Exploration And Production

Re "Mauldin's Back in the Trenches Again" (Feb. 17): Bill Mauldin is probably the best in his trade. But his analysis of Bush's motives makes no sense when he links the President's pro-war position to his being an "old wildcatter from Texas." If Hussein were unopposed in his takeover of the Middle East, wildcatters in Texas--and elsewhere--would enjoy a bonanza. The soaring price of oil would motivate unprecedented domestic oil exploration and production. I believe Bill's reputation will survive longer if he sticks to ridiculing the Army brass and Congress and leaves economic analysis alone.

After investing an estimated $5 billion in recent years into oil exploration in the offshore Alaskan Arctic, Shell announced Thursday that it will abandon any renewed drilling effort this year. The company cited a federal appeals court decision last week that found the Interior Department had awarded permits to Shell based on inadequate information, a major triumph for environmental groups that had been battling Shell for years. “This is a disappointing outcome, but the lack of a clear path forward means that I am not prepared to commit further resources for drilling in Alaska in 2014,” said Ben van Beurden, who took over as the company's chief executive four weeks ago. “We will look to relevant agencies and the court to resolve their open legal issues as quickly as possible.” The statement leaves open Shell's option to resume exploration of the Arctic waters in the future.

Exxon called a news conference in Valdez, Alaska, to announce that the cleanup of the oil spilled into Prince William Sound in a tanker accident March 24 is ahead of the pace calculated in the oil company's federally approved plan, which figures the cleanup will be done by Sept. 15. K.T. Koonce, Exxon USA's vice president for exploration and production, said 70% of the more than 10-million-gallon spill had evaporated, dissipated or been recovered. An estimated 1.2 million gallons still is afloat.

  The petroleum industry and federal regulators focused more on exploration and production than safety in the years leading up to the 2010 Gulf of Mexico oil spill, helping to set the stage for the worst offshore environmental disaster in U.S. history, according to a new independent report by the National Academy of Engineering and the National Research Council. Conducted at the behest of Interior Secretary Ken Salazar, the report said the "multiple flawed decisions that led to a blowout" on the Deepwater Horizon rig resulted from "a deficient overall systems approach to safety" among the corporations that ran the drilling of the Macondo well, including BP, Transocean and Halliburton.

Exxon Corp.'s first-quarter earnings fell 13%, the company said Monday, as rising crude oil prices took a bite out of refining margins and the Alaskan oil spill took a toll mostly on the company's image. For the three months ended March 31, earnings at the nation's biggest oil company declined to $1.3 billion from $1.5 billion in the first quarter of last year. Revenue rose 1% to $22.2 billion, compared to $22 billion in the year-ago period. Exxon, based in New York, said expenses grew fourfold from the 1988 first quarter--to $5.4 billion from $1.3 billion--due mainly to special one-time costs, including the acquisition of Texaco Canada Inc. Exxon said the March 24 spill that tarnished its reputation had only a negligible financial impact in the first period.

Occidental Petroleum Corp., the 13th-largest oil company in the U.S., on Monday slashed its spending on exploration and production of oil and natural gas by 63% to cope with low energy prices. Los Angeles-based Occidental, with 1997 revenue of about $8 billion, reported to the Securities and Exchange Commission this month that it's facing a cash shortfall for 1998 that may force it to sell assets, restructure debt and cut spending. Occidental reports fourth-quarter earnings today.

Re "Oil-Hog Nations Look to Saudis," editorial, Sept. 13: If OPEC were to increase production to fit the consuming countries' idea of "fair" oil prices, global oil consumption would continue to expand unabated because there would be no limit of supply at "fair" prices. You should add the words "arrogant" and "bully" to the description of the major consuming nations. The interests of the producing nations are involved in the supply/price equation, but why should they be forced to unfairly consider our interests over their own?

Chevron Corp. said Thursday that it would increase spending on exploration to drive production growth in 2011, but that it would devote fewer resources to the part of its business that makes, transports and sells gasoline, diesel and other products. Total capital spending for the San Ramon, Calif.-based company next year will be $26 billion, about 20% more than for this year, Chevron said. The increase will be going "upstream," or into exploration and production of oil and natural gas. More than $17 billion of that amount will be spent overseas, the company said.

Your editorial (March 1), "Glut Is a Four-Letter Word," on the so-called oil "glut" provided some thoughtful and constructive observations. Many Americans have become smug about energy, even though we still spend about a billion dollars a week to import nearly 30% of our oil. Our smugness may cost even more during the next crisis. However, an important element of this problem was conspicuous in its absence: the need for more oil and gas exploration and production right here in the United States.

