page 13 TransCanada and Exxon say new gas pipe holds promise Vol. 9, No. 20 • www.PetroleumNews.com North America’s source for oil and gas news Week of May 16, 2004 • $1 ● INTERNATIONAL ● COOK INLET, ALASKA ● GULF OF MEXICO BREAKING NEWS 3 Alaska abolishes CBM program: Alaska lawmakers vote to end state’s over-the-counter shallow gas leasing program 9 Down to three options: Mounting discoveries in Eastern Gulf of Mexico raise prospects for multiple production hubs 9 Petro-Canada sticks, Nexen could bail: Syncrude adjusts to C$2.1 billion cost overrun,12-month delay in completing expansion See Section B for the monthly Petroleum Directory, a buyer’s guide for industry that includes company profiles and news briefs. This month’s Petroleum Directory Deepwater promise MMS: Another 56 billion barrels yet to be discovered in deepwater Gulf By RAY TYSON Petroleum News Houston Correspondent eepwater Gulf of Mexico keeps moving along with a recorded 86 producing projects at year-end 2003, up more than 50 percent in the span of just a few years. And there appears to be plenty of oil and gas discoveries to keep pipelines full for years to come. So, how long can the good times roll? In its latest report, “Deepwater Gulf of Mexico 2004: America’s Expanding Frontier,” the U.S. Minerals Management Service contends that 56 billion barrels of an esti- mated 71 billion barrels of total oil equivalent reserves remain to be found in the deepwater Gulf. Deepwater oil production rose more than 840 percent and deepwater gas production increased about 1,600 percent from Pipelines plugging progress Marathon says Cook Inlet acreage access good, technology and rigs improving, but Alaska’s pipeline regulatory system needs revising By KRISTEN NELSON Petroleum News Editor-in-Chief iscovering and develop- ing more natural gas in Cook Inlet will help solve the problem of declining reserves in Southcentral Alaska, but Marathon Oil officials warn that new sources of gas require new pipelines — an area where the state isn’t yet up to speed. Southcentral Alaska’s natural gas industry dates from the 1950s and 1960s when companies were exploring for oil. They found oil, but they also found trillions of cubic feet of natural gas, cre- ating both utility and industrial opportunities. Because so much gas was found the price was low, well below Lower 48 prices, and there was no need for gas explo- ration. As gas was consumed over the years, proven gas reserves declined. When Enstar, the local natural gas distribution D D Kent Hampton, Marathon’s North America natural gas marketing manager John Barnes, Marathon Oil’s Alaska business unit manager see PROGRESS page A18 Libya intriguing, Iraq not Nexen interested in Libya; Talisman sees potential in Libya, dubious about Iraq By GARY PARK Petroleum News Calgary Correspondent anada’s most daring foreign petrole- um adventurers are sizing up two global hotspots as they look for alternatives to maturing North American oil and gas basins. Nexen, which has relied on Yemen for more than half its production over the last decade, is intrigued by Libya and moder- ately interested in Iraq and Talisman Energy has Libya on its horizon. With the environment “changing dra- matically” in Libya as U.S. sanctions on the former rogue state are easing, Nexen is “broadly interested” in the region, said Chief Executive Officer Charlie Fischer. Talisman Chief Executive Officer Jim Buckee said his company also sees great potential in Libya, but gaining a foothold in the North African country is a long way off. “Even if we get the go-ahead (for Libya), it’s to negotiate,” he said. “Nothing is signed. It’s a fairly remote possibility.” The men spoke at their companies’ annual meetings in Calgary, both held May 4. Buckee had earlier been reported in the C “Even if we get the go-ahead (for Libya), it’s to negoti- ate. Nothing is signed. It’s a fairly remote possibility.” —Jim Buckee, Talisman see LIBYA page A20 see PROMISE page A20 Senate passes Alaska gas line tax credits in corporate tax bill Although the corporate tax bill moved out of the U.S. Senate on an easy 92-5 vote May 11, the measure — and its 100- plus pages of energy tax credits — likely will face some problems in the House. The main purpose of the legislation is to resolve a trade dispute with the European Union by repealing an export tax break for U.S. corporations but the bill, as The Wall Street Journal reported, “turned into flypaper for unrelated amendments.” In addition to such far-ranging provisions as tax credits for gasoline-electric hybrid vehicles, clean-coal technology, ethanol-based gasoline, energy-efficient household appliances Sen. Lisa Murkowski, R-Alaska see CREDITS page A19
Transcript
page
13TransCanada and Exxon saynew gas pipe holds promise
Vol. 9, No. 20 • www.PetroleumNews.com North America’s source for oil and gas news Week of May 16, 2004 • $1
● I N T E R N A T I O N A L
● C O O K I N L E T , A L A S K A
● G U L F O F M E X I C O
B R E A K I N G N E W S
3 Alaska abolishes CBM program: Alaska lawmakers vote to
end state’s over-the-counter shallow gas leasing program
9 Down to three options: Mounting discoveries in Eastern
Gulf of Mexico raise prospects for multiple production hubs
9Petro-Canada sticks, Nexen could bail: Syncrude adjuststo C$2.1 billion cost overrun,12-month delay in completing expansion
See Section B for the monthly Petroleum Directory, a buyer’s guide forindustry that includes company profiles and news briefs.
This month’s Petroleum Directory
Deepwater promiseMMS: Another 56 billion barrels yet to be discovered in deepwater Gulf
By RAY TYSON Petroleum News Houston Correspondent
eepwater Gulf of Mexico keeps moving along with arecorded 86 producing projects at year-end 2003, upmore than 50 percent in the span of just a few years. Andthere appears to be plenty of oil and gas discoveries to
keep pipelines full for years to come.So, how long can the good times roll?In its latest report, “Deepwater Gulf of Mexico 2004:
America’s Expanding Frontier,” the U.S. MineralsManagement Service contends that 56 billion barrels of an esti-mated 71 billion barrels of total oil equivalent reserves remainto be found in the deepwater Gulf.
Deepwater oil production rose more than 840 percent anddeepwater gas production increased about 1,600 percent from
Pipelines plugging progress Marathon says Cook Inlet acreage access good, technology and rigsimproving, but Alaska’s pipeline regulatory system needs revising
By KRISTEN NELSON Petroleum News Editor-in-Chief
iscovering and develop-ing more natural gas inCook Inlet will helpsolve the problem of
declining reserves inSouthcentral Alaska, butMarathon Oil officials warnthat new sources of gas requirenew pipelines — an area wherethe state isn’t yet up to speed.
Southcentral Alaska’s natural gas industry datesfrom the 1950s and 1960s when companies were
exploring for oil. They foundoil, but they also found trillionsof cubic feet of natural gas, cre-ating both utility and industrialopportunities.
Because so much gas wasfound the price was low, wellbelow Lower 48 prices, andthere was no need for gas explo-ration.
As gas was consumed overthe years, proven gas reservesdeclined.
John Barnes,Marathon Oil’sAlaska business unitmanager
see PROGRESS page A18
Libya intriguing, Iraq notNexen interested in Libya; Talisman sees potential in Libya, dubious about Iraq
By GARY PARK Petroleum News Calgary Correspondent
anada’s most daring foreign petrole-um adventurers are sizing up twoglobal hotspots as they look foralternatives to maturing North
American oil and gas basins. Nexen, which has relied on Yemen for
more than half its production over the lastdecade, is intrigued by Libya and moder-ately interested in Iraq and TalismanEnergy has Libya on its horizon.
With the environment “changing dra-matically” in Libya as U.S. sanctions onthe former rogue state are easing, Nexen is
“broadly interested” in the region, saidChief Executive Officer Charlie Fischer.
Talisman Chief Executive Officer JimBuckee said his company also sees greatpotential in Libya, but gaining a footholdin the North African country is a long wayoff.
“Even if we get the go-ahead (forLibya), it’s to negotiate,” he said.“Nothing is signed. It’s a fairly remotepossibility.”
The men spoke at their companies’annual meetings in Calgary, both heldMay 4.
Buckee had earlier been reported in the
C“Even if we get thego-ahead (forLibya), it’s to negoti-ate. Nothing issigned. It’s a fairlyremote possibility.”—Jim Buckee,Talisman see LIBYA page A20
see PROMISE page A20
Senate passes Alaska gas linetax credits in corporate tax bill
Although the corporate tax bill movedout of the U.S. Senate on an easy 92-5vote May 11, the measure — and its 100-plus pages of energy tax credits — likelywill face some problems in the House.
The main purpose of the legislation isto resolve a trade dispute with theEuropean Union by repealing an exporttax break for U.S. corporations but thebill, as The Wall Street Journal reported,“turned into flypaper for unrelatedamendments.”
In addition to such far-ranging provisions as tax credits forgasoline-electric hybrid vehicles, clean-coal technology,ethanol-based gasoline, energy-efficient household appliances
51 Steelhead platform, done 12-1-03 UnocalIDECO 2100 E 429E (SCR) Stacked, removed from Osprey platform Available
Water Resources InternationalIdeco H-35 KD Prep to resume operations Pelican Hill
Cook Inlet Basin – Offshore
Cudd Pressure Control 340K Workover, Osprey Platform Forest Oil
Unocal (Nabors Alaska Drilling labor contractor)Not Available
XTO Energy (Inlet Drilling Alaska labor contract)National 1320 A Idle IdleNational 110 C (TD) Idle XTO
Mackenzie Rig StatusMackenzie Delta-Onshore
AKITA EqutakDreco 1250 UE 62 (SCR/TD) Stacked Tuktoyaktuk, NT EnCanaDreco 1250 UE 63 (SCR/TD) Stacked, Lucas Point, NT Chevron CanadaNational 370 64 Stacked, Inuvik, NT Available
Central Mackenzie ValleyAKITA/SAHTUOilwell 500 51 Stacked in Norman Wells, NT Available
Nabors Canada62 Racked Available
Alaska - Mackenzie Rig ReportThe Alaska - Mackenzie Rig Report as of May 12, 2004.
Active drilling companies only listed.
Rig start-ups expected in next 6 monthsRig Owner/No. Rig Location/Activity Operator
Aurora GasAWS1 Anticipate May 17 mobilization
to west side of Cook Inlet, NCU 3 workover Aurora
Evergreen Resources Alaska96-19 Bringing it out in a couple of weeks to
do some work Evergreen
XTO EnergyA & C Planning on firing the rigs back up by
the end of summer 2004 XTO
TD = rigs equipped with top drive units WO = workover operations CT = coiled tubing operation SCR = electric rig
This rig report was prepared by Wadeen Hepworth
Baker Hughes North America rotary rig counts*
May 7 April 30 Year AgoUS 1,161 1,146 1,001Canada 156 130 110Gulf 96 93 106
Highest/LowestUS/Highest 4530 December 1981US/Lowest 488 April 1999Canada/Highest 558 January 2000Canada/Lowest 29 April 1992
*Issued by Baker Hughes since 1944
The Alaska - Mackenzie Rig Report is sponsored by:
An Anadarko Canada rig in the Northwest Territories.
PETROLEUM NEWS • WEEK OF MAY 16, 2004 A3ON DEADLINE
Issue Index
Petroleum News (ISSN 1544-3612) Week of May 16, 2004Vol. 9, No. 20
Published weekly. Address: 5441 Old Seward, #3, Anchorage, AK 99518(Please mail ALL correspondence to:
P.O. Box 231651, Anchorage, AK 99523-1651)Subscription prices in U.S. — $52.00 for 1 year, $96.00 for 2 years, $140.00 for 3 years. Canada / Mexico
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JUNEAU, ALASKAAlaska abolishes CBM leasing program
On May 11, the last day of session, the Alaska Legislature passed a bill ending thestate’s first come, first serve, over-the counter shallow gas leasing program.
Under the new legislation future applicants for non-conventional shallow gas explo-ration, including coalbed methane, will have to go through the state’s competitiveexploration license or conventional leasing programs which require, among otherthings, the state to issue a best-interestfinding before approving leases.
The measure, House Bill 531, alsoimposes several new requirements onexisting shallow gas leases to protect waterquality at nearby wells, lessen noise andimpose setback requirements from adjoin-ing property lines, regulate hydraulic frac-turing and reinjection of produced water.
And while the legislation allows exist-ing leaseholders to continue working toward developing their property, explorers andproducers will need to meet the new standards before obtaining permits for any futuredrilling, said Pat Galvin, the state’s coalbed methane coordinator.
Provision will help minesAnother provision of the bill allows applicants that meet a summer deadline to con-
vert shallow gas leases to exploration licenses without having to go through a compet-itive bid process, said Galvin of the Department of Natural Resources, Alaska Divisionof Oil and Gas.
The conversion right for applicants is intended to help explorers, particularly poten-tial mine developers, that are looking to coalbed methane as a source of gas for elec-trical generation at remote sites but whose applications were held up under a temporarystate moratorium on new leases.
The legislation also allows the division to extend existing shallow gas leases up to10 years if the gas is to be used for mining operations.
Bill protects coal leaseholdersThe bill also includes a provision protecting coal leaseholders from any incursion
by shallow gas explorers.Exploration is under way and some production testing has occurred on existing leas-
es, but there has been no commercial coalbed methane production in Alaska. Accordingto Jim Hansen, lease sale manager for the division, the state has issued a total of 68 shal-low gas leases encompassing 252,246 acres, 60 of which are in the Matanuska-Susitna
The bill allows applicants thatmeet a summer deadline to
convert shallow gas leases toexploration licenses without
having to go through acompetitive bid process.
see CBM page A4
BRITISH COLUMBIABritish Columbia delegation visitsGulf of Mexico operations
Government, community and aboriginalleaders from British Columbia extended theiroffshore oil and gas fact-finding search to theGulf of Mexico.
A 10-member delegation spent four days inAlabama and Texas, visiting a rig and meetingwith government regulators as the provincecontinues its campaign to lift a 30-year ban onoffshore exploration and achieve commercialdevelopment by 2010.
Energy Minister Richard Neufeld told aconference call May 7 that it was a chance forpeople from the British Columbia coast to seea functioning offshore industry and “be able toask their own questions.”
The government funded trip included the mayors of Prince Rupert and Massetand aboriginal representatives from northwestern British Columbia and northernVancouver Island.
Prince Rupert Mayor Herbert Pond said the industry in the Gulf of Mexico hadbeen “very open” in discussing its problems. “Nobody is hiding anything,” he said.
The delegation did not include any representatives from environmental groups orthe Haida Nation in the Queen Charlottes who oppose development of the offshore,fearing the ecological damage that could result from severe storms in the region.
Impressed by technological advances that limit environmental damage, TheresaRyan, of the Tsimshian Tribal Council of northwestern British Columbia, said thereappeared to be zero tolerance for pollution in the Gulf.
—GARY PARK, Petroleum News Calgary correspondent
A 10-member delegationspent four days in Alabama
and Texas, visiting a rigand meeting with
government regulators asthe province continues itscampaign to lift a 30-year
ban on offshore explorationand achieve commercialdevelopment by 2010.
A4 PETROLEUM NEWS • WEEK OF MAY 16, 2004ON DEADLINE
NOVA SCOTIAChasing a big catch off Nova Scotia
Nova Scotia Energy Minister Cecil Clarke is trying to land some big fish to explorehis province’s floundering offshore.
So he’s out to woo the Bass brothers of Texas and Australia’s BHP Billiton.He told reporters at the Offshore Technology Conference in Houston that the four
billionaire brothers who run Bass Enterprises Production Co., better known as BEPCo.,will drill an exploratory well 120 miles south of Halifax in 2004.
Clarke also said BHP Billiton, the gas, mineral and resource conglomerate, wants to“make sure Nova Scotia is on its horizon.” He said BEPCo. has just concluded under-water mapping of the ocean floor, having acquired an exploration license covering bothshallow and deep water in January 2002 with a successful bid of $6.7 million.
BEPCo. must now drill a well by January 2006 to extend that license by anotherfour years. The four Bass brothers run a privately owned company that is also involvedin the hotel business. A spokesman for the Nova Scotia Department of Energy said thebrothers have a reputation for doing things on a grand scale when they go into an area.
BHP Billiton was keeping tight-lipped about its plans and the details of a meetingwith Clarke in Houston.But Clarke remains confident that 11 to 16 exploratory wellswill be drilled in the offshore before the end of 2006, despite a dismal drilling recordthat has produced more setbacks than hope in recent years.
—GARY PARK, Petroleum News Calgary correspondent
area of south-central Alaska, involving229,609 acres. The other eight leases,encompassing 22,637 acres, are on thesouthern Kenai Peninsula, in and close toHomer.
The bill also repeals a law adopted lastyear that allows the state to overrule munic-ipal land-use rules in the interest of promot-ing coalbed methane development.
The bill did not include a provision tobuy back coalbed methane leases.
Senate committee rolls two bills into oneThe Senate Resources Committee took a
second coalbed methane reform bill that
passed the House, House Bill 395, andadded most of its provisions to HB531,which is now headed to the governor for sig-nature into law.
One of the provisions of HB395 that theSenate committee dropped would haverequired Natural Resources to adopt regula-tions to ensure that shallow gas explorationand production did not “interfere with thepublic’s right to access and enjoy recreation-al waters … and areas important to sport orsubsistence hunting.”
The only House vote against HB531came from Rep. Vic Kohring, R-Wasilla, astrong advocate of coalbed methane drilling.
There were no votes against final passageof the bill in the Senate.
—LARRY PERSILY, Petroleum News government affairs editor
continued from page A3
CBM
● N O R T H A M E R I C A
EOG Resources, NobleEnergy boost 2004production targetsResults from U.S., Canadadrilling surpass expectations,says EOG’s Mark Papa
By RAY TYSON Petroleum News Houston Correspondent
ajor independents EOG Resourcesand Noble Energy, lifted by strongfield performance and timing ofnew projects, have raised their pro-
duction targets for full-year 2004.EOG said it raised its previously
announced 2004 total company productiongrowth guidance from 6.5 percent to 8 per-cent. With the increase, EOG also increasedits three-year total growth target to 27 per-cent — 8 percent in 2004, 10 percent in2005 and 7 percent in 2006.
“Results from our U.S. and Canada sin-gles and doubles drilling programs havesurpassed original expectations,” said MarkPapa, EOG’s chief executive officer.
He said EOG has had particular successwith its horizontal drilling program in theEast Texas Barnett Shale, one of the hottestnatural gas plays in the United States.
“This play is expected to have a very sig-nificant impact on EOG’s U.S. natural gasproduction growth, reserve additions andreinvestment rate of return,” Papa said.
In the Barnett Shale, an unconventionalgas play, EOG has acquired about 175,000acres at essentially 100 percent workinginterest over the last three years. To date, thecompany has drilled nine horizontal wells,“focusing on optimizing drilling and com-pletion methodologies,” the company said.
Since completing its initial horizontalwell in the Barnett Shale, EOG said it hasdecreased drilling time from 30 to 10 daysand reduced total well costs by over 50 per-cent. The Evans Unit No. 1H and the RiverHills No. 2H wells recently came on-lineand are producing around 2.6 and 3.2 mil-lion cubic feet per day, the company noted.With 400 to 800 potential net well loca-tions, EOG said it anticipates increasingdrilling activity in the play beginning mid-2004.
EGO said results from its South Texasdrilling program in the Roleta, Frio andWilcox Plays also continue to be strong.Overseas, the company’s Trinidad and U.K.North Sea programs continue on track, thecompany added.
EOG’s overall production during the2004 first quarter rose 2 percent to 975 mil-
lion cubic feet of gas per day from 954 mil-lion cubic feet per day in the 2003 firstquarter. In Canada, daily production rose to203 million cubic feet from 158 millioncubic feet, while daily production in theU.S. fell to 618 million cubic feet from 642million cubic feet. Trinidad was flat at 154million cubic feet per day.
Two international projectsbump up Noble’s output
Meanwhile, Noble Energy said itincreased the company’s range of produc-tion from continuing operations in 2004 to13 percent to 18 percent over 2003 produc-tion of 92,116 barrels of equivalent per day.
Noble’s overall production from contin-uing operations for the first quarter 2004increased more than 17 percent to 106,615barrels of oil equivalent per day from90,823 barrels of equivalent per day in the2003 first quarter. U.S. domestic operationsposted a production increase of 14 percent,while international volumes increased 24percent compared to the first quarter 2003.
“With renewed focus on our domesticoperations and the continuing ramp up ofour international projects, I expect the com-pany to continue to deliver improved per-formance throughout the year,” saidCharles Davidson, Noble’s chief executiveofficer.
