In a first quarter interim report for 2003, ChevronTexaco Corp. (CVX) reported its U.S. oil and gas production was up 5% over the final quarter of 2002, and said U.S. upstream annual earnings may rise $50 million this year on every $0.10/Mcf rise in natural gas realizations. In the first two months, CVX noted that its gas realizations increased $1.33/Mcf. However, CVX also warned in the interim report that it expects to record a series of changes for the first quarter of between $30 million to $50 million because of asset impairment in its downstream segment globally, as well as charges of between $200 million to $225 million for its “other” segment, which includes Dynegy Inc. CVX still controls 26% of Dynegy’s shares, which have fallen dramatically in the past year. The San Ramon, CA-based major also expects first quarter pension expenses will be about $40 million higher than those in the fourth quarter of 2002, with expenses spread across all segments of the company. The fourth quarter pension expenses were not detailed by CVX, but for all of 2002, they were about $368 million, according to a CVX Form 10-K filed with the Securities and Exchange Commission. Another charge of $200 million to $250 million will be taken as CVX adjusts its accounting system to conform with new financial standards, the company said.
Articles from Upstream
In a first quarter interim report for 2003, ChevronTexaco Corp. (CVX) reported its U.S. oil and gas production was up 5% over the final quarter of 2002, and said U.S. upstream annual earnings may rise $50 million this year on every $0.10/Mcf rise in natural gas realizations. In the first two months, CVX noted that its gas realizations increased $1.33/Mcf.
ANR said the critical outage along its Southwest Mainline just upstream of the New Windsor Compressor Station in Illinois remained in effect Tuesday. Investigation and analysis of Sunday night’s rupture (see Daily GPI, Feb. 4) continue. ANR does not expect the impacted facilities to become operational again until late this week. “Transportation service through this area will be evaluated and scheduled on a daily basis. Availability of secondary and interruptible transportation will depend on Firm Primary nominations,” the pipeline said.
NGPL reported receiving notification that there will be no upstream processing at inputs into the Louisiana Line for January. Absent mitigating actions acceptable to the pipeline, effective Jan. 1 until further notice NGPL may not confirm nominations of any gas source for receipt into the Louisiana Line (Segments 23, 24 and 25) that would cause the line’s gas quality blend to exceed 1,050 Btus per cubic foot. See the bulletin board for details.
Algonquin joined upstream affiliate Texas Eastern in advising customers that due-shipper imbalance gas will not be available until further notice (see Daily GPI, Nov. 27). However, unlike Texas Eastern’s restriction on interruptible deliveries, Algonquin said Wednesday it “is not issuing any system restrictions at this time.”
Westcoast postponed the planned Aug. 27 Fort Nelson mainline outage for the tie-in of the 2002 Fort Nelson looping addition upstream of Compressor Station N5. Approval to proceed with the looping project has not yet been obtained from the National Energy Board but is expected to be forthcoming, the pipeline said. Westcoast still plans to complete the tie-in within the Aug. 27-Sept. 20 Fort Nelson Gas Plant turnaround period.
El Paso said it has become necessary to shut down Line 1600 upstream of Casa Grande Station one day earlier than previously announced. The line will be down on Nov. 15, instead of Nov. 16. Capacity of the South Mainline will be reduced by 245 MMcf/d effective for Cycle 2 on Nov. 15. The work will be completed prior to the start of the Nov. 16 gas day. El Paso also said Line 1218 downstream of Bondad Station was taken out of service for emergency repairs Wednesday reducing the capacity through Bondad Station by 190 MMcf/d. The reduction was effective for Cycle 4 and will continue through today. Line 1110 between Keystone and Pecos River Stations will be shut in for repairs on Thursday as well, reducing the capacity through Pecos River Station by an additional 40 MMcf/d to 800 MMcf/d capacity. If you have operational or scheduling questions, call your scheduling representative at (719) 520-4706.
Northern Border said “concurrent unplanned compressor station outages upstream of Ventura” Monday evening prompted it to place a firm-only scheduling restriction on the 42-inch pipeline segment (Monchy/Port of Morgan to Ventura) for the gas days of Wednesday and today. Gas Control will re-evaluate conditions this morning to determine if the constraint will be lifted Friday.
Texas Eastern will require the shut-in of all production upstream of the Provident City Plant on its Wilcox System in the South Texas Zone starting Tuesday due to anomaly investigations and the subsequent pipe repair needed. The work is expected to be completed sometime Saturday in order for gas flow to resume Sunday.
The energy industry was bracing last week for a sea change in the fate of energy legislation in the U.S. Senate as a result of the sudden Democratic take-over of leadership in that chamber that installs Sen. Jeff Bingaman (D-NM) as chairman of the Senate Energy and Natural Resources Committee and relegates Sen. Frank Murkowski (R-AK) to the post of ranking minority member.