Shares of beleaguered BP jumped 8% Monday on hopes for the latest attempt to stop the gulf oil leak and reports that BP may be turning to Apache Corp., a Houston-based exploration and production company, for a $10-billion asset sale. BP's U.S.-traded shares closed at $36.76, up 36% since the company hit a 14-month low in June but down 39% from the stock's value on April 20, when the Deepwater Horizon drilling rig exploded and sank, leaving a well gushing oil into the Gulf of Mexico.

Chevron Corp. said Thursday that it would increase spending on exploration to drive production growth in 2011, but that it would devote fewer resources to the part of its business that makes, transports and sells gasoline, diesel and other products. Total capital spending for the San Ramon, Calif.-based company next year will be $26 billion, about 20% more than for this year, Chevron said. The increase will be going "upstream," or into exploration and production of oil and natural gas. More than $17 billion of that amount will be spent overseas, the company said.

Shares of beleaguered BP jumped 8% Monday on hopes for the latest attempt to stop the gulf oil leak and reports that BP may be turning to Apache Corp., a Houston-based exploration and production company, for a $10-billion asset sale. BP's U.S.-traded shares closed at $36.76, up 36% since the company hit a 14-month low in June but down 39% from the stock's value on April 20, when the Deepwater Horizon drilling rig exploded and sank, leaving a well gushing oil into the Gulf of Mexico.

Re "Oil-Hog Nations Look to Saudis," editorial, Sept. 13: If OPEC were to increase production to fit the consuming countries' idea of "fair" oil prices, global oil consumption would continue to expand unabated because there would be no limit of supply at "fair" prices. You should add the words "arrogant" and "bully" to the description of the major consuming nations. The interests of the producing nations are involved in the supply/price equation, but why should they be forced to unfairly consider our interests over their own?

Occidental Petroleum Corp., the 13th-largest oil company in the U.S., on Monday slashed its spending on exploration and production of oil and natural gas by 63% to cope with low energy prices. Los Angeles-based Occidental, with 1997 revenue of about $8 billion, reported to the Securities and Exchange Commission this month that it's facing a cash shortfall for 1998 that may force it to sell assets, restructure debt and cut spending. Occidental reports fourth-quarter earnings today.

With little attention or sympathy from the American public, much of the U.S. oil industry is packing it in and moving overseas. Few sectors of the economy have faced a more wrenching adjustment during a period of fundamental economic change than the domestic oil business. Some statistics from the American Petroleum Institute tell the story: * More than half the 754,500 jobs in U.S. exploration and production that existed in 1982 are now gone. * Almost a third of 165,800 jobs in U.

Re "Mauldin's Back in the Trenches Again" (Feb. 17): Bill Mauldin is probably the best in his trade. But his analysis of Bush's motives makes no sense when he links the President's pro-war position to his being an "old wildcatter from Texas." If Hussein were unopposed in his takeover of the Middle East, wildcatters in Texas--and elsewhere--would enjoy a bonanza. The soaring price of oil would motivate unprecedented domestic oil exploration and production. I believe Bill's reputation will survive longer if he sticks to ridiculing the Army brass and Congress and leaves economic analysis alone.

The attention to the subject of the U.S. oil industry is timely, appreciated and close to home. After all, even though California's agriculture, high-technology, and tourist industries are high profile, oil is a major component of the Golden State's economy. If Kern County, which is in my congressional district, were a state, for example, it would rank fourth among all states in oil production. The Times solutions to the growing reliance on foreign oil are worthy, but fall short of the mark.

After investing an estimated $5 billion in recent years into oil exploration in the offshore Alaskan Arctic, Shell announced Thursday that it will abandon any renewed drilling effort this year. The company cited a federal appeals court decision last week that found the Interior Department had awarded permits to Shell based on inadequate information, a major triumph for environmental groups that had been battling Shell for years. “This is a disappointing outcome, but the lack of a clear path forward means that I am not prepared to commit further resources for drilling in Alaska in 2014,” said Ben van Beurden, who took over as the company's chief executive four weeks ago. “We will look to relevant agencies and the court to resolve their open legal issues as quickly as possible.” The statement leaves open Shell's option to resume exploration of the Arctic waters in the future.

As President Bush ponders the future of offshore oil drilling in Southern California, the message from Orange County residents who suffered the effects of a major spill just two months ago rings loud and clear: no new oil platforms in our back yard.

Exxon called a news conference in Valdez, Alaska, to announce that the cleanup of the oil spilled into Prince William Sound in a tanker accident March 24 is ahead of the pace calculated in the oil company's federally approved plan, which figures the cleanup will be done by Sept. 15. K.T. Koonce, Exxon USA's vice president for exploration and production, said 70% of the more than 10-million-gallon spill had evaporated, dissipated or been recovered. An estimated 1.2 million gallons still is afloat.