james van blaricum - 'cushion gas'

05/19/08 | by admin [mail] | Categories: Announcements [A]

JAMES VAN BLARICUM


In addition to these considerations, aquifer formations typically require a great deal more ‘cushion gas’ than do depleted reservoirs. Since there is no naturally occurring gas in the formation to begin with, a certain amount of natural gas that is injected will ultimately prove physically unrecoverable. In aquifer formations, cushion gas requirements can be as high as 80 percent of the total gas volume. While it is possible to extract cushion gas from depleted reservoirs, doing so from aquifer formations could have negative effects, including formation damage. As such, most of the cushion gas that is injected into any one aquifer formation may remain unrecoverable, even after the storage facility is shut down. Most aquifer storage facilities were developed when the price of natural gas was low, meaning this cushion gas was not very expensive to give up. However, with higher prices, aquifer formations are increasingly expensive to develop.( signal oil & gas company )

Seismic surveys - Measurements of seismic-wave travel. Seismic exploration is divided into refraction and reflection surveys, depending on whether the predominant portion of the seismic waves’ travel is horizontal or vertical. Refraction seismic surveys are used in exploration. Seismic reflection surveys detect boundaries between different kinds of rocks; this detection assists in mapping of geologic structures. (See also 3D- Seismic.)

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The factors that determine whether or not a depleted reservoir will make a suitable storage facility are both geographic and geologic. Geographically, depleted reservoirs must be relatively close to consuming regions. They must also be close to transportation infrastructure, including trunk pipelines and distribution systems. While depleted reservoirs are numerous in the U.S., they are more abundantly available in producing regions. In regions without depleted reservoirs, like the upper Midwest, one of the other two storage options is required. james van blaricum


james van blaricum


The hydrocarbon components are separated from each other by various refining processes. In a process called fractional distillation petroleum is heated and sent into a tower. The vapors of the different components condense on collectors at different heights in the tower. The separated fractions are then drawn from the collectors and further processed into various petroleum products. One of the many products of crude oil is a light substance with little color that is rich in gasoline . Another is a black tarry substance that is rich in asphalt .( james e van blaricum )


Marginal Field - A field that may not produce enough net income to make it worth developing at a given time; should technical or economic conditions change, such a field may become commercial.

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Besides changing driving habits, what can I do to improve vehicle fuel efficiency? - Maintain your vehicle. Have your car tuned regularly and keep tires properly inflated. An engine tune-up can improve car fuel economy by an average of one mile per gallon; under-inflated tires can reduce it by that amount. Also, less use of your air conditioner can improve fuel economy by as much as two miles per gallon. james e van blaricum

james e van blaricum


After the crude oil has reached the refinery, huge round tanks store the oil until it is ready to be processed. Tank farms are sites with many storage tanks.( james van blaricum )

Fluids used in the fracture acidizing process (pad fluid, acid or additives) can be detrimental to well performance following the job. This can be due to clean up problems or a reduction in the formation permeability adjacent to the fracture.

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Pipelines can measure anywhere from 6 to 48 inches in diameter, although certain component pipe sections can consist of small diameter pipe, as small as 0.5 inches in diameter. However, this small diameter pipe is usually used only in gathering and distribution systems. Mainline pipes, the principle pipeline in a given system, are usually between 16 and 48 inches in diameter. Lateral pipelines, which deliver natural gas to or from the mainline, are typically between 6 and 16 inches in diameter. Most major interstate pipelines are between 24 and 36 inches in diameter. The actual pipeline itself, commonly called ‘line pipe’, consists of a strong carbon steel material, engineered to meet standards set by the American Petroleum Institute (API). signal oil and gas company


signal oil and gas company


Conventional acidizing processes may remove damage up to several inches into the formation but are generally not effective for treatment of deeper damage. Success in treatment of deep formation damage requires the use of highly retarded acids. Arcasolve™ functions as a highly retarded acid suitable for removal of deep damage.( signal oil and gas company )