Two of Noble’s major international proj-ects, the Phase 2A condensate expansion inEquatorial Guinea and natural gas sales inIsrael, began contributing to company pro-duction and earnings.
“Our (U.S.) domestic operations demon-strated strong production growth, primarilyas a result of our deepwater success,”Davidson said.
By year-end in Israel, he added, Noble isexpected to add another 30 to 50 millioncubic feet per day of natural gas productionnet to the company, to go along with pro-duction that exceeded 40 million cubic feetper day net to Noble at the end of the 2004first quarter.
Phase 2A condensate expansion inEquatorial Guinea, which began lastNovember, is expected to add nearly 10,000barrels of oil equivalent per day to NobleEnergy by the end of the 2004 second quar-ter, Davidson said.
On the earnings front, Noble reported2004 first-quarter net income of $85.5 mil-lion or $1.48 per share, a 145 percentincrease compared to $34.9 million or 61cents per share in the year-ago quarter.
EOG reported a profit in the 2004 firstquarter of $98.1 million or 83 cents pershare, down from 2003 first quarter netincome of $126.7 million or $1.09 pershare. The results for first quarter 2004reflect a previously disclosed $44.5 millionpre-tax loss on the mark-to-market of com-modity price transactions. ●
M
“Our (U.S.) domestic operationsdemonstrated strong productiongrowth, primarily as a result of
our deepwater success.” —Charles Davidson, CEO, Noble Energy
Greystone deal pushesindependent’s 2004 acquisitiontotal to nearly $1 billion
By RAY TYSON Petroleum News Houston Correspondent
apidly growing independentChesapeake Energy, with more thanseven months remaining in the year,pushed its 2004 acquisition total to
nearly $1 billion with the announced $425million purchase of Greystone Petroleum’sinterest in the prolific Sligo gas field innorthern Louisiana.
“I think this will go down as one of ourbest transactions,” Aubrey McClendon,Chesapeake’s chief executive officer, toldanalysts in a May 11 conference callexplaining the rationale behind the heftypremium Chesapeake is paying for theGreystone property.
“To many of you this will look a littlepricey at $1.68 per thousand cubic feet ofgas equivalent,” McClendon acknowl-edged.
In fact, when including anticipatedfuture drilling costs for fully developing the
proved, probable and possible reserves atSligo, the company estimated its “all-inacquisition cost” would be $1.94 per thou-sand cubic feet of gas equivalent.
Nonetheless, he said, when consideringtoday’s strong natural gas prices, the stronghedging position Chesapeake is taking onSligo production, the field’s low operatingexpenses and upside reserve potential, “weare very satisfied with the value … we havehere.”
A future collapse in natural gas priceswould be the only thing that would turn agood deal into a bad one, McClendon said.
“We try to mitigate that risk specificallythrough hedging this deal,” he said, addingthat Chesapeake’s first 13 months of pro-duction from Sligo is hedged at a comfort-able $6.25 per thousand cubic feet of gasequivalent.
Field has already produced 1.6 tcfThrough the Greystone transaction,
Chesapeake said it expects to acquire anestimated 214 billion cubic feet of gasequivalent proved reserves, 51 billion cubicfeet of probable and possible reserves, anddaily production of 45 million cubic feet ofequivalent.
“It’s very unusual today being able toacquire one field that is producing 45 mil-lion cubic feet of gas — a giant field that’salready produced 1.6 trillion cubic feetsince discovery” in 1938, McClendon said.
Chesapeake’s official 265 billion cubicfeet of equivalent reserve estimate for theGreystone property is conservative, he said,adding that Chesapeake believes Sligo con-tains from 500 billion to 1 trillion cubic feetof remaining gas reserves.
“The resource in place is at least twicewhat we have booked, and we think it couldbe three to four times as well,” McClendon
said. “So this type of asset we think willcontinue to give us reserve revisions goingforward.”
Surprises predicted on future production
He said to expect “surprises” on futureproduction as well, noting that small, pri-vate independent Greystone was able toincrease daily output to 45 million cubicfeet from 10 million feet cubic during theshort time it had the property.
PETROLEUM NEWS • WEEK OF MAY 16, 2004 A5ON DEADLINE
● D E L T A J U N C T I O N , A L A S K A
Pogo water permit issued, work startsGold mine developers say construction crews returning to Interior Alaska project; to peak at 500 workers
By PATRICIA LILES Petroleum News Contributing Writer
evelopers of the Pogo gold project in Interior Alaskareceived a federal water discharge permit on May 7,allowing the company to begin ramping back up forthe summer construction season. The Environmental
Protection Agency’s water discharge permit became activefollowing the withdrawal of an appeal filed in mid April bya Fairbanks-based environmental group.
“The Northern Alaska Environmental Center filed amotion with the Environmental Appeals Board to dismisstheir appeal,” said Keith Cohon, an EPA lawyer working onthe appeal. “It was good that it was handled so quickly;everyone felt some urgency to resolve the issue.”
On March 15, EPA announced it had issued the Pogoproject its water discharge permit under the NationalPollutant Discharge Elimination System. Following anappeal period, the permit was to become effective in mid-April. However, the environmental group’s appeal stayedthe permit, and the project’s developer, Teck-Pogo Inc., hadno legal way to discharge water, critical during constructionfor operating the water and sewer system servicing the 300-person camp at the remote project site. Anticipating a pos-sible four to 12 month appeal process, Teck-Pogo immedi-ately began laying off about half of its 340-person con-struction force.
Work ramps back upSince a settlement of the appeal was announced on May
5, the layoff effort has reversed,according to Karl Hanneman, Teck-Pogo’s manager of public and envi-ronmental affairs and special proj-ects.
“We’re gearing back up — 20folks came back in today,”Hanneman said on May 11, in aphone interview from the project sitein the upper Goodpaster River valley.“We’re not all back up to speed, butwe’re all working in that directionand should be within a week or so.”Crews will begin excavating a benchor level area for the mill site.
Construction work on the 50-mileall season road has restarted at theShaw Creek site, where the road joinsthe Richardson Highway. “Things are going well there,”Hanneman said. Crews are filtering in for road constructionwork at the gold mine site. “Some crews have come backbut the new folks have to go through training, so it takes awhile.”
All workers at the Pogo site must complete trainingrequired by the Mining Safety Health Administration, 40hours for underground workers and 24 hours for surfaceworkers. That training is provided by the Delta MineTraining Center in Delta Junction. The project’s construc-tion schedule, anticipated to be complete in late 2005, maybe adjusted, Hanneman said. “If we can’t catch back up onthe schedule, it will just be somewhat delayed in comple-
tion,” he said. Construction is expected to peak at 500workers this summer and next at Pogo.
All-night negotiations for appealThe appeal settlement announced May 5 followed
extensive meetings that started with EPA and the NorthernCenter’s board on May 4 and continued through the night.
“It was quite an interesting process,” said Bill Riley,mining coordinator for the region 10 office of theEnvironmental Protection Agency. One issue raised in theappeal, involving drainage of a 600-foot section of LieseCreek upstream from the recycle tailings pond, was eventu-ally dropped by the environmental group, Riley said in atelephone interview on May 11.
“Technically it is still waters of the United States, eventhough it is dewatered and diverted, but where’s your envi-ronmental issue,” Riley said. “We looked at ways to captureseepage from the pile and tailings before it was collecteddownstream in the RTP. It turned out not to be a practicalthing to do.” He attributes the appeal’s quick resolution tothe thorough environmental analysis and “pretty strongrecord” resulting from the three-year environmental impactstatement process.
“Teck-Pogo was willing to sit down and work out a solu-tion to get something else for the environment, to get goingon this,” Riley added. He also noted during his talks with theenvironmental group that the existing plan of water handlingwas not the company’s original proposal. “Teck spent a yearre-doing their water management plan because we did notthink it would meet our specifications,” Riley said. ●
D“We’re not all back
up to speed, butwe’re all working inthat direction andshould be within aweek or so.” —KarlHanneman, Teck-Pogo’s manager ofpublic and environ-mental affairs andspecial projects
Having seized the title of Canada’s largest oilfield services con-tractor, Calgary-based Precision Drilling is making some boldinternational moves. It acquired Reeves Oilfield Services of Britainfor C$218 million on May 8 just six weeks after scooping up a U.S.rival GlobalSanteFe for US$316.5 million.
Under the Reeves deal shareholders owning 73.6 percent of theBritish company have agreed to tender their shares to the Precisionoffer.
“We are enthusiastic about the Reeves business model and thequality of its people,” said John King, a senior vice president atPrecision.
“There is a solid cultural and strategic fit between our two busi-nesses resulting in a combined company that is greater than eitherbusiness could achieve separately,” he said.
Reeves’ chief executive officer, Rob Hyde, said his firm’s“unique technology and entrepreneurial spirit coupled withPrecision’s broad offering and international infrastructure providesa great catalyst for expansion and extended market access.”
Reeves, which employs 490 people, has operations in Canada,the United States, Europe, Africa and Australia. Precision employsmore than 10,000 people and operates in 30 countries.
The GlobalSanteFe deal added 31 rigs to Precision’s worldwidefleet, making it the third largest land-based international driller with50 rigs operating outside Canada.Controlling more than one-thirdof the drilling business in Canada, the company had little choice butto go global, Miles Lich, an analyst at Peters & Co., said last month.
Net earnings for the three months rose to C$101 million fromC$83 million a year earlier and revenues rose to C$665 millionfrom C$588 million, partly because its Venezuela business pickedup after a general strike last year.
● D A L L A S , T E X A S
Pioneer to use Evergreenas platform to doubleNorth American asset baseCompany has record production, strong earnings in first quarter; beginsproduction from Gulf deepwater gas field, and from Hawa field onshore Tunisia
By RAY TYSON Petroleum News Houston Correspondent
ioneer Natural Resources, weighing in withrecord production and strong earnings in the2004 first quarter, plans to use acquiredEvergreen Resources as a platform to “reload”
its North American position with a projected doublingof the company’s asset base over the next four years.
The Dallas-based independent said May 7 it alsoused excess cash from its Gulf of Mexico operationsto back the $2.1 billion merger with coalbed methaneproducer Evergreen, whose main strength lies inColorado’s Raton basin.
“I think the most importantthing is reloading NorthAmerica by adding a brilliantkey core area in the Rockies,”said Scott Sheffield, Pioneer’schief executive officer.
He said Pioneer wouldaccelerate drilling and “contin-ue to add positions” in theRaton and other Evergreenstrongholds, including Canadaand the U.S. Piceance andUintah basins.
“We’re reloading our NorthAmerica onshore base with atremendous, low-risk growingasset base that we feel very comfortable about dou-bling over the next four years,” Sheffield said.
Oil and gas sales a new quarterly record Overall, Pioneer’s 2004 first quarter oil and gas
sales averaged 185,858 barrels per day of oil equiva-lent, a new quarterly record for the company.
Sales of oil alone averaged 47,733 barrels per day,a 54 percent increase compared to the same period lastyear, and natural gas liquids sales averaged 23,406barrels per day. Gas sales during the first quarter aver-aged 688 million cubic feet per day, also a 54 percentincrease over the same period last year.
The company said it expected production in the2004 second quarter to average 180,000 to 195,000
barrels of oil equivalent per day, reflecting incremen-tal production expected from Devils Tower,Tomahawk and Raptor in the Gulf of Mexico, vari-ability of oil cargo shipments in Tunisia and SouthAfrica, and the seasonal increase in gas demand dur-ing Argentina’s winter season
Pioneer’s realized prices for oil and natural gas liq-uids for the 2004 first quarter were $28.31 and $22.21per barrel, respectively. Its realized price for naturalgas was $4.41 per thousand cubic feet, while NorthAmerican gas prices averaged $5.04 per thousandcubic feet.
On the earnings front, Pioneer reported 2004 first-quarter net income of $60.2 million or 50 cents pershare, a decrease compared to year-ago net income of$84.2 million or 71 cents per share, which included a$15.4 million or 13 cents per share benefit from a
“I think the mostimportant thing isreloading NorthAmerica by adding abrilliant key corearea in the Rockies.”—Scott Sheffield,Pioneer NaturalResources
P
PetroKaz buzzing with deal-makingNeither rain, nor sleet, nor big honkin’ bumps in the road seem
able to slow PetroKazakhstan from its appointed rounds in the topsy-turvy world of the former Soviet Union.
The Canadian independent is now looking at several “material”acquisition prospects in Kazakhstan, in “advanced conversation” tobuy a remaining interest in a joint production venture, hoping to gainpipeline access to China and so flush with cash that it plans to buyback shares.
Along with a 28 percent jump in first-quarter earnings to US$87.5million, PetroKaz also enjoyed an 8 percent drop in transportationcosts and is counting on output climbing from 143,000 barrels perday to 160,00-165,000 bpd later this year.
Buoyed by those results, the company said it just needs regulato-ry approval to buy the remaining 50 percent stake in theKazgermunai venture with a German consortium and add 21,000bpd to its portfolio.
Chief Executive Officer Bernard Isautier said at the company’sannual general meeting May 4 in Calgary that transaction and otherpotential acquisitions will not interfere with PetroKaz’s intention tobuy back up to C$160 million in shares through a “modified Dutch
see PETROKAZ page A7see PIONEER page A7
Want to know more?If you’d like to read more about PioneerNatural Resources, go to Petroleum News’ Website archives. These are some of the articlespublished in the few months in which Pioneeris featured or plays a role.
Web site: www.PetroleumNews.com
2004● May 9 Pioneer picks up Evergreen in $2.1 bil-lion transaction ● May 9 Thunder Hawk wildcat hits pay neargiant Thunder Horse field● April 25 Evergreen Resources uses Ratonmodel for Alaska● April 18 Goldfinger gives Dominion secondtieback opportunity at Devils Tower● April 11 Independents sparkle● April 4 Unocal on to Tobago● March 21 Gulf sale turns heads ● March 7 Father-son team takes EncoreAcquisition to a higher level● Feb. 29 Alaska on the brink● Feb. 22 U.S. companies take measured stepsin Western Canada ● Feb. 15 Drilling under way ● Feb.1 Oil Patch Insider: Pioneer hires MikeDunn, Pat Foley
Penn West PWT.TO Reports later than most companies
Spinnaker SKE $14 -10 3,600 -10 91 -29
BHP Billiton BHP Does not report quarterly results
El Paso EP Reports delayed due to reserve adjustments
Anadarko APC $392 +6 251,000 +17 1,723 +1
RD/Shell RD $4,433 -16 2,342,000 –3 10,172 -4
Earnings from Top 35 North American E&P SpendersEarnings first quarter 2004 • Change from first quarter 2003
Liquids production first quarter 2004 • Change from first quarter 2003Natural gas production first quarter 2004 • Change from first quarter 2003
OIL COMPANY EARNINGS
NOTES: Top 35 is based on Petroleum News analysis of 2002 spending• Liquids production is barrels per day
• Gas production is millions of cubic feet daily
auction” over the next few months.The process fixes the number of shares to
be sold, leaving investors to bid for thestock, starting at C$40 a share and movingup in increments of 10 cents. The methodalso eliminates the traditional underwriters’discount. Isautier himself sold 281,000shares in March, fetching C$11.2 million,but he still holds about 5.5 million shares.
Also dangling over the company is aproposed US$700 million, 600-milepipeline from Kazakhstan to China,which is slated to open in 2006 and couldhandle ramped up PetroKaz production aswell as offering an alternative outlet to aTehran refinery in Oran.
That has triggered speculation amonganalysts that state-owned China NationalPetroleum Co. might take a position inPetroKaz, helping push shares to a recordhigh of C$42.27 in March.
This welter of action has successfullydeflected concerns over a series of tan-gles with Kazakhstan regulators who,among other things, have accusedPetroKaz of price fixing.
Kazakhstan’s anti-monopoly agencyonce threatened to sue the company forUS$91 million for allegedly over-charg-ing for diesel fuel, but softened that hard-line in April when PetroKaz paid aUS$3.6 million fine for abuse of its posi-tion as owner of Kazakhstan’s biggest oilrefinery.
—GARY PARK, Petroleum NewsCalgary correspondent
● C A N A D A
Wins, losses inCanada for U.S. units
By GARY PARK Petroleum News Calgary Correspondent
anadian subsidiaries of U.S. E&Pcompanies logged a mixed bag ofsmall production gains and losses inthe first quarter over a year earlier, but
most seemed committed to active programsover the rest of 2004.
Here is a summary of those reportingresults:
Canadian production continued on adownward trend for ConocoPhillips, pend-ing completion of the company’s C$1.4 bil-lion Surmont oil sands project, in which thecompany has a 43.5 percent stake, with Totalholding 43.5 percent and Devon Canada 13percent.
For now, ConocoPhillips oil output,including its 9.03 percent stake in theSyncrude Canada oil sands consortium,averaged 27,000 barrels per day comparedwith 33,000 bpd a year earlier, while naturalgas liquids dipped to 10,000 bpd from11,000 bpd.
Natural gas volumes decreased to 428million cubic feet per day from 436 million.
ConocoPhillips capital spending onexploration and production in Canada is setat $400 million, primarily for Syncrude, theSurmont development and Mackenzie Deltagas development.
Plans for Surmont call for 27,000 bpd in2006, growing to 100,000 bpd by about2014, with an operating life of 40 years totap a resource of 5 to 10 billion barrels.
Shrugging off the impact of Canada’sstronger currency and rising service costs,Burlington Resources may step up gasexploration in Canada this year, takingadvantage of its $1.03 billion in availablecash.
Chief Financial Officer Steve Shapirosaid a Canadian acquisition could be anoption along with the company’s plan toinvest $2.3 billion on exploration and devel-opment in Canada over the next three years.
However, he said Burlington does not yethave a fix on how much it might step upactivities beyond saying the plan is “part ofthe normal course of what we’re doing.”
Operations north of the 49th parallelyielded 846 million cubic feet of gas per dayand 5,800 bpd of oil, compared with 852million and 5,100 bpd a year earlier.
Average Canadian prices dropped to$5.53 per thousand cubic feet for gas from$5.72 and to $32.78 a barrel for crude from$35.68.
Natural gas liquids output declined to26,100 bpd from 28,000 bpd.
Anadarko Petroleum’s Canadian naturalgas production edged up to 395 millioncubic feet per day from 389 million, butcrude oil and condensate volumes slipped to15,000 bpd from 17,000 bpd.
The company blamed the drop partly onextreme cold during January that forced ashutdown of two non-operated plants.
In its operations summary, Anadarko saida 100 percent working interest well drilled inthe lower Northwest Territories over thewinter tested at 9.9 million cubic feet perday. The company also re-entered twoexploration wells in the Fort Liard area thatwere started in the 2002-03 winter.
Anadarko also said it participated with a37.5 percent working interest in EnCana’sUmiak N-16 exploratory well on theMackenzie Delta. Results of that well willbe released when EnCana decides, the com-pany said.
Apache completed 224 out of 274 wellsin the first three months, posting an 82 per-cent success rate, while edging up produc-tion volumes to 314.06 million cubic feetper day of gas from 309.21 million and25,266 bpd of oil from 24.735 bpd.
Gas prices dropped to $5.09 per thousandcubic feet from $5.35, but oil rose to $33 perbarrel from $32.09.
Coalbed methane drilling producedstrong gains, with 16 first-quarter wellspushing Apache’s coalbed methane wellcount to 121 and adding 16 million cubicfeet per day to volumes. The companyexpects to complete 250 coalbed methanewells this year.
At Zama in northwestern Alberta, 68wells were drilled in the quarter adding 11million cubic feet per day of gas and 1,640bpd of oil.
Canada is one of the growth areas forHouston-based EOG Resources, with pro-duction surging to 222 million cubic feetequivalent per day from 174 million a yearearlier, including a rise in natural gas outputto 203 million cubic feet per day from 158million.
The outlook for the current quarter iseven better, said Chairman and ChiefExecutive Officer Mark Papa, noting thatvolumes growth stems from the tie in ofshallow wells drilled during the winter.
EOG expects to complete about 1,300shallow wells, 80 to 100 of them targetingcoalbed methane, in its central/southernAlberta plays in 2004.
Papa estimated that the coalbed methanewells in the Horsehoe Canyon area willyield somewhere between 300 million and500 million cubic feet per well. ●
C
change in accounting.Cash flow from operations for the 2004
first quarter soared to $253.6 million from$136.8 million a year earlier, due largely tostrong production from the Gulf of Mexico,Pioneer said. The company also reducedlong-term debt by $98.8 million during thefirst quarter of 2004 to $1.46 billion.
