September 3, 2001... Lafayette, La., has announced the appointment of Lance Dwyer as vice-president of operations; and of James Rigney Jr. as safety director. Dwyer has more than 27 years of experience in operations management, as well as extensive knowledge...

Baker Atlas and TomoSeis.
September 3, 2001... Houston, have announced a joint alliance to provide crosswell seismic services to the global oil and gas industry. Under the agreement, TomoSeis will provide specialist crosswell seismic technology and personnel, and Baker Atlas will provide...

Chandler Engineering Co. LLC.
September 3, 2001... Tulsa, has purchased the Fluid Technology Group business of Ruska Instrument Corp., Houston. Primary business of this group is manufacture and sales of PVT systems, positive displacement pumps, and ancillary equipment such as viscometers and...

Clearwater Inc.
September 3, 2001... Pittsburgh, Pa., has announced its acquisition of WSP Chemicals & Technology, Inc., an Ambridge, Pa.-based manufacturer of synthetic water-soluble polymers. The integration of WSP's cementing and drilling polymers complements Clearwater's...

OGJ CRACK SPREAD.
September 3, 2001... OGJ CRACK SPREAD 8-24-01 * 8-25-00 * Change Change $/bbl % SPOT PRICES Product value 31.64 38.23 -6.59 -17.2 Brent crude 25.48...

API CRUDE AND PROUDCT STOCKS.
September 3, 2001... API CRUDE AND PROUDCT STOCKS Motor gasoline Blending Jet fuels Crude oil Total comp. 2 Naphtha 1,000 bbl PAD...

API IMPORTS OF CRUDE AND PRODUCTS.
September 3, 2001... API IMPORTS OF CRUDE AND PRODUCTS Districts 1-4 District 5 8-24 8-17 1 8-24 8-17 1 2001 2001 2001 2001 ...

API REFINERY--AUGUST 24, 2001.
September 3, 2001... API REFINERY--AUGUST 24, 2001 REFINERY OPERATIONS Total Input refinery Crude to crude Operable input ...

OGJ GASOLINE PRICES.
September 3, 2001... OGJ GASOLINE PRICES (Approx. prices for self-service unleaded gasoline) Price Pump Pump ex tax price * price 8-15-01 8-15-01 8-16-00 ...

REFINED PRODUCT PRICES.
September 3, 2001... REFINED PRODUCT PRICES Spot market product prices 8-17-01 [cts.]/gal Motor gasotine (Conventional-rogular) Now York Harbor 72.90 Gulf Coast ...

BAKER HUGHES RIG COUNT.
September 3, 2001... BAKER HUGHES RIG COUNT 8-24-01 8-25-00 Alabama 5 6 Alaska 13 12 Arkansas 1 4 California ...

SMITH RIG COUNT.
September 3, 2001... SMITH RIG COUNT 8-24-01 8-25-00 Proposed depth, Rig Percent Rig percent ft count footage * count footage * 0-2,500 51 3.9 28 14.2 ...

OGJ PRODUCTION REPORT.
September 3, 2001... OGJ PRODUCTION REPORT (Crude oil and lease condensate) 8-24-01 1 8-25-00 2 1,000 b/d Alabama 26 28 Alaska 956 914 California 823 830 Colorado ...