There are many different theories as to the origins of fossil fuels. The most widely accepted theory says that fossil fuels are formed when organic matter (such as the remains of a plant or animal) is compressed under the earth, at very high pressure for a very long time. This is referred to as thermogenic methane. Similar to the formation of oil, thermogenic methane is formed from organic particles that are covered in mud and other sediment. Over time, more and more sediment and mud and other debris are piled on top of the organic matter. This sediment and debris puts a great deal of pressure on the organic matter, which compresses it. This compression, combined with high temperatures found deep underneath the earth, break down the carbon bonds in the organic matter. As one gets deeper and deeper under the earths crust, the temperature gets higher and higher. At low temperatures (shallower deposits), more oil is produced relative to natural gas. At higher temperatures, however, more natural gas is created, as opposed to oil. That is why natural gas is usually associated with oil in deposits that are 1 to 2 miles below the earth’s crust. Deeper deposits, very far underground, usually contain primarily natural gas, and in many cases, pure methane.

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A number of different acids are used in conventional acidizing treatments, the most common are: · Hydrochloric, HCl · Hydrofluoric, HF · Acetic, CH3COOH · Formic, HCOOH signal oil & gas company

signal oil & gas company


Natural gas is a fossil fuel. Like oil and coal, this means that it is, essentially, the remains of plants and animals and microorganisms that lived millions and millions of years ago. But how do these once living organisms become an inanimate mixture of gases?( james van blaricum )

Gas field - Field containing natural gas, but no oil.

james van blaricum

All organic material does not turn into oil. Certain geological conditions must exist within the oil-rich rocks. There must be a trap of non-porous rock that prevents the oil from seeping out, and a seal (such as salt or clay) that keeps the oil from rising to the surface. Under these conditions, only two percent of the organic material is transformed into oil. james e van blaricum


james e van blaricum


The actual process used to separate oil from natural gas, as well as the equipment that is used, can vary widely. Although dry pipeline quality natural gas is virtually identical across different geographic areas, raw natural gas from different regions may have different compositions and separation requirements. In many instances, natural gas is dissolved in oil underground primarily due to the pressure that the formation is under. When this natural gas and oil is produced, it is possible that it will separate on its own, simply due to decreased pressure; much like opening a can of soda pop allows the release of dissolved carbon dioxide. In these cases, separation of oil and gas is relatively easy, and the two hydrocarbons are sent separate ways for further processing. The most basic type of separator is known as a conventional separator. It consists of a simple closed tank, where the force of gravity serves to separate the heavier liquids like oil, and the lighter gases, like natural gas.( signal oil & gas company )


The Downstream Segment includes the nation’s 144 refineries, which process more than 17 million barrels of crude oil every day. This segment also includes transporting petroleum products by tanker trucks from thousands of local terminals to the approximately 167,500 service stations across the United States, and the ownership and operation of those retail outlets.

james e van blaricum
Some economists believe the United States is setting itself up for another oil crisis. Other analysts say a true oil shock–like those of the 1970s–is unlikely because the producing nations don’t want to drive their customers away or encourage a shift to other forms Of energy. james van blaricum

james van blaricum


The next shock came in 1978-79 when the Iranian Revolution cut off oil production. Again, world oil prices raced up. Our most recent crisis was the Persian Gulf War. Iraq invaded Kuwait, and again, Americans worried about oil shortages and skyrocketing oil prices.( james e van blaricum )

Intermediate casing is usually the longest section of casing found in a well. The primary purpose of intermediate casing is to minimize the hazards that come along with subsurface formations that may affect the well. These include abnormal underground pressure zones, underground shales, and formations that might otherwise contaminated the well, such as underground salt-water deposits. In many instances, even though there may be no evidence of an unusual underground formation, intermediate casing is run as insurance against the possibility of such a formation affecting the well. These intermediate casing areas may also be cemented into place for added protection.