First production from Harrier, Hawa In January, Pioneer achieved first pro-
duction from the Harrier gas field in thedeepwater Gulf, which the company saidwas the main contributor to record produc-tion in the first quarter, and from the Hawaoil field onshore Tunisia.
Also, Devils Tower in the deepwaterGulf achieved first oil production in earlyMay, and Pioneer recently drilled a discov-ery well on its Gulf Goldfinger prospect, thesecond satellite discovery in the field.Goldfinger and Triton, the first satellite dis-covery, are expected to be jointly developedvia subsea tieback to the Devils Tower sparfor first production in 2005, the companysaid.
Two deepwater Gulf development proj-ects in the company’s so-called Falcon cor-
ridor, Tomahawk and Raptor, are proceed-ing on schedule with first production antici-pated during the second quarter, Pioneersaid.
Onshore, Pioneer said it is currently run-ning 10 drilling rigs in the United States andfive in Argentina. During the first quarter,the company drilled 61 wells in the UnitedStates, 44 wells in Canada and 12 wells inArgentina. In early April, Pioneer alsoacquired additional interests in theSpraberry field in West Texas, expanding itsinventory of drilling locations.
In Argentina, Pioneer’s drilling activities“continue to confirm the presence of signif-icant deep gas reserves,” the company said,adding that 2004 first-quarter gas productionfrom Argentina was the highest summerproduction in its history.
Pioneer said it expects to complete theexpansion of its Loma Negra gas plant overthe next few months, increasing plant capac-ity by 25 percent as demand peaks duringthe winter months in Argentina. The compa-ny said it is also acquiring additional 3-Dseismic to support future drilling plans.
On Alaska’s North Slope, Pioneer said itwould decide by year-end whether to sanc-tion its Northwest Milne project for devel-opment. “We are completing our evaluationwhich should be completed sometime thissummer,” Sheffield said. ●
continued from page A6
PETROKAZ
continued from page A6
PIONEER
*Devon figures do not include 2003 quarter’s results for Ocean Energy, acquired in April 2003
By RAY TYSON Petroleum News Houston Correspondent
ig Oklahoma independent DevonEnergy is intent on remaining Kingof the Hill in the prolific BarnettShale gas play of East Texas, telling
analysts it plans to spend an additional $58million on drilling this year in an apparenteffort to reverse anticipated productiondeclines over the next few quarters.
Devon already produces around 575million cubic feet per day from theBarnett, or about twice as much as theother 30 companies in the gas play com-bined. But Devon’s competitors are catch-ing on to the Barnett.
“Several of our peer companies arenow gathering acreage and attempting toestablish a meaningful presence,” DevonPresident John Richels said in May 6 con-ference call on 2004 fourth-quarter earn-ings. “Devon clearly has the first moveadvantage.”
Devon, primarily through its acquisi-
tion of Mitchell Energy, has amassed ahuge 510,000-acre position in the Barnett,an unconventional gas play that hasevolved into a production cornerstone forthe company.
More than 1,700 wells The company has drilled more than
1,700 wells into the Barnett, including theregion’s first horizontal well. Since theMitchell acquisition, it has drilled andcompleted 76 horizontals “with far moreresolve than any other company,” Richelsasserted. Devon has 13 rigs operating inthe Barnett, 10 of them drilling horizon-tals.
To help keep its dominant position inthe Barnett, Devon said it intends toacquire an additional 140,000 acres of 3-Dseismic this year to go along with 106,000acres of 3-D seismic it already has in thebank.
Because Devon holds the largestacreage position in the Barnett, the com-pany is actually benefiting from its com-
petitors, Richels said.“New participants are essentially help-
ing out to evaluate our acreage with everynew well they drill,” he added. “So we areassembling a very large body of informa-tion that will help us move toward opti-mization of our massive acreage position.”
He said Devon’s progress in the Barnett“is beginning to show up in the numbers,”noting the company’s 76 horizontal wellscurrently produce nearly 100 millioncubic feet of gas equivalent per day, or 15percent of total field production. Based ondrilling success outside the company’score area, he said, Devon has decided tospend an additional $58 million for wellsthis year.
The daily 575 million cubic feet of gasequivalent Devon produced in the Barnettduring 2004 first quarter was about 15 per-cent greater than what the company pro-duced from the field in the year-ago firstquarter. However, 2004 first quarter out-put was flat to the previous quarter, andthe company said it is expecting produc-
tion to decline over the next few quarters.“However, based on the success we’ve
had with horizontal drilling both insideand outside the core area, we are becom-ing increasingly confident that we canreverse this decline down the road,”Richels said.
Gulf production down Overall, Devon said it reduced its full-
year 2004 production guidance by 2 per-cent due mainly to projects in the Gulf ofMexico. The company said it now expectsto produce between 251 million and 256million barrels of oil equivalent this year.
“This happened in spite of the factthese projects are out performing ourexpectations on a gross production basis,”said Brian Jennings, Devon’s chief finan-cial officer.
The main culprit is the continuing lossof about 3,800 barrels of oil per day fromtwo new satellite wells at the Nansen-Boomvang complex in the deepwaterGulf, which averaged daily about 40,000barrels of oil equivalent during the 2004first quarter.
“These wells are not performing aswell as we had hoped,” Devon’s Richelssaid. The East Boomvang 688 No. 8 wellwas shut in due to equipment malfunction,he said, and the East Boomvang 686 No. 2well “watered out” in April after startup inFebruary.
In addition to Nansen-Boomvang, pro-duction from some of Devon’s onshoreand shallow water Gulf properties “failedto meet our expectations,” Jennings said.
Regardless, Devon set both productionand earnings records during the 2004 firstquarter, due in large part to strong com-modity prices and production gains fromlast year’s acquisition of independentOcean Energy.
Devon reported average 2004 first-quarter production of 703,000 barrels ofoil equivalent per day, up 43 percent fromthe 492,000 barrels of equivalent com-pared to the year-ago period. Output in the2004 first quarter increased about 1 per-cent from the previous quarter, the compa-ny said.
First quarter profit a record Devon’s profit for the 2004 first quarter
came in at a record $494 million or $2 perdiluted share, a 13 percent increase overthe prior year’s first-quarter profit of $436million or $2.67 per diluted share. Thecompany handily beat analysts’ expecta-tions of $1.84 per share for the 2004 firstquarter.
Increased production, together withstrong oil and gas prices, propelledDevon’s revenues to $2.2 billion for the2004 first quarter, leaving the companywith a healthy $1.1 billion in cash onhand.
“The pace at which we continue to gen-erate excess cash is allowing us to rapidlyapproach a financial goal — to cover all ofour debt maturities for 2004, 2005 and2006,” said Larry Nichols, Devon’s chiefexecutive officer.
In addition to paying off debt, usingsome excess cash “to buy back our ownstock is a very attractive alternative,” hesaid.
Nichols also pledged to lower Devon’s2003 finding and development costsamounting to $15.01 per barrel, whichwas significantly higher than the compa-ny’s peers.
“We’re becoming increasingly confi-dent that we will lower F&D costs signif-icantly this year,” he said. ●
A8 PETROLEUM NEWS • WEEK OF MAY 16, 2004FINANCE & ECONOMY● O K L A H O M A C I T Y , O K L A .
NORTH SLOPE, ALASKAConocoPhillips suspends twoexploration wells, P&A’s a third
ConocoPhillips Alaska has reported depths for three winterexploration wells to the Alaska Oil and Gas ConservationCommission. Two of the wells were suspended, one was pluggedand abandoned.
The Carbon No. 1 in the National Petroleum Reserve-Alaska, avertical hole in section 4 of township 10 north, range 1 east, UmiatMeridian, was suspended on April 23 at a true vertical depth of8,193; the measured depth was 8,196 feet.
The Spark No. 4, also in NPR-A, a vertical hole in section 23,T11N-R1E, UM, was plugged and abandoned April 13 at a totalvertical depth of 7,997 feet. The measured depth was 8,005.
Placer No. 1, on state acreage west of Kuparuk, was suspendedApril 11. The well was drilled from a surface in section 33, T12N-R7E, UM, to a bottomhole in section 4, T11N-R7E, UM. It had atrue vertical depth of 6,289 feet and a measured depth of 7,761 feet.
● G U L F O F M E X I C O
Down to three optionsMounting discoveries in EasternGulf of Mexico raise prospects formultiple production hubs
By RAY TYSON Petroleum News Houston Correspondent
astern Gulf of Mexico operators, as naturalgas discoveries continue to mount in theregion, have narrowed their original 48development options for a central production
facility to just three alternatives. But they disagreewhether the hub should be located in the northernor southern portion of the development area, orpossibly in the middle.
Nonetheless, the key players are now in gener-al agreement that a final plan should be in place byyear-end and production launched in the 2006-2008 time frame.
“It’s somewhat complex with a number of com-panies involved,” said Dave Hager, Kerr-McGee’shead of exploration and production. “I will tell youthat we will reach a development solution some-
time this year.”Some operators are even discussing the possi-
bility of building more than one hub in the remoteEastern Gulf where water depths exceed 7,000feet.
“There’s certainly enough gas out there to justi-fy more,” said Mark Pease, Anadarko Petroleum’svice president of onshore and offshore operations.“There continues to be discoveries out there.”
However, recent discoveries and confirmationsin the northern portion of the Eastern Gulf salearea, reopened to oil and gas leasing in late 2001,clearly have changed plan dynamics in terms ofhub location.
For one, the Spiderman and recently announcedSan Jacinto discoveries in DeSoto Canyon alonehold estimated combined reserves of around 500billion cubic feet of natural gas equivalent, saidRoger Jarvis, chief executive officer of SpinnakerExploration, a partner in both discoveries.
“Any additional success in this area addsweight to development options to the north,” he
E
● W E S T E R N C A N A D A
Petro-Canada sticks withSyncrude; Nexen could bail
By GARY PARKPetroleum News Calgary Correspondent
yncrude Canada got one solid vote of confi-dence from a partner in its giant oil sands con-sortium as it adjusts to a C$2.1 billion costoverrun and a 12-month delay in completing an
expansion. Petro-Canada Chief Executive Officer Ron
Brenneman said his company will keep its 12 per-cent stake in the operation and pay its C$250 millionshare of the overrun.
“Syncrude is very much a core asset,” he toldreporters in Calgary on April 27 after the company’sannual meeting.
“The fundamentals of Syncrude as a going con-cern and as an asset really haven’t changed.
“It’s a long-life asset, which we particularly likein our portfolio. It has an expansion potential even
beyond the project that we currently have under wayand it has a very capable management and operatingteam,” he said.
Brenneman said he is confident the consortiumwill “overcome difficulties that we’ve seen over thelast couple of years.”
Hit by the largest overrun in the history of theAlberta oil sands, Syncrude is now facing a bill ofC$7.8 billion to finish a 100,000 barrel per day addi-tion by mid-2006, raising its output to 350,000 bpdof synthetic crude.
Trust open to buying out smaller partners Brenneman’s comments came on the heels of
suggestions by Marcel Coutu, chief executive officerof Canadian Oil Sands Trust, the largest Syncrudestakeholder at 35.49 percent, that the trust was opento buying out smaller partners.
S
NORTH AMERICA
Canada gains 30 rigs, U.S.loses eight in weekly count
The number of rotary rigs operating in North America during theweek ending May 7 increased a net 22 compared to the prior weekand increased a net 226 compared to the same weekly period lastyear, according to rig monitor Baker Hughes.
In Canada, the rig countstood at 185 in the recentweek, up 30 rigs from the pre-vious week and up 94 rigscompared to the same periodlast year.
The number of rigs operat-ing in the United Statesdecreased by eight to 1,153 inthe recent week but was up by132 vs. the same period last year. Land rigs alone fell by eight to1,032 from the previous week, while offshore rigs were unchangedat 98 and inland water rigs unchanged at 23.
Of the total number of rigs operating in the United States duringthe recent week, 994 were drilling for natural gas and 158 for oil,while one was being used for miscellaneous purposes. Of the total,758 were vertical wells, 284 directional wells, and 111 horizontalwells. Among the leading producing states in the United States,Oklahoma suffered the biggest loss of rigs, dropping by seven to 158from the previous week. Louisiana’s rig count fell by six to 168.Wyoming was down by three rigs to 60. Texas slipped by one rig to501. And Alaska declined by one rig to seven. New Mexico gainedfive rigs in the recent week for a total of 64. California wasunchanged at 26 rigs.
—RAY TYSON, Petroleum News Houston correspondent
see OPTIONS page A10
see SYNCRUDE page A10
The number of rigsoperating in the United
States decreased by eight to1,153 in the recent week butwas up by 132 vs. the same
said. “We believe increasingly that thisarea of the Gulf should be developed withits own hub. We’re not ruling out a facil-ity to the south. But we’re going to haveto have a compelling economic argumentto go down there.”
Spinnaker and partners now willmove on to test two prospects north ofthe Spiderman-San Jacinto, each withpossible reserves of 150 to 300 billioncubic feet of gas equivalent, Jarvis said.
“Anything we add to this area nowshould be highly economic, really gravy
attached to these two larger fields,” headded. “We think there is a lot of poten-tial in the Eastern Gulf.”
Kerr-McGee, a partner in the SanJacinto discovery and its estimatedreserves of 90 to 180 billion cubic feet ofgas, said it plans to drill a wildcat at itsWest Raptor prospect on DeSoto CanyonBlock 445 later in this year’s secondquarter. West Raptor could hold 20 to 40million barrels of oil equivalent reserves,the company said.
“If successful, this could also be partof the Atwater Valley development area,”Hager said. Kerr-McGee already holds astake in the Merganser and Vortex dis-coveries, located in Atwater Valley justout side the western boundary of theEastern Gulf sale area. Devon Energyhas an interest in both discoveries, whileAustralia’s BHP Billiton operatesVortex.
Anadarko chief advocatefor southern hub
Anadarko appears to be the chiefadvocate for a southern hub, where its100 percent Jubilee, Atlas and AtlasNorthwest discoveries are located. Thecompany, which holds title to 38 explo-ration blocks and 17 identified prospectsin the Eastern Gulf, also happens tooperate Spiderman to the north with a 45percent interest.
“With additional discoveries up north,we’re now looking at a couple of otheroptions,” Pease said. “And we’ll justhave to work through the economics ofthose options. We can do a smaller hubjust with the volumes down in the south.If you decided to split and go north withthe Spiderman volumes, what you end upwith is two smaller facilities.”
Some 20 exploration plans have beenfiled with the U.S. MineralsManagement by various operators sincethe region was reopened to leasing. ●
A10 PETROLEUM NEWS • WEEK OF MAY 16, 2004EXPLORATION & PRODUCTION
GULF OF MEXICOWorld’s deepestdry-tree sparbegins production
Dominion Exploration & Productionhas started petroleum production from afield in the Gulf of Mexico using theworld’s deepest dry-tree spar, the compa-ny said May 5.
The Devils Tower field, about 140miles southeast of New Orleans, is expect-ed to produce 60 billion cubic feet of nat-ural gas equivalent during its first year ofproduction, the company said.
The spar can handle up to 60,000 barrels of oil and 110 million cubic feet of gasdaily. Located in 5,610 feet of water, the facility sets a record depth for use of a dry-tree spar, which sits on a platform where a crew works the well.
Dominion Exploration & Production, a subsidiary of Richmond, Va.,-basedDominion Resources, owns a 75 percent share of the project. Pioneer NaturalResources Co., based in Irving, Texas, owns the other 25 percent.
The consortium is made up of the trust,Imperial Oil 25 percent and Petro-Canada12 percent, with ConocoPhillips, Nexen,Murphy Oil and Mocal Energy each hold-ing less than 10 percent.
Nexen Chief Executive Officer CharlieFischer told reporters in Calgary on May 4that his company might sell its 7.23 percentinterest to help finance further additions to
its 50 percent share of the Long Lake oilsands joint venture with OPTI Canada.
Faced with a Long Lake price tag ofC$1.7 billion, Fischer said an expansionfrom the initial 60,000 bpd to 160,000 bpdor more might be in the cards. “It seems tome that it makes sense to really look hard atwhether we should monetize our Syncrudeposition at that point,” he said. Fischer saidbluntly that Nexen is not happy with theSyncrude overruns, although the plant is agood source of revenue. ●
continued from page A9
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OPTIONS
NORTH SLOPEAlpine expansion work update
The focus for two expansion projects at the Alpine field on Alaska’s North Slopehas shifted from fabrication sites in Anchorage to the field.
Alpine field owners ConocoPhillips Alaska (78 percent) and Anadarko Petroleum(22 percent) sanctioned phase 1 of the expansion last year and phase 2 this year.Production from Alpine began in November 2000 and the field, originally designed toproduce at 80,000 barrels per day, has been pro-ducing at a higher rate, some 100,000 bpd.
The $60 million phase 1 will be online by theend of the year, and will increase both water andgas handling capacities at the Alpine facility,allowing for increased oil production and mainte-nance of reservoir pressure, with a 5,000 barrel-per-day production increase expected.
Phase 2 of the project, pegged at $58 million,will kick up production capacity to 140,000 bpdby mid-2005. Phase 2 increases both oil handlingand seawater injection capabilities at Alpine.
ConocoPhillips Alaska spokeswoman Dawn Patience told Petroleum News inMarch that there are eight truckable modules for the two projects, and she said themajority of the modules were going to the North Slope over this past winter.
Patience said May 11 that 90 percent of the engineering effort for the expansionprojects is complete.
“Engineering is now focused on North Slope construction support,” she said. Expansion project construction work has started at both Alpine and Kuparuk, with
about 200 workers on site, Patience said. “The major items, like the turbine generator skids, the diesel generator and the con-
densate injection pump were successfully transported to Alpine this winter.” Modules and other equipment were moved to Alpine over the winter on the ice
road which was built from Kuparuk to Alpine. Patience said Arctic Energy Servicesand VECO fabrication shops in Anchorage were involved in module construction, andmet “very aggressive” schedules for module delivery. Fabricated pipe spools andstructural items continue to be fabricated and shipped from the Arctic EnergyServices.
Sometime this summer Alpine will be shutdown for a time to allow for portions ofthe expansion work that cannot be done with the field on production.
—KRISTEN NELSON, Petroleum News editor-in-chief
Owners eyeing development at St. Malo Owners of the St. Malo oil discovery in the Gulf of Mexico are moving ever closer
to sanctioning a development plan for the promising deepwater prospect at WalkerRidge Block 678.
“Assuming positive results from the appraisal, we will begin firming up a develop-ment plan,” Devon Energy President John Richels said May 6.
Devon holds a 22.5 percent interest in the Unocal-operated St. Malo prospect, whichalready has turned up more than 450 feet of net oil pay over a gross hydrocarbon col-umn of 1,400 feet, indicating a major accumulation by Gulf standards.
Devon’s Richels said a rig was on location to begin drilling a first appraisal well onthe east bank of the St. Malo structure. Actually, drilling involves re-entering and deep-ening an existing well, he added. The owners have indicated that any development planat St. Malo could include discoveries at nearby Cascade and Sturgis. In fact, a Devonrepresentative said at this month’s Offshore Technology Conference in Houston, Texas,that one option being considered for the area is a so-called FPSO, or floating produc-tion, storage and offloading facility.
FPSOs, useful where pipelines and other infrastructure are sparse or non-existent,are typically used for isolated fields around the globe but have yet to make their debutin the Gulf. Oil is generally transported ashore via marine tankers.
—RAY TYSON, Petroleum News Houston correspondent
Production from Alpinebegan in November 2000and the field, originallydesigned to produce at
80,000 barrels per day, hasbeen producing at a higherrate, some 100,000 bpd.
NORTH AMERICAUnited States, Canadianenergy regulators sign MOU
United States and Canadian energy regulators have committedthemselves to working closely on projects such as the growingcross-border trade in natural gas.
Federal Energy Regulatory Commission Chairman Pat Woodand National Energy Board Chairman Ken Vollman signed amemorandum of understanding in Halifax May 10 to “enhanceinteragency coordination.”
Wood said the memorandum of understanding “will serve uswell” as the two countries become increasingly interdependent inan evolving North American energy market.
Vollman said the interests of regulated companies and the pub-lic will be better served through improved regulatory coopera-tion. But Wood emphasized the objective is not to fold the regu-lators of the U.S., Canada and Mexico into one, while Vollmansaid a single regulator would not be able to take into account dif-fering regional and national priorities.
Dionisio Perez-Jacome, president of Mexico’s ComisionReguladora de Energie, told reporters in Halifax that his country,although not a party to the memorandum of understanding, seesvalue in information sharing and cooperative deals.
