World

With natural gas demand continuing to build around the world and a number of countries looking for the chance to supply it, the global liquefied natural gas (LNG) industry could emerge as the second global energy business, according to Michael Stoppard, Cambridge Energy Research Associates (CERA) director of Global LNG.

Construction of the deepest deepwater tension leg in the world is finished and installation of the platform rig will begin on the Marco Polo, a unique Gulf of Mexico floating production system, slated to go into operation in July. GulfTerra Energy Partners and Cal Dive International own the platform structure, and Anadarko Petroleum Corp. is the operator. Marco Polo was designed to accommodate production from six development wells at a discovery at Green Canyon Block 608. The production system is set in 4,300 feet of water about 160 miles south of New Orleans. With the deepwater tension leg complete, installation of the platform rig and the tiebacks is next. Production capacity is 120,000 bbl/d and 300 MMcf/d. Weather delays “persisted beyond our estimates and caused us some delay in the start-up,” said Mark Pease, Anadarko’s vice president of U.S. onshore and offshore. Ramp-up had originally been scheduled in the first quarter. The plan calls for the oil production to be transported through a 34-mile, 14-inch pipeline. The system would use the Allegheny oil pipeline, where onshore markets would be accessed through the Poseidon Oil Pipeline System. A gas pipeline also is scheduled to connect to a point determined by Anadarko.

Construction of the deepest deepwater tension leg in the world is finished and installation of the platform rig will begin on the Marco Polo, a unique Gulf of Mexico floating production system, slated to go into operation in July. GulfTerra Energy Partners and Cal Dive International own the platform structure, and Anadarko Petroleum Corp. is the operator.

BP plc, the world’s largest energy company, reported its $2.87 billion of third quarter earnings were 25% higher than the same period a year ago, with the London-based major gaining not only on higher commodity prices, but also in its streamlined operations and strong oil, natural gas and natural gas liquids (NGL) sales. Meanwhile, North America’s largest independent, EnCana Corp., nearly doubled its net income and hiked its commodity sales 9%, while warning that deferred taxes in 2004 will impact future earnings.

Like most of the world, Public Service Company of New Mexico (PNM) will have to accept being “average,” according to ratings released Thursday by Standard & Poor’s Ratings Services that provide a triple-B-minus (BBB-) rating with a positive outlook for a company refinancing.

Exhibiting a symmetry not often seen in the hectic world of natural gas futures trading, prices spiraled lower Thursday on bearish storage data, exactly retracing the gains seen following last Thursday’s bullish storage report. Last Thursday, the Energy Information Administration (EIA) reported a lower-than-expected 74 Bcf injection and this week the EIA reported a greater-than-expected 82 Bcf refill. In both instances, the price reaction was immediate and substantial. On Aug. 7 the market leaped 33.7 cents higher, while Thursday the market dropped 28.8 cents to close at $4.891.

The Minerals Management Service (MMS) said it has given broad approval for use of the world’s first cell spar in a deepwater oil and gas project. The third generation of spar technology reduces the reserve threshold needed for a stand-alone economic development in deep waters.

The Minerals Management Service (MMS) said it has given broad approval for use of the world’s first cell spar in a deepwater oil and gas project. The third generation of spar technology reduces the reserve threshold needed for a stand-alone economic development in deep waters.

Marathon Oil Co. and TotalFinaElf have set new world water-depth records for producing wells and laying pipelines, respectively, both at 7,209 feet below the surface, according to Interior Department’s Minerals Management Service (MMS). This exceeds the previous deepwater production record by about 100 feet, which was set by the French energy concern, TotalFinaElf, two months ago in the Aconcagua field in the Gulf of Mexico.