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The efficient and effective movement of natural gas from producing regions to consumption regions requires an extensive and elaborate transportation system. In many instances, natural gas produced from a particular well will have to travel a great distance to reach its point of use. The transportation system for natural gas consists of a complex network of pipelines, designed to quickly and efficiently transport natural gas from its origin, to areas of high natural gas demand. Transportation of natural gas is closely linked to its storage, as well; should the natural gas being transported not be required at that time, it can be put into storage facilities for when it is needed. signal oil and gas company


signal oil and gas company


The primary process for sweetening sour natural gas is quite similar to the processes of glycol dehydration and NGL absorption. In this case, however, amine solutions are used to remove the hydrogen sulfide. This process is known simply as the ‘amine process’, or alternatively as the Girdler process, and is used in 95 percent of U.S. gas sweetening operations. The sour gas is run through a tower, which contains the amine solution. This solution has an affinity for sulfur, and absorbs it much like glycol absorbing water. There are two principle amine solutions used, monoethanolamine (MEA) and diethanolamine (DEA). Either of these compounds, in liquid form, will absorb sulfur compounds from natural gas as it passes through. The effluent gas is virtually free of sulfur compounds, and thus loses its sour gas status. Like the process for NGL extraction and glycol dehydration, the amine solution used can be regenerated (that is, the absorbed sulfur is removed), allowing it to be reused to treat more sour gas.( signal oil and gas company )


Spot market - International market in which oil or oil products are traded for immediate delivery at current (spot) price.

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Butane (C4H10) - Either of two saturated hydrocarbons, or alkanes, with chemical formula. In both compounds carbon atoms are joined in an open chain. signal oil & gas company



In some natural gas wells, and oil wells that have associated natural gas, it is more difficult to ensure an efficient flow of hydrocarbons up the well. The underground formation may be very ‘tight’, making the movement of petroleum through the formation and up the well a very slow and inefficient process. In these cases, lifting equipment or well treatment is required.( signal oil & gas company )


Redetermination - Retroactive adjustment to relative percentage interests of joint venturers in a field.

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Commercial field - Field judged to be capable of producing sufficient net income to be worth developing. james e van blaricum



Oil’s first stop outside the well is an oil refinery. A refinery is a plant where crude oil is processed. Sometimes refineries are located near oil wells, but usually the crude oil has to be delivered to the refinery by ship, barge, pipeline, or train.( james e van blaricum )


Drilling Mud Nomenclature - Oil Based Mud (OBM), Pseudo Oil Based Mud (POBM), Water Based Mud (WBM).

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The Downstream Segment includes the nation’s 144 refineries, which process more than 17 million barrels of crude oil every day. This segment also includes transporting petroleum products by tanker trucks from thousands of local terminals to the approximately 167,500 service stations across the United States, and the ownership and operation of those retail outlets. signal oil & gas company



The effectiveness of Arcasolve™ at removing damage to carbonate formations caused by the use of water based drilling muds has been demonstrated in an independent study carried out by Stimlab (UK) with support from the UK DTI. Stimlab is a recognized source of expertise on acidizing technologies. More recent Stimlab work has demonstrated that Arcasolve™ is also effective for the removal of oil based drilling mud damage from carbonate cores. Arcasolve™ may also be useful for the removal of dolomite (carbonate) weighted drilling muds from sandstone formations.( james van blaricum )


Sulfur can be sold and used if reduced to its elemental form. Elemental sulfur is a bright yellow powder like material, and can often be seen in large piles near gas treatment plants, as is shown. In order to recover elemental sulfur from the gas processing plant, the sulfur containing discharge from a gas sweetening process must be further treated. The process used to recover sulfur is known as the Claus process, and involves using thermal and catalytic reactions to extract the elemental sulfur from the hydrogen sulfide solution.

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Petroleum production and petroleum products can contribute to air and water pollution. Drilling for oil may disturb fragile ecosystems whether on land or sea. Transporting oil may endanger wildlife and the environment if it’s spilled on rivers or oceans. Leaking underground storage tanks may pollute groundwater and create noxious fumes. Processing oil at the refinery may contribute to air and water pollution. Burning gasoline to fuel our cars contributes to air pollution. Even the careless disposal of waste oil drained from the family car can pollute streams, rivers, and lakes. signal oil and gas company



Tariff Receipt Allowance (TRA) - Participators in owner field share an allowance equivalent to 250,000 tonnes of throughput per chargeable period for each taxable user field.( signal oil and gas company )