Wood conceded that U.S. energy demands could overshadowthe interests of its trading partners.
He likened the relationship to an Oreo cookie, with the UnitedStates as the icing “which always gets eaten first, so I don’t knowif it is advantageous or disadvantageous to be sandwichedbetween two good allies,” he said.
—GARY PARK, Petroleum News Calgary correspondent
JUNEAU, ALASKALegislature drops proposal forstate-owned gas pipeline loansfrom Alaska Permanent Fund
The Alaska Legislature, in its last days before it adjourned May11, abandoned a proposal that would have given the Permanent FundCorp. explicit statutory authorization to lend money for a state-owned North Slope natural gas project.
The lending provision was added earlier in the session to a billdealing with the Permanent Fund’s investment authority, but after abit of political maneuvering lawmakers passed a version of the billwithout the gas line section.
The fund did not support the gas line lending authorization. Notbecause of any opposition to the project itself, but because thetrustees are looking for more leeway — rather than additional explic-it requirements in state law — in making investment decisions, saidRobert Storer, executive director of the state’s $26.8 billion oil-wealth savings account.
The Alaska Natural Gas Development Authority, created by vot-
● A L A S K A
Deal of last resortHarold Heinze pragmatic as he works out what the Alaska Natural GasDevelopment Authority could contribute to un-stranding North Slope gas
By KRISTEN NELSON Petroleum News Editor-in-Chief
arold Heinze is pragmatic about astate-owned project to get AlaskaNorth Slope gas to market.
The players in a gas project, hesays, are the North Slope producers, thestate of Alaska and the federal govern-ment. The rest — pipeline companies,shippers, distributors, consumers andinvestors — are wannabes, Heinze says,who have to find a way to lower the risksof the project in order to get a ticket tothe table.
And, while the Alaska Natural GasDevelopment Authority may not be the numberone project to move gas to market, Heinze, thedevelopment authority’s chief executive officer,said he thinks that the authority, along with the
North Slope producers, the AlaskaGasline Port Authority and others, has afeasible project.
Especially with falling pipeline andliquefied natural gas facilities costs, hesaid, the smaller development authorityLNG project comes in at cost estimates inthe range of those presented by the NorthSlope producers — BP Exploration(Alaska), ConocoPhillips Alaska andExxonMobil Production Co.
And, given the lack of enthusiasm theNorth Slope producers have for movingNorth Slope gas, and potential problemswith Canadian land ownership and rights
of way issues, Heinze said Alaska needs a fallbackposition for North Slope gas development.Whether or not that fallback takes gas out of the
● I N T E R N A T I O N A L
Big changes for LNGbusiness, study says
By LARRY PERSILYPetroleum News Government Affairs Editor
orldwide competition among liquefied naturalgas suppliers looking for buyers is changingthe way companies — and countries — dobusiness, says Wood Mackenzie Ltd., a glob-
al oil and gas consulting firm.Downstream marketing and distribution compa-
nies are moving up the chain to take a stake in pro-posed LNG supply projects, while upstream suppliersare expanding down the chain and adding regasifica-tion and marketing to their traditional role as explor-ers and producers.
In addition to companies taking on new roles inputting together winning LNG deals, project financ-ing will be harder to obtain as investors look for ven-tures backed by developers’ strong corporate balancesheets instead of only the riskier project revenue,
according to a May 6 report from Wood Mackenzie. Meanwhile, producer countries are competing
with each other by lowering their take at the supplysource, said the report, “Falling Short? The GrowingChallenge to Supply the North American Natural GasMarket,” which looks at North America gas produc-tion and demand, supply costs, and LNG’s growingrole in the marketplace.
LNG project developers will meet the challenge ofserving U.S. customers with a mix of gas from sever-al potential suppliers in Norway, Africa, Trinidad andTobago, the Middle East, Southeast Asia, Australiaand Russia. Uncontracted, recoverable gas reservesworldwide total more than 4,200 trillion cubic feet,the report said.
That uncontracted estimate of 4,200 tcf compareswith BP PLC’s June 2003 estimate of 5,500 tcf inproven reserves worldwide. All that gas chasing after
W
see STUDY page A12see LOANS page A12
H“I’m sort of the proj-ect sponsor of lastresort.” HaroldHeinze, CEO, AlaskaNatural GasDevelopmentAuthority
A12 PETROLEUM NEWS • WEEK OF MAY 16, 2004NATURAL GAS
supply contracts is helping to change theLNG business.
“Governments with large natural gasreserves are slowly switching their focustoward the monetization of theseresources,” the report said.
“Increasingly, we are seeing a numberof countries implementing more gas-friendly terms for investors to ensure thatstranded gas resources are monetized. …However, these friendly terms will not begiveaways, but will be tailored to accurate-ly assess the value of the gas in global mar-kets.
Companies pit countries against each other
“In recognition of the abundance of gasresources on a global basis, companies areleft pitting country against country in termsof potential supply projects,” the consult-ants said. “Those countries, which offer astable investment environment, adopt acommercial approach to project taxationand terms and facilitate efficient projectdevelopment will ultimately win.”
The Alaska Natural Gas DevelopmentAuthority paid $25,000 for the LNG chap-ter of the multi-client study as it continuesto research the feasibility of a state-ownedproject to move North Slope gas to marketvia tankers instead of a pipeline.
The old days are fading when producersfocused on production “and rarely keptownership of the LNG beyond the dis-charge port,” the study said. “The upstreamoil and gas majors are moving furtherdownstream the value chain, and newentrants such as Sempra are planning tomove further upstream the value chain.”
Sempra Energy, a San Diego-based nat-ural gas marketing and electrical powergenerating company, has teamed up withRoyal Dutch/Shell Group to develop anLNG receiving terminal on Mexico’s BajaPeninsula to serve the Southern Californiamarket. It would be the first time eithercompany has taken a stake in a U.S. LNGreceiving terminal. The companies say theplant will go online in 2007, with a capac-ity to handle 1 billion cubic feet per day.
Wood Mackenzie sees the Baja projectas an example of one of three emergingmodels for the new regasification terminalsneeded in North America:
• A joint venture, where two or morecompanies get together to form a completevalue chain with production, liquefaction,shipping, regasification and marketing.
• An integrated model, where one com-pany has a presence in all aspects of thevalue chain.
• The more traditional merchant plant,where the owner depends on third partiesto use the regas terminal and pay the tolls.
Regardless of which model is used,financing will be an issue, the report said.Those developers looking to build regasterminals with non- or limited-recoursedebt will have a hard time finding investorswilling to lend at attractive rates.
“Current availability of … project-finance debt for LNG and pipeline projectsis constrained by an overall reduction inthe number of financiers with appetite forproject risk and project lending,” the reportsaid.
“One of several contributing causes tothe tightening of available project financesupply, and the corresponding shift awayfrom a borrower-friendly environment, hasbeen the collapse of the merchant energysector and the resulting bankruptcies andrestructurings.
“Project financing is also more costly,complicated and time consuming to raisethan corporate debt.”
Investors’ reliance on a developer’s bal-ance sheet, assets and credit rating will bea factor in determining which projects getbuilt first, Wood Mackenzie said. “Projectsthat have the ability to move into construc-tion using a sponsor’s balance sheet (e.g.equity, full-recourse corporate debt or proj-ect debt with sponsor completion guaran-tee) … enjoy a ‘simplicity’ and ‘speed’advantage in the race to completion and …an advantage in securing market share.”
The shift away from project financingtoward corporate debt is an advantage forthe majors, said Matt Snyder, managingconsultant at Wood Mackenzie’s Bostonoffice. “For Shell, a so-many-hundred-mil-lion-dollar investment is a fraction oftheir balance sheet.” ●
● J U N E A U , A L A S K A
Municipal authority,state agree to cooperateon natural gas project
By LARRY PERSILYPetroleum News Government Affairs Editor
he state and municipally ownedAlaska Gasline Port Authority haveagreed to share information with thecommon goal of getting a pipeline
built to move North Slope natural gas tomarket.
As part of the agreement, the port author-ity has withdrawn its application underAlaska’s Stranded Gas Development Act,opting to push ahead for a gas line projectwithout the state fiscal contract allowedunder the act. The Stranded Gas Act allowsa project hopeful to negotiate a contract inlieu of state and municipal taxes on the gasline, an unnecessary step for the port author-ity that already is exempt under Alaska lawfrom state and municipal taxes.
“It was clear going in that we did not fitprecisely the state’s perceived stencil for astranded gas application,” said FairbanksNorth Star Borough Mayor Jim Whitaker,who also serves on the port authority board.
But the authority saw the state as a“potential deal breaker, not a deal maker,”Whitaker said. The authority apparentlywanted assurances from the state of a coop-erative working relationship before with-drawing its application for formal negotia-tions under the Stranded Gas Act.
The parties signed the information-shar-
ing protocol May 7.In addition to the port authority, com-
prised of the Fairbanks Borough and city ofValdez, the state-owned Alaska Natural GasDevelopment Authority also wants to builda pipeline for taking North Slope gas to mar-ket. And Calgary-based pipeline companyEnbridge Inc. has applied under theStranded Gas Act, as have the three majorNorth Slope producers as a joint applicant.
State wants to help all project hopefuls“We’re not in an environment of choos-
ing one project over another,” said StevePorter, deputy commissioner at the AlaskaDepartment of Revenue. “Our job … is tohelp maximize the benefits.” The projectdeveloper could be any one of the hopefulsor a combination of several of them, he said,adding that clearly only one gas line fromthe slope will be built.
With the protocol signed, Whitaker saidthe port authority is in a better position todiscuss its plans for a gas line project withthe North Slope producers, pipeline compa-nies Enbridge and TransCanada Corp., andpotential downstream buyers of the gas.
The port authority, established by thecommunities in 1999, wants to build a $26billion project to move about 6 billion cubicfeet per day of North Slope gas halfway
continued from page A11
STUDY
ers in November 2002 to build a gas linefrom the North Slope and a liquefied exportterminal at Valdez, has no money for con-struction. Its state funding covers only feasi-bility studies and other preliminary reviews.
Freshman Rep. Bruce Weyhrauchamended the bill in early March in his com-mittee, House State Affairs, to allowPermanent Fund loans for the gas line. TheJuneau Republican said he wasn’t looking toforce any loans but merely to make clearthat the Permanent Fund could make loansfor the project, estimated at between $10 bil-lion and $12 billion.
Gas line lending stripped in House Finance
But several of his colleagues didn’tagree, and stripped the gas line lending pro-vision from House Bill 466 in HouseFinance Committee just five days from theend of the session. And then rather than deal
with the House version of the bill, whichWeyhrauch could have tried amending onthe floor to put back the gas line section, leg-islative leaders decided to let the House billdie and instead moved the Senate version ofthe same bill to passage.
Senate Bill 326, which had been waitingmore than five weeks for a vote, passed thefull Senate on May 7 and moved through theHouse in three days — reducing the chancesof a possibly delaying amendment in therush. It passed the House one day beforeadjournment.
Weyhrauch voted against the bill.The legislation, now on its way to the
governor for signature into law, eases arestriction on Permanent Fund investments.In addition to caps on stock, bond and realestate holdings, the fund is allowed a 5 per-cent “basket clause” to spread among any ofthose investment categories or other hold-ings such as private equities. Senate Bill 326raises the basket clause to 10 percent of thefund’s portfolio.
—LARRY PERSILY, Petroleum News government affairs editor
PETROLEUM NEWS • WEEK OF MAY 16, 2004 A13NATURAL GAS
down Alaska by pipe, with one branch turn-ing east to take 3.2 bcf into Canada and onto U.S. markets, and with another line con-tinuing to tidewater with 2.7 bcf to a lique-faction plant and shipping terminal atValdez.
The protocol does not list any explicitdeadlines for sharing information, or dictatethat either party must provide specific docu-ments. Instead, it lists “discussion points”:
• The state will discuss assistance inexpediting the authority’s permits andrights-of-way leases.
• The port authority will discuss givingthe state access to the authority’s construc-tion cost estimates, economic model andInternal Revenue Service opinion on itsexemption from corporate income taxes.
Protocol complimentaryof port authority work
The agreement also compliments the portauthority on its work. “The state is veryencouraged by the relationships that the portauthority has developed with significant gasconsumers such as Calpine Corp., which hasindicated an interest in purchasing NorthSlope gas from the pipeline project.”
Although San Jose-based Calpine is talk-ing with the port authority about buying bil-lions of dollars of LNG in the years ahead,the company will first need to overcome itsown financial problems. Its stock closedMay 11 at $3.56 a share, down about 25 per-cent in the past four weeks and far awayfrom its height of almost $60 a share inspring 2001. The company carried almost$23 billion in liability as of Dec. 31, 2003,against $4.6 billion in shareholder equity,and its credit rating is junk-bond status. ●
continued from page A12
COOPERATE
● I N T E R N A T I O N A L
New LNG terminals deemed ‘critical’By LARRY PERSILY
Petroleum News Government Affairs Editor
he United States could be burning up to 12 times asmuch liquefied natural gas in 2010 as it consumed in2002, with several new regasification terminals joiningthe four existing plants by then, according to the latest
report by a leading oil and gas consult-ing firm.
“The timing of the completion ofthese LNG projects is critical” to meetNorth America’s need for new gas sup-plies to fill in for declining production athome, said global consultant WoodMackenzie Ltd.
“Despite intensive efforts to increaseNorth American supply, increasing welldecline rates mean that any slowdownin drilling is followed quickly by declin-ing production,” said Bob Fleck, vicepresident of North American GasConsulting for Wood Mackenzie. “Withdeepwater fields expected to reach peakin two to three years, the ability to stabilize, let alone growU.S. production after 2005-2006, is very much in question.”
In addition to meeting market demand, the super-majorsneed imported LNG to protect their domestic market share,the report said. “Given the general production decline indeep offshore that we expect post-2006, the largest produc-ers will need additional gas to continue to supply currentcustomers.”
The nation’s first new LNG regas terminals in more thantwo decades will likely find homes on the Gulf of Mexicoand Mexico’s Baja Peninsula south of San Diego, andshould be ready by 2007. By then, the nation will be aggres-sively building new plants after having gone through expan-sion of the four existing U.S. terminals, said WoodMackenzie’s report, “Falling Short? The Growing Challenge
to Supply the North American Natural GasMarket.”
The North America total this decadecould end up including two or three U.S.Gulf Coast terminals; one on Mexico’sBaja Peninsula to serve SouthernCalifornia; two for Mexico, one each onthe nation’s East and West coasts; and onesomewhere in the Northeast, either NewEngland or Canada. “We believe there isenough momentum and requirement forseven terminals across North America by2010,” the report said.
Soon after 2010, a second terminalcould come online for Southern Californiaand maybe one in the Bahamas to feed
Florida. Proposals for the Bahamas, however, face a coupleof problems, the report said. Pipeline routes to get the gas toFlorida could be trouble, and although the market has aheavy demand in the summer for electricity to power airconditioners there is less demand in the winter and limitedaccess to move the gas to other markets.
And no doubt any project proposed for an urban area,such as Mitsubishi Corp.’s proposal for a regas terminal at
Long Beach, Calif., will encounter permitting problems, thereport added.
While developers are figuring out the details and buildingnew terminals, supply shortages could keep prices hangingin the range of $4 to $5.50 (nominal terms) per thousandcubic feet through 2010, the consultants said.
Then sometime in the middle of the next decade, thelarge volume of Alaska gas moving through the proposedNorth Slope pipeline could knock down regional naturalprices for several years and provide competition for furtherLNG expansion.
However, until large volumes of LNG come to shore, anduntil Alaska gas comes down the pipe, North America willcontinue to feel the price pinch of tight natural gas supplies,the report said.
Alaska gas line could come in 2015/2016“Given the state of the (Alaska) project and all the other
factors in the market today, we believe you could see a gasline around the 2015/2016 timeframe,” said Matt Snyder,managing consultant at Wood Mackenzie’s Boston office.
The major North Slope producers and Canadian pipelinecompany Enbridge Inc. have said an Alaska gas line is atleast nine years away from coming online. But even as apossible future supply, the potential for a large volume ofAlaska gas, perhaps as much as 4.5 billion cubic feet per day,is a factor in the market, Wood Mackenzie said.
“The threat of an Alaska gas pipeline poses significantrisk for the (LNG) developments with the greatest exposureto spot or short-term contracts. The effects of 4 bcf per day
T
● C A N A D A
New gas pipe holds promise for remote areasBy GARY PARK
Petroleum News Calgary correspondent
s North America turns its attentionto opening up Arctic natural gasresources, ExxonMobil andTransCanada PipeLines have suc-
cessfully tested a new line pipe theydescribe as the world’s strongest andbelieve will improve the prospects forthose remote areas.
Jointly developed under an agreementamong ExxonMobil, Nippon Steel andMitsui, the X120 line pipe is 50 percentstronger than the strongest line pipe steelcommonly used for gas transmission linesand is expected to “substantially reducepipeline project costs,” the companiessaid.
ExxonMobil teamed up withTransCanada to test the suitability of thenew material for use in commercial appli-cations by installing one mile of X120
pipe as part of a longer looping operationin northern Alberta.
They said the demonstration showedthe X120 steel was “compatible with stan-dard pipeline construction practices, evenunder severe Canadian winter conditions.
“The construction rate was comparableto rates expected for winter installationand the weld defect rate was lower thanrates commonly reported for majorpipeline projects,” the companies said in astatement.
The partners in the venture said that asgas becomes an increasing portion of theworld’s total energy supply, many gassources in remote areas will need “cost-effective transportation options beforethey can be brought to market.
“The use of X120 gas pipelines offersExxonMobil the potential to substantiallyimprove the economics of developingthese resources and may be an enablingtechnology in some cases.” ●
state, he said it’s important to get gas toAlaskans, especially SouthcentralAlaskans, whose Cook Inlet natural gassupplies are fast disappearing.
One role for the authority would be asa utility, moving North Slope natural gasto Southcentral at the lowest possiblecost.
Three things in the worksThe mandate for the authority — creat-
ed by voter approval of an initiative on theNovember 2002 state ballot — is to deter-mine the feasibility of a natural gas projectfrom Prudhoe Bay to tidewater on PrinceWilliam Sound and a spur line toSouthcentral Alaska. That has just beenamended by the Legislature to include theoption of going to tidewater on CookInlet.
Facilities at tidewater would convertthe gas to liquefied natural gas for ship-ment to the Far East and the U.S. WestCoast. The spur line to Cook Inlet wouldsupplement declining Cook Inlet gasreserves for utility and industrial use.
The development authority is workingon three things, Heinze told PetroleumNews in a May 3 interview:
It is keeping a liquefied natural gasproject alive. “We’re the only ones work-ing on the LNG part of it,” he said.
“Second thing is, broadly, we have amission to help the highway project” byseeing what contribution can be made tothe project by “the public corporation ofthe state involved in gas.” That includestwo things, he said. “One is making surethat the Alaska side of that project is takencare of.” When the overall concern is witha $20 million project to the Midwest,“they’re not going to spend as much atten-tion on say the billion dollars worth ofstuff that’s very important to Alaska,”Heinze said.
And the authority is also trying todetermine if there is anything it can do toimprove the economics or marketabilityof the highway project. So it is interestedin how it can participate in the project totake gas to the Midwest, he said.
“The first 530 miles from Prudhoe Bayto Delta is shared by all projects,” and ifthe authority can “do something thathelped the economics,” it would be mak-ing a contribution from the state “and notgiving up anything but maybe doing it injust a whole different way,” Heinze said.
The third thing the authority is workingon is bringing natural gas to Cook Inlet.That is a part of what Ballot Measure 3included, and, Heinze said, Gov.Murkowski has also “made it a priority todeal with the industrial issues” in Cook
Inlet: natural gas is the feedstock for theAgrium fertilizer plant on the KenaiPeninsula, and without continued low-costsupplies of natural gas, Agrium, a majorKenai Peninsula employer, has indicated itwill be forced to close the plant.
Natural gas also goes to theConocoPhillips-Marathon LNG plant.
Feasibility report in August The authority’s mandate was to pro-
duce a report a year after the first boardmeeting, a development plan whose con-tents were specified in the ballot measure,and included project work and marketingstudies.
“I’ve called it basically a feasibilityreport,” Heinze said.
That report won’t be ready on June 15— the year specified from the board’s firstmeeting.
“We were just too late getting themoney and too late contracting and it’sjust not going to happen,” Heinze said.
The authority has moved back the tar-get two months, he said, and plans to havethe report out Aug. 15.
