More Oil & Gas Drilling and Production News

PRICE QUESTIONS COOL INTERNATIONAL DRILLING

Jan 29, 1990 International drilling will increase in 1990 as activity catches up with last year's crude oil price gains. But the increase will be modest because of lingering price uncertainty. Oil & Gas Journal projects the average active rig count outside the U.S. and Canada at 940-950, compared with an estimated 923 in 1989. Last year's tally was down from 1,023 in 1988, a year of price weakness. Some drilling increase seems inevitable after last year's price strength. Indeed, oil companies

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.

COMPLEX GEOLOGY DISCUSSED BY NOTED ARABIAN SCIENTIST

Jan 29, 1990 Saleh M. Billo King Saud University Riyadh, Saudi Arabia The Arabian Gulf expands as an arm of the Arabian Sea between the Arabian Peninsula and southwest Iran (Fig. 1).

API STATISTICS SHOW U.S. OIL FLOW DOWN, IMPORTS ON THE RISE

Jan 29, 1990 The American Petroleum Institute predicts U.S. oil imports will average close to 50% for all of 1990 if present trends continue. API's yearend figures show that U.S. oil production in 1989 logged the sharpest annual decline in history: 553,000 b/d. To make up the shortfall in supply, imports climbed to a 10 year high. Edward Murphy, API director of finance, accounting, and statistics, called the production slump "by far the most notable change in the petroleum market in 1989."

ENVIRONMENTAL CONCERN OUTWEIGHS ACTION ON ENERGY IN CONGRESS

Jan 29, 1990 Patrick Crow Washington Editor U.S. environmental issues will continue to outweigh energy concerns in this session of Congress. And the environmental issue with the top priority is reauthorization of the Clean Air Act. Although the legislation is hotly debated and although previous attempts to amend it have failed, passage is likely this year because most key parties involved-congressmen, the administration, and environmentalists, for example-want a bill. Congress is expected to agree on

BP FINISHES ANOTHER N. SEA HORIZONTAL WELL

Jan 29, 1990 BP Exploration has finished the North Sea's second horizontal well drilled by a semisubmersible rig. Site is in Cyrus field in U.K. North Sea Block 16/28, where BP drilled the sea's first horizontal well in summer 1988 in about 110 m of water (OGJ, Sept. 5, 1988, p. 28). The two wells eventually will produce Cyrus's 13 million bbl reservoir using the Seillean oil production vessel (OGJ, Oct. 2, 1989, p. 44). The company did not disclose a gauge for the latest well. The first well

NORWAY'S STATOIL SHARPENS FOCUS ON U.S. MARKET FOR OIL AND GAS

Jan 29, 1990 Norway's Den norske stats oljeselskap AS sees the U.S. as a major market for its North Sea production. Statoil Pres. Harald Norvik told the Norwegian-American Chamber of Commerce in New York his company is still working on plans to ship liquefied natural gas to the U.S. Statoil anticipates increased oil and gas exports and is seeking wider trading for its Oseberg field crude. "We believe the U.S. will be an attractive market, and the 1990s will be an attractive time to enter that market,"

INTERNATIONAL BRIEFS

Jan 29, 1990 PHILLIPS Petroleum Co. Iran received a $92 million settlement from the Iran-U.S. Claims Tribunal in compensation for an expropriated one-sixth interest in two oil fields off Iran. A tribunal award of $110 million to Phillips last June did not dispose of a counterclaim by Iran for oil received by Phillips under purchase contract. The current settlement, minus a $1 million statutory fee deducted by the U.S. Treasury Department, disposes of all claims and counterclaims.

ARKLA GAUGES STRIKES IN TUSCALOOSA, ARKOMA

Jan 29, 1990 Arkla Exploration Co., Shreveport, La., plans exploratory and development drilling this year near new field discoveries in Southwest Mississippi and East Central Arkansas. Arkla's 1-35 Robertson in Amite County, Miss., flowed at a rate of 265 b/d of oil and 232 Mcfd of gas with 1,751 psi flowing tubing pressure through a 12/64 in. choke from selective Cretaceous Tuscaloosa sand perforations at 12,148-158 ft. The Robertson discovery, drilled to 12,500 ft, is 3 miles south of the

OGJ NEWSLETTER

Jan 29, 1990 New production facilities are planned for the Middle East in preparation for higher demand for crude from the region later in the decade. Arabian Petroleum Pipelines (APP) will boost capacity of the Sumed pipeline from the Gulf of Suez to the Mediterranean Sea to 2.4 million b/d from 1.6 million b/d during the next 3 years. In the Persian Gulf, Abu Dhabi Co. for Onshore Oil Operations (ADCO) will expand capacity of Bab onshore oil field and the Jebel Dhanna export terminal.

NEW PIPELINE COATING SYSTEM SPEEDS SOUTH TEXAS REHAB

Jan 29, 1990 Natural Gas Pipeline Co. of America recently employed a new pipeline-coating system during rehabilitation of a 25.4-mile, 26-in. pipeline section in South Texas. Major components of the system were designed for CRC-Evans Pipeline International Inc., Tulsa, by Incal Inc., Houston. After manufacture in CRC-Evans' Tulsa facility, Incal tested and commissioned the unit in the field and provided project management and on-site services during the job.

BUSH PLANS TO HIKE ENERGY OUTLAYS

Feb 5, 1990 President Bush's first budget proposal calls for significantly higher spending f r energy research and development, conservation, and renewable energy. The administration's fiscal 1991 budget, for 12 months beginning Oct. 1, calls for $1.23 trillion in spending and anticipates $1.17 trillion in revenues, leaving a $63 billion deficit. That's barely less than the $64 billion deficit limit set in the Gramm-RudmanHollings budget law. As part of the budget, the Treasury Department

1990 SEEN AS TURNAROUND YEAR IN CANADA

Feb 5, 1990 Canadian officials believe 1990 will mark the beginning of an upturn for their industry. Industry groups say operators are budgeting for an average crude oil price of $18.50 (U.S.)/bbl. Natural gas sales will remain strong, although prices will be weak and there will be inadequate pipeline capacity for gas exports to the U.S. Average gas prices are expected to increase by 50 to $1.65/Mcf as a result of tighter North American supplies. The Canadian Petroleum Association and Independent Petroleum

OGJ NEWSLETTER

Feb 5, 1990 OPEC Sec. Gen. Subroto has urged Japan to provide an unspecified level of funding to help OPEC raise productive capacity to prepare for a tighter crude oil market. Subroto told Hikaru Matsunaga, minister of international trade and industry, OPEC will need $60 billion in foreign aid to boost capacity 6-7 million b/d by 1995. Matsunaga said the Japanese government will carefully consider the request. Japan imported 3.59 million b/d in 1989, 76.5% of it from OPEC and an 8.2%, gain from 1988

H2S REMOVAL SYSTEM SHOWS PROMISE OVER IRON SPONGE

Feb 5, 1990 Alvin Samuels Gas Sweetener Associates Inc. Metairie, La. Use of a new material as a replacement product for iron sponge (wood chips) for H2S removal has been introduced at two Shell Western E&P central production facilities in Michigan. At the Chester 21 facility, operating costs between March and August 1989 were reduced by 13% over the same period for 1988. Winter savings are projected at 21%. The new trademarked material is named SulfaTreat. It is a dry, free-flowing material being used

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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.

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