Result

The 20% boost to exploration and production budgets this yearshould result in record results for offshore drilling, especiallythe Gulf of Mexico, according to drilling contractor Global MarineInc.’s annual Summary of Current Offshore Rig Economics — SCORE.In November and December 2000, GOM drilling increased 3.5%, andsoared 58.2% from a year ago. Worldwide, drilling was up 49.7% from1999.

As a result of near-freezing temperatures in the state ofFlorida, Florida Gas Transmission issued an Overage Alert Daynotice Friday with a 15% imbalance tolerance.

Transocean Sedco Forex reached a definitive agreement to acquireR&B Falcon Corp. in a 100% stock transaction for a total costof $8.8 billion. The transaction will result in what the companiesclaim will be the largest offshore drilling contractor.

Florida Gas Transmission has reduced the Maximum AllowableOperating Pressure (MAOP) of its 22-inch mainline downstream ofStation 4. As a result, capacity through Station 4 will drop to 160MMcf/d effective today. The pressure cut is in response to a linebreak last month near Station 4 (see Daily GPI, d20000623j.html”>June23), a spokesman said. FGT still had an Overage Alert Day noticeissued last Wednesday (see Daily GPI, July13) in effect Monday until further notice.

Dominion Resources said yesterday it will eliminate 700 jobs asa result of its merger with Consolidated Natural Gas. About half ofthe employees affected already have left, the company said. The jobcuts and improved efficiencies created by the merger are expectedto save the company at least $75 million in 2000.

Dominion Resources said last week it will eliminate 700 jobs asa result of its merger with Consolidated Natural Gas. About half ofthe employees affected already have left, the company said. The jobcuts and improved efficiencies created by the merger are expectedto save the company at least $75 million in 2000.

With little to no change in influences from Monday, cash pricessaw little reason for change themselves Tuesday. The result was agenerally flat market, but small declines outweighed the fewup-ticks.

In a new study forecasting gas supply and demand over the next15 years, GRI said demand will reach 32.7 Tcf by 2015, but theindustry will have to adapt to changing consumption patterns inorder to take advantage. The results of the report, titled “GRIBaseline Projection of U.S. Energy Supply and Demand to 2015, 2000Edition,” were released last week at the National Press Club.

As a result of an almost two-year effort, Tennessee Gas Pipelineannounced yesterday it has renegotiated contracts for 80% of thefirm transportation capacity that’s due to expire on its system inNovember 2000. At the same time, the pipeline said it has fullyrecontracted its storage capacity, a large chunk of which wasscheduled to expire also.