Shell: environmental concerns addressed 10/22/2006
CEO van der Veer says Russia's concerns at Sakhalin 'fully and transparently addressed;' ministry says no formal plan received
The head of oil producer Royal Dutch Shell PLC said Oct. 16 that the company had addressed Russia's environmental concerns at its troubled $20 billion liquefied natural gas project on the eastern isla...

Oil tax California costliest initiative 10/22/2006
Proposition 87 would tax companies drilling for oil in state until $4 billion accumulated; money would promote alternate fuels
In any other year, a $60 million opposition campaign fueled by a deep-pockets industry would almost certainly spell doom for a California ballot initiative. But the infusion of $40 million by a Holly...

It's official: OPEC will announce 1M barrel per day cut in oil production 10/22/2006
Algerian Energy Minister Chehib Khelil said Oct. 15 that OPEC will announce a 1 million barrel a day cut in crude production. "All the countries are in agreement to contribute to reduce OPEC producti...

North Slope exploration plans shaping up 10/22/2006
Six companies will drill at least 13 wells across northern Alaska; NPR-A programs impacted by court decision, 1998 stipulations
Companies gearing up to drill oil exploration wells on Alaska's North Slope during the upcoming winter drilling season are still filing permits, leaving the exact number of wells unknown. But it's saf...

Benchmark expanding exploration horizons 10/22/2006
Swedish independent plans to apply state-of-the-art techniques in its search for natural gas in Alaska's Cook Inlet basin
Since acquiring 20 Kenai Peninsula tracts in the May 2006 Cook Inlet areawide lease sale, Alaska-newcomer Benchmark Oil and Gas Co. has articulated a clear mantra for exploration in the region: apply...

$2 billion in deepwater rig orders 10/22/2006
Deepwater rig orders pour in on continuing strong drilling market; Ensco even building without first securing lease
Another roughly $2 billion worth of various deepwater rig deals were consummated over the past two months, reflecting the drilling market's continuing robust health. In fact, one big offshore drilling...

Talisman plans to unload non-core assets 10/22/2006
Talisman Energy is about to test whether the asset market has softened along with the drop in commodity prices as it puts 17,000 barrels per day of conventional oil and natural gas production on the b...

Alberta oil sands in slowdown mode 10/22/2006
Government, industry leaders explore ways to spread construction over a longer period, reducing competition for labor, materials
From a helter-skelter, head-spinning rate of growth, the Alberta oil sands may be taking the first, tentative steps into an era of a more manageable, measured pace of expansion. In a convergence of ev...

Mazzolini leaves to work for FEX 10/22/2006
The word on the street is that Paul Mazzolini has given notice to ConocoPhillips Alaska and is going to work for FEX, a subsidiary of Calgary-based Talisman Energy. Mazzolini has been with ConocoPhill...

Oil Patch Insider 10/22/2006
Agrium plant shutdown likely; Escopeta has good, not-so-good news; Mac gas line report out, Mazzolini leaves Conoco for FEX
They say three times is the charm. Let's hope so. We think we've got it right this time. A couple of weeks ago an Agrium contractor told Petroleum News the company's Kenai Peninsula nitrogen facility...

Tax losses under scrutiny 10/22/2006
Income trust conversions put corporate tax deductions under scrutiny in Canada
As two of Canada's biggest telephone companies prepare to enter the income trust fold and avoid paying corporate income taxes, the pressure on the Canadian government to intervene and stem the loss of...

EIA: natural gas to average $7.53 in '07 10/15/2006
Henry Hub spot price expected to average $6.90 per mcf this year; WTI, $67 per barrel in '06, $66 per barrel next year
The Henry Hub spot price for natural gas is expected to average $6.90 per thousand cubic feet this year and rise to $7.53 per mcf in 2007, the Department of Energy's Energy Information Administration...

Two ANS gas nightmares: LNG, coal 10/15/2006
ConocoPhillips' chief economist, Marianne Kah, sees gas line threat from two directions: plentiful LNG, switch to coal
There is a window for Alaska North Slope natural gas and Marianne Kah, ConocoPhillips' Houston-based chief economist, has both supply and demand nightmares about how it could close: ANS gas could lose...

