Amoco

It was almost a decade ago when the oil and gas industry saw the beginning of the mega-merger era with BP plc’s acquisition of Amoco (see Daily GPI, Aug. 12, 1998). That deal and the other consolidation plays that followed were triggered by low oil prices as the majors were striving to lower their costs.

NGPL reported discovery of a gas quality problem at the Amoco-Red Oak receipt point in Latimer County, OK. Effective today until further notice, NGPL will not be scheduling gas at the point.

Chevron, Amoco Production, CanWest Gas Supply, Aera Energy and RME Petroleum have called on FERC to stop Kern River Gas Transmission from overselling delivery point rights at Wheeler Ridge into the Southern California Gas Co. distribution system.

Chevron, Amoco Production, CanWest Gas Supply, Aera Energy andRME Petroleum have called on FERC to stop Kern River GasTransmission from overselling delivery point rights at WheelerRidge into the Southern California Gas Co. distribution system. TheFirm Shippers said in comments filed this week that, in a situationstrangely similar to the recent El Paso capacity reallocation case,Kern River has oversold capacity at Wheeler Ridge, and its proposedexpansion project will only exacerbate the situation (DocketCP01-31).

Destin Pipeline continued to keep about 600 MMcf/d of offshore gasshut in Tuesday and today. The latest word Tuesday from BP Amoco,operator of the Pascagoula (MS) Gas Plant into which Destin feeds, wasthat repairs of a leak in a downstream natural gas liquids line (seeDaily GPI, March 6) likely would not becompleted before late this evening, according to a Destinstaffer. However, Williams Field Services, which has a unit thatoperates the liquids line, said the line had been cleared andexcavation was starting Tuesday afternoon. “We should have a muchbetter picture of the work Wednesday morning,” a WFS spokesman said,adding that line service could be restored at any time during the day.

Higher commodity prices, cost savings and mergers contributed toBP Amoco Plc’s $14.2 billion windfall year-end profits last year,which broke British profit records and were second only toU.S.-based rival Exxon Mobil Corp.’s $17 billion profit for 2000.BP’s profit in 1999 was $6.2 million.

Kern River expects its receipts to be “slightly impacted” asAmoco’s Painter Plant near Evanston, WY performs maintenance thatwas to begin Sunday and continue through next Sunday.

BP Amoco, the last of the big three majors in the oil and gasindustry to report second quarter earnings, last week revealed thatlike those that have already made their earnings public, theLondon-based giant had record results, posting a 164% increase tothe bottom line.

BP Amoco, the last of the big three majors in the oil and gasindustry to report second quarter earnings, yesterday revealed thatlike those that have already made their earnings public, theLondon-based giant had record results, posting a 164% increase tothe bottom line.