Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!tamsun.tamu.edu!mtecv2!americast.com!americast.com!usa-post From: usa-post@AmeriCast.Com Newsgroups: usa-today.energy,americast.usa-today.energy Subject: energy Tue, Sep 1 1992 Message-ID: Date: 1 Sep 92 08:40:11 GMT Organization: American Cybercasting Lines: 118 Approved: usa-post@AmeriCast.com 09-01 0000 DECISIONLINE: Energy USA TODAY Update Sept. 1, 1992 Source: USA TODAY:Gannett National Information Network OIL MOVES HIGHER: Oil prices moved higher Monday in technical buying linked to expiration of energy futures contracts and supply concerns following Hurricane Andrew. Light sweet crude oil for delivery in October settled at $21.48 per barrel, up 17 cents, at the New York Mercantile Exchange. September home heating oil expired at the end of the session and settled at 60.47 cents a gallon, up 1.10 cents. GAS SETTLES UP: Gasoline prices were volatile Monday on the New York Mercantile Exchange as the September contract expired at the end of the session. Unleaded gasoline for delivery in September settled at 64.10 cents a gallon, up 0.82 cent; the October contract settled at 60.59 cents, up 0.41 cent. Natural gas for October settled at $2.112 per 1,000 cubic feet, down 0.3 cent. FERC OKS PANHANDLE SETTLEMENTS: The Federal Emergency Regulatory Commission Monday approved settlements that will allow units of Panhandle Eastern Corp. to recover $243 million in costs from its liquefied natural gas project. The order will become final Sept. 28. The agreements cover Trunkline LNG Co. as well as Trunkline Gas Co.'s 1987 case and Panhandle's supply arrangements with Trunkline. DEAL ELIMINATES MINIMUMS: The Federal Emergency Regulatory Commission Monday approved settlements with Panhandle Eastern Corp. The settlements eliminate liquid natural gas minimum bill payments from Trunkline Gas Co. and Panhandle's rates. Its minimum rates were not competitive in the markets it served because of the cost of a Panhandle liquefied natural gas project. INTERCHEM GETS FUEL AGREEMENT: Interchem Industries N.A. said Monday it has received a commitment from Procter & Gamble to produce up to 15 million gallons of Biodiesel fuel per year for Interchem at a fixed-cost plus feedstock price. The fuel will be made from soybean oil and animal fats and can be used in unmodified diesel engines or blended with conventional diesel fuel. BARRETT, AMOCO REACH AGREEMENT: Barrett Resources Corp. said Monday it has entered into a farmout agreement with AMOCO Production Co. The agreement commits Barrett to a drilling program designed to develop gas reserves from the Red Oak and Fanshawe sandstones in the giant Red Oak Field located in Latimer and LeFlore Counties, Okla. To date, the Red Oak Field has produced over one trillion cubic feet of gas. SUN CAN BUY EXXON TERMINAL: The Federal Trade Commission Monday awarded Sun Co. Inc. approval to buy Exxon Corp.'s oil-products terminal in Newburgh, N.Y. Sun officials would not comment on the price. The facility is adjacent to a 60,000-barrel Sun terminal and has about 95,000 barrels of gasoline storage and 55,000 barrels of heating oil and diesel capacity. MOBIL EXTENDS INDONESIA DEAL: Mobil Corp. said Monday it has extended an exploration contract it holds with Indonesia. The extension will allow the company to develop offshore natural gas fields until 2018. Terms were not disclosed. Mobil originally purchased its North Sumatra Offshore Production Sharing Contract in 1968. The 30-year contract was extended an additional 20 years. ATMOS' SYSTEM SURVIVES ANDREW: Atmos Energy Corporation said Monday its natural gas distribution system serving Louisiana received little damage from Hurricane Andrew. The company's Trans Louisiana Gas Company serves about 69,000 customers in Louisiana, including Lafayette and the area south to Patterson, La., which received the brunt of the hurricane's force. Fewer than 400 customers lost power. ENEX RESOURCES CLAIM SETTLED: Enex Resources Corporation Monday reported it will receive $1.5 million from the resolution of a disputed claim. The company did not detail the claim. The settlement for the oil and gas acquisition, management and marketing company will increase working capital and book value by $1.24 per common share. Book value now exceeds $11 per common share, Enex said. RUSSIA TO SELL SIBERIAN RIGHTS: Russia plans to sell exploration rights to promising Siberian oil fields this year to reverse the decline in domestic production, Petroleum Intelligence Weekly reports. International companies already are restoring 5,000 of Russia's 25,000 inactive oil wells. Several companies likely will negotiate agreements with state-controlled production units. SUN CHANGES AD AGENCIES: Sun Co. Inc. said Monday it is replacing ad agency Wells Rich Greene BBDP with Hal Riney & Partners. Hal Riney will produce ads for Sun gasolines, service centers and food markets and will cover about $10 million annually. Sun said the move is part of the company's overhaul and does not express dissatisfaction with Wells Rich Greene, which it was with for 20 years. MOWER DEMONSTRATION PLANNED: Baltimore Gas & Electric Co. will distribute 100 cordless electric lawn mowers at a news briefing in Timonium, Md., Tuesday at the Maryland State Fair Grounds. The mowers are part of a federal research project in which BG&E is participating. Several of the mowers will be on display. The mowers reduce emissions. 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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