There are essentially three major types of pipelines along the transportation route: the gathering system, the interstate pipeline, and the distribution system. The gathering system consists of low pressure, low diameter pipelines that transport raw natural gas from the wellhead to the processing plant. Should natural gas from a particular well have high sulfur and carbon dioxide contents (sour gas), a specialized sour gas gathering pipe must be installed. Sour gas is extremely corrosive and dangerous, thus its transportation from the wellhead to the sweetening plant must be done carefully.

james van blaricum
All of these factors mean that developing an aquifer formation as a storage facility can be time consuming and expensive. In some instances, aquifer development can take 4 years, which is more than twice the time it takes to develop depleted reservoirs as storage facilities. In addition to the increased time and cost of aquifer storage, there are also environmental restrictions to using aquifers as natural gas storage. In the early 1980’s the Environmental Protection Agency (EPA) set certain rules and restrictions on the use of aquifers as natural gas storage facilities. These restrictions are intended to reduce the possibility of fresh water contamination. james van blaricum



Carbon - Atomic number is 6; element is in group 14 (or IVa) of periodic table. Carbon content of a hydrocarbon determines, to a degree, hydrocarbon’s burning characteristics and qualities.( signal oil & gas company )


What’s the single best thing I can do to save gasoline? - Combine trips. Plan well and be sensible about how much you drive. Conserve by avoiding unnecessary trips, combining errands, and carpooling.

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Underground salt formations offer another option for natural gas storage. These formations are well suited to natural gas storage in that salt caverns, once formed, allow little injected natural gas to escape from the formation unless specifically extracted. The walls of a salt cavern also have the structural strength of steel, which makes it very resilient against reservoir degradation over the life of the storage facility. james van blaricum



During the past 600 million years incompletely decayed plant and animal remains have become buried under thick layers of rock. It is believed that petroleum consists of the remains of these organisms but it is the small microscopic plankton organism remains that are largely responsible for the relatively high organic carbon content of fine-grained sediments like the Chattanooga shale which are the principle source rocks for petroleum. Among the leading producers of petroleum are Saudi Arabia, Russia, the United States (chiefly Texas, California, Louisiana, Alaska, Oklahoma, and Kansas), Iran, China, Norway, Mexico, Venezuela, Iraq, Great Britain, the United Arab Emirates, Nigeria, and Kuwait. The largest known reserves are in the Middle East.( james van blaricum )


The ‘christmas tree’ is the piece of equipment that fits atop the casing and tubing heads, and contains tubes and valves that serve to control the flow of hydrocarbons and other fluids out of the well. It commonly contains many branches and is shaped somewhat like a tree, thus its name, christmas tree. The christmas tree is the most visible part of a producing well, and allows for the surface monitoring and regulation of the production of hydrocarbons from a producing well.

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Carbon Dioxide (CO2) - Colourless, odourless, and slightly acid-tasting gas, sometimes-called carbonic acid gas, molecule of which consists of one atom of carbon joined to two atoms of oxygen. Carbon dioxide in atmosphere tends to prevent escape of outgoing long-wave radiation from Earth to outer space; as more heat is produced and less escapes, temperature of Earth increases. Most important man-made greenhouse gas in UK accounting for 81% of direct global warming potential from national greenhouse emissions in 1990. signal oil & gas company



In order to process and transport associated dissolved natural gas, it must be separated from the oil in which it is dissolved. This separation of natural gas from oil is most often done using equipment installed at or near the wellhead.( signal oil and gas company )


Production Installation - An installation from which development wells are drilled and that carries all associated processing plants and other equipment needed to maintain a field in production.

