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WORLD'S FIRST NUCLEAR TO GAS POWER PLANT CONVERSION BEGINS OPERATING AT COMMERCIAL LEVEL

The world's first conversion of a nuclear power plant to a gas fired cogeneration plant has started commercial operation in Midland, Mich. In addition, the Midland Cogeneration Venture (MCV), the biggest U.S. cogeneration plant, completed sale and leaseback of plant assets totaling $260 million. The project was completed ahead of schedule and under budget at a cost of about $650 million.

INTERNATIONAL BRIEFS

SHELL CANADA LTD. plans to restructure its downstream operations and may sell or close some of its 3,500 service stations and four refineries. The restructuring plan is expected to be in place by second half 1990. Shell plans to concentrate on an exploration and development program with capital outlays of $768 million (Canadian) this year (OGJ, Apr. 2, p. 40).

EXXON PLAN TO RESUME CLEANUP APPROVED

The U.S. Coast Guard has conditionally approved Exxon Corp.'s general plan for resumption of oil spill cleanup operations in Prince William Sound and the Gulf of Alaska. The conditions involve the use of intrusive cleanup methods, protection of wildlife and commercial and subsistence fisheries, use of cleaning agents, and inspection of vessels used in cleanup operations. Exxon, which is implementing the stipulations, filed the preliminary work plan with the Coast Guard Mar. 15 (OGJ, Mar.

WATCHING THE WORLD U.K. POWER PRIVATIZATION

with Roger Vielvoye from London The state owned electrical industry in England and Wales has finally been broken into 16 companies in preparation for sale to the public. Privatization not only will revolutionize the way electricity is generated and sold, it will accelerate the growth of competition in Britain's gas industry. Under the new industry structure, the Central Electricity Generating Board (CEGB) has been broken down into two generating companies-National Power and PowerGen-and its

MIDDLE EAST OIL PRODUCERS GETTING SET FOR DEMAND SURGE IN MID-1990S

Roger Vielvoye International Editor Middle East countries are preparing for a predicted upturn in demand for their crude oil in the mid-1990s. Production facilities mothballed for as long as 6-7 years in some cases are being reactivated and investments approved for new production facilities. The turnaround in the fortunes of the region has occurred suddenly.

U.S. BRIEFS

ARKLA EXPLORATION CO., Shreveport, formed a joint venture with Oneok Exploration Co., Tulsa, and a private investor for onshore exploration and development on the Texas Gulf Coast during the next 3 years. As operator of the joint program, Arkla will bear 55% of the projected $25 million cost on selected prospects in the Yegua, Wilcox, and Frio trends. Oneok will pay 20%, the private investor the remaining 25%.

THE QUEST FOR ENERGY CONSENSUS

How should the U.S. assess the national energy strategy under construction by the federal government? Energy Sec. James D. Watkins has a suggestion. "If we can finish a product that will make everybody equally unhappy," he said last week when his department published its interim report, "we will have done our job."

ASIA TO PACE WORLD PETROCHEMICAL GROWTH

Developing nations of Asia will account for the most dramatic growth in petrochemical demand and capacity additions in the 1990s. That's apparent in a study by the World Bank that focuses on six newly industrializing nations: China, India, South Korea, Thailand, Indonesia, Malaysia. Burgeoning economies and ambitious expansion plans in most of those six-plus Hong Kong, Singapore, and Taiwan-underlie analysts' projections of the Pacific Rim as having the strongest growth in petrochemical

OGJ NEWSLETTER

The National Petroleum Refiners Association will encourage refiners to take a more active role in the debate on improving air quality in he U.S., says Richard I. Robinson, newly elected chairman of NPRA. NPRA, traditionally not involved in direct lobbying, will continue to support refiner efforts with technical and economic information. Robinson, vice-president of refining, Phillips Petroleum Co., said lawmakers should let the market determine the use of reformulated or alternative fuels (see

REFORMULATED FUELS-1 REFORMULATED GASOLINES WILL CHALLENGE PRODUCT-QUALITY MAINTENANCE

George H. Unzelman HyOx Inc. Fallbrook, Calif. Maintaining transportation fuel quality in the regulatory environment during the 1990s will become a balancing act between regulating agencies and the petroleum refining industry. Regulations modifying gasoline and diesel fuel composition will be promulgated to improve air quality and reduce human exposure to critical hydrocarbons. Given enough time to generate capital and install processing, refiners should be able to meet fuel quality demand.

