Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.energy From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: energy Mon, Jun 22 1992 Date: Mon, 22 Jun 92 05:14:50 EDT Message-ID: 06-22 0000 DECISIONLINE: Energy USA TODAY Update June 22, 1992 Source: USA TODAY:Gannett National Information Network OIL HIGHER IN DULL SESSION: Oil prices were mostly higher in a dull session Friday on the New York Mercantile Exchange as traders waited for details on Iraq's latest attempts to rejoin the world petroleum market. Light sweet crude oil for delivery in July settled at $22.26 a barrel, unchanged. Volume was light. Traders were apparently waiting for the results of U.N.-Iraqi meetings on Iraq's request. GAS, HEATING OIL UP: Unleaded gasoline for delivery in July settled at 65.35 cents a gallon, up .14 cent Friday on the New York Mercantile Exchange. Home heating oil for delivery in July settled at 61.46 cents a gallon, up .25 cent. Natural gas prices fell Friday, with contracts for delivery in July settling at $1.556 per 1,000 cubic feet, down 3.5 cents for the day but up 2.1 cents for the week. RIG COUNT JUMPS BY 36: Baker Hughes Inc.'s count of active domestic oil and gas rigs increased by 36 - to 632 - in the week ending Friday, according to Bloomberg Business News. It's the index's sharpest increase since November 1990. The count of active drilling rigs at 632 marked the first gain in five weeks and a rebound from 596 the week before. The count of 596 was the lowest since tracking began in 1940. CONSUMERS MAY PROTEST HIKES: The summer driving season has barely begun, and gasoline prices are already climbing. But consumers may soon force oil companies to put the brake on price hikes. "People will start downgrading their purchases from super to regular," says analyst Ben Brockwell. "When refiners see that, they'll know they've hit resistance." Since March, gas prices have risen 12 cents a gallon. NEW DISCOVERIES COULD BOOST OIL: Oil services are the best plays in energy and potential giant gainers, predicts oil tracker Charlie Maxwell of C.J. Lawrence. He says an impending profit surge by oil companies kicked off by recent overseas discoveries could trigger gains. Locations of discoveries: Yemen, Mexico, Syria, Angola, Pakistan and Malaysia. PICK OIL SERVICES: A combination of low finding costs, stepped-up economic growth overseas and large volumes of oil to be found abroad should help rejuvenate the oil services business, says oil tracker Charlie Maxwell. His top three plays, plus year-end 1993 stock targets: Schlumberger (now $66), $84; Baker Hughes ($21 3:4), $34; Baroid ($5 5:8), $12. COMMISSION LIMITS GAS PRODUCTION: The Texas Railroad Commission Friday set production limits on natural gas. The move is the first use of a revised system criticized by members of Congress. Production limits for prorated fields were set at 299.3 billion cubic feet. The figure is based on production for July 1991 and producer forecasts for July 1992 demand. LIMITS NOTE OTHER FACTORS: Productions limits on natural gas set Friday by the Texas Railroad Commission are based on last July's production and estimates for this July's demand. The figure also took into account other factors including new wells. The limit of 299.3 billion cubic feet for prorated fields is nearly 46 billion cubic feet more than actual production last July. AMOCO, EXXON MAKE CARD CHANGES: Some oil companies are making changes in their credit card policies. Amoco, with 9.1 million cardholders, sets credit limits of $300 to $1,000 starting this month. The limits will be based mainly on prior spending habits and will be to reduce delinquencies. Exxon will no longer take its own card at stations in California, Oregon, Utah and Nevada. Few consumers use them. CHEVRON TO PAY LESS FOR CRUDE: Chevron U.S.A. Products Co. Friday announced a decrease in the posted prices it will pay for all grades of crude oil in the Eastern Region (U.S. areas outside of California and Alaska). As of Friday, posted prices were decreased 50 cents a barrel across the board. Chevron now will pay $21.25 for West Texas Intermediate; $19 for West Texas Sour; and $21.50 for South Louisiana Sweet. WELL GIVES 3,101 BARRELS A DAY: Nuevo Energy Company Friday announced that the Paramount-Lancaster 30-5 No. 1 well in the North Frisco City Field, Monroe County, Ala., tested at a maximum rate of 3,101 barrels of oil per day and 3.4 million cubic feet of gas per day from the Haynesville sand. The well was producing with a flowing tubing pressure of 1,855 psi on a 24:64-inch choke. PRODUCTS CAN BE MADE FROM CO2: The BOC Group has invented a technique for producing products from combustion exhaust gases, it was announced Friday. The technology allows carbon dioxide, nitrogen and argon to be captured. In some cases, purified carbon dioxide can be used in chemical synthesis, reducing the effect of greenhouse gases. Also, exhaust gases are made harmless for easier disposal. Energy Editor: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM