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Providing coverage of Alaska and northern Canada's oil and gas industry
August 2003

Vol. 8, No. 34 Week of August 24, 2003

The Oil Patch Insider

Carlson, White leave Forest Oil

Forest Oil Senior Vice President Gary Carlson, head of the Denver-based independent’s Alaska region, and Alaska drilling manager Paul White have reportedly resigned from Forest Oil.

A call by Petroleum News to Forest Oil’s Anchorage office confirmed that neither man still worked for the company, but Denver-based spokesman Dave Keyte said Forest Oil would not comment on why Carlson and White left the company.

“We do not comment on employee matters,” he said Aug. 21.

Canada: Running from gas pains

A gathering storm over the impact of continued high natural gas prices is apparently producing its first fall-out in Canada, where industries and manufacturers are reportedly switching fuels, cutting staff and quitting North America.

With the cost of gas still 60 percent higher than a year ago, despite a 15 percent easing in July, drastic measures are being implemented, according to the Canadian Manufacturers and Exporters.

Other sources say some companies that use gas as a feedstock or energy source are packing up for Argentina, Asia and Europe to escape the high-cost environment of North America. But there is a reluctance to identify those firms.

However, Bruce Waterman, chief financial officer of fertilizer company Agrium, said close to one-third of the fertilizer sector, where gas accounts for 80 percent of production costs, is shut down across the continent. Agrium alone, which purchased 150 billion cubic feet last year, is reeling from a hike in its gas prices to C$7 per gigajoule from C$4 in 2002.

The Canadian Manufacturers and Exporters said metals, paper and chemical companies are taking the brunt of high gas costs, a 15 percent jump in the value of the Canadian dollar against its U.S. counterpart and an anemic economy.

Their response is to slash costs and, in some cases, revert to coal and oil as their primary fuel source, while stepping up their efforts to achieve greater energy efficiency.

In other developments:

• Dow Chemical, whose second-quarter feedstock and energy costs were up one-third or C$700 million from a year ago, is using coal for some of its operations and counting heavily on Mackenzie Delta and North Slope gas to ease price pressures.

• Cement manufacturer Lafarge can now switch between coal and gas within a couple of days, while Lehigh Inland Cement converted to coal early this year at a cost of C$35 million, calculating it can save about C$10 million a year.

• Steel maker Dofasco is relying on alternative fuels and byproducts such as coke-oven gas to shrink its gas consumption from about 10 billion cubic feet a year.

Valley Girl moves to city

Well, sort of. The owner of Judy Patrick Photography — Patrick herself — has set up shop in a convenient downtown Anchorage location and established a new operating division. Patrick still lives in the valley but spent so much time away from her office there meeting clients in Anchorage that she decided to reverse the commute.

Salt + Light Creative is the new graphic design division’s name. Josh McDonell, chief designer, is adept at handling all types of print advertising and promotional materials, brochures and newsletters.

Both the photography and graphic design divisions are housed at 430 West 7th Ave., Suite 220, above Color Art Printing, and can be reached at 907 258-4704.

It’s ironic, Patrick notes, that she now occupies space originally leased by Shell Oil and Marathon in 1965.

A grand opening is planned for early September and friends are under orders not to reveal the special treat that might be served.

Alaska pipelines win environmental awards

Cook Inlet Pipe Line Co. received a special Environmental Performance Award as a small operator during the 54th Pipeline Conference in Houston earlier this year. The Alaska company reported no oil spills over five gallons in 2002. In addition, the firm earned an OSHA Safety Performance Award for its low incidence rate of occupational injuries, illnesses and fatalities for the same year.

In the large operator category, Alyeska Pipeline Service Co. received the Environmental Performance Award for achieving no spills over five gallons. The consortium was also one of five pipeline operations to be rewarded for the Most Improved Safety Performance during the past three years.

Alaska BLM deputy director named

The Bureau of Land Management has named George Oviatt Alaska deputy state director for resources, lands and planning. Oviatt, formerly BLM’s deputy state director for cadastral survey, began his new duties Aug. 18 overseeing a division of 45 employees who provide program and policy guidance for BLM’s resources, lands and planning program in Alaska.

Oviatt has been deputy state director for cadastral survey since 1992. BLM said he is credited with the success of BLM’s Native contract surveying program, developing strategies for expediting BLM’s land conveyance program and promoting the integration of traditional mapping into a geologic information system environment.

“It’s a new challenge and I like doing something different,” Oviatt said of his new assignment.

Henri Bisson became BLM Alaska state director in 2002. New management appointments have been made for conveyances, minerals and external affairs.

Gust Panos, mapping sciences branch chief, will be acting deputy state director for cadastral survey until the position is filled.

Oil Patch Insider is compiled by Paula Easley and Kay Cashman with news coming from a variety of sources. If you have a news tip or press release for Oil Patch Insider, please call (907) 245-2297, fax (907) 522-9583, or email [email protected].






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