More Health, Safety, Security & Environment News

U.S. BRIEFS

HYGRADE 42 barge spilled about 3,900 bbl of kerosine into the Hudson River near Marlboro, N.Y., about 60 miles north of New York City after striking an underwater reef. The barge, owned by Hygrade Operators, New York, was heading north to Rensselaer, N.Y., carrying about 30,000 bbl. Coast Guard crews reportedly contained the spill, although a sheen was spotted at a water treatment plant in Poughkeepsie, N.Y., 5 miles north of the grounding site.

FIRST MANZANARES SYSTEM LINK COMPLETE

Williams Field Services, Salt Lake City, has completed the first segment of its Manzanares pipeline project that serves San Juan basin coalbed methane producers. The segment connects the Sims Mesa central delivery point into the system of Northwest Pipeline Corp. for delivery at the outlet of Northwest's Ignacio, Colo., gas processing plant. Amoco Production Co. and Conoco Inc. plan to deliver 19 MMcfd and 3 MMcfd, respectively, of coal seam gas from the Sims Mesa area. The gas will be

AMOCO DETAILS R&M ENVIRONMENTAL INITIATIVES

Amoco Oil Co. is introducing comprehensive refining/marketing environmental initiatives in the Washington-Baltimore-Richmond area of the U.S. East. They include: Providing three grades of reduced emission gasoline. Installing new, more effective Amoco design gasoline pump vapor recovery nozzles. Establishing a used motor oil recycling center for motorists. Installing a compressed natural gas outlet for fleet vehicle use.

OGJ NEWSLETTER

The world oil market appears headed for a fragile balance in the fourth quarter even as the prospect of war in the Middle East grows. Oil prices are still buffeted by political news rather than by market fundamentals. Brent for 15 day delivery seesawed last week to close Nov. 8 at $35.05/bbl, flat on the week but up more than $2 in 3 days, on the heels of U.S. efforts to gain support for possible military action in the Persian Gulf.

POINT ARGUELLO PROJECT START-UP BLOCKED AGAIN

Bob Williams Senior Staff Writer The long delayed $2.5 billion Point Arguello oil field development project off Santa Barbara County, Calif., has slammed into yet another roadblock even amid the specter of war over Persian Gulf oil supplies. Chevron Corp. and its partners in the beleaguered project will appeal Santa Barbara County's denial last week of their transportation plan to bring the project on stream. Permitting snafus have kept the Santa Maria basin project's potential 80,000

HORIZONTAL WELLS-5 FORMATION EVALUATION HELPS COPE WITH LATERAL HETEROGENEITIES

Michael Taylor Exlog Houston Nick Eaton Eastman Christensen Houston While drilling, maintaining the optimum position of the well bore with respect to productive intervals is paramount to the success of the horizontal well. Even the best understood reservoirs are at the mercy of lateral geological heterogeneities that influence production success. To date, horizontal drilling has targeted fractured reservoirs, thin oil plays, and reservoirs with known coning problems. Some fields are being

REACTING TO ENVIRONMENTAL COSTS

It's too early to call environmental extremism an endangered species. Nevertheless, voters did turn down the economy-busting environmentalist initiative called Big Green in California. And voters did reject lower-order environmental wackiness in Oregon, Washington, and New York.

QUESTIONS RAISED ABOUT GLOBAL WARMING AND ITS CAUSES

A Dartmouth College professor says a 1 year study has raised key questions about the significance, mechanics, and timing of global warming and its causes. Robert Jastrow urged a 5 year deferral of policy decisions on carbon emissions and other fossil fuels burning. Such a delay would allow little further harm and give scientists time to conduct research needed to give policy makers and the energy industry the facts needed for sound decisions, he told the American Petroleum Institute's

ECONOMY, ENVIRONMENT, ENERGY LINK CITED

The U.S. economy, environment, and energy are inexorably linked, Mobil Corp. Chairman Allen E. Murray told the American Petroleum Institute annual meeting last week in Chicago. Murray, addressing the second of two general sessions, said, "The same importance should be placed on the economy and the energy to fire it as is placed on the environment. "The impact each has on the other is seldom considered during the legislative process."

DOE PUSHES CLEAN COAL TECHNOLOGY PROGRAM

The U.S. Department of Energy continues to press its clean coal technology (CCT) campaign in several parts of the country. Among recent developments: Encoal Corp., Houston, a subsidiary of Shell Oil Co.'s Shell Mining Co., broke ground late in October for a plant near Gillette, Wyo., to demonstrate a mild gasification process called Liquids from Coal (LFC).

BONNER & MOORE SEES SHORT SUPPLIES OF U.S. REFORMULATED GASOLINE

U.S. refiners aren't likely to revamp processing units quickly enough to meet projected demand for reformulated gasoline. An inadequate supply of oxygenates, mainly methyl tertiary butyl ether (MTBE), will cause the Environmental Protection Agency to delay or relax oxygenate levels spelled out in amendments to the Clean Air Act (CAA), says a report by Bonner & Moore Associates, Houston. President Bush signed the amendments into law Nov. 15.

OGJ NEWSLETTER

World oil markets have settled into a relative calm that probably won't be broken short of shooting in the Persian Gulf or a long, severe cold snap. Market fundamentals are sufficiently bearish that even Saddam's plan to double Iraqi occupation forces in Kuwait sent U.S. futures prices up only $1.72, with Nymex crude for December delivery closing Nov. 19 at $31.50/bbl, down 37 on the week and $4 from November's high to date. Brent for 15 day delivery rose only 55 in relaxed trading

EPA MODERATES STORM WATER DISCHARGE RULES

The Environmental Protection Agency has exempted most U.S. oil and gas producers from new regulations governing storm water discharges. EPA's final rule allows oil and gas operators to obtain a storm water runoff permit for well sites unless they have had a release of oil or hazardous substances into storm water within the past 3 years. Separately, EPA proposed to toughen its water pollution control rules for offshore drilling and production operations. It will accept comments before

OGJ NEWSLETTER

Are increased production and falling demand continuing to build pressure for an oil price collapse in 1991? Oil prices are unlikely to average more than $26/bbl by fourth quarter 1991 regardless of the situation in the Persian Gulf, contends the Center for Global Energy Studies, London. Its scenarios for oil prices: A settlement spurs a drop to $13/bbl in fourth quarter 1991 from $29/bbl in the first quarter, a stalemate to $20 from $33, and a short but destructive war to $26 from $71.

INDONESIA, MALAYSIA PUSH PETROLEUM WORK

At the heart of the Asia-Pacific region, two key oil and gas producing countries are straining to meet rapidly rising internal demand and maintain oil exports. In the ambitious plans of both countries, natural gas plays a central role. Indonesia, a member of the Organization of Petroleum Exporting Countries, may have trouble maintaining oil exports much past the turn of the century. But growing exports of liquefied natural gas will help take up the trade slack.

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