Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.energy From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: energy Wed, Apr 15 1992 Date: Wed, 15 Apr 92 05:42:41 EDT Message-ID: 04-15 0000 DECISIONLINE: Energy USA TODAY Update April 15, 1992 Source: USA TODAY:Gannett National Information Network EXXON TO PAY ALASKA $128M: Exxon Corp. Tuesday agreed to pay Alaska $128 million to settle a 14-year-old lawsuit over back oil royalties and interest, lawyers for both sides said. The state had sought $170 million from the company, claiming Exxon had undervalued its North Slope oil production. GAS PRICES ADVANCE: The national average price of self-serve regular unleaded gasoline rose 1.4 cents for the second week in a row, the American Automobile Association said Tuesday. The price is now $1.082. AAA's Fuel Gauge Report shows that the price, which had fallen 4.8 cents between the start of 1992 and March 24, has risen 3.3 cents in the three weeks since then. PRICES DOWN IN THE MIDWEST: The average price of regular unleaded is up in every region of the United States except the Midwest, where prices fell 2.2 cents, and the mid-Atlantic where they are unchanged, according to AAA's Fuel Gauge Report, a nationwide spot check of gasoline stations. The national average price of self-serve gasoline is higher for all grades this week. PRICES SLUMP ON OVERSUPPLY: An abundance of supplies and word that Iraq is unexpectedly close to selling oil under U.N. supervision sent energy prices sharply lower Tuesday. Crude oil for May delivery fell 36 cents a barrel to $19.86. Wholesale gasoline for May delivery dropped 1.53 cent a gallon to 58.23 cents. Natural gas rose slightly, with the May contract up .06 cent per 1,000 cubic feet to $1.276. CRUDE STOCKS UP: The nation's crude stockpiles rose by 9.4 million barrels last week to 346.79 million barrels, while supplies of gasoline and home heating oil fell, the American Petroleum Institute said Tuesday. Gasoline stocks dropped 3.78 million barrels to 215.47 million barrels. The supply of distillates, which includes home-heating oil, fell 2.96 million barrels to 90.46 barrels last week. OIL COMPANIES' PROSPECTS BLEAK: The long term future for oil company profits looks bleak, despite oil's recent spurt above $20 a barrel, says oil analyst Michael Young of Smith Barney. Overall, Young sees industry earnings sinking 13% in 1992, following a 15% drop last year. Among reasons: Lower oil and natural gas prices and more weakness in U.S. refining and marketing profit margins. (For more, see special Profits package below.) ARCO CUTS 5-YEAR SPENDING PLAN: ARCO said Tuesday that its capital spending for the five-year period 1992-1996 is expected to total $14.7 billion, down 20% from last year's five-year estimate of $18.6 billion. In a presentation to analysts, ARCO Chairman and CEO Lodwrick M. Cook said the anticipated cuts are spread across each of ARCO's operating units with spending plans increased only for international activities. NRC RATES PALO VERDE: The operation of the Palo Verde Nuclear Generating Station west of Phoenix has been "generally good and directed toward safe facility operation," according to a report issued Tuesday by the Nuclear Regulatory Commission. The NRC rated seven functional areas in its Systematic Assessment of Licensee Performance report. Two exceeded regulatory requirements and the others met NRC standards. CASTROL CAN RUN ADS: Castrol can run a print advertisement that says Castrol GTX 20W-50 is the only leading motor oil in America to pass the world's toughest performance standards, a federal judge has ruled. Quaker State had asked that publication of the ad be stopped. U.S. District Judge Charles S. Haight, Jr., found that Quaker State had failed to show the advertisement was either false or misleading. SPECIAL PACKAGE ON PROFITS: CRUDE SEEN AVERAGING $20: Oil analyst Michael Young says eroding overseas refining margins and very weak petrochemical margins will also cut into oil industry earnings this year. Young sees oil, measured by West Texas intermediate crude, averaging $20 a barrel in 1992. That's down from $21.50 last year. It's now at $19.86 after falling 36 cents Tuesday. SUPPLY, DEMAND TO BE BALANCED: Young's case for $20 oil is based on an expected balance between world supply and demand. He sees supply running 66.7 million barrels a day; demand, 66.6 million a day. And this balance, he says, won't be broken by oil's latest props, which might indicate even pricier oil. The props: OPEC cut March oil output by about a million barrels a day; higher heating oil demand. REPUBLICS SEEN CUTTING OUPTUT: On OPEC oil, Young sees a nice balance between supply and demand. He sees daily supply from OPEC countries of 24.5 million barrels, including some resumption of Iraqi exports. His daily demand outlook: 24.3 million barrels. He says the former Soviet republics, the world's leading oil producer, might cut 1992 output by 900,000 barrels a day. (End of package.) Energy Editor: William Snoddy. (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