Chemicals

Rep. Maurice Hinchey (D-NY) Tuesday called on the head of the Environmental Protection Agency (EPA) to review the agency’s policy on the risk of hydraulic fracturing — where chemicals are used to stimulate oil and natural gas production — to the nation’s drinking water.

“Significantly lower” worldwide refining margins and poorer-than-expected results in midstream and chemicals operations will push ConocoPhillips’ earnings lower in 4Q2006, the producer warned last week. ConocoPhillips also blamed a combination of “declining well performance and drilling results” in Canadian Rockies Foothills’ natural gas exploration and development activities, which will result in a $90 million after-tax quarterly charge.

ConocoPhillips warned Thursday that “significantly lower” worldwide refining margins and poorer-than-expected results in its midstream and chemicals operations will push earnings lower in 4Q2006. The producer also blamed a combination of “declining well performance and drilling results” in Canadian Rockies Foothills’ natural gas exploration and development activities, which will result in a $90 million after-tax quarterly charge.

With its chemicals unit spun off, and asset sales on track, Kerr-McGee Corp. continues to make significant progress in becoming a pure play exploration and production company, a company executive said Tuesday. The producer also remains on track to hit its fourth quarter production target of 248,500-277,200 boe/d.

A railcar containing ammonia and two other chemicals exploded Friday morning at a BASF chemical plant in Freeport, TX, Four employees who received only minor injuries, reportedly were the only casualties. The explosion, which rocked homes and businesses as far away as 50 miles, shut down nearby highways, and area schools and residents were ordered to remain inside because of possible gas clouds.

Coral Energy entered into an energy alliance with TerraIndustries Inc., an international chemicals company, to increasethe energy efficiency of Terra’s Blytheville, AR, chemical facilityusing Coral Site Advantage, Coral’s proprietary measurement,benchmarking and energy modeling program. Terms of the arrangementwere not released. The program will begin with a comprehensiveanalysis of energy requirements throughout the chemical complex.This information will be used in the development of a modelingprogram to establish a benchmark for optimal energy usage. “Energyis the major cost component at each of our manufacturingcomplexes,” said Mike Bennett, executive vice president for Terra.”The first step in that process is determining our precise energyneeds, which is a strength of the Coral Energy program. We expectto quickly achieve savings by becoming a more efficient energyuser.” Once the modeling system is in place, Coral will work withTerra to develop a multi-year energy savings plan, initiallyfocusing on energy utilized within existing plant processes. Coralwill receive compensation for its Coral Site Advantage servicesbased upon a portion of Terra’s measured energy savings.

Coral Energy has entered into an energy alliance with TerraIndustries Inc., an international chemicals company, to increasethe energy efficiency of Terra’s Blytheville, AR, chemical facilityusing Coral Site Advantage, Coral’s proprietary measurement,benchmarking and energy modeling program. Terms of the arrangementwere not released.