More Oil & Gas Drilling and Production News

COAL SLURRY TESTS PLANNED

Jan 22, 1990 Unocal Canada Ltd. and Canadian governments plan a $1 million program to test the feasibility of shipping a slurry of coal and condensate by pipeline. Unocal will contribute $384,000, Alberta $333,000, and Ottawa $284,000. The Alberta Research Council test site at Nisku, Alta., will produce the coal/condensate slurry for transportation tests in an experimental pipeline loop at the Saskatchewan Research Council site at Saskatoon, Sask. Unocal said it may be possible to substitute coal for

CONOCO-EXXON TO EXPLORE PAPUA LICENSES

Jan 22, 1990 Units of Conoco Inc. and Exxon Corp. have taken a farmout on two licenses covering 8,000 sq km in Papua New Guinea held by an Australian group led by Victoria Petroleum. The two majors will each acquire a 35% interest in the contiguous PPL106 and PPL117 blocks (see map, OGJ, Mar. 20, 1989, p. 23). Negotiations on the deal surfaced last fall (OGJ, Sept. 11, 1989, Newsletter). Conoco will act as operator and spud the first wildcat, 1 Tarim, in late February or early March.

BHP MULLING SALE OF WOODSIDE 40% INTEREST

Jan 22, 1990 BHP Petroleum Pty. Ltd. is considering plans to sell its 40% interest in Woodside Petroleum Ltd., operator of the giant Northwest Shelf gas development project off western Australia. At current prices, a sale would raise about $800 million (Australian). Meantime, a group led by Woodside plans to test an oil discovery near its 1989 Wanaea oil strike as well as conduct further appraisal of the Wanaea find in the Northwest Shelf area.

INDUSTRY TO STEP UP E&P SPENDING

Jan 22, 1990 Salomon Bros.' survey shows that more than 200 companies have schedules a combined 10.5% jump in upstream outlays this year. U.S. operators expect higher oil prices, as well as better match between gas supply and demand. Solid increases in world exploration and production spending are in store for 1990. More than 200 companies plan a combined 10.5% hike in E&P spending compared with 1989 outlays, an annual survey by Salomon Bros. Inc., New York, shows.

WYOMING COAL GASIFICATION PROJECT HALTED

Jan 22, 1990 The U.S. Department of Energy and Energy International Inc., Pittsburgh, have agreed to terminate a Wyoming in situ coal gasification project because of cost overruns. The project near Rawlins, Wyo., was being designed to burn 500-1,000 tons/day of coal in place and pipe gas to the surface to produce anhydrous ammonia. The project's cost, originally estimated at $70 million, rose to $113.4 million as preliminary design progressed. DOE, which had proposed to provide $11.7 million of the

CIVIL STRIFE WORSENS U.S.S.R.'S PETROLEUM SITUATION

Jan 22, 1990 Renewed ethnic violence in Azerbaijan this month dealt another severe blow to the Soviet republic's onshore petroleum industry but initially had little effect on Azerbaijan's offshore oil and gas production. Again, as in the civil turmoil of late 1988, clashes between Azerbaijanis and Armenians in and around Azerbaijan's capital city of Baku disrupted work in the area's big petroleum equipment manufacturing industry, refineries, petrochemical plants, and onshore oil fields.

PROBLEMS PLAGUE SOVIET CASPIAN OPERATIONS

Jan 22, 1990 An abundance of problems has forced increasing reliance on foreign firms to bring order out of admitted chaos in the Soviet Union's oil operations in the Caspian Sea. The problems include a rash of costly accidents, pervasive technological shortcomings, and inability to obtain spare parts and equipment from domestic suppliers. Despite Moscow's critical shortage of hard currencies, the U.S.S.R. has turned to the U.S., Finland, Japan, West Germany, and eastern European nations for help in

OGJ NEWSLETTER

Jan 22, 1990 Milder weather in the U.S. for the first half of January led crude and product prices to relax from December's madness. North Sea prices were declining last week from peaks set around Jan. 1. North Sea Brent blend for February delivery slipped to $19.80/bbl Jan. 17 from $20.30/bbl a week earlier as European product prices fell as weather related U.S. demand waned. U.K. traders were uncertain about the market's direction but said there appeared more likelihood of further declines than a

CHINA EYES CHALLENGES IN REMOTE TARIM BASIN

Jan 22, 1990 China National Petroleum Corp.'s key oil and gas strike at 1 Tazhong in the Tarim basin of Northwest China presents the country with major challenges. The discovery, on China's largest known subsurface structure, caps a long history of exploration in the remote Tarim basin. Chinese geologists believe Tarim basin reserves may be 74 billion bbl of oil and 282 tcf of gas, respectively one seventh and one quarter of the national total.

