More Oil & Gas Processing News

S. TEXAS CRUDE LINE TO EXPAND

Mar 26, 1990 Enron Oil Trading & Transportation Co. plans to nearly triple the capacity of its crude oil gathering system in South Texas in response to growing production from wells with horizontal drain holes. The company plans a $3.3 million project to increase pump capacity on its main line system and lay 15 miles of line from the existing line near Divot, Tex., to Enron's Pearsall, Tex., station. Upon completion of the project by June, Enron will increase its capacity into Pearsall to 75,000 b/d

CONVERSION GAINS REFLECT HEALTHY MARGINS

Mar 26, 1990 Richard A. Corbett Refining/Petrochemical Editor Crude oil distillation capacity at U.S. refineries increased only modestly in 1989 according to the Journal's exclusive, annual refining survey, but conversion and treating capacity showed respectable jumps. This is in line with the strong demand for gasoline, diesel fuel, and other high-quality products last year. That slight increase in crude capacity should keep the industry closely balanced with demand, keep its operating rates high,

FCC CLOSED-CYCLONE SYSTEM ELIMINATES POST-RISER CRACKING

Mar 26, 1990 Amos A. Avidan, Frederick J. Krambeck Mobil Research & Development Corp. Paulsboro, N.J. Hartley Owen, Paul H. Schipper Mobil Research & Development Corp. Princeton, N.J. A major improvement in high-temperature, short-contact time catalytic cracking has been commercialized by Mobil Corp. The use of closed cyclones in fluid catalytic cracking (FCC) reactors has eliminated post-riser, nonselective thermal cracking.

OGJ NEWSLETTER

Mar 26, 1990 OPEC resisted the temptation to meddle with its first half production ceiling of 22.1 million b/d or its price target of $18/bbl. Under pressure, notably from Iraq to press for a $20/bbl crude price, the ministerial monitoring committee meeting in Vienna opted to leave last November's production and pricing pact untouched until the next ministerial meeting May 25. Although no action was taken, Iraq's proposal for higher prices attracted widespread support. However, the prospect of

WATCHING THE WORLD OMV'S UPSTREAM CAMPAIGN

Mar 26, 1990 with Roger Vielvoye from London Austria's state owned oil, gas, and petrochemical company, OMV AG, has started to speed its expansion in international exploration and production. Since the start of this month it has agreed to spend $360 million in three deals to increase its access to crude oil production. The first deal was in Canada, followed by two agreements with major North Sea operators.

INTERNATIONAL BRIEFS

Apr 2, 1990 SHELL CANADA LTD. will accent natural gas operations in an increased capital and exploration budget of $768 million (Canadian) for 1990, up $55 million from last year. Of this year's total, the upstream sector will get $509 million, including $250 million for gas development and $127 million for western Canada gas exploration. Shell's oil products segment will get $178 million, chemicals $14 million.

A LOOK AT DOWNDIP YEGUA TREND REVEALS FIVE LANES OF RESERVES

Apr 2, 1990 Thomas E. Ewing Frontera Exploration Service San Antonio W. Grant Fergeson Venus Oil Co. San Antonio The Downdip Yegua trend of overpressured gas-condensate reservoirs has produced over 600 bcf and 15 MMbbl of oil and condensate, mostly since 1979. The trend has indicated reserves in the range of 1.6-2.0 tcf, and substantially higher potential.

OIL FLOW SLUMPS IN U.S.S.R.'S KEY PROVINCE

Apr 2, 1990 Oil flow in the Soviet Union's most prolific producing area, western Siberia's Tyumen province, apparently has plummeted to a level not seen since the early 1980s. There is no sign of an early rebound. Instead, Soviet officials are concerned that strike sentiment among Tyumen oil workers, which has been growing since last summer, may soon cause widespread work stoppages. If that happens, the U.S.S.R.'s 1990 oil flow could fall faster than production in the U.S.

NPRA O&A-2 CRACKING PROCESSES DEPEND ON GOOD CATALYST CHARACTERISTICS

Apr 2, 1990 Good catalyst characteristics are necessary to maintain efficient operation of two key conversion processes: fluid catalytic cracking (FCC) and hydrocracking. How catalyst types and loadings affect conversion process operation, and how certain process operating conditions affect the catalysts in them, were important topics at the most recent National Petroleum Refiners Association annual question and answer session, Oct. 46, 1989, in New Orleans.

OPERATORS BOOSTING THAI E&D WORK

Apr 2, 1990 Exploration and development in Thailand continue to set a brisk pace. Among the latest mix of action: Unocal Thailand and partners will sharply boost capital spending for Gulf of Thailand exploration and development in 1990. British Petroleum Co. plc expects to spend as much as $35 million during the next 10 years to develop two small oil fields in Thailand's central plains. Exxon Corp.'s Thai unit plans to step up exploratory drilling for gas in Thailand's northeastern region away

PACE: FUEL REQUIREMENTS MUST BE CLEARER

Apr 2, 1990 U.S. refiners must make large investments in the 1990s to meet growing demand for petroleum products. But they need a clearer definition of the environmental requirements for fuels before beginning major construction campaigns. Excess capacity is not likely to develop before the late 1990s even with aggressive construction programs.

EC-GCC PACT SEEN AS THREAT TO EUROPE'S PETROCHEMICALS

Apr 2, 1990 Europe's petrochemical producers claim that a free trade agreement (FTA) between the European Community and the Gulf Cooperation Council is a threat to their industry in the medium and long term. The Association of Petrochemical Producers in Europe (APPE), with headquarters in Brussels, said the proposed FTA would make Europe the most attractive target for production from the Persian Gulf states and lead to a distortion of worldwide competition.

SUBSEA PRODUCTION DEVELOPMENTS-CONCLUSION NORTH SEA DIFFICULT BUT PRIME AREA FOR APPLICATIONS

Apr 2, 1990 Knut S. Skattum Norsk Hydro A.S. Oslo The Norwegian North Sea sector has been considered a very expensive area for subsea developments compared to the Gulf of Mexico and Brazil, where, the cost of a completed subsea well is several times less. 16 An analysis of these large differences, though difficult, may show how the costs for North Sea projects can be reduced. Nevertheless, numerous projects are planned or underway in the Norwegian sector. The Troll/Oseberg gas injection (TOGI) project

NEW CONSTRUCTION ERA REFLECTED IN EAST TEXAS LPG PIPELINE

Apr 2, 1990 T. J. Mittler Texas Eastman Co. Longview, Tex. Installation of 240 miles of 6, 10, and 12-in. LPG pipelines from Mont Belvieu to Tyler, Tex., has provided greater feedstock-supply flexibility to Texas Eastman Co.'s petrochemical plant in Longview, Tex. The project, which took place over 18 months, included tie-ins with metering at four Mont Belvieu suppliers. The new 10 and 12-in. pipelines now transport propane while the new and existing parts of a 6-in. pipeline transport propylene.

OGJ NEWSLETTER

Apr 2, 1990 The White House is threatening to veto a House bill that would include the Environmental Protection Agency in the cabinet. The House passed the bill 371-55 last week. President Bush wants EPA in the cabinet but threatened to veto the bill because it would create an independent bureau of environmental statistics within EPA. Bush said that would infringe on the president's constitutional right to manage the executive branch. The Senate is likely to take up the bill in a few weeks.
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