California power squeeze crimping heavy oil operations

04/16/2001
Heavy oil producer Berry Petroleum Co. has cut oil production at its California thermal enhanced oil recovery operations because it's not getting paid for power produced by its cogeneration units.Berryreduced operations at the cogen plants after Southern California Edison Co. and Pacific Gas & Electric Co. stopped payments for electricity that the company sold to them. By reducing electricity output at the cogen plants, co-produced steam used in steamflooding heavy oil fields also declined.The small exploration and production company, based in Carpinteria, Calif., owns and operates a QF, or qualifying facility under contract to sell electricity to the local utilities-a program in plac...
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