production

While large spreads of federal lands technically may be open for oil and natural gas exploration, producers still are prevented from drilling on them because of restrictions in their leases and a severe backlog of drilling permitting requests, the president of the American Petroleum Institute (API) said last week.

Despite high natural gas prices and reports of flat production throughout North America over the last five years, gas-fired electric generation in operation, construction or development reached a new all-time record in the month of March, according to a new report by Energy Ventures Analysis Inc (EVA). With the help of new projects announced within the last three months, gas-fired generation topped 305,000 MW.

While vast stretches of federal lands technically may be openfor oil and natural gas exploration, producers still are preventedfrom drilling on them because of restrictions in their leases and asevere backlog of drilling permitting requests, the CEO of theAmerican Petroleum Institute (API) said earlier this week.

Despite high natural gas prices and reports of flat productionthroughout North America over the last five years, gas-firedelectric generation in operation, construction or developmentreached a new all-time record in the month of March, according to anew report by Energy Ventures Analysis Inc (EVA). With the help ofnew projects announced within the last three months, gas-firedgeneration topped 305,000 MW.

Because of production receipts upstream of its Logansport (LA)facilities continuing to exceed capacity, Sonat issued a Type 5 OFOthat took effect Saturday. Volumes delivered into the system thatexceed 104% of scheduled quantities will be penalized $15/Dth. TheOFO affects 25 Logansport Field points and 24 Joaquin Field points.

Chevron, Amoco Production, CanWest Gas Supply, Aera Energy and RME Petroleum have called on FERC to stop Kern River Gas Transmission from overselling delivery point rights at Wheeler Ridge into the Southern California Gas Co. distribution system.

Chevron, Amoco Production, CanWest Gas Supply, Aera Energy andRME Petroleum have called on FERC to stop Kern River GasTransmission from overselling delivery point rights at WheelerRidge into the Southern California Gas Co. distribution system. TheFirm Shippers said in comments filed this week that, in a situationstrangely similar to the recent El Paso capacity reallocation case,Kern River has oversold capacity at Wheeler Ridge, and its proposedexpansion project will only exacerbate the situation (DocketCP01-31).

Kerr-McGee Corp. said it replaced 255% of its 2000 worldwideproduction of 108 million boe at an average finding and developmentcost of $4.81/boe. Worldwide net additions of proved oil andnatural gas reserves totaled 275 million boe in 2000, resulting inyear-end 2000 reserves of nearly 1.1 billion boe. Additions in 2000include reserves associated with the greater Boomvang and Nansenareas in the deepwater Gulf of Mexico and the greater Leadon areain the U.K. sector of the North Sea, each of which are currentlyunder development. The additions do not include the company’sdiscoveries in Bohai Bay, China, or at the Gunnison field in thedeepwater gulf. “The results of our exploration program in 2000were outstanding and build on our achievements in 1999,” saidKerr-McGee chairman Luke R. Corbett. “Our expertise andtechnological advancements continue to drive our success inworldwide exploration efforts. This year, we will grow ourdeepwater exploration program, focusing on core areas in proven,high-potential trends throughout the world.” In 2001, Kerr-McGeehas budgeted $205 million for exploration expense to drillapproximately 25 to 30 exploratory wells, including 10 to 15deepwater wells.

There has been a huge increase in exploration and production”overspending” in the U.S. and Canada this year because of enormousgas price increases, and that probably will continue into 2001,said Salomon Smith Barney (SSB) E&P analysts in their 19thannual worldwide E&P spending survey.