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OGJ NEWSLETTER

January 1st, 1990
Will oil price stability dominate the 1990s? Analyst Philip Verleger thinks so. Using a measure of market concentration the U.S. government uses to assess mergers, he sees OPEC's prices in the long term reaching levels comparable to those in 1980. However, a concentration of market power among consuming nations, led by increasing U.S. imports and EEC economic consolidation after 1992, will enable consumers to dictate prices through import limit policies by 1995, he says.

OGJ NEWSLETTER

January 1st, 1990
Will oil price stability dominate the 1990s? Analyst Philip Verleger thinks so. Using a measure of market concentration the U.S. government uses to assess mergers, he sees OPEC's prices in the long term reaching levels comparable to those in 1980. However, a concentration of market power among consuming nations, led by increasing U.S. imports and EEC economic consolidation after 1992, will enable consumers to dictate prices through import limit policies by 1995, he says.

HOW INDEXES HAVE RISEN

January 1st, 1990
Continuing a trend starting in 1983, the Nelson-Farrar refinery construction index rose slowly, from 1106.2 in January 1987, to 1184.1 in December 1988. Labor component rose at about the same rate as did the material component. The labor index rose from 1352.8 to 1427.5 over the 2-year period, while the material index rose from 736.3 to 819.0 over the same period.

REFINERS FOCUS ON MODERN MAINTENANCE TECHNIQUES

January 1st, 1990
Effective maintenance techniques and modern maintenance technology are critical elements of the safe and efficient operation of refineries and petrochemical plants. The importance of effective maintenance is highlighted each year at the National Petroleum Refiners Association annual refinery and petrochemical plant maintenance conference, most recently held May 23-26,1989, in San Antonio.

WORLD LNG TRADE HEADS TOWARD EXPANDED VOLUMES

January 1st, 1990
World trade in liquefied natural gas is moving into a period of brisk expansion. Suppliers in Asia, North Africa, and the Middle East are preparing to step up deliveries to existing customers and develop new market outlets, while new gas exporters will emerge during the next decade. In world terms, the LNG market is still very small. Only 3% of world gas production is liquefied for exports that are running at about 42.8 million metric tons/year.

GET OFF ENVIRONMENTAL SIDELINES

January 1st, 1990
The petroleum industry's political challenge for the 1990s is to get back into the environmental debate. It won't be easy. But industry has made the correct first moves. Environmentalism no longer is a political movement. For industries that alter the landscape, atmospheric chemistry, or surface or ground water in any way, environmentalism is politics in the 1990s. It's economics, too. The same can be said for those industries' consumers, as well, although the debate

GET OFF ENVIRONMENTAL SIDELINES

January 1st, 1990
The petroleum industry's political challenge for the 1990s is to get back into the environmental debate. It won't be easy. But industry has made the correct first moves. Environmentalism no longer is a political movement. For industries that alter the landscape, atmospheric chemistry, or surface or ground water in any way, environmentalism is politics in the 1990s. It's economics, too. The same can be said for those industries' consumers, as well, although the debate

TEX/CON, SPUN OFF FROM BP, UP AND RUNNING

January 1st, 1990
BP Exploration Western Hemisphere has spun off its U.S. Lower 48 onshore exploration/development and gas gathering, transportation, and marketing assets into an independent company named Tex/Con Oil & Gas Co. Tex/Con's president is William J. Johnson, former president of BP Exploration Inc. The new company is governed by a board of directors with BP holding a majority of seats. Otherwise, Tex/Con, Houston, will operate independently of BP. "We're not just a bundle of assets and some

PROFITS SLIP FOR CANADIAN OIL INDUSTRY

January 1st, 1990
Net income for Canadian oil companies fell 7% in first half 1989 compared with the same period in 1988, a federal agency reports. Ottawa's Petroleum Monitoring Agency (PMA) reported net income fell to $1.1 billion despite higher oil prices, increased gas sales, and lower royalty payments, A slight increase in revenues raised industry cash flow in the first half by 4% from the same period in 1988. The PMA report said profits rose in the upstream sector to $515 million in the first half and

INTERNATIONAL BRIEFS

January 1st, 1990
WESTCOAST ENERGY INC., Vancouver, B.C., agreed to buy the utilities and propane business of Inter-City Gas Corp. (ICG), Winnipeg, Man., for $720 million. Under a related agreement, Westcoast will sell the propane operation to Petro-Canada for $221 million. Westcoast and Petro-Canada will assume $112 million in ICG debt. In addition, new Westcoast subsidiaries will assume liabilities of the new businesses, totaling $485 million at the end of September 1989. Sale is to be complete this spring.
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