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Once the pipe is welded, bent, and coated, it can be lowered into the previously dug trenches. This is done with specialized tracked construction equipment acting in tandem to lift the pipe relatively uniformly and lower it into the trench. Once lowered into the ground, the trench is filled in carefully, to ensure that the pipe and its coating do not incur damage. The last step in pipeline construction is the hydrostatic test. This consists of running water, at pressures higher than will be needed for natural gas transportation, through the entire length of the pipe. This serves as a test to ensure that the pipeline is strong enough, and absent of any leaks of fissures, before natural gas is pumped through the pipeline. signal oil and gas company



Royalty payments - As part of some early UKCS licence round conditions there was an obligation to pay a royalty on “value of the petroleum” which is deductible in computing PRT and CT .( james e van blaricum )


Well casing is a very important part of the completed well. In addition to strengthening the well hole, it also provides a conduit to allow hydrocarbons to be extracted without intermingling with other fluids and formations found underground. It is also instrumental in preventing blowouts, allowing the formation to be ’sealed’ from the top should dangerous pressure levels be reached. For more technical information on blowouts and their prevention, click here. Once the casing has been set, and in most cases cemented into place, proper lifting equipment is installed to bring the hydrocarbons from the formation to the surface. Once the casing is installed, tubing is inserted inside the casing, from the opening well at the top, to the formation at the bottom. The hydrocarbons that are extracted run up this tubing to the surface. This tubing may also be attached to pumping systems for more efficient extraction, should that be necessary.

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Once a suitable salt dome or salt bed deposit is discovered, and deemed suitable for natural gas storage, it is necessary to develop a ’salt cavern’ within the formation. Essentially, this consists of using water to dissolve and extract a certain amount of salt from the deposit, leaving a large empty space in the formation. This is done by drilling a well down into the formation, and cycling large amounts of water through the completed well. This water will dissolve some of the salt in the deposit, and be cycled back up the well, leaving a large empty space that the salt used to occupy. This process is known as ’salt cavern leaching’. james e van blaricum

james van blaricum

05/16/08 | by admin [mail] | Categories: Announcements [A]

JAMES E. VAN BLARICUM


The actual process used to separate oil from natural gas, as well as the equipment that is used, can vary widely. Although dry pipeline quality natural gas is virtually identical across different geographic areas, raw natural gas from different regions may have different compositions and separation requirements. In many instances, natural gas is dissolved in oil underground primarily due to the pressure that the formation is under. When this natural gas and oil is produced, it is possible that it will separate on its own, simply due to decreased pressure; much like opening a can of soda pop allows the release of dissolved carbon dioxide. In these cases, separation of oil and gas is relatively easy, and the two hydrocarbons are sent separate ways for further processing. The most basic type of separator is known as a conventional separator. It consists of a simple closed tank, where the force of gravity serves to separate the heavier liquids like oil, and the lighter gases, like natural gas.

james e van blaricum


Because acid is produced over a period of several hours or longer, acid fraccing treatments using Arcasolve™ may need to be performed in a different way to existing acid fraccing treatments. Fractures would need to be held open for at least several hours and possibly up to a day. The pad fluid used in conventional treatments would probably not be needed - Arcasolve™ would be injected directly.

Does it help to fill up in the morning when fuel is cool? - Very little. While it’s true that gasoline expands as it gets hotter (reducing the energy content in a given volume), the expansion is only about one percent for every 15 degrees F. Moreover, storage tanks at gasoline stations are buried several feet underground, helping to insulate fuel and keep temperature relatively constant. The benefits, if any, of filling up in the morning versus the evening would be hard to notice.

Interstate pipelines are the ‘highways’ of natural gas transmission. Natural gas that is transported through interstate pipelines travels at high pressure in the pipeline, at pressures anywhere from 200 to 1500 pounds per square inch (psi). This reduces the volume of the natural gas being transported (by up to 600 times), as well as providing propellant force to move the natural gas through the pipeline. This section will cover the components of the interstate pipeline system, the construction of pipelines, and pipeline inspection and safety.(james van blaricum)

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he graphs shown indicate the working gas capacity and deliverability of natural gas storage facilities in the U.S. as of 2001. It can be seen that depleted reservoirs constitute the majority of working gas capacity and deliverability. However, the high deliverability of salt caverns is shown by the high daily deliverability relative to working gas capacity.

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Use of oil external emulsified acids may be limited by the increased frictional resistance to flow of these fluids down well tubulars [2]. The presence of surfactants in the acidizing fluid, to produce the emulsion, can affect the wetting characteristics of the rock formation i.e. change a water wet rock surface into an oil wet surface. This can necessitate remedial post acidizing treatments to restore the rock surface to a water wet state if successful oil production is to be attained.

