Producers have stronger bottom lines than other sectors of the oil and gas industry, but high natural gas prices reflect falling U.S. production and the “hard time” exploration and production companies have to replace reserves of comparable or better quality at a competitive cost, said Moody’s Investors Service analysts. Moody’s analysts on Wednesday gave a “stable” rating to the entire sector, with the exception of oil refiners and wholesale marketing, which both carry a “negative” outlook.
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ANR Files for West Leg Expansion in Wisconsin
ANR Pipeline Co. is requesting FERC approval of a $42.1 million pipeline looping and replacement project in Walworth and Rock counties, WI. The West Leg project is designed to add 220,000 Dth/d of firm transportation capacity to its system in order to serve new demand from local distribution companies and power generators.
Transportation Notes
PG&E said due to pipe replacement maintenance on the Baja path, the 300 MMcf/d Daggett interconnect with Kern River Gas Transmission (KRGT) will be shut in for 20 days starting June 10. No nominations will be processed for the KRGT Receipt/Delivery Points for gas days June 10 – 30. Any nominations already submitted through INSIDEtracc will be cut to zero for this time frame, PG&E said. For further details, call (800) 343-4743.
Ocean Energy’s Reserve Replacements Up 269%
Exploration successes in its deepwater Gulf of Mexico drillingprogram helped to triple reserve replacement to 269% last year forHouston-based Ocean Energy Inc., a positive sign that otherindependents hope to mimic as fourth quarter results are announcedin the next few weeks. Ocean Energy’s over-the-top numbers may notbe matched, but analysts believe independents’ reserve replacementswill be up, averaging around 3%.
Transportation Notes
Florida Gas Transmission lifted Thursday an Overage Alert Daynotice (see Daily GPI, March30). However, a weekend pipe replacement project between Stations12 and 13 in north-central Florida will limit market area deliveriesto 1.15-1.25 Bcf/d, down from the normal 1.4 Bcf/d. Thus the pipelineis reinstating the OAD notice for today through Sunday. The tolerancefor negative daily imbalances will be 6% today and tighten to 4%Saturday and Sunday.
Transportation Notes
Florida Gas Transmission postponed until further notice thereplacement of 120 feet of 36-inch pipe under High 331 betweenStations 12 and 13 in the Florida Panhandle, and also canceled theassociated Overage Alert Day east of Station 12. The project had beenscheduled for Thanksgiving Day (see Daily GPI, Nov. 16). FGT still planned to take Station14 down to tie in additional facilities but delayed the start date byone day to Saturday (Nov. 27). That outage is expected to lastthrough Dec. 1 and limits market area deliveries to about 1.3Bcf/d. However, FGT removed the Overage Alert Day notice that waspreviously posted for the work.
Transportation Notes
Due to an unforeseen pipe replacement, Algonquin GasTransmission will be working on the 30″ mainline pipe on thesuction side of the Hanover Compressor Station. Work is scheduledto begin Wednesday and continue through Wednesday, Nov. 10.Additional station work will take place during the outage.Algonquin said it does not expect any capacity restrictions at thistime. Updates will be posted to the company’s bulletin board.
BP Amoco Earnings Drop 41%
BP Amoco first quarter replacement cost profit, beforeexceptional items, was $761 million after adjusting for specialcharges of $84 million for merger integration costs. Results weredown 12% from the previous quarter and down 41% from the firstquarter of 1998. The decrease reflected a substantial deteriorationin the trading environment, the company said.
Transportation Notes
Algonquin has completed turbine replacement at the Burrillville(RI) Compressor Station. However, April 30-May 5 work on the30-inch mainline will limit Burrillville throughput to 400,000Dth/d, the pipeline said.
Transportation Note
Replacement of its A-Line north of Stanfield, OR, is keepingKingsgate capacity of PG&E GT-NW limited to 2,250 MMcf/d-370MMcf/d under the April norm-through Friday. Hydrostatic testing ofthe line at Station 6-A will further limit Kinggate to 2,190 MMcf/dApril 19-22.