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, Jul 31 1992 Date: Fri, 31 Jul 92 04:32:20 EDT Message-ID: 07-31 0000 DECISIONLINE: Energy USA TODAY Update July 31-Aug. 2, 1992 Source: USA TODAY:Gannett National Information Network ENERGY FUTURES LOWER ON SLOW DAY: Energy futures prices were lower Thursday in quiet trading. On the Mercantile Exchange, the price of light sweet crude oil for September fell 17 cents per 42-gallon barrel to settle at $21.83. August unleaded gasoline fell .99 cent to 61.16 cents a gallon. August home-heating oil was 60.36 cents a gallon, down .53 cent. September natural gas was $1.932 a 1,000 cubic feet, up 5.2 cents. SENATE OKS COMMUTER INCENTIVES: The Senate Thursday approved bigger tax breaks for employers who buy workers subway, bus and commuter train tickets while making it more expensive to offer them free parking. The Senate approved 93-3 those tax incentives, plus several others, to a wide-ranging energy bill. The bill now goes to a conference committee to be compromised with a version passed by the House in May. CHEVRON PLANS FUEL PROJECT: Chevron U.S.A. Products Co. Thursday announced that its Richmond, Va., refinery plans a $750 million project to produce cleaner-burning fuels for cars and trucks and to improve operating efficiency and reliability. The project would create 1,000 construction jobs at its peak, the company said, and will take about four years to complete. (For more, see special Chevron package below.) GRACE TO SELL FIVE BUSINESSES: W.R. Grace & Co. Thursday reported that it expects to receive about $500 million for the sale of five sections of its oil and gas business. The company said it will sell the five pieces individually. It will keep its coal unit. The companies to be sold are involved in offshore and inland drilling and services, oil exploration and oil storage, a spokesman said. SIMILAR DEAL ANNOUNCED IN 1991: W.R. Grace & Co., based in Boca Raton, Fla., had said last fall that it planned to sell its Grace Energy Corp., based in Dallas. The energy corporation contains six units. Grace said Thursday it is not selling the coal unit. The individual sales of the other five businesses will be made with the help of several investment banking firms, the company said. OIL AND GAS PURCHASE ANNOUNCED: Nahama & Weagant Energy Co. Thursday announced that it has agreed to buy all of Benton Oil & Gas Co.'s California oil and gas reserves for $2.5 million. Benton announced the deal on Monday. The purchase includes 4 billion cubic feet of proved developed natural gas reserves and 700,000 of proved oil reserves. The reserves are concentrated in the San Joaquin Valley's Round Mountain oil field. TRIBE, QUADREX MAKE AGREEMENT: Quadrex Corp. of Gainesville, Fla., and the Seminole Indian Tribe of Florida Inc. said Thursday they have entered into an agreement and begun conducting a feasibility study on construction of a power plant on the Brighton Indian Reservation. The reservation is northwest of Lake Okeechobee. Bechtel Power Corp. is providing Quadrex with technical support for the study. STAR'S PROBLEMS WON'T SHAKE BUGC: Analysts said Thursday that Brooklyn Union Gas Co. will not be troubled by the financial difficulties of a privately held company in which it has a 45% stake. Star Gas Corp., of which a Brooklyn Union subsidiary holds 45%, defaulted on $126 million in loans and missed a $5 million interest payment due July 10, Brooklyn Union said late Wednesday night. Star Gas is negotiating with creditors. UTILICORP WANTS RATE INCREASE: UtiliCorp United Thursday announced that its Missouri Public Service division will file a request Friday for an 8.5% electric rate increase. The increase would boost annual revenues by $19.4 million and would take effect in 1993. The company said the increase is needed to offset the costs of a coal conversion project to meet standards for the 1990 Clean Air Act. PIPELINE PROJECT APPROVED: Canada's National Energy Board Thursday said it has approved Westcoast Energy Inc.'s Southern Mainline Looping Project. The company, which operates a natural gas pipeline, will construct 20.32 miles of pipeline loop for Canadian and export markets, the Energy Board said. Cost for the project is to be less than $34 million. The expansion will increase daily capacity by 5.4%. SPECIAL PACKAGE ON CHEVRON: PLAN TO HELP MEET CAA STANDARDS: About $400 million of the $750 million Chevron plans to spend on a fuel project will allow its Richmond, Va., refinery to meet 1995 Clean Air Act standards for cleaner-burning gasoline. The funds also will let it meet stricter 1996 gasoline specifications set by the California Air Resources Board. The rest of the money will be used to upgrade key processing units to produce higher yields. UPGRADING WILL SHIFT YIELDS: The upgrading of key processing units will improve yields of higher value light products, such as gasoline, and reduce lower value heavy products, such as fuel oil. The move will help ensure the refinery's competitiveness and economic vitality and will address recent community concerns by improving reliability, the company 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. 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