U.S. EAST-WEST GAS PROJECTS ADVANCING

Proposed pipelines to transport U.S. and Canadian gas to California are moving closer to start-up. Mojave Pipeline Co. is commencing right-of-way acquisition for its 385 mile, 30 in. and 42 in. pipeline from Topock, Ariz., to Kern County, Calif., in spite of a court challenge by the California Public Utilities Commission. Mojave hopes to start construction of the 400 MMcfd system in January 1991 after receiving remaining environmental clearances and place the line in service in early 1992. It

SENATE PASSES CLEAN AIR ACT AMENDMENTS

The Senate has voted 89-11 to pass sweeping U.S. clean air legislation after accepting an amendment on reformulated gasoline the oil industry had opposed. The bill, the first major revision of the Clean Air Act in 13 years, is very similar to the compromise Senate leaders and the Bush administration negotiated last month (OGJ, Mar. 12, p. 23). The administration estimated the Senate bill will cost the nation $20 billion/year in addition to the $33 billion/year currently being spent.

WATCHING WASHINGTON OFFSHORE PERCEPTIONS

with Patrick Crow The National Ocean Industries Association, meeting in Washington last week, repeatedly heard it must reverse public perceptions of offshore drilling if U.S. offshore leasing is to get off high center. Interior Sec. Manuel Lujan said despite the facts of the situation, much of the political problem associated with the OCS program is a matter of perceptions.

CANADIAN GAS LINE EXPANSIONS AT ISSUE

A major split is developing among Canadian producers at National Energy Board hearings on how to finance gas pipeline expansions to serve U.S. markets. NEB is considering a $2.6 billion expansion project by TransCanada PipeLines Ltd. to serve markets in the U.S. Northeast via the proposed Iroquois pipeline. The board also is reviewing its toll policy under which expansion costs are rolled into the rate base and shared by all users.

WARNING ISSUED ON DOUBLE HULL REQUIREMENT

Regulators' double hull requirements for tankers in the wake of the Exxon Valdez oil spill off Alaska are likely to have widespread consequences, says an international management consulting firm. It appears that new rules will require at least one third of the world's tankers and much of the U.S. barge fleet to be rebuilt within some legislated time frame, probably 7-15 years, says Brent Dibner, a vice-president of Temple, Barker & Sloane, Lexington, Mass.

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The Texas A&M University System

Notice of Sale of Oil and Gas Lease

THE TEXAS A&M UNIVERSITY SYSTEM NOTICE OF SALE OF OIL & GAS LEASE. The Board of Regents of The Texas A&M University System, pursuant to...
Driller/Operator Wanted

West Texas Shallow Oil Play Seeking Partners

West Texas Shallow Oil Play Seeking Partners. 11,608 acres leased; Multiple pays 1200’ to 5000’. Large surface structure with well control; EUR-118...
Nitec LLC

Two Senior Production Engineers

Sr. Reservoir Simulation Engineer in Denver, CO. Manage integrated, multi-disciplinary reservoir studies. Evaluate seasonal daily and monthly gas s...
OIL & GAS MINING LEASES: The Sac and Fox Nation, Stroud, OK, is offering to the highest bidder, restricted Indian land for Oil & Gas Mining leases, located in all Sections of Township 16 North, Range 6 East, in Lincoln County, Oklahoma. The lease auction will be held October 13, 2014 at 10:00 a.m. at the Sac and Fox Nation Community Building. Persons or firms interested and desire a list of the properties should contact Charlotte Gray, Realty Specialist at, (918) 968-3526, ext. 1023.

OIL & GAS MINING LEASES: Oklahoma

OIL & GAS MINING LEASES: The Sac and Fox Nation, Stroud, OK, is offering to the highest bidder, restricted Indian land for Oil & Gas Mining...
Refinery for Sale

Refinery for Sale

Refinery for Sale: 85,000 BPD. ULSD: 20,000 & 10,000 BPD, LubesHT, MEK. Reformer: 20,000 BPD, Crude/Vac 85,000 BPD.

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