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 Fri, Jun 26 1992 Date: Fri, 26 Jun 92 05:19:54 EDT Message-ID: 06-26 0000 DECISIONLINE: Energy USA TODAY Update June 26-28, 1992 Source: USA TODAY:Gannett National Information Network OIL PRICES DIVE: Oil prices dropped sharply Thursday as traders cashed in their gains. On the New York Mercantile Exchange, the price of benchmark light sweet crude for August delivery dropped 31 cents to $22.58 a barrel, erasing a 30-cent gain the day before. Wholesale home heating oil for July delivery fell .50 cent a gallon to 63.16 cents. NATURAL GAS BUCKS TREND: Wholesale unleaded regular gasoline for July delivery fell 1.71 cents a gallon to 63.44 cents on the New York Mercantile Exchange Thursday. The price of natural gas, which often bucks the trend of other energy products, settled at $1.530 per 1,000 cubic feet, up from $1.521. U.N.-IRAQ OIL TALKS STUMBLE: Western diplomats at the United Nations said Thursday they're "definitely less optimistic" that Iraq will be allowed to start selling oil any time soon. An unexpected hitch has developed regarding use of an Iraqi oil export terminal. The U.N. and Iraq have been negotiating to ease economic sanctions so Iraq can sell $1.6 billion worth of oil to pay for relief supplies. (For more, see special Iraq package below.) REGIONAL GAS BATTLE SHAPES UP: Lawmakers from the Northeast and Midwest are pushing for legislation that would prohibit states from restricting natural gas production in order to drive up prices. They're concerned by a decision by Oklahoma and Texas officials to limit such production and by the possibility that Louisiana may take similar actions. The three states together produce 50% of the nation's natural gas. OFFICIALS DENY ULTERIOR MOTIVES: Texas and Oklahoma officials deny they restricted natural gas production specifically to bump up prices. They're trying, they say, to bring supply into balance with demand. State regulators defend the cutback as prudent management. The officials also deny tighter production levels led to price hikes that took effect just as Oklahoma and Texas adopted production limits. POWER PLANT BEGINS OPERATIONS: The Commonwealth Limited Partnership electric generating facility has begun commercial operations in Chesapeake, Va., it was announced Thursday. Commonwealth Power Corp., which manages the Commonwealth Atlantic facility, said Thursday that Virginia Power was notified on June 4, 1992 that the 340,000 kilowatt gas-fueled generating station was ready for commercial operations. POWER PLANT CONTRACTS AWARDED: North Carolina Eastern Municipal Power Agency has awarded a contract to Parsons Main Inc. for two combustion turbine, peaking power plants. The contracts are for engineering, procurement, construction management, field-liaison engineering and start-up services. It's anticipated that the plants will be completed in 1995 and will generate between 80 and 100 megawatts. BP CHAIRMAN RESIGNS: British Petroleum Plc Chairman Robert Horton resigned suddenly Thursday, prompting guesses from some analysts that he had lost a battle over the company's dividend payouts. On the New York Stock Exchange, BP American despository receipts 6 to $48 3:8. Other oil stocks also posted losses. Texaco fell 1 1:2 to $61 1:2. Chevron dropped 7:8 to $67 3:4 and Mobil eased 3:4 to $61 7:8. ETHANOL RALLY SCHEDULED: A rally will be held July 6 in Peoria, Ill., to demonstrate support for the corn-based fuel ethanol. It's cosponsored by the Illinois Farm Bureau and the Illinois Corn Growers Association. EPA-proposed regulations implementing the reformulated gasoline program under the Clean Air Act would eliminate ethanol use in gasolines in some of the nation's cities with the poorest air quality. GEORGIA POWER CLOSES BOND SALE: Georgia Power Co. said Thursday that it has closed the sale of $100 million of First Mortgage Bonds due 2022. An underwriting group headed by Morgan Stanley & Co. Inc. submitted the winning bid June 16. The bonds bear interest at 8 5:8% annually and were initially offered to the public at 99.405% of face value. The cost to Georgia Power is 8.71% annually. SPECIAL PACKAGE ON IRAQ: OIL WOULD PAY FOR RELIEF: A hitch has developed in talks between Iraq and the United Nations over the resumption of Iraqi oil sells. The $1.6 billion worth of oil would pay for relief supplies and compensation for war victims. The third round of talks was held last weekend in Vienna, but Western diplomats said Thursday the hitch is discouraging. Iraq wants to use its port of Mina Al-Bakr for most of the shipments. IRAQ WANTS TO USE OWN PIPELINE: During the talks, Iraq proposed that 90% of the estimated 80 million to 95 million barrels of oil involved be shipped through Mina Al-Bakr on the Persian Gulf and the rest by way of a pipeline through Ceyhan, Turkey. The United Nations' original resolution called for use of the Ceyhan pipeline for better monitoring. The move would allow pipeline profits for coalition ally Turkey. (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