Please see the new Flash animation entitled: “A Closer Look at LNG,” designed to give viewers a better understanding of liquefied natural gas, what it is, why America needs it and how it is used. The animation includes illustrations of how LNG is converted to a liquid and then back to a gas, where LNG comes from, and how LNG is safely shipped to our shores and delivered to homes and businesses.

Its importance has grown since the mid-1990s. Natural gas is an attractive fuel because it is clean burning and efficient,and because ample supplies of natural gas have been availablefrom domestic resources and from Canada.(james e van blaricum)

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Assuming a pipeline company obtains all the required permits and satisfies all of the regulatory requirements, construction of the pipe may begin. Extensive surveying of the intended route is completed, both aerial and land based, to ensure that no surprises pop up during actual assembly of the pipeline.

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Emulsified HCl involves the use of both organic solvents and HCl. Both are hazardous before and after mixing . The emulsion may not give a good distribution of acid downhole.

Economies dependent on oil production remain subject to the gyrations of the market. The collapse of oil prices in the mid-1980s ruined many independent refiners and helped produce a recession in such states as Texas; it also hurt Mexico, Venezuela, and other oil-producing nations. In contrast, the rise in oil prices since 1999 has been responsible for economic growth in Russia, Venezuela, and other oil producers. Improved recovery methods combined with higher prices that justify more expensive extraction costs have rejuvenated production in some older oil fields, increased the estimates of reserves in existing fields, and made feasible the exploitation of deposits once considered uneconomical.

Because acid is produced over a period of several hours or longer, acid fraccing treatments using Arcasolve™ may need to be performed in a different way to existing acid fraccing treatments. Fractures would need to be held open for at least several hours and possibly up to a day. The pad fluid used in conventional treatments would probably not be needed - Arcasolve™ would be injected directly.(signal oil and gas)

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Condensate wells are wells that contain natural gas, as well as a liquid condensate. This condensate is a liquid hydrocarbon mixture that is often separated from the natural gas either at the wellhead, or during the processing of the natural gas. Depending on the type of well that is being drilled, completion may differ slightly. It is important to remember that natural gas, being lighter than air, will naturally rise to the surface of a well. Because of this, in many natural gas and condensate wells, lifting equipment and well treatment are not necessary.

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Why Recent Retail Diesel Prices Have Been Higher Than Gasoline Prices - In recent months, U.S retail diesel prices have averaged anywhere from 25 to more than 70 cents above the retail price for regular gasoline, according to the Energy Information Administration. Historically, diesel prices had tended to be lower than for gasoline.

At least 80 percent of the highway diesel produced or imported is now ULSD fuel, replacing most Low Sulfur Diesel (LSD) fuel, which contains a maximum of 500 ppm sulfur. Used in combination with cleaner-burning diesel engines and vehicles, ULSD fuel is improving air quality by significantly reducing emissions. By December 1, 2010, all highway diesel fuel offered for sale must be ULSD fuel. Both ULSD fuel and Low Sulfur Diesel fuel will be available through 2010. Some retail outlets will sell ULSD fuel, others Low Sulfur Diesel fuel, and some will sell both.

Natural gas is used in over 60 million homes. In addition, natural gas is used in 78 percent of restaurants, 73 percent of lodging facilities, 51 percent of hospitals, 59 percent of offices, and 58 percent of retail buildings. Natural gas is vital to America’s manufacturers, not only to power their operations, but also as an essential feedstock for many of the products we use daily – clothing, carpets, sports equipment, pharmaceuticals and medical equipment, computers, and auto parts. It is also a primary feedstock for chemicals, plastics and fertilizers. Natural gas fuels our economy. It is a clean burning domestic energy source that powers our economy. It cools and warms our homes and businesses, is used to generate electricity, and helps maintain our quality of life.(james van blaricum)

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Low oil prices have another side effect. People use more oil when oil products are cheap. This can create a Catch-22 situation because we may depend more and more on foreign oil to keep up with demand.