And, “in that same timeframe, beforethe end of summer, we will also have donea major piece of work on the Cook Inletgas situation,” he said.
Utility to Cook Inlet The authority has been meeting with a
Cook Inlet working group of the major gasusers, including Enstar, Chugach ElectricAssociation, Municipal Light and Power.
What the authority has said to thisgroup, Heinze said, is that it “may be ableto become a utility whose no other pur-pose in life is to move North Slope gas tothe Cook Inlet area.”
We don’t know where the line wouldstart, he said. “It may be Prudhoe Bay, itmay be Delta, it may be Glennallen, itmay be Fairbanks.”
The authority’s role, he said, would beto move gas “at the lowest cost of servicepossible, because we would be a state util-ity.” It will work with consultants over thesummer to look at issues like pipelinecosts, how such a line would be financed,what the permitting-environmental issuesare, and what the regulatory issues are.
Heinze said he can’t answer thesequestions now, he just knows “that as autility we have a chance to do it under themost favorable financial circumstances.”
There are certainly companies whichcould do this as utilities, he said, but they
have profit motives, “and you don’t haveto raise your eyebrows with me at thismoment, because I don’t have that profitmotive.” Someone else may end up doingthis, “but at least we need to define what itwould look like for a utility.”
Prices converging The interest in North Slope natural gas
is driven by rising U.S. natural gas prices,Heinze said, with gas prices in Japan,Europe and the United States rising andconverging. The convergence isn’t acci-dental, he said.
“There’s this tremendous emphasis onLNG, and as that LNG business grows,basically all the markets — the gas mar-kets of the world — will become linked.And once they link, it’s a commodity situ-ation.”
There isn’t a commodity situation inLNG yet, he said, but “I’ll just argue thatthere is a reasonable chance that the struc-ture of gas price in the United States, andmaybe in the world, … has changed.”
The interest in the Alaska project isdriven by the sense, he said, not the reali-ty, but “the idea that supply is tight.”
Three players who count Heinze said the only three players who
count in the game to commercialize NorthSlope natural gas are the producers, thestate and the federal government.
“The producers, because they havecontrol of the gas;” the state of Alaskabecause the natural gas is a publicresource and the state garners taxes fromits production, as well as benefits of eco-nomic activity in the state, and the federalgovernment through federal income tax.
“So those three people are absoluteplayers in the game — there’s no way todeal them out,” Heinze said. “Everybodyelse in this game is a wannabe,” includingthe development authority. The only wayyou can get a ticket to the table is to con-tribute something that is of value towardsit.”
Something of value, he said, would besomething that affected the risks: well-head price, construction cost, tariff calcu-lation, market volume, market price, fiscalchanges, regulatory setting and legal chal-lenges.
The producers, the state and the feder-al government “absolutely right now haveto deal with the risks if the project’s goingto happen.
Why we need a fallback What are the overall project challenges
right now? Heinze sees some obstacles to the high-
way project that have to be overcome. First, the known resource of some 35
trillion cubic feet isn’t enough to fill a
pipeline for enough years to pay it off. The producers have acknowledged that
it will take about 50 tcf. “Who’s out theregetting the other 15?” he asked.
And the project is going to require allof the producers — and not just for thegas, either. You already have potentialfinancers for the project asking aboutproven reserves, but what if one of thethree major owners decides not to partici-pate?” Heinze asked. “How are you goingto explain to the bankers that a very suc-cessful major company doesn’t see it” as aproject it should be in? If you’re a nervousbanker, and you’d like to really be con-vinced, how do you ever overcome theproblem of one guy who doesn’t go?”
The state of Alaska also has to want theproject, Heinze said. “And it would surehelp if the feds were pretty unequivocalabout it, too.”
Then, if you have all the players linedup, there is still the problem of right-of-way issues in Canada.
Canada, he said, doesn’t “have a defi-nite process that overcomes whateverchallenges.” You may have to go throughan environmental impact statementprocess in the United States, “you mayhave to suffer through things — but thereis a point where you can get to and you geta yea-nay.” Not so in Canada.
Authority plan a fallback position Heinze said that, from where he sits,
when “you look at what’s involved and allthe pieces that have to come together andyou assess what that probability is — it’snot real overwhelming as we sit heretoday.”
The state needs fallbacks, he said. “And so my argument is, I don’t care if
I’m second, third or fourth on the list: Ijust want to be on the list.
“I’m not trying to prove I’m better, I’mtrying to prove that I am within reason tobe considered if, at the end of the day, youcan’t see your way down this path — thenwe need to look down these other paths.”
And, “based on everything I have beenable to evaluate at a feasibility level ofthese projects — again, this is not detailedeconomics, this is feasibility — all theseprojects are feasible.”
The projects Heinze was talking aboutinclude: the port authority’s $26 billion Y-line proposal (both a highway pipeline andLNG); the producers’ $19 billion highwayline to Alberta; the producers’ $15 billionhighway line to Alberta; Yukon Pacific’s$12 billion 2.2 bcf per day LNG project;the authority’s $10.5 billion 2 bcf per dayLNG project; the ANS group’s $6.7 bil-lion 1.1 bcf per day line; a Cook Inlet“bullet line” from the North Slope at $3billion; and a $500,000-$1 billion spurline to Cook Inlet.
Heinze said he argues that “it is impor-tant that the state keep open its options.”
It may like the producers’ highwayroute proposal best, but it needs otheroptions.
“And I’m sort of the project sponsor oflast resort,” Heinze said. ●
A14 PETROLEUM NEWS • WEEK OF MAY 16, 2004NATURAL GAScontinued from page A11
HEINZEThe players in a gas project, Harold Heinze says, are the North Slope
producers, the state of Alaska and the federal government. ...“Everybody else in this game is a wannabe,” including the development
authority. “The only way you can get a ticket to the table is tocontribute something that is of value towards it.”
PETROLEUM NEWS • WEEK OF MAY 16, 2004 A15NATURAL GAS
● I N T E R N A T I O N A L
World LNG looks to U.S. marketsSeveral potential suppliers can shipLNG at under $2 f.o.b., says study
By LARRY PERSILYPetroleum News Government Affairs Editor
here are more than 40 existing and proposed naturalgas liquefaction plants around the world, with many ofthem looking to help feed North America’s growingneed for LNG by the end of the decade and beyond.
AWood Mackenzie Ltd. report reviewseach of the projects and says the most like-ly candidates to boost their deliveries or tostart new service to North America by2010 include Norway, Algeria, Nigeria,Trinidad and Tobago, Equatorial Guinea,Venezuela, Qatar, Australia, Russia andIndonesia.
The company’s report, “Falling Short?The Growing Challenge to Supply theNorth American Natural Gas Market,”includes a table listing existing and pro-posed liquefaction projects and providingan estimated f.o.b. price for the LNG. Theresearch project looked at only those LNGsupplies that could start filling tankers by 2010.
The table assumes a 15 percent rate of return on theupstream gas supply, a 12 percent return on any pipe need-ed to move the gas from the well to tidewater, and a 12 per-cent return on the terminal.
The low-cost providers on the list include several projectsin Qatar averaging about $1.25 per million Btu, EquatorialGuinea at $1.36, new projects in Nigeria expected to aver-age less than $1.50, a couple of Indonesia projects averagingunder $1.70, Trinidad at $1.87 and Venezuela at $1.91.
The next level of potential suppliers for North Americainclude Norway at $2.26, Russia’s Sakhalin Island at around$2.40, several Australian projects close to the same average,
and Algeria at $2.71.
More competition post-2010Those suppliers could be ready by 2010. After that, any
new projects would have to compete with expansion ofthose already in the game, said Matt Snyder, managing con-sultant at Wood Mackenzie’s Boston office.
The difficulty is that if you miss an early window ofopportunity, he said, it’s easier for existing plants to expandto fill multiple windows than it is for a greenfield project tostart up.
“Indonesia and Australia appears to befront-runners in realizing the potential ofthe U.S. West Coast,” Wood Mackenziesaid. “Sempra (through BP’s Tangguh proj-ect in Indonesia), Shell and ChevronTexacoappear to be setting the early pace for get-ting Pacific Basin LNG into the WestCoast.”
The study did not look at the cost ofAlaska LNG. “The study only coversthrough 2010, which is a pretty quick time-frame to get an (Alaska) LNG plant, con-tracts and all the other tangible/intangibleelements up and running,” Snyder said.
Regardless of the timing, some or all ofseveral other issues could work against an Alaska LNG proj-ect, Snyder said — the cost of an 800-mile arctic pipeline tomove North Slope gas to tidewater, more expensive U.S.tankers and the perhaps more attractive option of moving alarger volume of gas through a pipe to Canada and theLower 48.
But sometimes the decision is about more than justmoney, he said. Long-term contract relations, security ofsupply, country risk, and avoiding congested internationalshipping lanes at the Panama Canal, Southeast Asia and theMiddle East could work in Alaska’s favor over foreign sup-pliers, Snyder said. “There are positives and negatives.”
Publicly owned Alaska LNG projects still possibleAlthough the major North Slope producers have rejected
LNG as a financially viable alternative for moving Alaskagas to market — and instead are focusing their efforts on apipeline through Canada — two publicly owned venturesbelieve their possible tax savings could make Alaska LNGcompetitive on the U.S. West Coast or in the Far East.
The municipally owned Alaska Gasline Port Authority,which wants to build a $26 billion project to move 6 billioncubic feet from the North Slope, estimates in its base-caseassumption that it could ship LNG from its proposed termi-nal at Valdez at $2.75 per thousand cubic feet f.o.b.
Potential tax savings of a publicly owned project couldhelp lower that cost, according to the port authority, whichproposes to move 2.7 bcf per day as LNG and 3.2 bcf perday through a pipeline into Canada.
The Alaska Natural Gas Development Authority, a state-owned venture, shares the same tax-free hope as the munic-ipal port authority and is expected to get about $1 millionfrom the state Legislature this year to study the possibilities.
The state authority calculates it could deliver LNG toeither West Coast or Far East ports for about $2.50 per mcf,but that number does not include any wellhead value for thegas. Assuming $1 to buy the gas from North Slope produc-ers, the delivered price would be $3.50 — unless the author-ity could borrow more money at lower interest rates to dropthe cost.
A lot of players in the LNG supply businessAmong the candidates singled out by Wood Mackenzie
as likely to expand their current supply contracts or start sup-plying LNG to North America by 2010 are several of theworld’s major producers and state-run companies:
• Statoil ASA’s Snohvit project in Norway’s Barents Seais scheduled to start deliveries in 2006, at an average 560million cubic feet per day. Statoil bought up El Paso’s capac-
T
● J U N E A U , A L A S K A
Alaska spends big on natural gas lineLegislature approves $9million for natural gasproject work
By LARRY PERSILYPetroleum News Government Affairs Editor
s soon as Alaska Gov. FrankMurkowski signs his name to thelegislation, the departments ofRevenue and Natural Resources
will have $9.08 million to spend on thestate’s growing efforts to get a natural gaspipeline built from the North Slope tomarket.
Legislators approved the gas linefunding May 11, the final day of the 121-day session. The money was included in amuch larger package of public works andcapital projects spending.
Unlike the usual operating budgetappropriations that lapse at the fiscalyear-end the next June 30, the gas linemoney will stay on the books throughJune 30, 2009, though lawmakers and thegovernor hope it doesn’t take nearly thatlong to find a project developer willing tobreak ground on the long-awaited gasline.
The money will pay for Stranded GasDevelopment Act negotiations with appli-cants that want to strike a fiscal deal inlieu of state and municipal taxes, shouldthey decide to go ahead and build the gasline. And some of the money will pay foran analysis of state investment in the
project, asking thequestions would ithelp for the state toshare in the financialrisk and, if so, howcould Alaska besttake a stake in theproject.
Although theadministration earli-er in the budgetprocess had talkedof giving the risk assessment funding tothe Department of Revenue, it wasswitched to Natural Resources. “DNRhas the people who best understand thepipeline business … and the resourceissues,” Mike Menge, the governor’s spe-cial assistant on oil and gas issues, saidlast month.
The risk assessment work is estimatedat $1.58 million.
Money for advance right-of-way work
From the appropriation, NaturalResources will get $3.9 million to startworking on pipeline rights of way to getahead of the job — in anticipation thatwhichever potential developer decides tobuild the multibillion-dollar line will needthe right-of-way leases.
The rest of the money will go to theDepartment of Revenue for Stranded GasAct negotiations with the three majorNorth Slope producers that have submitteda joint application; with applicantEnbridge; and with anticipated applicant
TransCanada.The funding will also pay for studies of
potential in-state gas use and benefits froma gas line project, and the state’s coopera-tive efforts with Alberta.
The state-owned Alaska Natural GasDevelopment Authority will also share inthe pot to continue its feasibility analysis ofa publicly owned liquefied natural gas proj-ect.
Permanent Fund will help pay for workLawmakers approved taking 25 percent,
or $2.27 million of this year’s appropria-tion, out of Permanent Fund earnings. The
Legislature in past years has used the sametactic to avoid taking the entire amount outof the state general fund. The argument isthat Alaska’s Permanent Fund savingsaccount gets 25 percent of the state’s oiland gas royalties, so it’s only fair that it pay25 percent of the cost of getting those roy-alties.
The same funding split is used for theOil and Gas Division at the Department ofNatural Resources and the Tax Division atthe Department of Revenue.
This session’s legislative funding bringstotal appropriations for gas line efforts tomore than $11 million since last spring. ●
A16 PETROLEUM NEWS • WEEK OF MAY 16, 2004LAND & LEASING
ity rights at the Cove Point, Md., regasifica-tion terminal, with long-term deliveriesexpected to include Snohvit gas.
• Marathon Oil Corp.’s LNG project atEquatorial Guinea is scheduled to go onlinein 2007 at 400 million cubic feet per day,with much of the gas likely to go to regasterminal at Lake Charles, La., or Elba Island,Ga.
• Royal Dutch/Shell Group and Total areexpected to look toward North Americamarkets from the expanded Bonny Islandproject in Nigeria.
• Algeria’s state oil and gas companySonatrach will be lojoking to U.S. marketsto take some of the LNG from its expansionplans at its Arzew development.
• Trinidad and Tobago expect theCaribbean island nation’s fourth LNG trainto start production in 2006. “We anticipatethe output being delivered primarily into theU.S.,” Wood Mackenzie said. Partners in theproject include England’s BG Group and BPPLC, Spain’s Repsol-YPF, Belgium’sTractebel, and Trinidad’s National Gas Co.The shareholders also are discussing thepossibility of adding a fifth and sixth train.
• BG Group and its partners are develop-ing a liquefaction project in Egypt and thesecond train, scheduled to go online in 2006,could help supply the regas terminal at LakeCharles, La.
• Shell, Mitsubishi and Qatar Petroleumare partners in a Venezuela LNG project thatcould start producing more than 600 millioncubic feet per day in 2008, with NorthAmerica a likely market for much of the gas.ChevronTexaco and ConocoPhillips could
follow in 2010 or later with their own LNGterminal in Venezuela.
• Qatargas and ConocoPhillips are part-ners in a project to liquefy 1 bcf per day, tar-geting the North America market and sched-uled to start service before the end of thedecade.
• Qatar’s RasGas and ExxonMobil arelooking at trains to produce 2 bcf a day ofgas, though Wood Mackenzie said this proj-ect could be delayed if ConocoPhillips getstoo far ahead in its Qatargas development.
• Australia’s Gorgon project “now looksto be taking shape as a key supplier to theWest Coast U.S. market around the 2010time period,” the report said.ChevronTexaco, Shell and ExxonMobil arepartners in Gorgon.
• Expansion at Australia’s North WestShelf project could supply some LNG to theWest Coast mid-decade. Partners includeBP, ChevronTexaco, Shell and BHPBilliton.
• Shell’s joint venture with SempraEnergy for an LNG regas terminal onMexico’s Baja Peninsula could receive gasfrom Shell’s Sakhalin Island project inRussia’s Far East. “While marketingSakhalin LNG remains a key challenge forShell, Sakhalin is without doubt a key, newlegacy LNG asset for Shell which shouldhelp Shell maintain its global LNG leader-ship position,” Wood Mackenzie said. Thetwo-train project is scheduled to start deliv-eries in a few years, building up to 1.3 bcfper day.
• BP is still looking to sign up more firmcontracts for its Tangguh project inIndonesia, with a final investment decisionexpected this year. ●
ALASKAPotential Alaska, federal oil gas lease salesAgency Sale and Area Proposed Date
DNR Cook Inlet Areawide May 19, 2004DNR Foothills Areawide May 19, 2004MMS Sale 191 Cook Inlet May 19, 2004BLM NE NPR-A June 2, 2004*BLM NW NPR-A June 2, 2004*DNR North Slope Areawide October 2004DNR Beaufort Sea Areawide October 2004MMS Sale 195 Beaufort Sea March 2005DNR Cook Inlet Areawide May 2005DNR Foothills Areawide May 2005BLM NE NPR-A June 2005DNR North Slope Areawide October 2005DNR Beaufort Sea Areawide October 2005DNR Alaska Peninsula Areawide October 2005MMS Sale 199 Cook Inlet 2006MMS Sale 202 Beaufort Sea 2007MMS Chukchi Sea/Hope Basin interest based MMS Norton Basin interest based
* Primarily northwest NPR-A. Northeast tracts are those at border of northeast andnorthwest areas, where river boundary cuts through tracts.
Agency key: BLM, U.S. Department of the Interior’s Bureau of Land Management,manages leasing in the National Petroleum Reserve-Alaska; DNR, Alaska Department ofNatural Resources, Division of Oil and Gas, manages state oil and gas lease sales onshoreand in state waters; MHT, Alaska Mental Health Trust Land Office, manages sales on trustlands; MMS, U.S. Department of the Interior’s Minerals Management Service, Alaskaregion outer continental shelf office, manages sales in federal waters offshore Alaska.
This week’s lease sale chartsponsored by:
PGS Onshore, Inc.
● S O U T H D A K O T A
Interest growing inSouth Dakota leasesNumber of acres leased bystate flat the past decade, butdramatic increase this year
By WAYNE ORTMAN Associated Press Writer
he interest that companies are showingin exploring South Dakota’s publiclands for oil and gas is somethingBryce Healy easily explains.
“Just go to the gas pump,” said Healy,commissioner of the state Office of Schooland Public Lands.
A recent auction of oil and gas leases on65,800 acres managed by Healy’s officegenerated almost $240,000 for the publicschool fund.
There’s a minimum $2 per-acre bid onthe leases. One 640-acre tract in HardingCounty was leased for $136 per acre.
“In recent history — the last 10, 15 yearsat least — that would be a (per-acre)record,” Healy said May 10.
The number of acres leased by the officehad been flat the past decade, but there’sbeen a dramatic increase in interest this year,Healy said.
The rising price of crude oil and recentproduction cutbacks by the Organization ofPetroleum Exporting Countries is drivingthe interest in oil and gas exploration,according to Healy.
Companies nominate lands Companies nominate public land they’d
like to explore. The Office of School and
Public Lands compiles the requests and peri-odically schedules a public auction.
The selected parcels are offered in openbidding. A company interested in a certainspot may find itself bidding against one ormore companies. Competitive bidding oftenoccurs if there are productive oil or gas wellsnear the area being leased, Healy said.
At the most recent auction, ABProduction of Denver leased nearly 33,000acres in Harding County. Springfield Oil Co.of Hot Springs leased 18,020 acres inHughes County, and Energy WestProduction of Denver leased 13,437 acres inStanley County, Healy’s office said.
There’s no requirement that companiesthat get a mineral lease do any exploration,but the five-year lease expires if there’s nooil or gas discovery, said Mary Jo Joens, oiland gas lease agent in Healy’s office.
Companies pay a rental fee of $1 per acreeach year of the lease until oil or gas is dis-covered, Joens said.
“Then, in lieu of the rental fee, they startpaying a royalty. That would hold that leaseas long as there is a producing well, whichcould be indefinitely. We have some that goback to the ‘50s,” she said.
About 80 percent of the lease income isearmarked for K-12 public education, Healysaid, with other lease income going toschools under authority of the Board ofRegents.
The office oversees mineral leases on 5.2million acres of state-owned land. A littleover 200,000 acres is tied up in mineral leas-es. The lease acreage was as high as 600,000in 1980 and as low as 100,000 in the late1990s, Joens said. ●
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continued from page A15
MARKETS
will have a large impact on national prices,as well as altering the basis differentialbetween regions. … The threat should besignificant enough to threaten the develop-ment of some more speculative (LNG) proj-ects.” Regardless if some of the speculativeprojects fail to get built — especially thosethat lack participation by major producers orstrong enough balance sheets on their ownto obtain financing — the nation is expectedto import 7.2 billion cubic feet of LNG a dayby 2010, the report said.
