More Oil & Gas Transportation News

WATCHING THE WORLD WHY CONOCO CHOSE CONCRETE

Jan 15, 1990 with Roger Vielvoye from London Conoco Norway's pioneering plans for a concrete hull, tension leg platform for the deepwater Heidrun oil and gas field in the Haltenbanken area of the Norwegian Sea have finally made their way to the Ministry of Petroleum and Energy in Oslo for processing. If Norway's Storting (parliament) approves the 19 billion kroner ($2.93 billion) project during the current spring session, Conoco will start work on preliminary engineering in the third quarter of this

AGA LAUDS U.S. DECEMBER GAS SUPPLY PERFORMANCE

Jan 15, 1990 U.S. producers, pipelines, and distributors performed well in delivering what apparently were record volumes of gas in December 1989, says American Gas Association Pres. George H. Lawrence. December deliveries may have been 2.3 tcf of gas, 22% more than the average of 1.8 tcf. Last month was the coldest December in this century, 26% colder than normal nationwide. An apparent monthly record of 700 bcf was withdrawn from storage during the month. The volume of gas in underground storage stood

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

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

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

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).

MICROFRAC TESTS OPTIMIZE FRAC JOBS

Jan 22, 1990 Robert D. Kuhlman Halliburton Services Duncan, Okla. Microfracture testing is providing operators with data for optimizing fracture treatments and determining the placement of wells. This type of testing has increased during the last 5 years because operators can obtain actual stress magnitudes in various zones and the fracture azimuth direction. Entire multiple-well programs have been planned around this testing.

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.

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

WATCHING THE WORLD IRAQ'S NEW PIPELINE

Jan 22, 1990 with Roger Vielvoye from London Iraq marked its emergence as the second most powerful oil state in the Middle East by formally inaugurating the new crude oil pipeline from Zubair in southern Iraq to Yanbu on the Red Sea coast of Saudi Arabia. The 1.65 million b/d IPSA-2, operational since last September, was inaugurated in a ceremony earlier this month attended by Iraqi Oil Minister Isam al-Chalabi and his Saudi Arabian counterpart, Hisham Nazer.

PHILLIPS TO REDUCE VALUE OF ARGUELLO

Jan 22, 1990 Phillips Petroleum Co. last week disclosed it will take an estimated $280 million after tax writedown on assets related to giant Point Arguello field off California. The writedown is to be charged against fourth quarter 1989 earnings, resulting in "substantial negative results" for the quarter, the company said. Phillips holds 40% and 50% interests in Point Arguello field and related offshore and onshore production/processing facilities. "We intend to begin production of Point Arguello as soon

COAL SLURRY TESTS PLANNED

Jan 22, 1990 Unocal Canada Ltd. and Canadian governments plan a $1 million program to test the feasibility of shipping a slurry of coal and condensate by pipeline. Unocal will contribute $384,000, Alberta $333,000, and Ottawa $284,000. The Alberta Research Council test site at Nisku, Alta., will produce the coal/condensate slurry for transportation tests in an experimental pipeline loop at the Saskatchewan Research Council site at Saskatoon, Sask. Unocal said it may be possible to substitute coal for

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.

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.

GAS IMPORT HIKE SHAPES UP FOR U.S. NORTHEAST

Jan 22, 1990 The U.S. Department of Energy has tentatively authorized a large increase in the volume of Canadian natural gas transported to the U.S. Northeast, starting with small volumes as early as next autumn. The conditional import authorization gives 18 northeastern gas distribution companies approval to import as much as 397.1 MMcfd of gas from Canada. Canadian gas imports to the Northeast were expected to be more than 340 MMcfd in 1989.
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