Demand

Based on cold weather forecasts and projected demand, Sonat issued an OFO Type 3 for eight market-area groups, effective Tuesday until further notice. See the bulletin board for a list of affected delivery points.

Continuing to experience high linepack due to overproduction, low systemwide demand and limited storage injection capacity, Tennessee said it expects to keep the OFO Balancing Alert that took effect Saturday (see Daily GPI, Nov. 19) in place until at least next Monday.

Distrigas of Massachusetts LLC declared force majeure Friday — which means that it is unable to meet the contract demand of its 20 “or so” large customers — only days after the U.S. Coast Guard banned a tanker filled with liquefied natural gas (LNG) and destined for the company’s Everett, MA, terminal from entering Boston Harbor due to safety and security concerns, a federal regulatory spokeswoman said.

Distrigas of Massachusetts LLC declared force majeure Friday — which means that it is unable to meet the contract demand of its 20 “or so” customers in New England — only days after the U.S. Coast Guard banned a tanker filled with liquefied natural gas (LNG) and destined for the company’s Everett, MA, terminal from entering Boston Harbor due to safety and security concerns, a FERC spokeswoman said.

Mexico’s national oil company, Petroleos Mexicanos SA (Pemex), next year plans to offer more multiple service contracts, similar to one it did this year with a U.S. and Canadian company, to encourage more exploration and production in the country, Pemex Director General Raul Munoz Leos told analysts in New York City on Thursday. Munoz said that even though the Mexican constitution limits foreign investment in the country’s energy industry, he is confident that contracts could be written to improve investments by service companies and integrated energy companies.

Houston-based Parker Drilling Co. reported on Wednesday that despite recent fears that production is on its way toward the outpacing of demand, its rig fleet is staying busy. The company announced it has reached a contract with Nexen Petroleum for Rig 15-J, which is a shallow water design mat-slot jackup capable of working in water depths ranging from nine to 85 feet. The rig is on location in the Eugene Island area where it will drill a 14,000 foot horizontal well in 9 feet of water. The contract calls for one well, which will take approximately 60 days to drill, plus options for two additional wells. “In spite of some recent softness in the industry, utilization of our Gulf of Mexico fleet remains strong,” said Toby Begnaud, Parker’s general manager of global sales and contracts. “A program such as this, with specific water depth limitation, is an example of the niche market Parker Drilling has targeted and why we feel our overall utilization does not track with current market trends.” Parker Drilling specializes in offshore drilling and workover services in the Gulf of Mexico and international land and offshore drilling. The company has 79 marketed rigs and employs more than 3,500 people worldwide.

Saying its overall linepack was low because Tropical Storm Barry had “significantly affected receipt gas” and market area demand was strong, Florida Gas Transmission issued an Overage Alert Day for Monday’s gas day with a 10% tolerance for negative daily imbalances.

As oil and gas exploration continues in high gear mode to erase the supply/demand imbalance, Kerr-McGee Corp. reported that it has increased its international position in high potential trends by nearly 10% so far in 2001. The Oklahoma City-based company said it has acquired interests in more than 3 million additional deepwater acres around the globe.

As oil and gas exploration continues in high gear mode to erase the supply/demand imbalance, Kerr-McGee Corp. reported that it has increased its international position in high potential trends by nearly 10% so far in 2001. The Oklahoma City-based company said it has acquired interests in more than 3 million additional deepwater acres around the globe..