Mobil

A natural gas pipeline to the Lower 48 states from Alaska would be too expensive to build and too risky, according to a preliminary study by Exxon Mobil Corp., Phillips Petroleum Co. and BP Plc, the three largest lease holders along the North Slope. The producers told Alaska Gov. Tony Knowles’ natural gas development team at a meeting last week in Anchorage that the project looks like a long shot at best.

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.

Williams has been selected in a “landmark transaction” toinstall the infrastructure, including gathering lines and onshoreprocessing, to service new deep water development in the Nansen andBoombang Fields in the East Breaks area of the Gulf of Mexico.

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.

The U.S. Supreme Court agreed Monday to hear appeals byUSX-Marathon and Mobil regarding the drilling ban on leasesoffshore North Carolina. The two producers spent $156 million in1981 on leases that became subject to a drilling ban in 1990 whenCongress adopted the Outer Banks Protection Act.

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.