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 Thu, Jun 25 1992 Date: Thu, 25 Jun 92 05:35:29 EDT Message-ID: 06-25 0000 DECISIONLINE: Energy USA TODAY Update June 25, 1992 Source: USA TODAY:Gannett National Information Network OIL FUTURES AT NEW HIGHS: Oil futures rose to new highs for 1992 Wednesday amid concerns that heating oil supplies could be tight next winter. Light sweet crude oil for August delivery rose 30 cents to $22.89 a barrel at the Mercantile Exchange. Crude for next-month delivery hadn't ended that high since Nov. 8 when it hit $23.01. Home heating oil for delivery in July settled at 63.66 cents a gallon, up 1.55 cents. HEATING OIL SOARS: Heating oil for next-month delivery had not settled as high as Wednesday's 63.66 cents a gallon on the New York Mercantile Exchange since Nov. 20's close of 63.73 cents a gallon. Unleaded gasoline for delivery in July settled at 65.15 cents a gallon, up .02 cent. Natural gas prices were higher. Contracts for delivery in August settled at $1.521 per 1,000 cubic feet, up 3.8 cents. GASOHOL LOOPHOLES ELIMINATED: The government has eliminated loopholes allowing federal agencies to ignore a mandate to use gasohol in their vehicles when possible, an investigator said Wednesday. Victor Rezendes of the General Accounting Office told a House subcommittee that the Defense Department had eliminated exemptions in the order. However, getting adequate supplies remains a problem, he said. (For more, see special Gasohol package below.) MUD HINTS AT OIL, GAS: Mud from an offshore Louisiana well suggests that the well might produce oil and gas, Bloomberg Business News said Wednesday. The well, known as the 87-4, found what geologists call "U" sands, the same sands Box Energy Corp. encountered in its adjacent 87-3 well. Box Energy Corp., which has a one-third stake in the well, last spring called the 87-3 one of its best discoveries. CALVERT CLIFFS IMPROVES: The Nuclear Regulatory Commission has noted improvements at Baltimore Gas & Electric Company's Calvert Cliffs Nuclear Power Plant, according to the NRC's systematic assessment of licensee performance released Wednesday. The report, covering April 1991 to March 28, 1992, gave Calvert Cliffs three superior ratings and four good ratings, vs. one superior and six goods in the last period. EXPORTS TO USA TO BE CUT BACK: Exports of Alberta natural gas to the northeastern and midwestern United States will be cut back again Thursday, industry officials said Wednesday. The curtailment of about one billion cubic feet of gas began early Tuesday after Nova Corp., the provincial pipeline operator, discovered a leak at its Princess compressor station, Bloomberg Business News said Wednesday. POWER PLANT CONVERTED: The Public Service Company of New Hampshire has converted its power plant in Newington to burn natural gas and oil. The conversion cost $6.4 million and the company says it expects to save $5 million in fuel costs in the next three to four years. Natural gas is less expensive. TEST WELL AT CUSIANA CLOSED: The Colombian Minister of Health Wednesday closed a test well at the Cusiana oil field until environmental and safety-related problems were solved. The well is operated by BP, Total and Triton. The well is closed "because it is not good for the health" of those working in the region, according to a spokeswoman for the Ministry of Mines in Colombia. BP ANNOUNCES REDUCTIONS: BP America Wednesday announced a series of actions aimed at cutting the cost of U.S. business operations. The cuts include 600 to 700 staff reductions and are the company's latest response to the impact of the recession on the industry. "Prices both at the wellhead and at the gas pump are down," said Chairman Rodney F. Chase. "Competition is fierce." BASS GROUP TO UP TEREX STAKE: An investment group that includes officials of Bass Enterprises Production Co. Wednesday bought shares currently valued at $4 million to increase its stake in Terex Corp. The group, which includes the Airlie Group, upped its stake in the maker of heavy-duty mining equipment to 12.4% from about 8.8%. Bass is a Texas company in the oil exploration and drilling business. SPECIAL PACKAGE ON GASOHOL: GASOHOL SUPPLIES A PROBLEM: Victor Rezendes of the General Accounting Office told a House subcommittee that while the Defense Department has moved to eliminate exemptions in the order for federal agencies to use gasohol, getting adequate supplies remains a problem. Some regions have few sources, he said. The Defense Department does bulk buying of motor fuels for all federal agencies. LIMITED DEMAND A DRAWBACK: Rezendes said limited consumer demand and an expected increase in ethanol use to meet Clean Air Act standards also contributed to the difficulties with gasohol. Gasohol is gasoline that includes 10 percent ethanol, an alternative fuel made from corn. Eric Vaughn of the Renewable Fuels Association said that smaller, independent gas marketers have been the ones dealing in gasohol. UNFAMILIARITY CAUSES PROBLEMS: Vaughn told the House Armed Services Committee that smaller marketers - not major oil companies - dealing in gasohol causes two problems. He said they are less likely to be familiar with the government bidding process and they have more trouble dealing with payment delays that occur with the federal bureaucracy. Solving those could alleviate supply problems, Vaughn said. (End of package.) 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