That would be almost a 12-fold jumpfrom 2002 imports of 630 million cubic feetper day, and five times this year’s expectedLNG flow of less than 1.5 bcf per day.
One short-term constraint on new gascoming into North America, the report said,is that most of the world’s new liquefactionterminal capacity coming online in 2005 isalready contracted to European buyers. Butafter that, supplies will be more than suffi-cient to feed the new U.S. regas terminals.
The wait for new regas terminals will becushioned somewhat as U.S. demand willtake several years to climb back to its peakload of 23.5 tcf in 2000 (more than 64 bcfper day), Wood Mackenzie said. Domesticdemand had dropped by 7 percent from thatpeak to 21.8 tcf last year (under 60 bcf perday), according to the U.S. Department ofEnergy.
“Overall gas demand in the U.S. is notlikely to return to 2000 levels until 2009,”Wood Mackenzie said, citing the sloweconomy and high gas prices as the culpritfor holding down industrial demand.
And when new LNG comes to town, themost attractive region for receiving termi-nals will be the Gulf Coast, near the heavydemand of the petrochemical industry andwith easy pipeline access to multiple mar-
kets, the report said. The area also will neednew supplies to fill in for declining produc-tion. But there are limits to how many newterminals the area can accommodate:“While entry through ports in the Gulf ofMexico allows for greater access to thepipeline grid and the associated gas treatinginfrastructure, there is not an unlimitednumber of potential sites for regas facili-ties,” the report said. “As such, we may seethe merging of projects by the oil majors.”
Wood Mackenzie gives more credibilityto regas terminals with major producers inthe deal, citing their stronger balance sheetsto help finance the investment and the com-panies’ need to lock in long-term sales con-tracts to develop their upstream resources.The successful contestants “looking to playthe LNG and marketing game within NorthAmerica” will be those companies with“financial staying power, substantial abilityto accept price volatility,” the report said.
And, with many proposed sites, therewill be problems, and more than just thecommunity opposition to LNG tankers infront of town. “Downstream pipelinecapacity limitations will also make it diffi-cult for certain areas, including theBahamas and Baja California, to supportmore than one or possibly two projects.”
Looking at the eight or so regas termi-nals proposed for the California and Bajacoast, Wood Mackenzie gives the best oddsto the joint venture by Sempra Energy andRoyal Dutch/Shell Group for the Baja.Sempra’s domination of the residential andcommercial market in Southern Californiais a big plus, the report said.
A similar argument is likely to win out inthe race for the market’s second regas ter-minal. “With respect to the other terminalannouncements in Southern California, wefeel the venture would again have to be ajoint venture of a dominant suppliermatched with a company controlling a sub-stantial customer base.” ●
With production facilities in NorthAmerica and Argentina, Agrium’s Kenaiplant is the second largest U.S. nitrogenfacility. Anhydrous ammonia and ureafrom the Kenai plant are shipped pri-marily to foreign destinations, includingSouth Korea, Mexico, Taiwan, Australiaand Thailand. The major ingredientused in this value-added industry isnatural gas.
Dale Walaszek graduated fromMidwestern University’s physicianassistant program in 1997. He has acertificate in occupational and environ-mental medicine from Duke Universityand has specialized in occupationalmedicine since 1999. Dale lives inKasilof where he hunts, tells big fishstories and enjoys horse packing, snow-machining, and exploring the wilder-ness. He and Audrey, his adventurouswife, have a six-year-old daughter,Willow-Haven, who enjoys trail ridingon her pony.
between Anchorage and Seward,Anchorage and Fairbanks, Portage andWhittier, Fairbanks-Eielson AFB and runsanother spur to Palmer from theGlenn/Parks Highway interchange. Itprovides essential services to areasserved only by rail and also operatesdocks in Whittier and Seward. Railroadofficials are important advocates forAlaska’s economic development.
Chelcie Eager has been involved inthe logistics of moving passengers andfreight since 1969. At a celebration ofChelcie’s 30 years of service in 1999, hepublicly declared the railroad his firstlove. Dixie, his wife, said she was usedto playing second fiddle. They both lovetravel, bowling and catching fish —especially halibut in the 250-pound cat-egory. The best thing about life? “Livingit,” says Chelcie.
A18 PETROLEUM NEWS • WEEK OF MAY 16, 2004THE REST OF THE STORY
company, signed a contract for natural gaswith Unocal Alaska in 2001, the contractprice for the new natural gas Unocal woulddiscover and deliver was indexed to Lower48 natural gas prices. It was a big change.
Price one of needed changes Enstar took the lead in attacking the price
problem in Cook Inlet, Marathon Oil’sAlaska business unit manager, John Barnes,told Petroleum News in an April 28 inter-view. A price high enough to draw invest-ment was one of the things needed to movegas exploration forward in the area, he said,along with access to acreage and new tech-nology.
Barnes said the state of Alaska has donea pretty good job with the access issue.Annual areawide lease sales for state lands,both onshore and offshore, were begun inthe Cook Inlet basin in the late 1990s, aswell as in the state’s other major hydrocar-bon provinces.
On the technology side, companies havebeen shooting three-dimensional seismic inthe Cook Inlet basin, Barnes said, anddrilling rigs are being built for work in thearea. Marathon brought in its own truck-mounted Glacier rig in 2000. The companyalso developed the EXcape completionprocess for the Kenai gas field, allowing it tofracture multiple zones at its gas fields in acontinuous process, cutting fracturing timefrom days to a single tool trip.
But, Barnes said, while “a lot of thingsare lining up in the right direction,” there are“still things that are going to have to get sort-ed through” in the Cook Inlet area, to movegas exploration and development forward.
DOE report says inlet has potential One of the things that is needed is more
exploration. The U.S. Department of Energy is final-
izing a report on natural gas supply anddemand in Cook Inlet, and in presentationsthe report’s authors have said there shouldbe considerable natural gas left to be found.(See story in April 25 issue of PetroleumNews) Barnes said that it is good to see val-idation that there is the potential for morenatural gas discoveries in Cook Inlet.
“I think that’s what Marathon’s been say-ing for a number of years, so we’ve been act-ing on it,” Barnes said.
Kent Hampton, Marathon’s North
America natural gas marketing manager,said Marathon started to kick up its activitylevel in Cook Inlet about five years ago. “Ittakes a while, it’s kind of a big ship; there’sa big delay between the time you turn thewheel and the ship starts to turn; it takes a lotof continuous effort to do that.
“And the ship’s turning — you can startto see some of the results,” he said.
Marathon produced almost 66 billioncubic feet of natural gas in Cook Inlet in2003, Barnes said, second only to whatConocoPhillips produces at the BelugaRiver field, and has been producing at thatlevel for the several years.
The company drilled 11 new wells lastyear and expects to drill 11 this year. Of the11, three in each year are “exploration type,higher risk,” Barnes said.
Drilling last year included wells at theNinilchik field (Marathon 60 percent,Unocal 40 percent), Cannery Loop, BeaverCreek, the Kenai gas field and Kasilof.These were all Marathon operated, he said,and the majority were 100 percent Marathonwells.
Marathon used its own Glacier rig, butfor a period last summer had three rigsworking, including Nabors Rig 129 atNinilchik and Nabors Rig 273 at Kasilof.Both the Ninilchik and Kasilof wells aredirectionally drilled from onshore pads tooffshore bottomholes.
Marathon also shot offshore 3-D seismiclast year at Ninilchik which is still beingprocessed, Barnes said, as well as anonshore data set at Sterling.
But there isn’t enough activity overall toreally kick up Cook Inlet gas production,Barnes said.
“It’s hard to pull out of that DOE studyexactly, but the activity level you really needto see in the inlet’s much higher than proba-bly we’re seeing now. I think that’s still acomponent that’s missing right now — ahigh enough activity level,” he said.
State needs to get betterat pipeline end of the business
Once you find the gas, you need to beable to get it to market — that means apipeline, and the pipeline part of the equa-tion needs work, Barnes said.
Hampton said the tariff process for thecompany’s new 30-mile Kenai KachemakPipeline is taking three years — about threetimes what it would take to get through theprocess in Lower 48 parts of the “gas patch.”
When Marathon and partner Unocal builtthe Kenai Kachemak Pipeline, connectingthe Marathon-operated Ninilchik field withthe existing Cook Inlet natural gas pipelinesystem at Kenai, it was the first new pipelinebuilt in the area in at least a decade, Barnessaid. The $25 million, 30-mile line KenaiKachemak Pipeline began moving gas inSeptember.
“We’re not yet done spending money onthe regulatory side there,” Barnes said. “Itcould be 20-25 percent of the pipeline costultimately associated with regulatory.”
It’s a whole bunch of little things, he said.Taken by themselves, “a lot of these thingsmake sense — but when you stack them upand add them up, it costs money.” Thepipeline regulatory work includes right-of-way work, the Joint Pipeline Office and theRegulatory Commission of Alaska process.
What’s still being worked is the tariffprocess at the Regulatory Commission ofAlaska, which was started “about two years… before first gas, plus or minus. And wewon’t have a final tariff until about one yearafter first gas,” Barnes said.
An improved pipeline regulatory processis going to be especially important for smalloperators and for smaller fields.
The DOE report predicts that gas fieldsremaining to be found in Cook Inlet “aregoing to be small and they’re more dis-persed, and so it makes the pipelines all themore important, because now you’ve got tohave more infrastructure to get to the small-er fields,” Hampton said.
Barnes said he thinks people tend to takepipelines for granted, but each proposedpipeline extension — whether to Unocal’sHappy Valley prospect or to NorthStarEnergy’s North Fork field — is an econom-ic issue.
“It’s going to be fundamental economics,whether they have … enough of a find,” hesaid.
“If the state can improve, become moreefficient, more effective at regulating lines,then that’s an encouragement for others to
come and build lines (even) with smallerfields.”
If the regulatory process for pipelineswere more efficient and effective, compa-nies would not have to go into a pipelineproject saying, “I don’t know what it’s goingto cost to build this line,” Barnes said.
The “uncertainty and potential cost expo-sure — it’s a negative, it’s a disincentive andprobably people are going to have to addressit.” Barnes said he believes “trying to getgood at managing pipelines … that’s a goodstep for the state to take.”
The Regulatory Commission of Alaskaprocesses need to get “more predictable,more efficient and more effective.” Andthat’s good for the consumer, “because ulti-mately you and I as a consumer pay for a lotof that regulatory cost,” Barnes said.
On the other side of the coin, Hamptonsaid, the tariff is a small part of what the con-sumer pays for the gas. “But that tariff isvery important to the pipeline investor,because that’s how he makes his money —so if you drive that thing too hard in thewrong direction you don’t see many morepipelines get built.”
Pipeline regulation done all over the world
Pipeline regulation and setting of a fairreturn for a tariff are done all over the world,Barnes said. “We ought to be able to do ithere and I think we can.”
Hampton said the amount of time itwould take to get a tariff on a line the size ofthe Kenai Kachemak Pipeline varies,depending on how controversial the line is,“but in a normal environment in the gaspatch it shouldn’t take anywhere near thislong or this much in legal expenses.”
Tariff for a comparable line elsewhere inthe gas patch would take about a year,Hampton said.
He said changes will probably include acombination of procedural changes at theregulatory commission and statutorychanges: “some help and guidance anddirection from Juneau — it wouldn’t hurt.”
Hampton said a variation on the pipelineregulatory issue is modifying existingpipelines to serve new fields where onepiece of the pipeline is “unregulated and pri-vate” and another piece is regulated and“supposed to be open access.”
The Kenai Kachemak Pipeline is anexample of gas delivery from a newpipeline, “but the existing pipelines and themodification of existing pipelines I think isjust as important and can bring in a signifi-cant amount of gas, too.”
Storage also an issueAnother issue that is going to come up
for regulation is storage, Hampton said,where some method is found to store gasbeyond average daily needs so that on thosevery cold days in winter there is extra gasavailable for power generation and homeheating.
With the big old gas fields in the inlet,Barnes said, the reservoirs were so prolificyou could increase production when youneeded it — and you could do that withoutmuch expense in wells needed just for peakproduction.
With the smaller, less prolific fields beingfound now, it wouldn’t be cost effective, hesaid, to drill extra wells that you only usedon cold winter days. And “the types of reser-voirs we’re finding now are the kind youwant to produce flat” to protect the reservoir,so “… having storage in the future will beimportant.” With storage, you can just putyour well into production, “and it’s eithergoing into the market or it’s going into stor-age…”
In a lot of regions of the country,Hampton said, regulators have “unbundled
continued from page A1
PROGRESS
see PROGRESS page A19
Hampton said the tariff processfor the company’s new 30-mile
Kenai Kachemak Pipeline is takingthree years — about three timeswhat it would take to get throughthe process in Lower 48 parts ofthe “gas patch.” … (Barnes said)“20-25 percent of the pipeline cost(could) ultimately” be associated
PETROLEUM NEWS • WEEK OF MAY 16, 2004 A19THE REST OF THE STORY
Chesapeake said it plans to increasedaily production from the Greystone prop-erties by about 50 percent to 65 to 70 mil-lion cubic feet of gas equivalent through atwo to four-rig drilling program during thenext 12 to 18 months. Chesapeake said ithas identified about 70 proved undevelopedand 75 probable and possible locations onthe acreage.
Greystone’s position specifically covers16,100 gross acres over the crest of theSligo Field, which produces gas from theRodessa, Pettit, Hosston and Cotton Valleyformations at depths of 4,100 feet to 9,600feet.
Project production would exceed 950 million cubic feet per day
With the Greystone property,Chesapeake’s proved oil and natural gasreserves would increase to roughly 3.8 tril-lion cubic feet of natural gas equivalent, andits projected June 2004 production wouldexceed 950 million cubic feet of natural gasequivalent per day.
Chesapeake also is increasing its 2004production forecast by 3 percent or 11 bil-lion cubic feet of gas equivalent to a rangeof 341-347 billion cubic feet of equivalent.About 9.7 billion cubic feet of the increasewas attributed to the anticipated productionfrom the Greystone transaction, while 1.3billion cubic feet was attributed to anticipat-ed higher production from better thanexpected recent drilling results.
Chesapeake said it intends to finance theGreystone acquisition using a combinationof proceeds from a new private issue of sen-ior notes, borrowings from the company’snewly expanded $500 million bank creditfacility and cash on hand. The deal isexpected to close June 2.
Greystone formed in 1995 Greystone was formed in 1995 by Joe
Bridges and Michael Geffert, who laterwere joined as equity holders by the privateequity firm First Reserve Corp. to help fundGreystone’s acquisition of interests in theSligo Field in 2002.
Prior to the announced $425 millionGreystone acquisition, deal-mindedChesapeake had closed acquisitions totaling$570 million for the year. The company said
in an April conference call on 2004 first-quarter earnings that it had no immediateplans for another acquisition.
“At the time there was an … offer on thetable and it looked like there would be noopportunity for us to be in that (Greystone)asset,” McClendon said. “We were able toget to front of some other people whoshould have had this transaction.”
Again, McClendon said Chesapeake isnot contemplating another large deal any-time soon, “but there’s always a chancesomething will change down the road.”
On the other hand, McClendon said,Chesapeake remains “very active” in thesmall acquisition market. “I know there area couple $20 million deals, one of whichwe’ve entered into and pursuing right now,”he added. ●
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CHESAPEAKE
storage and set it up as a separate entity.” Getting a return on storage is an issue, he
said, “because it takes a special reservoir, ittakes extra compression and special invest-ment to provide that storage.”
Storage could also be tied in with a spurline from a gas pipeline coming off theNorth Slope, he said, with a small spurpipeline used “to fill storage down here,supplement the gas that’s already here…
“So you fill up that storage in the sum-mer time, and then you use that as addition-al supply in the winter time. So you don’thave as much investment in a pipe and youuse a lot of the existing facilities you’ve gothere.”
But, Hampton said, you’d have tounbundle storage first. “And I don’t thinkwe’ve quite gotten there yet — I don’t thinkpeople have recognized that, yeah, we’regoing to have to have a separate storagefacility and it’s something we need to investin.”
We’ve gotten better at drilling Cook Inletgas wells, Barnes said, now we’ve “got toget better at managing pipelines.” Oncewe’ve gotten better at managing pipelines,he said, then we can work at managing astorage business.
“Right now, I would be very concernedat trying to take a storage opportunitythrough the regulatory process. It’s neverbeen done before here.”
There are “brand new sets of uncertain-ties and issues to manage” as the inletmatures, Barnes said, and the state has “gotto get better, more efficient, more pre-dictable, more effective” at managing eachof those steps. ●
continued from page A18
PROGRESS
and marginal oil wells (under 25 barrels perday), the bill includes tax relief forOldsmobile dealers that need to convert toanother brand. The last Olds rolled off theassembly line April 29.
Senators voted 85-13 to defeat anattempt by Sen. John McCain, R-Ariz., tostrip all of the energy provisions from thebill. McCain, known for his vocal opposi-tion to special-interest legislation, calledthe bill’s tax sections “a Christmas tree ofgoodies.”
The bill also includes personal taxdeductions for mortgage insurance premi-ums, a lower corporate tax rate for U.S.manufacturers to make up for the loss ofthe export tax break, tax credits for compa-nies that employ military reservists calledto active duty, and a provision blockingproposed Bush administration restrictionson overtime for some white-collar workers.
Alaska’s been waiting since NovemberBut it was the energy provisions that
Alaska has been waiting for since a com-prehensive energy bill stalled in the Senatelast November. The Senate FinanceCommittee estimated the cost of the entireenergy tax package at $18 billion, of whichabout 3 percent would go toward encourag-ing construction of the Alaska gas line.
The corporate income tax credit for thecost of building a gas treatment plant on theNorth Slope and accelerated depreciationfor the pipeline are worth an estimated$500 million in tax savings to projectdevelopers. The quicker depreciationschedule would allow companies to writeoff their pipeline investment in seven yearsinstead of 15 years.
The bill also includes a commodity riskprovision, or so-called marginal well cred-it, to protect North Slope producers if thewellhead value of gas drops below $1.35per thousand cubic feet. But House leader-ship and the president have opposed such
price floors for Alaska gas in past legisla-tive attempts, and few expect them toaccept the Senate’s latest price-protectionprovision.
The credit would max out at 52 cents permcf, regardless how low the wellheadvalue might drop in the future.
“We need these provisions for construc-tion of this pipeline to go forward,” saidSen. Lisa Murkowski, R-Alaska, arguing ina press release for the price-risk protectionas the bill moved to the House.
Gas line incentives not part of the controversy
Other than the commodity price provi-sion, the gas line tax incentives are not con-troversial, said John Katz, director ofAlaska’s Washington, D.C., office. Housedebate will be led by fiscal conservativesworried about the price tag for the entirebill and many of the corporate tax breaks,Katz said.
“There are some ideological concerns
over there,” he said of the House.There is no timetable for House action
on the bill, Katz said, although he does notexpect to see any movement before law-makers break for Memorial Day. The nextopportunity would be after Congressreturns in early June and before they leavefor the Fourth of July.
Not included in the tax bill are two otherkey provisions pushed by potential gas linedevelopers: federal loan guarantees for debttaken on to pay for billions of dollars ofconstruction, and enabling legislation tospeed up permitting and judicial review.
“The key question remains finding alegislative vehicle to carry the authorizingprovisions,” Katz said. Because lawmakerssee that the energy bill is dead — evenSenate Minority Leader Tom Daschle, D-S.D., says it’s true — Congress is lookingfor other legislation that could be amendedto carry the remaining energy provisions.
A20 PETROLEUM NEWS • WEEK OF MAY 16, 2004THE REST OF THE STORY
Globe and Mail as saying Talisman was try-ing to “get signatures on a number of explo-ration blocks” to gain entry to Libya.
Iraq more distant for Nexen Iraq is a more distant prospect for Nexen,
which indicated last year that it could parlayits Yemen experience to help rebuild thewar-damaged oil industry.
“Our time frame on that opportunity hascertainly lengthened because of all theissues that we see in Iraq,” said Fischer.
“It was never our intention to go into Iraqon a remediation basis. We wanted to go inon an exploration basis or a developmentbasis.”
He said it is “obvious the world has notunfolded (in Iraq) as the Americans hadhoped and right now it appears, looking infrom the outside, to be a bit of a quagmire.”
