The Energy Information Administration released its Annual EnergyReview this week chronicling 50 years of changes in the U.S. energyindustry. Fifty years ago the nation was nearly self-sufficient inpetroleum and was a net exporter of natural gas, the report notes.Now, on the eve of the new century, America imports more than half ofits petroleum and 15% of its natural gas. Gas supply and demand werein relative balance in the U.S. until the mid-1980s when aproduction-consumption gap developed. In 1998, U.S. production was 19Tcf, consumption was 21 Tcf and imports were 3 Tcf. While the numberof wells producing gas in the U.S. grew 263% over the 50 years, theaverage output per well fell by 55%. The report is available at https://www.eia.doe.gov/emeu/aer/ on EIA’s web site.Printed copes will be available later this month from the U.S.Government Printing Office, (202) 512-1800, or through EIA’s NationalEnergy Information Center, (202) 586-8800.

Looking to spread its presence in the Gulf of Mexico (GOM),Ocean Energy Inc. (OEI) entered into a drilling agreement with DukeEnergy Hydrocarbons, LLC to jointly develop 13 OEI drillingprospects in the outer continental shelf. The Duke subsidiaryagreed to participate with up to 50% non-operating working interestin the program. The two companies anticipate drilling costs willexceed $40 million for the rest of 1999. All 13 wells will bespudded during the second half of 1999.

A joint venture of Venus Exploration Inc. and EXCO ResourcesInc. has completed a $28.5 million acquisition of Louisiana-basedoil and gas properties from Apache Corp. Venus and EXCO each willown 50% of the venture and EXCO will be the operator. Theproperties are in the Vernon Field of Jackson Parish, LA, whichcontains 18 gas wells, producing an aggregate of about 6.5 MMcf/dnet to the interest being acquired by the venture. During the lasthalf of 1999, the venture expects to begin a multi-well developmentprogram.

KeySpan Energy said it reached a power generation record thisweek. On Tuesday, Long Island had a record peak load of 4,590 MWand a new record consumption of 91,862 MWHs for the day. KeySpansupplied 74,262 MWHs of Long Island’s requirements, whichrepresents 81% of total demand for the day. For the four-day heatwave ending July 6, KeySpan produced 254,698 MWHs. This compares toenergy production of 133,618 MWHs for the same period last year-anincrease of 90%. New York City also had a record peak demand of11,800 MW on July 6. KeySpan’s Ravenswood Plant generated 31,850MWHs, which represented 25.2% of New York City’s total demand forthe day. Energy production at Ravenswood for the four-day heat waveending July 6 was 118,515 MWHs. This compares to energy productionof 47,059 MWHs for the same period last year-an increase of 152%.

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