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 Mon, May 4 1992 Date: Mon, 4 May 92 05:17:38 EDT Message-ID: 05-04 0000 DECISIONLINE: Energy USA TODAY Update May 4, 1992 Source: USA TODAY:Gannett National Information Network FIRE CLOSES NUCLEAR PLANT: New Jersey's worst brush fire in three years shut down the Oyster Creek Nuclear Generating Station. The fire Sunday quickly spread over 1,500 acres of Ocean County, N.J. The fire was still burning late Sunday. The blaze came within 220 yards of the power plant. Jersey Central Power and Light Co. officials said a 100-yard-wide water-intake canal diverted the flames from the plant. DRILLING PLAN HITS NERVE: The Bush administration, bucking Congress' growing restrictions on offshore oil and gas drilling, unveiled plans Friday to advance exploration off the Atlantic coast, Alaska and throughout the eastern Gulf of Mexico. Conservationists and some lawmakers are upset by the strategy which proposes new exploration in areas Congress has repeatedly put off limits under annual leasing bans. (For more, see special Drilling package below.) GAS OUTPUT CUTBACK COULD HURT: Action by Oklahoma, Louisiana and Texas to cut natural gas production could hike utility rates, some U.S. senators charge. The 18-state Northeast-Midwest Senate Coalition circulated a letter Friday protesting the action. Under fire is Oklahoma's enactment of a law March 29 that reduces natural gas production up to 25%. Louisiana followed, and now Texas is considering similar action. MOVE CALLED A `MONEY GRAB': The Northeast-Midwest Senate Coalition is asking Senate Energy Committee Chairman J. Bennett Johnston, D-La., to order an investigation into the reduction of natural gas production by Oklahoma, Louisiana and Texas. The coalition said the actions by the three states could increase natural gas costs by $3.8 billion, which the coalition called a "money grab." MAXUS REPORTS EXPLORATION PLANS: Maxus Energy Corp. has announced its intention to Ecopetrol, Colombia's national oil company, to drill a well on the Recetor Block in Colombia. The company will spud the Volcanera well on Recetor by the end of May. Maxus is operator and currently holds 90% interest in the block, which is located in the Llanos Basin. British Petroleum holds the other 10% interest. IDAHO POWER GRANTED RATE HIKE: The Idaho Public Utilities Commission has granted Idaho Power a 3.9% temporary rate increase. The utility said Friday that the hike will enable it to recover some of the high power production cost it is incurring due to southern Idaho's drought. The 12-month hike, to go into effect Monday, will provide the company an estimated $15 million in revenues. The company had sought a 4.65% increase. MESA INC. REPORTS RESULTS: MESA Inc. Friday reported revenues from production of natural gas, natural gas liquids and oil and condensate of $58.7 million, operating income of $9.2 million and a net loss of $22 million for the first quarter of 1992. This compares with revenues of $75.2 million, operating income of $18.4 million and a net loss of $18.7 million a year earlier. OIL HOLDS STEADY: Crude oil finished unchanged Friday in largely uneventful trading. On the New York Mercantile Exchange, light sweet crude for June delivery held at $20.85 a barrel, the highest level of the year. Crude oil gained 63 cents for the week. Lower-quality sour crude traded on the Merc fell 15 cents a barrel to $18.20, closing the week up 59 cents. ENERGY FUTURES POST WEEKLY GAIN: Gasoline futures were boosted Friday by warm weather, which leads to increased automobile driving. Wholesale unleaded gasoline rose .39 cent to 64.69 cents a gallon, finishing the week up 2.52 cents. Among other products, heating oil futures fell .20 cent to 56.70 cents a gallon, up 1.41 cents for the week. Natural gas rose .9 cent to $1.431 per 1,000 cubic feet, up 4.5 cents for the week. SPECIAL PACKAGE ON DRILLING: PLAN CLEARS PACIFIC COAST: In a nod to public concern over the government's program of leasing offshore tracts to private industry for underwater mining, the Bush administration's five-year offshore drilling plan would not open any new acreage for exploration off the Pacific Coast. The strategy was drafted by the Interior Department's Minerals Management Service. PERMANENT BANS BEING CONSIDERED: Lawmakers now are considering more permanent bans on leasing as part of their debate over a sweeping energy bill. "If the Congress decides it wants to take areas ... off, that's their prerogative," said MMS Director Scott Sewell. "In the meantime, we are proposing for scientific and national security reasons that these tracts be included (in the drilling program) over the next five years." CONTINUED FIGHT VOWED: Sewell reiterated the contention of the Administration and the oil industry that offshore drilling is an environmentally safe way to cut U.S. dependence on foreign oil. However, drilling foes vowed to continue their so-far successful campaign to convince Congress to limit drilling to the western and central Gulf of Mexico. Wells there provide nearly all the USA's offshore oil and natural gas. LEASING IN THREE AREAS PLANNED: The MMS plan calls for leasing through 1997 in the following areas: The mid- and South Atlantic - in 1996, the MMS wants to lease 250 tracts between southern New Jersey and Georgia; the Gulf of Mexico - leasing will continue in the western and central gulf, and in 1995 the MMS plans to offer new tracts in the eastern gulf; and Alaska: The MMS plan calls for leasing in 1994 and 1995. (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