INTERNATIONAL BRIEFS

Jan 22, 1990 BP OIL will enter the East German retail market with construction of a service station in Dresden as a 3 million mark pilot project. The city will provide a site on long term lease for the station, to be operated by VEB Minol, the organization responsible for oil distribution in East Germany. A range of gasoline will include unleaded grades for western vehicles.

U.S. BRIEFS

Jan 22, 1990 CHEVRON CORP. said a court sustained its right to pursue its claim that Pennzoil Co.'s filings with the Securities and Exchange Commission contain misrepresentations about Pennzoil's intentions regarding purchase of 8.8% of Chevron stock and that the misrepresentations violate securities laws. Chevron said the part of the suit the court dismissed will have no significant effect on its case.

MICROFRAC TESTS OPTIMIZE FRAC JOBS

Jan 22, 1990 Robert D. Kuhlman Halliburton Services Duncan, Okla. Microfracture testing is providing operators with data for optimizing fracture treatments and determining the placement of wells. This type of testing has increased during the last 5 years because operators can obtain actual stress magnitudes in various zones and the fracture azimuth direction. Entire multiple-well programs have been planned around this testing.

OPERATORS PLAN U.S. DRILLING INCREASE IN 1990

Jan 29, 1990 John C. McCaslin Exploration Editor Operators expect to drill more wells in the U.S. this year than they did in 1989, when crude oil prices increased nearly 21%. The oil industry last year drilled more. wells than the 27,935 completions forecast at midyear but not as many as the 36,500 predicted at the year's start. The average Baker Hughes rig count last year sagged to a modern record low of 869.

OXY PREPARES FOR N. SEA FIELD DEVELOPMENT

Jan 29, 1990 Occidental Petroleum (Caledonia) Ltd. has let three contracts in preparation for development of Saltire oil field, formerly named East Piper, in the U.K. North Sea. Oxy plans to seek formal approval for the 100 million bbl Saltire development project from the U.K. Department of Energy later this year. Elsewhere, Amoco Norway will soon become the first western operator to put a Soviet rig to work in the North Sea. The company signed a contract for use of the U.S.S.R.'s Kolskaya jack up for a

U.S. OIL DEMAND TO CLIMB IN 1990

Jan 29, 1990 Robert J. Beck Economics Editor Continued economic growth coupled with stable or slowly declining petroleum product prices will boost U.S. oil demand in 1990. Last year product demand grew minimally due to substantial increases in product prices and competition from other fuels in the industrial and utility markets. While demand grows, domestic supply will sag again.

Market Connection

Storage Tanks Available Now

1,000,000 GALLONS of BUTANE STORAGE TANKS AVAILABLE: 100k, 90k, 70k, 40k size. Featured Equipment: 1,000 GPM Amine Plant @ 1250 PSI, Quantity 1 – 3...
Refinery Units and Equipment for Sale (PA). Pictured: LSG: Gasoline Desulfurizer, 65,000 BPD.

Refinery Units and Equipment for Sale (PA)

Refinery Units and Equipment for Sale (PA). Pictured: LSG: Gasoline Desulfurizer, 65,000 BPD.

Welded

Contact Us for YOUR Next Pipeline Construction Project

We are a mainline contractor capable of installing pipeline projects ranging up to 48” anywhere within the United States. We give our clients a bal...
Proco

Proco Products: Your Expansion Joint Source for Mud Tanks, Frac Tanks, Shale Shakers

Proco Products, Inc. is a global leader in the design and supply of piping/ducting system expansion joints and rubber check valves. We offer the mo...
PUBLIC AUCTION: Complete Liquidation of 300-Acre Facility. McDERMOTT, INC.: AMELIA (MORGAN CITY), LOUISIANA. SEPTEMBER 8-12, 2014. ONE OF AMERICA’S OLDEST & MOST RESPECTED OFFSHORE/ONSHORE HEAVY FABRICATION FACILITIES: OFFSHORE MARINE EQUIPMENT, TREMENDOUS OFFERING OF MOBILE EQUIPMENT, COMPLETE OFFSHORE PLATFORM & JACKET MANUFACTURING FACILITIES.

PUBLIC AUCTION: Complete Liquidation of Offshore/Onshore Heavy Fabrication Facility

  PUBLIC AUCTION: Complete Liquidation of 300-Acre Facility. McDERMOTT, INC.: AMELIA (MORGAN CITY), LOUISIANA. SEPTEMBER 8-12, 2014. ONE OF AM...
Stay Connected