More Oil & Gas Processing News

INTERNATIONAL BRIEFS

Jan 15, 1990 SECOND STAGE of the 960 km Iraqi pipeline across Saudi Arabia (IPSA-2) started up last week, boosting Iraq's export capacity to 3.5 million b/d. IPSA-1, first stage of the $2.7 billion, 1.65 million b/d system, started up in September 1985 with throughput of 500,000 b/d. The system links Iraq's southern oil fields with the Yanbu export terminal on the Red Sea. SAUDI ARABIA gave Morocco $50 million toward cleanup of the oil spill from the damaged Iranian tanker Kharg 5 off

PROBLEMS PLAGUE SOVIET CASPIAN OPERATIONS

Jan 22, 1990 An abundance of problems has forced increasing reliance on foreign firms to bring order out of admitted chaos in the Soviet Union's oil operations in the Caspian Sea. The problems include a rash of costly accidents, pervasive technological shortcomings, and inability to obtain spare parts and equipment from domestic suppliers. Despite Moscow's critical shortage of hard currencies, the U.S.S.R. has turned to the U.S., Finland, Japan, West Germany, and eastern European nations for help in

OGJ NEWSLETTER

Jan 22, 1990 Milder weather in the U.S. for the first half of January led crude and product prices to relax from December's madness. North Sea prices were declining last week from peaks set around Jan. 1. North Sea Brent blend for February delivery slipped to $19.80/bbl Jan. 17 from $20.30/bbl a week earlier as European product prices fell as weather related U.S. demand waned. U.K. traders were uncertain about the market's direction but said there appeared more likelihood of further declines than a

CHINA EYES CHALLENGES IN REMOTE TARIM BASIN

Jan 22, 1990 China National Petroleum Corp.'s key oil and gas strike at 1 Tazhong in the Tarim basin of Northwest China presents the country with major challenges. The discovery, on China's largest known subsurface structure, caps a long history of exploration in the remote Tarim basin. Chinese geologists believe Tarim basin reserves may be 74 billion bbl of oil and 282 tcf of gas, respectively one seventh and one quarter of the national total.

INTERNATIONAL BRIEFS

Jan 22, 1990 BP OIL will enter the East German retail market with construction of a service station in Dresden as a 3 million mark pilot project. The city will provide a site on long term lease for the station, to be operated by VEB Minol, the organization responsible for oil distribution in East Germany. A range of gasoline will include unleaded grades for western vehicles.

NYMEX FUTURES, OPTIONS VOLUMES CONTINUE GROWTH

Jan 22, 1990 R. Patrick Thompson New York Mercantile Exchange New York The 1980s has been a decade of learning and growth for the members of the energy futures industry. As the New York Mercantile Exchange introduced new contracts, the energy industry gradually came to understand the value of futures trading to any business plan, especially during turbulent times in the mid-1980s. The result: explosive growth in the latter half of the decade.

TWO U.S. REFINERIES AIM FOR RETURN TO FULL TILT

Jan 22, 1990 Two damaged refineries on the U.S. Gulf Coast were struggling to return to full operations last week. Phillips 66 Co. said damage resulting from a Jan. 6 explosion has reduced crude throughput and is affecting some processing units at its Sweeny, Tex., refinery and petrochemical complex. Exxon Co., U.S.A. expects its 455,000 b/d Baton Rouge, La., refinery to return to normal operation by mid-February. Exxon shut down the plant following a Dec. 24, 1989, explosion and fire (OGJ, Jan. 1, p. 29).

IPE EXPANDS TRADING, PLANS DISTILLATE CONTRACT

Jan 22, 1990 Peter Wildblood International Petroleum Exchange London London's International Petroleum Exchange has experienced a remarkable growth period over the last 3 years. During this time both turnover and open interest have increased tenfold with a growth rate over the last calendar year of 130%. These developments reflect the acceptance by the oil industry of futures as a valuable hedging and pricing vehicle, and the validity of the exchanges' contracts to fulfill this need.

CIVIL STRIFE WORSENS U.S.S.R.'S PETROLEUM SITUATION

Jan 22, 1990 Renewed ethnic violence in Azerbaijan this month dealt another severe blow to the Soviet republic's onshore petroleum industry but initially had little effect on Azerbaijan's offshore oil and gas production. Again, as in the civil turmoil of late 1988, clashes between Azerbaijanis and Armenians in and around Azerbaijan's capital city of Baku disrupted work in the area's big petroleum equipment manufacturing industry, refineries, petrochemical plants, and onshore oil fields.

DOE SEEKING COAL LIQUEFACTION PROPOSALS

Jan 22, 1990 The U.S. Department of Energy is asking industry and universities for research proposals to convert coal into liquid fuels at costs competitive with imported oil. DOE said the potential of recent innovations has encouraged it to look for new approaches to reduce the cost of liquids from coal, essentially placing a lid at about $25/bbl on the price of imported oil. A two stage process at DOE's Wilsonville, Ala., pilot plant has produced substantial improvements in coal liquefaction

ENVIRONMENTAL, RELATED ISSUES TAKING THEIR TURN IN RESTRUCTURING INDUSTRY

Jan 22, 1990 Bob Williams Senior Staff Writer The petroleum industry is in the midst of a subtle restructuring in response to heightened public concern over environmental, safety, and health issues in the 1990s. Although not as drastic as the restructuring caused by plunging oil prices in the 1980s, the changes could ultimately be significant.

WATCHING WASHINGTON PROBING THE PRICE RUNUP

Jan 22, 1990 with Patrick Crow It's difficult for lawmakers to ascertain the truth from conflicting testimony by witnesses at a congressional hearing. It's even harder when lawmakers not only want truth from the hearing but also publicity. That seemed a major impediment at two recent hearings on last month's runup in heating oil and propane prices. No doubt some of the congressmen at a House of Representatives hearing were truly angry about the price increases (OGJ, Jan. 15, p. 23). No doubt

ADVANCED ION CHROMATOGRAPH DETECTS LOW MEA LEVELS

Jan 22, 1990 Scott Lindsay Texaco Refining & Marketing Inc. Anacortes, Wash. David Palladino Beckmann Instruments Inc. Westbury, N.Y. Texaco Refining & Marketing Inc. is using an advanced method of ion chromatography at its Puget Sound refinery in Anacortes, Wash., to detect and measure monoethanolamine (MEA) in process effluent water at low-ppm levels. The method is electronically suppressed, single-column, ion chromatography (SCIC).

KENAI-TOKYO LNG TRADE TO INCREASE

Jan 22, 1990 Phillips 66 Natural Gas Co. and Marathon Oil Co. plan to step up shipments of Alaskan liquefied natural gas to Japan. The two companies signed a letter of intent with Ishikawajima-Harima Heavy Industries Ltd., Tokyo, for construction of two LNG tankers, each with a capacity of 87,500 cu m. One is scheduled for delivery in mid-1993, the other at yearend 1993.

U.S. BRIEFS

Jan 22, 1990 CHEVRON CORP. said a court sustained its right to pursue its claim that Pennzoil Co.'s filings with the Securities and Exchange Commission contain misrepresentations about Pennzoil's intentions regarding purchase of 8.8% of Chevron stock and that the misrepresentations violate securities laws. Chevron said the part of the suit the court dismissed will have no significant effect on its case.
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