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Once the pipe is in place, trenches are dug alongside the laid out pipe. These trenches are typically 5 to 6 feet deep, as the regulations require the pipe to be at least 30 inches below the surface. In certain areas, however, including road crossings and bodies of water, the pipe is buried even deeper. Once the trenches are dug, the pipe is assembled and contoured. This includes welding the sections of pipe together into one continuous pipeline, and bending it slightly, if needed, to fit the contour of the pipelines path. Coating is applied to the ends of the pipes (the coating applied at a coating mill typically leaves the ends of the pipe clean, so as not to interfere with welding), and the entire coating of the pipe is inspected to ensure that it is free from defects.

Natural gas is used in over 60 million homes. In addition, natural gas is used in 78 percent of restaurants, 73 percent of lodging facilities, 51 percent of hospitals, 59 percent of offices, and 58 percent of retail buildings. Natural gas is vital to America’s manufacturers, not only to power their operations, but also as an essential feedstock for many of the products we use daily – clothing, carpets, sports equipment, pharmaceuticals and medical equipment, computers, and auto parts. It is also a primary feedstock for chemicals, plastics and fertilizers. Natural gas fuels our economy. It is a clean burning domestic energy source that powers our economy. It cools and warms our homes and businesses, is used to generate electricity, and helps maintain our quality of life.

Pipeline Markers - Signs on the surface above natural gas pipelines indicate the presence of underground pipelines to the public, to reduce the chance of any interference with the pipeline.(james van blaricum)

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James Van Blaricum - Oil retreats to $116 as dollar rises

04/30/08 | by admin [mail] | Categories: Announcements [A]

James Van Blaricum - Oil retreats to $116 as dollar rises

LONDON (Reuters) - Oil fell more than $2 a barrel on Tuesday, retreating further from a record high hit a day before, as the dollar firmed and a strike ended at Britain’s Grangemouth refinery.
Resumption of talks between Nigerian unions and Exxon Mobil to end a six-day strike that has shut in much of the U.S. oil major’s Nigerian output also helped oil’s retreat from Monday’s record high of $119.93 a barrel. James Van Blaricum

U.S. light crude for June delivery fell $2.20 to $116.55 a barrel by 1511 GMT (11:11 a.m. EDT). London Brent crude was down $2.34 at $114.40.

“The dollar has got stronger and that has been offsetting the impact of these outages,” noted Mike Wittner, head of oil market research at SG. James Van Blaricum

The dollar firmed against the euro and the yen on Tuesday amid growing speculation the U.S. rate-cutting cycle may be near its end. Jim Van Blaricum

Figures from the U.S. Department of Energy (DOE) on Monday had also shown a sharp downward revision in U.S. petroleum demand for the month of February, bolstering fears of demand destruction under way in the world’s top oil consumer.

Workers at the Grangemouth refinery in Scotland returned to work on Tuesday after a two-day strike which closed the plant and the 700,000 barrel per day (bpd) Forties North Sea oil pipeline, an official at the UNITE trade union said. James Van Blaricum

The closure of the refinery and the pipeline, which carries about half of UK’s North Sea crude output, had helped drive oil to Monday’s record, taking this year’s gains to 25 percent.

BP, which operates the Forties pipeline, said the system would reopen on Tuesday, but added that it would take several days to return to normal throughput. Jim Van Blaricum

Supplies from OPEC member Nigeria, where a workers’ strike has effectively shut in most of Exxon Mobil’s daily output of around 800,000 barrels, remained heavily disrupted.

Nigerian oil union leaders restarted talks with Exxon Mobil on Tuesday aimed at ending the six-day-old strike. Signal Oil and Gas

Nigeria’s second-biggest operator after Exxon, Royal Dutch Shell, said militant attacks had forced it to shut in 164,000 barrels per day of output. Signal Oil and Gas

The strike and attacks by Niger Delta rebels have slashed oil production in the world’s eighth-largest exporter by half.

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James Van Blaricum

james van blaricum, signal oil and gas, signal oil, jim van blaricum, van blaricum

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