Low oil prices cause U.S. and Canadian firms to curtail capital outlays in 1999
How U.S. Petroleum Capital Spending Has Varied [89,506 bytes] Where funds go for 1999 U.S. Projects [116,339 bytes] Non-north American spending plans of 32 U.S. companies [116,339 bytes] Canadian spending plans [111,379 bytes] Oil and gas company U.S. capital spending is expected to fall sharply in 1999, driven by extremely low oil prices and weak natural gas prices. Companies also plan to slash investments in areas outside of the U.S. and Canada for the same reasons, and because of uncertainty
Salomon: U.S. leads decline in E&P spending
E&P Spending Outside North America [252,022 bytes] Canadian E&P spending [197,938 bytes] Breakout of U.S. spending [336,985 bytes] Worldwide exploration and production expenditures are in the most severe contraction since 1986, says Salomon Smith Barney, New York. According to the firm's annual survey of upstream spending, global E&P outlays will decline by 11% in 1999 from 1998's level.
Iran's bid to lure oil investment succeeding despite U.S. sanctions
Iran's oil production [60,760 bytes] Iran:July 1998 presentation buy back projects [111,627 bytes] Iran continues to mark success with its efforts to attract foreign investment to its petroleum sector, despite the continuing specter of U.S. economic sanctions targeting such investments.
A new No. 2: BP Amoco to merge with ARCO
How BP Amoco/Arco Combined Assets Would Look [214,086 bytes] Supermajor BP Amoco plc, itself the freshly new product of a merger, has agreed to combine with ARCO in a $26.8 billion merger that would create the world's second-biggest petroleum company. The all-share transaction, approved by both companies' boards at presstime last week, will involve the exchange of 0.82 BP Amoco American Depositary Share (ADS) for each ARCO share.
A Mar. 25 explosion and fire in the hydrocracker at Chevron Corp.'s Richmond, Calif., refinery was isolated, and the fire was extinguished in only 2 hr, said Chevron. At presstime, the unit remained shut down, and the cause of the explosion was under investigation. Production of gasoline is continuing at the refinery, although at reduced levels. None of the 30 workers at the unit was injured. Uzbekistan's Uzbekneftigas
Daniel Yergin, chairman of Cambridge Energy Research Associates, doesn't see a strong rebound for oil prices this year. He said that, even if the Organization of Petroleum Exporting Countries' agreement holds, the price for West Texas intermediate will hover at $14.50-15.00/bbl. "Everybody is justifiably cautious and skeptical," he told a meeting of the National Ocean Industries Association in Washington, D.C., late last month.
Oil price climb continues after OPEC agreement
Oil prices have continued to climb following the production-cutting deal by the Organization of Petroleum Exporting Countries (OPEC) and certain key non-OPEC exporters. Yet a price rise of more than $4/bbl in the past month appears to be based more on anticipation that the promised cuts will appear than on experience of past OPEC performance, although there is growing evidence of a recent hike in oil demand.