It's Saint John and don't forget it 10/15/2006
Small Atlantic Canada city bids to become a N.A. energy hub, with plans for a 2nd refinery, work under way on LNG terminal
From the beginning of time it's been confused with St. John's, Newfoundland. But there could be a role reversal in the making for Saint John, New Brunswick. It's being touted by its own economic promo...

Alyeska investigates pipeline vibrations 10/15/2006
Sporadic vibrations at Isabel Pass in Alaska Range similar, but less frequent, to those the company studying at Atigun Pass
The sharp reduction of crude flowing through the trans-Alaska oil pipeline after a partial shutdown of the nation's largest oil field caused a steep section of the line to vibrate for weeks, the opera...

Talking tough, but no big stick 10/15/2006
Canada responds to oil and gas industry's plea for 'intensity-based' greenhouse gas targets, tells private sector it will have to shoulder burden
The buzzword as Canadian Prime Minister Stephen Harper outlined the bare bones of his government's major environmental initiative was "intensity," which will resonate with the petroleum industry despi...

Tidal power from Knik Arm could be viable 10/15/2006
EPRI report looks at the feasibility and economics of harnessing the tidal currents between Cairn Point and Port MacKenzie
With concerns about the continuity and future pricing of natural gas supplies in Southcentral Alaska, could renewable energy sources such as wind or tidal power alleviate some of the region's energy p...

Canada more bearish than bullish 10/15/2006
Canadian government low-balls oil sands volumes by 2020; concerned about rising consumption, increase in greenhouse gas emissions
In releasing the first long-term projection of energy supply and demand in Canada since 1999, the Canadian government has taken some of the steam out of forecasts for oil sands production. Although em...

Evaluating a gigantic partnership 10/15/2006
Jury out among analysts on whether Conoco/EnCana JV a deal or steal; Alberta premier's likely successors ease tough talk on upgrading
It wasn't a case of EnCana thumbing its nose at Alberta's current and future political leadership, but the big independent's precedent-setting decision to team up with ConocoPhillips in an integrated...

Oil Patch Insider 10/15/2006
Pioneer CEO confirms reduction in exploration spending; Auditor wants Alberta royalty shake-up
In a speech on Oct. 5 at the Independent Petroleum Association of America's 2006 Oil and Gas Investment Symposium, Scott Sheffield, chairman and CEO of Pioneer Natural Resources, confirmed that his co...

Russia dumps U.S. LNG market 10/15/2006
Gazprom rejects all bids for $20B Shtokman project; gas to Europe, not U.S.
Russia has rejected assistance from some of the world's most experienced offshore players, including U.S. majors ConocoPhillips and Chevron, to help develop its giant $20 billion Shtokman gas project...

State denies Holitna exploration license 10/08/2006
After an August 2005 preliminary best interest finding determined that an application for a gas-only exploration license in the Holitna basin was in the state's best interest, the Alaska Division of O...

Fort Liard sale draws a blank 10/08/2006
The Canadian government's efforts to revive interest in the Fort Liard natural gas play in the Northwest Territories has fizzled. No interest was shown by any EandP companies when federal Indian and Nor...

RCA rejects supply contract between Marathon, Enstar 10/08/2006
Regulatory Commission of Alaska slams the use of the Henry Hub price index, says the contract would not guarantee supplies
The Regulatory Commission of Alaska has rejected the new contract between Marathon and Enstar for the supply of natural gas from the Cook Inlet basin. "Enstar did not meet its burden of demonstrating...

CTL study in works for Beluga coal 10/08/2006
Taiwan set to join Alaska, potential investors in assessing scope and benefits of proposed 80,000 barrels-per-day Cook Inlet plant
Spurred by high oil prices, the world is ramping up investment in coal-to-liquids projects, a trend that bodes well for future natural resources development in Cook Inlet. The state-owned petroleum co...