exxon

Claiming that the $3.5 billion punitive damages award to the state in a Mobile Bay royalties case was “without merit,” Exxon Mobil Corp. last week urged the Alabama Supreme Court to overturn the verdict by a lower court jury.

Royal Dutch/Shell, Exxon Mobil Corp., ChevronTexaco, Burlington Resources Inc. Petrobras and Schlumberger are but a few of the 75 foreign companies that have expressed an interest in the long-term natural gas production contracts officially unveiled by Mexico’s state-run oil monopoly last week. The first agreements are expected to be offered in November, officials said (see NGI, June 17).

Exxon Mobil Corp. was the top Texas natural gas producer in2000, averaging 858,344 Mcf/d, or about 6.5% of the total stateproduction, according to the Railroad Commission of Texas. ConocoInc. was second, averaging 703,921 Mcf/d, or 5.4% of all gasproduced in Texas last year. Other companies rounding out the topten leader board were Coastal Oil & Gas Corp., 651,958 Mcf/d;RME Petroleum Co., 498,837 Mcf/d; EOG Resources Inc., 438,688Mcf/d; Mitchell Energy & Development Co. LP, 367,014 Mcf/d;Texaco E&P Inc., 335,770 Mcf/d; Chevron U.S.A. Inc., 327,941Mcf/d; Phillips Petroleum Co., 319,663 Mcf/d; and Shell WesternE&P Inc., 302,395 Mcf/d.

Having set the world’s water-depth record for a combineddrilling and production platform, Exxon Mobil Corp.’s Hoover andDiana fields now are averaging 140 MMcf of gas and 18,000 barrelsof oil per day from five wells, and contain estimated recoverableresources that exceed 300 million oil-equivalent barrels.

Having set the world’s water-depth record for a combineddrilling and production platform, Exxon Mobil Corp.’s Hoover andDiana fields now are averaging 140 MMcf of gas and 18,000 barrelsof oil per day from five wells, and contain estimated recoverableresources that exceed 300 million oil-equivalent barrels.

Exxon Mobil satisfied another condition required by the FederalTrade Commission in its approval of the merger of the two companiesby selling Mobil Alaska Pipeline’s 3% interest in the Trans AlaskaPipeline System to a unit of The Williams Companies, Inc. Terms ofthe sale were not disclosed. ExxonMobil Pipeline will retain its20% interest in the 800-mile pipeline system, which transports onemillion barrels per day of crude oil from Prudhoe Bay on thestate’s North Slope to the Port of Valdez in the south. The stakeadds to Williams’ presence in Alaska, which currently includes apetroleum refinery in North Pole that receives crude oil from theTrans Alaska Pipeline System, a distribution terminal at the Portof Anchorage, 28 retail petroleum convenience stores and aninterest in an air cargo transfer facility at AnchorageInternational Airport.

BT Alex. Brown analyst Adam Sieminski said he expects U.S. gasprices to average $2.10/MMBtu this year, which is up 15 cents fromhis previous forecast of $1.95/MMBtu, because of rising demand,declining wellhead deliverability and the falling storage surpluscompared to last year. Sieminski said the tightness in marketfundamentals will peak this winter and carry strong prices throughnext year. He raised his forecast for prices in 2000 to $2.40 froma previous estimate of $2.20.

BT Alex. Brown analyst Adam Sieminski said he expects U.S. gasprices to average $2.10/MMBtu this year, which is up 15 cents fromhis previous forecast of $1.95/MMBtu, because of rising demand,declining wellhead deliverability and the falling storage surpluscompared to last year. Sieminski said the tightness in marketfundamentals will peak this winter and carry strong prices throughnext year. He raised his forecast for prices in 2000 to $2.40 froma previous estimate of $2.20.