Offshore

Two new Gulf of Mexico storms could threaten offshore natural gas production in the near future, and “blistering heat” over much of the United States in the past six weeks has increased cooling demand — two factors that could sustain high natural gas prices going forward, energy analysts said Monday.

The Matagorda Offshore Pipeline System has determined that it does not have a leak on its 24-inch mainline (see Daily GPI, Aug. 5), operator Northern Natural Gas said. A force majeure situation on MOPS was canceled. NNG also said operational conditions on its East Leg had improved Friday, so it canceled a System Overrun Limitation for delivery points east of Belleville (WI) Station (see Daily GPI, Aug. 5).

Speculation was growing Friday that China Offshore Oil Co. Ltd. (CNOOC) was only waiting for Congress to recess before boosting its bid for Unocal and announcing a U.S. partner to take over its U.S. assets.

Speculation was growing Friday that the China Offshore Oil Co. (CNOOC) was only waiting for Congress to recess before either dropping its attempt to purchase Unocal Corp. or raise the stakes and announce a U.S. partner to take over its U.S. assets.

Chevron Corp., in a tug of war with the China Offshore Oil Co. (CNOOC) to take over asset-rich Unocal Corp., on Friday reported a drop of nearly 10% in 2Q2005 income, following lower earnings from its exploration and production (E&P) unit and its refining businesses. Worldwide, Chevron’s oil and natural gas production also fell, with North American output down 15%.

Destin reported reopening the valve on its export line at Main Pass 260 and was accepting Intraday 2 (cycle 4) nominations for Monday’s gas day. The pipeline had turned off the valve to offshore receipts upstream of Main Pass 260 at 3 p.m. Friday in preparation for the approach of Hurricane Dennis (see Daily GPI, July 11).

Unocal Corp. would consider withdrawing its support of Chevron Corp.’s $16.5 billion bid to purchase the company if the Chinese Offshore Oil Corp. (CNOOC) met several conditions, including requests for divestments and other demands from U.S. regulators, several reports said Thursday.

China National Offshore Oil Co. (CNOOC) filed a review request with the Committee on Foreign Investment in the United States (CFIUS) regarding its proposed $18.5 billion purchase of Unocal Corp., less than a day after the House of Representatives voted to block the bid.

Two top Texas congressmen, both Republicans, have expressed their “deep concern” about the $18.5 billion bid for Unocal Corp. by the China National Offshore Oil Corp. (CNOOC) in a letter to President Bush.