World oil supply-what goes up must come down, but when will it peak?
The universe is made up of cycles. Everything that is born will die: stars, days, species, humans, and civilizations. A stone thrown into the air follows a parabolic trajectory. If its velocity is more than 11 km/sec it will leave the gravitational field of the earth but will become part of the solar system, returning on an elliptic orbit. What goes up must come down. The question is: when will it peak? King Hubbert, in his famous paper of 1956, 1
Comparing Russian, Western major oil firms underscores problems unique to Russian oil
Reserves, Oil Production, Exports [175,503 bytes] 1997 Financial Performance [64,394 bytes] Debt Status [61,609 bytes] Market Capitalization, Reserves [109,143 bytes] Operating Efficiency [87,388 bytes] This second of two parts provides an analysis of four Russian vertically integrated companies (VICs) and compares their performance on key operational parameters with their Western counterparts. The four companies-Lukoil, Yukos, Sidanco, and Surgut-represent some of the largest players in
Exxon-Mobil faces Europe monopoly questions
If Exxon Corp. and Mobil Corp. merge as planned, the combined companies will have the largest upstream portfolio in Europe and may face downstream monopoly questions from European authorities. This is the view of Wood Mackenzie Consultants Ltd., Edinburgh, which said the combined reserves base of Exxon and Mobil in Europe amounts to more than 8.7 billion boe.
Snyder and Santa Fe agree to form $1 billion company
Santa Fe, Snyder Combined Operations [93,834 bytes] Fort Worth's Snyder Oil Corp. and Houston's Santa Fe Energy Resources have revealed some of the details and expected benefits of their planned merger (OGJ, Jan. 18, 1999, Newsletter). The two independents signed a definitive agreement to form an independent exploration and production company with a market capitalization of more than $1 billion. The new firm, called Santa Fe Snyder Corp., will combine Snyder's strong position in the
It's still unclear what the Clinton administration will propose to help U.S. producers survive the depression. U.S. Energy Sec. Bill Richardson has been examining a laundry list of proposals for more than a month to determine what is doable, both politically and economically. Action was expected in January (OGJ, Jan. 11, 1999, p. 24). But now February is here, and Richardson presumably is focused on his trip to Saudi Arabia this week.
EIA says U.S. gas mergers growing
The value of U.S. gas industry mergers and acquisitions has risen nearly fourfold this decade, to $39 billion in 1997 from $10.4 billion in 1990, the U.S. Energy Information Administration reports. The increase parallels a surge in corporate combinations (mergers, acquisitions, joint ventures, and strategic alliances) across the U.S. energy sector, from $21.4 billion in 1990 to $106.4 billion in 1997, and then-with the announcement of such blockbuster mergers as British Petroleum plc with Amoco
Italian energy sector faces possible huge carbon taxes
Italy's energy sector is the latest in Europe to face a possible massive "carbon tax" designed to cope with postulated catastrophic global warming. Late last year, the Italian ministers of industry and the environment announced at a summit on energy a 5-year, 100 trillion lira ($57 billion) program to implement a carbon tax and revamp the energy sector. This is in accordance with the Kyoto climate change agreement, under which Italy is to cut emissions of greenhouse gases by 6.5% from 1990
In previous periods of sustained low oil prices, the drift to power generation using alternate fuels has been slowed by the cheapness of oil. In Europe this time around, however, with oil prices at their lowest in at least 12 years and expected to remain low, oil field developments are being stalled-yet there is no apparent slowdown in the rise of renewables. Alan Weekes, environmental engineer at Arbre Ltd., Leeds, puts the reasons for this in the U.K. quite bluntly: "If you hold an NFFO
The inset maps for the Campos and Espirito Santo basins were transposed on the map of Brazil's exploration acreage offering (OGJ, Jan. 25, 1999, p. 39). BP Australia