Petroleum

Occidental Petroleum Corp. and EOG Resources Inc. said theyexchanged certain oil and gas assets to enhance each company’sfocus on exploration and production and achieve cost savingsthrough operational synergies. Occidental received producingproperties and exploration acreage in its expanding Californiaasset base, as well as producing properties in the western Gulf ofMexico near existing operations. The exchange increased EOGResources’ gas production and reserves in East Texas, where italready has a significant presence, and will add to its drillingportfolio in the Oklahoma panhandle.

Members of the National Petroleum Council (NPC) overwhelminglyapproved a report last week by its natural gas committeeforecasting a 32% increase in gas demand over the next decade, andsaying the nation could get that gas for 40 to 50 cents less ifproducers are allowed to access currently restricted areas.

Members of the National Petroleum Council (NPC) overwhelminglyapproved a report yesterday by its natural gas committeeforecasting a 32% increase in gas demand over the next decade.Titled “Meeting the Challenges of the Nation’s Growing Natural GasDemand,” the study will be used as a platform for member companiesto lobby for increased access to protected producing areas, morecomprehensive research and development projects and increasedfunding.

Occidental Petroleum Corp. has purchased from Chevron deepexploration rights on 19,834 acres of land adjacent to its ElkHills holdings. Called the Buena Vista field, the Kern County, CA,property is seen by Oxy and some other producers as having hugepotential oil and gas reserves. Terms of the transaction were notdisclosed.

Occidental Petroleum Corp. has purchased from Chevron deepexploration rights on 19,834 acres of land adjacent to its ElkHills holdings. Called the Buena Vista field, the Kern County, CA,property is seen by Oxy and some other producers as having hugepotential oil and gas reserves. Terms of the transaction were notdisclosed.

Jerry D. Jordan, president of Ohio-based Jordan Energy Inc., waselected chairman of the Independent Petroleum Association ofAmerica (IPAA) during the association’s 70th annual meeting inDallas Nov. 6. He succeeds George Yates, 1997-1999 IPAA chairmanand president, Harvey E. Yates Co., Roswell, NM.

Much like the rest of the majors, Phillips Petroleum is back ontrack in terms of strong financial results with $221 million in netincome in the third quarter, up from $46 million for the sameperiod last year. But CEO Jim Mulva said the sale of its midstreamGPM business, and possible “joint venturing” of its chemicals,refining and marketing operations are still on. The GPM sale isexpected to take place before the end of the year.

Using results from their latest Y2K survey as proof, the NaturalGas Council and the American Petroleum Institute (API) deemed theirworking group, formed to spur on Y2K readiness throughout the oiland gas industries, a success. With over two months to go, 93% ofthe oil and gas companies surveyed said their embedded systems areready for the Year 2000 and the rest expect to be done soon,leaders of the working group said at the National Press Club inWashington D.C. last week.

Using results from their latest Y2K survey as proof, the NaturalGas Council and the American Petroleum Institute (API) deemed theirworking group, formed to spur on Y2K readiness throughout the oiland gas industries, a success. With over two months to go, 93% ofthe oil and gas companies surveyed said their embedded systems areready for the Year 2000 and the rest expect to be done soon,leaders of the working group said at the National Press Club inWashington D.C. yesterday.