More Oil & Gas Processing News

COMMENT HIGH ENVIRONMENTAL COSTS GIVING U.S. REFINERS COMPETITIVE BURDEN

Jan 8, 1990 Clement B. Malin General Manager of Corporate Planning & Economics Texaco Inc. White Plains, N.Y. From testimony on developing a National Energy Strategy (NES) given at U.S. Department of Energy hearings last month in Atlanta. Energy is an integral and vital component of the economic strength and well-being of the U.S. Ours is a country richly endowed with energy resources. As a nation, however, we have not chosen to rely solely on domestic sources of energy supply, nor does it seem likely

ULTRADEEP HIGH-PRESSURE WELL TESTED IN AUSTRIA

Jan 8, 1990 J. Moritz, A. Baumgartner OMV Aktiengesellschaft Vienna Specialized equipment and procedures were needed for carrying out a successful flow test of the deepest reservoir, to date, in Europe. The reservoir, located at 20,712 ft, had a pressure gradient of 18.3 ppg mud. Because the shallow formations in the Austrian basins had been relatively well explored (first commercial oil in 1934), it was necessary to change the exploration strategy and drill deeper.

WATCHING THE WORLD MIDDLE EAST TARGET: PACIFIC RIM

Jan 8, 1990 with Roger Vielvoye from London The booming economies of the countries around the Pacific Rim are the next target for expansionist downstream affiliates of state oil companies of the Middle East. After breaking into the established but slowly growing U.S. and European markets, Saudi Arabia and Kuwait have embarked on a much more demanding task: gaining entry to the highly protected Japanese downstream business.

WASHINGTON TO DETERMINE OCS LEASE SALE SCHEDULE

Jan 8, 1990 Patrick Crow Washington Editor The U.S. government will make critical decisions on the future of Outer Continental Shelf leasing this year. And it will do so in a political atmosphere the oil industry finds troubling. Here's the agenda:

FULL COGEN CONVERSION START-UP NEAR

Jan 8, 1990 The world's first conversion of a nuclear power plant to a gas fired cogeneration plant will start commercial operations in the first quarter. Midland Cogeneration Venture (MCV) is a limited partnership led by a unit of CMS Energy Corp. to convert the former Midland, Mich., nuclear plant to a gas fired, combined cycle cogeneration plant (OGJ, June 20, 1988, p. 26). At first it will burn about 167 MMcfd of gas to produce 1.37 million kw of electricity and 1.35 million lb/hr of process steam.

CHEVRON RESTRUCTURES NON-U.S. OPERATIONS

Jan 8, 1990 Chevron Corp. has made further restructuring moves, this time focusing on non-U.S. operations. Effective Jan. 1 were the latest measures in a 2 year series of restructuring efforts aimed at sharpening strategies and enhancing business opportunities. Internal studies found the company needed to better integrate and coordinate international strategies. In the latest action, Chevron decentralized its foreign operations staff by moving key staff members into regional line organizations.

INNOVATIVE IMPROVEMENTS HIGHLIGHT FCC'S PAST AND FUTURE

Jan 8, 1990 Amos A. Avidan, Michael Edwards Mobil Research & Development Corp. Paulsboro, N.J. Hartley Owen Mobil Research & Development Corp. Princeton, N.J. Advances in catalytic cracking led to the invention of a new unit operation-fluidization of fine powders-nearly 50 years ago. Fluid catalytic cracking (FCC) is still the major use of fluidization, and it is the focus of most fluidization research in industry.

U.S. BRIEFS

Jan 8, 1990 PLAINS PETROLEUM CO., Lakewood, Colo., plans further seismic work to define step-out locations to its Minnelusa strike in the Powder River basin in Crook County, Wyo. MRA-Plains 31-28 Federal gauged 630 b/d of 21.7 gravity oil with no water from pay at 7,018-52 ft. Plains and McAdams, Roux & Associates Inc., Denver, each has a 50% working interest in the discovery and jointly own or control about 400 acres in the immediate area.

FUEL PRICE BLUSTER LOOKS ABSURD

Jan 8, 1990 They come out like sporting event "boo birds" when the home team falters. Oil and gas prices jump, and governors and attorneys general of some consuming states call news conferences, shake their fists, and demand investigations of the petroleum industry. It's their prerogative. They are government officials. But when prices rise for reasons apparent to anyone, the bluster looks absurd.

WATCHING WASHINGTON WHAT'S AHEAD ON ENERGY ISSUES

Jan 8, 1990 with Patrick Crow Although no giant issues loom, 1990 should keep the oil industry's Washington lobbyists busy enough. Congress will return from recess Jan. 23 and will hear President Bush's State of the Union address a week later. You can bet the president's follow-up budget proposals will contain no new taxes but many new "user fees."

SPOT GAS PRICES SURGE FOR JANUARY

Jan 8, 1990 U.S. deepfreeze sparks rise in gas demand that sends median spot price to an average $2.34/MMBTU, highest monthly average since July 1985. Product prices also jump. Refiners bringing plants back in operation after shutdowns. Average U.S. natural gas spot prices for January shot to their highest level since July 1985 because of heavy demand brought on by record cold weather throughout much of the U.S. late last month. Rising oil product prices brought demands for investigations as temperatures

EXXON EXPANDS IN CHEMICALS

Jan 8, 1990 Exxon Chemical Co. is pressing its petrochemical expansion program in Europe. The company confirmed plans for expansion of its Notre-Dame-de-Gravenchon, France, steam cracker to 400,000 metric tons/year from 315,000 tons/year. Propylene capacity at the complex will rise by 50,000 tons/year to 270,000 tons/year. The company also plans to build a 140,000 ton/year polypropylene plant at the complex using feedstock from the cracker. Total spending at the site will be about $200 million.

SHELL HOMES IN ON TROLL FIELD DEVELOPMENT

Jan 8, 1990 Norske Shell will recommend to partners that Troll gas field in the Norwegian North Sea be developed using multiphase flow pipelines and onshore processing instead of a large integrated drilling and production platform. A study of the two systems showed costs are very similar. But greater safety of onshore processing swung Shell in favor of multiphase flow pipelines with onshore gas processing.

OGJ NEWSLETTER

Jan 8, 1990 The cold December in the U.S. sent heating fuels prices soaring and crude prices to the highest levels since the historic 1985-86 price crash (see story, p. 24). WTI futures for February delivery closed Jan. 3 at $23.68/bbl, up almost $2 on the week. That is the highest since mid-January 1986, when prices were plummeting to about $10/bbl from more than $30/bbl. WTI postings followed to $22.50/bbl, up $1.50 last week. Heating oil futures climbed 20 on the week to $1.02/gal Dec. 29, the last

INTERNATIONAL BRIEFS

Jan 8, 1990 SHELL U.K. LTD. and Esso U.K. Ltd. will upgrade their gas liquids processing and transportation facilities in Scotland following agreements to handle NGL from Amerada Hess's Ivanhoe and Rob Roy fields and Mobil North Sea's Beryl field in the U.K. North Sea. Planned are a new manifold and tie-in pipeline at St. Fergus gas plant and a 100 million ($160 million) expansion of Shell-Esso's Mossmorran fractionation plant in Fife.
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