Projects

Devon Energy and ChevronTexaco have signed a joint participation agreement covering deepwater exploration projects in the Gulf of Mexico. The deal calls for Devon to participate in a four-well drilling program in exchange for a 25% working interest in 71 ChevronTexaco deepwater blocks. To date, 14 exploratory prospects have been identified on the joint-venture acreage.

Devon Energy and ChevronTexaco have signed a joint participation agreement covering deepwater exploration projects in the Gulf of Mexico. The deal calls for Devon to participate in a four-well drilling program in exchange for a 25% working interest in 71 ChevronTexaco deepwater blocks. To date, 14 exploratory prospects have been identified on the joint-venture acreage.

Southwestern Connecticut and southern Nevada will be the areas of concern for the electric industry this summer, the North American Electric Reliability Council (NERC) said Wednesday in its 2002 Summer Assessment. Across the rest of the nation, there is expected to be adequate and reliable power supply to meet demand this summer despite the current drought, NERC said.

Gas storage development in the Gulf Coast region has reached a feverish pace, with multiple new projects planned in Mississippi and Louisiana to serve strong power generation and traditional demand growth in the Southeast and other regions. Gulf South Pipeline announced plans Tuesday to join the frenzy with its proposed Magnolia Gas Storage project, which will be located near Napoleonville, LA.

Outside factors, led by the scrutiny of the credit ratings agencies, could become the biggest deterrent to building new infrastructure, according to energy executives speaking at the GasMart/Power 2002 conference in Reno last Wednesday. Bill Hobbs, CEO of Williams Energy Marketing & Trading, said that while the “Enron hype is gone,” the $15 billion worth of capital cuts made by companies in the past few months “will have a significant impact” in the next five years.

Cuts dealt to estimates of natural gas reserves offshore Nova Scotia this winter were only temporary setbacks to growth that still has potential to surprise even optimists, the National Energy Board has been assured. The region harbours up to 89 Tcf of gas or about twice as much as Alberta’s remaining established reserves, Maritimes & Northeast Pipeline said.

Cuts dealt to estimates of natural gas reserves offshore Nova Scotia this winter were only temporary setbacks to growth that still has potential to surprise even optimists, the National Energy Board has been assured. The region harbours up to 89 Tcf of gas or about twice as much as Alberta’s remaining established reserves, Maritimes & Northeast Pipeline said.

Melbourne, Australia-based BHP Billiton said last week that it is investing $100 million in two limited liability companies that will transport natural gas and oil from the group’s recently sanctioned Mad Dog development and its Atlantis discovery, both in the ultra-deepwater Gulf of Mexico (GOM). The company said the pipelines are part of a new system being built in the southern Green Canyon area that also will transport oil and gas from the BP-operated Holstein development and potentially other fields.

Melbourne, Australia-based BHP Billiton said earlier in the week that it is investing $100 million in two limited liability companies that will transport natural gas and oil from the group’s recently sanctioned Mad Dog development and its Atlantis discovery, both in the ultra-deepwater Gulf of Mexico (GOM). The company said the pipelines are part of a new system being built in the southern Green Canyon area that also will transport oil and gas from the BP-operated Holstein development and potentially other fields.