Fischer said Nexen’s view is to remainpatient. “The reserves aren’t going to goaway.”
For now, Yemen is a vital element of theNexen portfolio, contributing 114,000 bpdto total output of 258,000 bpd, with a num-ber of projects under way to maintain thatlevel.
Fischer said he has no concerns aboutanti-Western feelings affecting Nexen’soperations in Yemen, where its good reputa-tion has helped its entry into Nigeria and itschances of exploiting recoverable resourcesof about 500 million barrels in the offshoreUsan field.
Buckee still challenged over Sudan Buckee, who gained notoriety for cling-
ing to a stake in Sudan against mountinghuman rights opposition, is similarly dubi-ous about Iraq.
He said it is “not a reasonable risk at themoment” because there is no clarity on whowould grant title to oil properties.
It’s almost a year since Talisman exitedSudan, selling production of 60,000 barrelsof oil equivalent per day to India’s ONGVidesh.
But it can’t shake off the protesters, whochallenged Buckee at the annual meeting tosay he was wrong to enter the war-torncountry in the first place and demandingcompensation for those displaced by theGreater Nile oil project.
Buckee refused to bend, insisting theplight of Sudan has remained unchangedsince Talisman’s departure, while Talismanwas continuing its “corporate responsibility”in Sudan despite its pull-out. ●
continued from page A1
LIBYA
1992 to 2002. Of the 7,800 active oil andgas leases in the Gulf, 54 percent are indeep water.
Exploration drilling in 2002 and 2003alone turned up more than 2 billion bar-rels of oil equivalent, MMS noted, addingthat a dozen fields came on stream in2003, with another 13 planned in 2004and “many more” to come down the road.
“The future of deepwater Gulf ofMexico exploration and productionremains very promising,” MMS conclud-ed.
Financial, technical challenges indeeper waters
However, there will be financial andtechnical challenges as industry movesinto deeper waters in pursuit of bigger tar-gets. In fact, MMS says the Gulf’s “newfrontier” now lies in waters greater than7,000 feet, representing a dramatic shiftin deepwater exploration.
Still, in the last three years, there havebeen 12 announced discoveries in the so-called “ultra-deepwater” over 7,000 feet:Aconcagua, Camden Hills, Blind Faith,Merganser, St. Malo, Trident, Cascade,Great White, Vortex, Atlas, Chinook,Jubilee, Spiderman-Amazon and Tobago.
MMS argues that the presence of deep-er, pre-Miocene reservoirs, successes inthe recently opened Eastern Gulf ofMexico sale area, and significant discov-eries in the ultra-deepwater furtherdemonstrate the continuing explorationpotential in deeper waters of the Gulf.
“These new plays are large in aerialextent, have multiple opportunities, andcontain huge traps with the possibility ofbillions of barrels of hydrocarbons,” the
agency said.MMS cites advances in 3-D seismic
imaging that led to such major subsaltdiscoveries as Mad Dog, Atlantis, Tahiti,Thunder Horse and North Thunder Horseas further evidence of deepwater Gulf’spotential. The agency also noted thatgreat expanses of the Gulf’s deepwaterout to 10,000 feet are now covered in 3-Dseismic, reducing “the inherent risks oftraditional hydrocarbon exploration andallow imaging of previously hiddenprospects.”
Time-lapse seismic surveys, alsoknown as 4-D, likely will be “the nextsignificant seismic technology” to beapplied in deepwater Gulf, MMS said,adding that the high cost of drilling deep-water wells and challenges related to re-entering wells “may promote” the use of4-D seismic.
“The technique can be applied to char-acterize reservoir properties, monitor pro-duction efficiency, and estimate volumet-rics from inception through the life of thefield,” MMS said.
Subsea well completions enhance economics
The rapid escalation of subsea wellcompletions and tiebacks to existingproduction platforms, commonly usedin shallower waters of the continentalshelf, also has greatly enhanced the eco-nomics of marginal discoveries in deep-water Gulf.
“The technology required to imple-ment subsea production systems indeepwater evolved significantly in thelast decade,” MMS said, noting that 70percent of subsea completions are inwater depths greater than 2,500 feet. Sofar, Camden Hills in the Eastern Gulfhas the deepest production in the Gulf,in water depths of 7,216 feet.
About 300,000 barrels of oil and 2billion cubic feet of gas per day comefrom deepwater subsea completions,which currently account for about 30percent of deepwater oil production andabout 50 percent of deepwater gas pro-duction.
The length of a pipeline tying a sub-sea completion to its host platform alsohas increased significantly. Most subseawells are within 10 miles of platforms,with the Mensa field holding the worldrecord at 62 miles. The world’s secondlongest tieback (55 miles) project in theworld is Canyon Express, linkingAconcagua, Camden Hills and King’sPeak to their host platform in theEastern Gulf.
Perhaps the most attractive featuresof deepwater Gulf are the high produc-
tion rates of wells and the sheer size ofreserves, which average 86 million bar-rels of oil equivalent per field versus 5million barrels in shallower waters. TheThunder Horse complex in MississippiCanyon, the largest discovery in theGulf, holds an estimated 1.4 billion bar-rels of reserves.
Agency sees lag betweenexploration and first production
MMS attributes an apparent declinein proved deepwater reserve additions inrecent years to lag time betweenexploratory drilling and development. Itcan take years before companies beginbooking reserves from discoveries.
“Because of the lag betweenexploratory drilling and first production,the true impact of recent, large deepwa-ter exploratory successes is not reflectedin MMS proved and unproved reserveestimates,” the agency explained.
Nevertheless, there should be no dis-pute with MMS research showing thenumber of deepwater rigs and explorato-ry wells drilled on average has been onthe decline in recent years, although theagency also sees a silver lining in theseseemingly troubling statistics.
MMS points to its so-called “cream-ing curve” to illustrate what can be rea-sonably expected in the way of discov-eries in the future. While its model con-tains fewer discoveries, the fields tendto be large, resulting in a reserve curvewith a steep and favorable slope.
“The slope indicates an area that isstill in an immature exploration phasewith many large fields awaiting discov-ery,” MMS said. “The limited number ofdiscoveries, steep slope of the curve,and large amount of hydrocarbon vol-umes already discovered support thisprediction.”
And while the overall number ofdeepwater exploratory wells hasdeclined during the past two years,MMS said a “considerable drillingactivity” has occurred in water depthsgreater than 7,500 feet, realm of the newfrontier.
Explorers, in search of untested geo-logic zones, also are going deeper interms of overall drilling depth. A record31,824 feet, including the water column,was achieved in 2003. ●
continued from page A1
PROMISE
Progression of spar deepwater development systems.
FrontUpNabors Alaska Drilling employees take part in aworkover at Nabors rig 3S atKuparuk on Alaska’s NorthSlope.
CONTINENTAL U.S.
CANADA
ALASKA
Volume 9, No. 20May 2004
Providing information about companies that serve North America’s oil and gas industry
NEI Fluid Technology
Worksafe
2
12
Company News11
AeroMap13
CH2M Hill14
FEATURED COMPANIES
JUDY PATRICK PHOTO
B2 PETROLEUM NEWS • WEEK OF MAY 16, 2004PETROLEUM DIRECTORY
NEI Fluid TechnologyTraditional values in service — old Alaska style
By SUSAN BRAUND Petroleum Directory Contributing Writer
laska’s sourdoughs fathered thepractice of recycling in the North. Inthe artful tradition of making-do andusing what you have on hand, Blazo
shipping crates have long been the rawmaterial for shelves, stools, tables, night-stands, shop storage bins, sled boxes andanimal traps. Sometimes they are evenreferred to as Alaskan lumber. Originally,the heavy-duty wooden boxes each housedtwo Blazo cans containing white gasoline,pearl kerosene or aviation fuel. Althoughthe boxes are still prevalent in the Bush,it’s rare to see one around town. In fact,they are fast becoming a collector’s item,selling for around $30.
Much to my delight, when I entered theNEI Fluid Technology showroom, Iencountered a display made from Blazoboxes and glass, apropos to the company’sorigins as aviation fuel handling and quali-ty control specialists. The company nowtargets both the aviation and the oil andgas industries.
The Anchorage-based business, conve-niently located in midtown on ArcticBoulevard, specializes in the sales, serviceand repair of filtration and flow measure-ment equipment. In addition to aviationand oil and gas, it also serves the chemical,food, waste, industrial and environmentalindustries.
The founders, Monte and Linda Parrish,operated the business for nearly 25 yearsuntil a plane crash took their lives in 1997.Kathryn Russell, who currently co-ownsthe business with her husband Reggie,began working for the Parrishes in 1992,taking customer orders and learning ship-ping, receiving, and of course, part num-bers. “It was their wish for me to continuethe business,” says Russell, who took overin 1997.
Second in command of the woman-owned business is Lee Mock. The twowomen, who have beenfriends since elementaryschool, comprise thesales force. They arebusiness and grit —putting in long hours,traveling and doingtheir darndest to meetcustomer demand.Sharing in the day-to-day operation of thecompany, they know thebusiness and each otherso well that they couldeasily finish eachother’s sentences.
Both women havestrong business manage-ment skills — enhancedby their affinity for working together —and each brings individual strengths to thebusiness. Kathryn has a strong backgroundand knowledge of filtration and fuelingequipment, combined with a knack forsolving difficult applications with costeffective solutions and a determination toprovide her customers with the best possi-ble service. She enjoys the aviation indus-try and spends a lot of her time visitingcommercial and military facilities. Leepossesses an outgoing drive to meet hercustomers’ needs. Her knowledge of theflow measurement side of the industry hasallowed her to travel to the North Slope,offshore platforms, refineries, and truck-loading racks where she can ascertain cus-tomer needs and match them up to the
proper products for their applications. They are currently working on 8(a) cer-
tification for larger military projects. Russell paints watercolors for relax-
ation, while Lee enjoys running and otherforms of exercise. Both women are alsovery involved with their families. Lee hasa four-year-old daughter Sierra, and a baby
on the way, and Kathryn has a three-year-old daughter Haley. Each youngster hastheir own spot when they visit the officeand Haley has learned to use the phonepaging system, which makes for someinteresting moments around the office.
New emphasisThe main catalyst for diversification
was the events of 9-11. “When the aviationindustry stopped flying for so long wetook a hit, along with many of our cus-tomers. It has been a long road back tonormality for us all,” explains Russell.“But, through the dedication and hardwork of our aviation customers the indus-try is now again soaring.”
“Our primary concentration over thelast year has been to develop stronger ties
to the oil and gas industries with the addi-tion of some great new product lines thatcover the production leases, pipelines andloading terminals and truck refuelers.We’re making steady progress and expand-ing lines.” reports Mock.
Products and services: what’s new“In June, 2003 FMC Smith Metering’s
rep recognized us as a good candidate forthe sub distributorship for Alaska,” saysMock. “In addition to our line of InvalcoTurbine meters we now offer many differ-ent types of custody and non-custodytransfer flow meters, along with manytechnology choices from posi-tive displacement flow meterslike Smith and Liquid Controlsto turbine meters, mag meters,coriolis meters and ultrasonicmeters.”
In addition to their manystandard products, NEI FluidTechnology is also offeringwireless tank gauging and inter-face equipment, sampling sys-tems, additive injection equip-ment, loading arms (truck andmarine) and swivel joints, drybreak couplers and Veederootregisters, printers and electroniccounters.
“We are in the process of put-ting together a fleet of provingvehicles (provers) and mastermeters for calibration of small truck refuel-ers to large truck loading racks,” saysRussell. “We intend to have a fully capableservice team which will handle shop andfield service repair along with calibrationof all types of flow measurement devices.”
Challenges Russell and Mock agree that the tough-
est challenge is keeping the bases covered.
“Cross country freight and lead times are areal challenge, as well as handling theemergency needs of our customers. But it’sa very interesting and rewarding business.We seem to learn something new every-day.” says Russell. “The technologies areever changing and we have to do our bestto keep current.”
“The best part of our job is our interac-tion with our customers. We have thegreatest customer base: everyone is nice,friendly and easy to do business with.Sometimes customers stop by just to sayHi,” says Mock. “We know about eachothers’ kids, what sports they play andmore. It’s personalized service for sure —old Alaska style.”
Satisfied customers“NEI Fluid Technology is very respon-
sive and supportive,” says Lew Dennis,Unocal’s lead facilities manager. “Whenour engineers or facilities call with a prob-lem and need parts or help, they are rightthere working to make sure we havewhat’s needed, whether it’s maintenance,parts or new products.”
Valdez Marine Terminal MeasurementSpecialist Harold Gray reports, “I am verypleased with the level of service from Leeand Kathryn; they are very friendly andwant to please their customers … I thinkthe world of them both. They’ve only beenrepping Smith Meters for about a year, butso far all’s well. They are willing to learnand want to do a good job.”
NEI has been serving the aviationindustry for over 20 years. Hugh Brodigan,maintenance shop lead at Alaska FuelService Co./Aircraft Services InternationalGroup for 16 years, says,” NEI has won-derful service and wonderful products.We’ve been dealing with them for 20years. They are definitely service-oriented.A lot of companies in my industry won’tdeal direct, so without NEI we’d in a fix!”
Overcoming the oddsBecause the company is small and
woman-owned in a dominantly maleindustry, they are hungrier and more driv-en to please, according to Russell. “Itforces us to be more knowledgeable aboutthe products we sell and service. I feel thatmany people would be surprised to know
the depth of our abilities. We would lookforward to meeting with anyone who hasan interest in learning about the companyand the products we sell. We intend to beone-stop local Alaska shopping for ourniche in the industries we service.” ●
Editor’s note: Susan Braund ownsFirestar Media Services in Anchorage,Alaska.
A
An assortment of coalescers, separators and clay filters on display at NEI Fluid Technology.
Service-oriented: Lee Mock and Kathryn Russell of NEI FluidTechnology focus on old-Alaska-style service with a smile.
One of many updated products available at NEI FluidTechnology, the ThermoProbe TP-5, a digital thermome-ter used in determining temperatures in large fuel tanksand in custody transfer.
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PETROLEUM NEWS • WEEK OF MAY 16, 2004 B3PETROLEUM DIRECTORY
Companies involved in NorthAmerica’s oil and gas industry
AAeromapAeromedAES Lynx EnterprisesAgriumAir Logistics of AlaskaAlaska Airlines CargoAlaska AnvilAlaska CoverallAlaska DreamsAlaska Interstate ConstructionAlaska Marine LinesAlaska Massage & Body WorksAlaska Railroad Corp.Alaska SteelAlaska Tent & TarpAlaska TerminalsAlaska TextilesAlaska West ExpressAlaska’s PeopleAlliance, TheAlpine-MeadowAmerican MarineAnchorage HiltonArctic ControlsArctic Fire & SafetyArctic FoundationsArctic Slope Telephone Assoc. Co-opArrowHealthASRC Energy ServicesASRC Energy Services
Engineering & TechnologyASRC Energy Services
Operations & MaintenanceASRC Energy Service
Pipeline Power &CommunicationsAvalon Development
B-F
Badger ProductionsBaker HughesBrooks Range SupplyCapital Office SystemsCarlile Transportation ServicesCH2M HillChiulista Camp ServicesCN AquatrainColvilleConam ConstructionConocoPhillips AlaskaCraig Taylor EquipmentCrowley AlaskaCruz Construction
Dowland - Bach Corp.Doyon DrillingDynamic Capital ManagementEngineered Fire and SafetyENSR AlaskaEpoch Well ServicesEra AviationEvergreen Helicopters of AlaskaEvergreen Resources AlaskaFairweather Companies, TheFMC Energy SystemsFriends of PetsFrontier Flying ServiceF.S. Air
& Construction SupplyJudy Patrick PhotographyKakivik Asset ManagementKenai AviationKenworth AlaskaKuukpik Arctic Catering Kuukpik/VeritasKuukpik - LCMFLounsbury & AssociatesLynden Air CargoLynden Air FreightLynden Inc.Lynden InternationalLynden LogisticsLynden TransportMapmakers of AlaskaMarathon OilMEDC InternationalMI SwacoMichael Baker JrMillennium HotelMontgomery Watson HarzaMRO Sales
N-P
Nabors Alaska DrillingNANA/Colt Engineering
Natco CanadaNature Conservancy, TheNEI Fluid TechnologyNordic CalistaNorthern Air CargoNorthern Transportation Co.Northwestern Arctic AirOffshore DiversOilfield TransportPacific Rim Institute
of Safety and Management(PRISM)PanalpinaPDC/Harris GroupPeak Oilfield Service Co.PencoPerkins CoiePetroleum Equipment & ServicesPetrotechnical Resources of AlaskaPGS OnshoreProComm AlaskaPrudhoe Bay Shop & Storage
Q-Z
QUADCOSalt + Light CreativeSchlumbergerSecurity AviationSeekins FordSourdough ExpressSpan-Alaska ConsolidatorSTEELFABStorm Chasers Marine ServicesTaiga VenturesThrifty Car RentalTOTETotem Equipment & SupplyTravco Industrial HousingUBS Financial Services Inc.Udelhoven Oilfield Systems ServicesUmiat CommercialUnique MachineUnitech of AlaskaUnivar USAU.S. Bearings and DrivesUsibelli Coal MineVECOWeaver BrothersWorksafeWell SafeXTO Energy
B4 PETROLEUM NEWS • WEEK OF MAY 16, 2004PETROLEUM DIRECTORY
Air Passenger/Charter & Support
Air Logistics of Alaska1915 Donald Ave.Fairbanks, AK 99701Phone: (907) 452-1197Fax: (907) 452-4539Contact: Dave ScarbroughPhone: Anchorage: (907) 248-3335Email: [email protected] contract and charter services.
ERA Aviation6160 Carl Brady DriveAnchorage, AK 99502Contact: Bryan BlixhavnPhone: (907) 248-4422Fax: (907) 266-8383Email: [email protected] site: www.eraaviation.comHelicopter and fixed wing contract and charter servic-es; scheduled airline service.
Evergreen Helicopters of Alaska1936 Merrill Field Dr.Anchorage, AK 99501Contact: Joy Journeay, marketing mgr.Phone: (907) 257-1519Fax: (907) 279-6816Email: [email protected]: Greg Thies, director of marketingPhone: (907) 257-1504Email: [email protected] office: (907) 443-5334Airlines office: (907) 257-1500Logistics: (907) 243-8677Website: evergreenaviation.comEvergreen’s diverse fleet has provided award-winningsafety to Alaskans since 1960 in petroleum exploration& production, firefighting, forestry, construction,search & rescue, cargo transport, and utility transmis-sion.
F.S. Air6121 S. Airpark PlaceAnchorage, AK 99502Contact: Sandra ButlerPhone: (907) 248-9595Fax: (907) 243-1247Email: [email protected] site: www.fsair.comPart 135 D.O.D. approved. Member of MedallionFoundation.
Kenai AviationP.O. Box 46Kenai, AK 99611Contact: Bob or Jim BielefeldPhone: (907) 283-4124Phone: (800) 478-4124 (within Alaska)Fax: (907) 283-5267Email: [email protected] taxi services provided since 1961 state wide, mostlyCook Inlet. Single engine and twin Bonanza.
LyndenAlaska Marine LinesAlaska Railbelt MarineAlaska West ExpressLynden Air CargoLynden Air FreightLynden InternationalLynden LogisticsLynden Transport6441 S. Airpark Pl.Anchorage, AK 99502Contact: Jeanine St. JohnPhone: (907) 245-1544Fax: (907) 245-1744Email: [email protected] combined scope of the Lynden companies includestruckload and less-than-truckload highway connec-tions, scheduled barges, intermodal bulk chemicalhauls, scheduled and chartered air freighters, domesticand international air forwarding and international seaforwarding services.
Northern Air Cargo3900 W. International Airport Rd. Anchorage, AK 99502Contact: Nick Karnos, acct. mgr. Anch./Prudhoe BayPhone: (907) 249-5161Fax: (907) 249-5194Email: [email protected] site: www.nac.aeroServing the aviation needs of rural Alaska for almost50 years, NAC is the states largest all cargo carriermoving nearly 100 million pounds of cargo on sched-uled flights to 17 of Alaska’s busiest airports. NAC’sfleet of DC-6, B-727, and ATR-42 aircraft are availablefor charters to remote sites and flag stops to 44 addi-tional communities.
Northwestern Arctic Air6231 S. Airpark Pl.Anchorage, AK 99502Contact: Judy McClellan, office mgr.Phone: (907) 245-4566Fax: (907) 245-4567Email: [email protected]
Web site: www.NWArcticAirAK.comOn-demand, worldwide, air charter service, Russia Far-East experience, medical transports, express packagedelivery, secure convenient, cost-effective, 24/7.Member Medallion Foundation.
Security Aviation3600 International Airport Rd.Anchorage, AK 99502Contact: S. Joe KapperPhone: (907) 248-2677 – 24 hour serviceFax: (907) 248-6911Email: [email protected]: www.securityaviation.bizAll twin engine aircraft including Citation-II businessjet. Crew changes, hot freight-worldwide, VIP tours,emergency response. Approved by all oil companies,Alyeska & DOD.
Architecture
Capital Office Systems1120 E, 35th Ave.Anchorage, AK 99508Contact: Leslye Langla, managing direct.Phone: (907) 777-1501Fax: (907) 777-1515Email: [email protected] management, systems furniture, project coordi-nation, space planning, systems delivery/installation,furniture refurbishing, and relocation/remodel services.Authorized Steelcase dealer for Alaska.
Kuukpik-LCMF139 E. 51st Ave.Anchorage, AK 99503Contact: Richard Rearick, architectural mgr.Contact: Willey Wilhelm, engineering mgr.Contact: Tony Hoffman, survey mgr.Phone: (907) 273-1830Phone: (800) 955-1830Fax: (907) 273-1831
Email: [email protected] Offices:Barrow: (800) 478-8213Email: [email protected]: (907) 670-4739Email: [email protected] specialized architectural and engineering designfor all structures; water/sewer, fuel and transportationsystems design; contractor support surveying and per-mitting for oil and gas development; dredging opera-tions, remote site land and hydrographic surveying.
Arctic Engineering
ASRC Energy Services3900 C St., Ste. 701Anchorage, AK 99503Contact: Jack Laasch, exec. vp strategic dev. and exter-nal affairsPhone: (907) 339-6200Fax: (907) 339-6212Email: [email protected] site: www.asrcenergy.comOil and gas services, engineering, construction, opera-tions, maintenance, pipeline construction and mainte-nance, project management, geological and geophysi-cal, drilling and completion engineering, well stimula-tion, exploration services.
ASRC Energy Services – Engineering andTechnology3900 C St.Anchorage, AK 99503Contact: John Lewis, vp operationsPhone: (907) 339-6200Fax: (907) 339-6212Email: [email protected] site: www.asrcenergy.comDrilling and completion engineering, well stimulation,facilities engineering, upstream exploration and pro-duction services, geological and geophysical services,automation, electrical and instrumentation, platform
PETROLEUM NEWS • WEEK OF MAY 16, 2004 B5PETROLEUM DIRECTORY
renovation and construction.
Golder Associates1750 Abbott Rd., Ste. 200Anchorage, AK 99507Contact: Bob Dugan, mgr., TomKrzewinski, Mark Musial, Bucky TartPhone: (907) 344-6001Fax: (907) 344-6011Website: www.golder.comProviding geotechnical engineering,water resource, and geosciences servicesin support of resource developmentprojects in Alaska and the Arctic. Otheroffices worldwide.
Great Northern Engineering137 E. Arctic Ave.Palmer, AK 99645Contact: John H. Riggs, general mgr.Phone: (907) 745-6988Fax: (907) 745-0591Email: [email protected]: www.greatnorthernengineer-ing.comAnchorage office: 561-0200Kenai office: 283-5199Great Northern Engineering (GNE) is afull-service engineering firm specializingin industrial power and petro-chemicalengineering. Complete engineeringservices in mechanical, electrical, civil,structural, rotating equipment, and cor-rosion engineering. Consulting servicesin project design, preparation of projectdocuments, bid assistance, project man-agement, cost estimating and inspectionservices.
Arctic Gear
PGS Onshore341 W. Tudor Rd., Ste. 206Anchorage, AK 99503Contact: Larry Watt, Alaska area mgr. Phone: (907) 569-4049Fax: (907) 569-4047Email: [email protected] Office738 Hwy 6 South, Ste 900Houston, TX 77079Contact: Gehrig SchultzPhone: (281) 589-6732Fax: (281) 589-6685Email: [email protected] acquisition and processingfor the petroleum industry. PGS Onshoreprovides fully rubber tracked Arctic geo-physical crews to acquire the highestdensity data with the softest environ-mental footprint on the North Slope.
Aviation Fuel Sales
Umiat Commercial2700 S. Cushman St.Fairbanks, AK 99701Contact: Mike TolbertPhone: (907) 452-6631Fax: (907) 451-8632Email: [email protected] provides lodging and fuel sales atUmiat located on the Colville River. Weare open 24 hours a day everyday of theyear.
Bearings
U.S. Bearings & Drives611 E. International Airport Rd.Anchorage, AK 99518Contact: Dena Kelley, operations mgr.Phone: 563-3000Fax: 563-1003Email: [email protected] site: www.bearings.comU.S. Bearings & Drives, formerly BESCOhas been providing bearings and drivecomponents to our Alaskan customerssince 1952. We offer quality compo-nents and experienced personnel.
Buildings — Lease Space
Prudhoe Bay Shop & StorageDeadhorse AirportDeadhorse, AK 99734Contact: J. Harper Gaston, presidentP.O. Box 670Greenville, GA 30222Phone: (706) 672-0999Fax: (706) 672-1188Email: [email protected] designed for oilfield services.Located one-half mile north ofDeadhorse airport. 800 sf.–1,200 sf.individual or combined units. Rentincludes heat, snow removal, mainte-
nance and repairs.
Buildings — Modular
Alaska Cover-All LLC 6740 Jollipan Crt.Anchorage, AK 99507Contact: Paul Nelson, mgr.Phone: (907) 346-1319Fax: (907) 346-4400Email: [email protected]: Henry Brown Phone: (907) 646-1219We are the Alaska dealers for Cover-AllBuilding Systems. Steel framed, fullyengineered, LDPE fabric covered,portable buildings in 18 to 270 footwidths and any length.
Alaska Dreams522 Goldstreak Rd.Fairbanks, AK 99712Contact: M. Huser, presidentPhone: (907) 455-7712Fax: (907) 455-7713Email: [email protected] in design, sales and construc-tion of fabric covered steel buildings, acost efficient building solution for manyapplications. We offer our worldwide,longtime experience for your futureproject.
Travco Industrial Housing, Ltd.1507 8 St.Nisku, Alberta, CanadaContact: Stewart Orange, sales rep.Phone: (888) 387-2826Fax: (780) 955-8938Email: [email protected] Web site: www.travco.caTravco is a world-class manufacturer ofindustrial and commercial modularstructures. Our modular structures areused around the world as work camps,offices, wellsites, resorts, schools, etc.
Camps, Catering & Lodging
Alaska Tent & Tarp529 Front St.Fairbanks, AK 99701Contact: Jim HaselbergerPhone: (907) 456-6328Fax: (907) 452-5260Email: [email protected] site: www.ptialaska.net/~aktent
Chiulista Camp Services6613 Brayton Dr., Ste. CAnchorage, AK 99507Contact: George B. Gardner, pres/gmPhone: (907) 278-2208Fax: (907) 677-7261Email: [email protected] 100 percent Alaska Native ownedand operated catering company on theNorth Slope, catering and housekeepingto your tastes, not ours.
Kuukpik Arctic Catering5761 Silverado Way, Ste PAnchorage, AK 99518Contact: Rick MacMillanPhone: (907) 562-5588Fax: (907) 562-5898Email: [email protected]
Travco Industrial Housing, Ltd.1507 8 St.Nisku, Alberta, CanadaContact: Stewart Orange, sales rep.Phone: (888) 387-2826Fax: (780) 955-8938Email: [email protected] Web site: www.travco.caTravco is a world-class manufacturer ofindustrial and commercial modularstructures. Our modular structures areused around the world as work camps,offices, wellsites, resorts, schools, etc.
Umiat Commercial2700 S. Cushman St.Fairbanks, AK 99701Contact: Mike TolbertPhone: (907) 452-6631
Fax: (907) 451-8632Email: [email protected] provides lodging and fuel sales atUmiat located on the Colville River. Weare open 24 hours a day everyday of theyear.
Cash Management
UBS Financial Services, Inc.3000 A St., Ste 100Anchorage, AK 99503Contact: Steven Lukshin, financial advis-erPhone: (907) 261-5914Toll Free: (866) 261-5914Fax: (907) 261-5990Email: [email protected] site: www.ubs.com/fa/stevenlukshinUBS Financial Services is a leading U.S.financial service firm serving individuals,corporations and institutions offeringinvestments, cash management and401(k) services
Cellular Communications
ASTAC4300 B St., Ste. 501Anchorage, AK 99503Contact: Erin EalumPhone: (907) 563-3989Phone: 1-800-478-6409Fax: (907) 563-1932Email: [email protected] service cellular company providingcellular and wireless solutions, includingequipment sales and service, wirelessInternet, maintenance and installationto the North Slope region of Alaska.
Chemicals
AgriumP.O. Box 575Kenai, AK 99611
Contact: Lisa Parker, govt. relationsPhone: (907) 776-3275Fax: (907) 776-5579Email: [email protected] site: www.agrium.comValue added manufacturer of fertilizerproducts.
MI SWACO721 W. First Ave.Anchorage, AK 99501 &225 W. 92nd Ave.Anchorage, AK 99515Contact: Craig BieberPhone: (907) 274-5564Email: [email protected] or [email protected] SWACO DSR combines Alaska know-how and global strength to provide theoil industry with a full-service drillingpartner
Univar USA590 E. 100th Ave.Anchorage, AK 990515Contact: Ken LambertsenPhone: (907) 344-7444Fax: (907) 522-1486Email: [email protected] site: www.univarusa.comWorld’s largest industrial chemical dis-tributor serving Alaskans since 1924.Industrial emphasis in oil and gas refin-ing, procuring and gas treating.
U.S. Bearings & Drives611 E. International Airport Rd.Anchorage, AK 99518Contact: Dena Kelley, operations mgr.Phone: 563-3000Fax: 563-1003Email: [email protected] site: www.bearings.comU.S. Bearings & Drives, formerly BESCOhas been providing bearings and drivecomponents to our Alaskan customerssince 1952. We offer quality compo-nents and experienced personnel.
Chemical Analytical Lab
Univar USA590 E. 100th Ave.Anchorage, AK 990515Contact: Ken LambertsenPhone: (907) 344-7444Fax: (907) 522-1486Email: [email protected] site: www.univarusa.comWorld’s largest industrial chemical dis-
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black and white photos for this directory. Contact Wadeen Hepworth for details:Call (907) 770-3506, email [email protected] or submit photos or
slides by mail to Wadeen’s attention at Petroleum News, P.O. Box 231651, Anchorage,AK 99523. All photos should be accompanied by a caption explaining when the picturewas taken and describing what’s in it.
B6 PETROLEUM NEWS • WEEK OF MAY 16, 2004PETROLEUM DIRECTORY
tributor serving Alaskans since 1924.Industrial emphasis in oil and gas refin-ing, procuring and gas treating.
Civil & Hazardous Waste
MWH1835 S. Bragaw St., Ste. 350Anchorage, AK 99508Contact: Brett JokelaPhone: (907) 248-8883Fax: (907) 248-8884Email: [email protected] engineers, scientists, and construc-tors of MWH provide innovative proj-ects and solutions for clients throughoutAlaska and Worldwide.
Univar USA590 E. 100th Ave.Anchorage, AK 990515Contact: Ken LambertsenPhone: (907) 344-7444Fax: (907) 522-1486Email: [email protected] site: www.univarusa.comWorld’s largest industrial chemical dis-tributor serving Alaskans since 1924.Industrial emphasis in oil and gas refin-ing, procuring and gas treating.
Coal — Export
Usibelli Coal Mine100 Cushman St., Ste. 210Fairbanks, AK 99701Contact: Bill Brophy, vp cust. relationsPhone: (907) 452-2625Fax: (907) 451-6543Email: [email protected] site: www.usibelli.comOther OfficeP. O. Box 1000Healy, AK 99743Phone: (907) 683-2226Usibelli Coal Mine is headquartered inHealy, Alaska and has 200 million tonsof proven coal reserves. Usibelli pro-duced one million tons of sub-bitumi-nous coal this year.
Commercial Diving
American Marine Corp.6000 A St.Anchorage, AK 99518Contact: Tom Ulrich, reg. mgr. svc. groupPhone: (907) 562-5420Fax: (907) 562-5426Email: [email protected] site: www.amsghq.comAmerican Marine Corp. provides fullservice marine construction and divingservices throughout Alaska and thePacific Basin.
Offshore Divers5400 Eielson St.Anchorage, AK 99518Contact: Don Ingraham, owner/mgr.Contact: Leif Simcox, owner/oper. mgr.Phone: (907) 563-9060Fax: (907) 563-9061Email: [email protected] site: http//www.offshoredivers.comOffshore Divers is an Alaska owned div-ing contractor specializing in sub-sea oil-
field work on mooring systems,pipelines, platforms and docks in CookInlet, on the North Slope and in Valdez.
Storm Chasers Marine ServicesP.O. Box 757Seward, AK 99664Contact: Mica Van BuskirkPhone: (907) 224-3536Fax: (907) 224-6080Email: [email protected] quality marine services inAlaska for over 15 years. Commercialdiving, underwater welding, underwa-ter inspection with video, vessel repair,marine construction and marine salvageservices.
Communications
ASRC Energy Services – Pipeline,Power & Communications3900 C St., Anchorage, AK 99503Contact: Wade BlasingamePhone: (907) 339-6400Fax: (907) 339-6444Email:[email protected] site: www.asrcenergy.comPipeline construction and maintenance,fiber optic cable installation.
ASTAC4300 B St., Ste. 501Anchorage, AK 99503Contact: Erin EalumPhone: (907) 563-3989Phone: 1-800-478-6409Fax: (907) 563-1932Email: [email protected] local and long distance serv-ice, Internet, maintenance and training,consultation, installation, engineering,Centrex, custom calling features, digitalcross connect service, and digital dataservice to the North Slope region ofAlaska.
Michael Baker Jr.4601 Business Park Blvd., Ste. 42Anchorage, AK 99503Contact: Bud Alto, business unit mgr.Phone: (907) 273-1600Fax: (907) 273-1699Email: [email protected] site: www.mbakercorp.comJuneau office: 175 Franklin St., Ste. 420Juneau, AK 99801Contact: McKie Campbell, Sr. environ-mental mgr.Phone: (907) 463-3171Fax: (907) 463-3107Email: [email protected] firm with project man-agement, permitting, fiber optic, civil,structural, mechanical, electrical, andinstrumentation services. Establishedoffices in Anchorage and Juneau pro-vide diversified staff accepting the chal-lenges, delivering excellence.
ProComm Alaska4831 Old Seward Hwy., #111Anchorage, AK 99503Contact: Natha Thompson, director ofsales & marketing
Phone: (907) 373-7628 (Wasilla)Fax: (907) 373-7636Phone: (907) 563-1176 (Anchorage)Toll Free: (800) 478-9191 (outsideAlaska)Email: [email protected]: www.ProCommAk.comProComm Alaska represents the com-plete line of Motorola products and is aMotorola service center. We offer thelatest two-way radio technology forbusiness and public safety. Locations inAnchorage, Fairbanks, Wasilla andSoldotna.
Construction Equipment & Materials
Alaska Dreams522 Goldstreak Rd.Fairbanks, AK 99712Contact: M. Huser, presidentPhone: (907) 455-7712Fax: (907) 455-7713Email: [email protected] an independent Rockford steel build-ing dealer we provide full service, indus-try leading hi-tech durable steel con-struction. The fully engineered and com-plete buildings guarantee fast and eco-nomical on site erection.
Brooks Range SupplyPouch 3400081 Old Spine RoadPrudhoe Bay, AK 99734Contact: Mike Kunkel/Craig Welch, gen-eral managersPhone: (907) 659-2550Toll Free: (866) 659-2550Fax: (907) 659-2650Email: [email protected] source on the Slope for safety sup-plies, welding supplies, automotive andtruck parts, hardware, tools, steel, build-ing materials, glass, propane, hydraulichoses and fittings, paint and chemicals.Napa and True Value Hardware distribu-tion.
Great NorthwestP.O. Box 74646Fairbanks, AK 99704-4646Contact: Buzz OtisPhone: (907) 452-5617Fax: (907) 456-7779Email: [email protected] site: www.grtnw.comSpecializing in cold weather and heavycivil construction, gravel and rock prod-ucts, site-work, petroleum industry con-struction, erosion control, undergroundutilities and reclamation services.
Jackovich Industrial & ConstructionSupplyFairbanks: 1600 Wells St.Attn: Buz JackovichPhone: (907) 456-4414Fax: (907) 452-4846Anchorage: 1716 Post RoadAttn: Steve SlonePhone: (907) 277-1406Fax: (907) 258-170024 hour emergency service. With 30 yearsof experience, we're experts on arctic con-ditions and extreme weather.
Construction Project& Management
Alaska Anvil509 W. 3rd Ave.Anchorage, AK 99501–2237Contact: Frank WeissPhone: (907) 276-2747Fax: (907) 279-4088Web site: anvilcorp.comOther office: Kenai50720 Kenai Spur Hwy, Mile 24.5Kenai, AK 99611Phone: (907) 776-5870Fax: (907) 770-5871Multi-discipline engineering and designservices including construction manage-ment for petro-chemical and heavyindustrial client projects.
Great Northern Engineering137 E. Arctic Ave.Palmer, AK 99645Contact: John H. Riggs, general mgr.Phone: (907) 745-6988Fax: (907) 745-0591Email: [email protected]: www.greatnorthernengineer-ing.comAnchorage office: 561-0200Kenai office: 283-5199Great Northern Engineering (GNE) is afull-service engineering firm specializingin industrial power and petro-chemicalengineering. Complete engineeringservices in mechanical, electrical, civil,structural, rotating equipment, and cor-rosion engineering. Consulting servicesin project design, preparation of projectdocuments, bid assistance, project man-agement, cost estimating and inspectionservices.
Great NorthwestP.O. Box 74646Fairbanks, AK 99704-4646Contact: Buzz OtisPhone: (907) 452-5617Fax: (907) 456-7779Email: [email protected] site: www.grtnw.comSpecializing in cold weather and heavycivil construction, gravel and rock prod-ucts, site-work, petroleum industry con-struction, erosion control, undergroundutilities and reclamation services.
Hawk Consultants200 W. 34th Ave., Ste. 809Anchorage, AK 99503Contact: Maynard Tapp, presidentPhone: (907) 278-1877Fax: (907) 278-1889Email: [email protected] people and resources to theoil, gas, power, telecommunication andpublic works industries. Services includestrategic planning, full service projectmanagement team consulting/outsourc-ing, supplemental professionals, profes-sionals, management consulting servic-es.
Lounsbury and Associates723 W. 6th Ave.Anchorage, AK 99501Contact: Craig L. Savage, presidentE-mail: [email protected]: Jim Sawhill, vp
PETROLEUM NEWS • WEEK OF MAY 16, 2004 B7PETROLEUM DIRECTORY
Email: [email protected]: (907) 272-5451Fax: (907) 272-9065Toll Free: (800) 478-5451Website: www.lounsburyinc.comProvides civil engineering and projectmanagement services for oilfield devel-opment. Recent projects include: Tarn,Pam and Colville Delta North.
Michael Baker Jr.4601 Business Park Blvd., Ste. 42Anchorage, AK 99503Contact: John M. Eldred, business unitmgr.Phone: (907) 273-1115Fax: (907) 273-1699Email: [email protected]: www.mbakercorp.comJuneau office: 175 Franklin St., Ste. 420Juneau, AK 99801Contact: McKie Campbell, sr. environ-mental mgr.Phone: (907) 463-3171Fax: (907) 463-3107Email: [email protected] skills include civil, structur-al, mechanical, electrical, project man-agement, GIS, and hydrology. Energyservices include CMMS (computerizedmaintenance management), managedoperation and maintenance,training/competency services, and otherrelated energy services.
NANA/Colt Engineering700 G Street, 5th floorAnchorage, AK 99501Phone: (907) 273-3900Fax: (907) 273-3990Contact: John MinierNANA/Colt offers project management,engineering, design, construction man-agement, and procurement services tothe oil industry.
VECO949 E. 36th Ave., Ste. 500Anchorage, AK 99508Contact: Emily CrossPhone: (907) 762-1510Fax: (907) 762-1001Email: [email protected] site: www.VECO.comVECO is a multi-national corporationthat provides services, project manage-ment, engineering, procurement, con-struction, operations and maintenance –to the energy, resource and processindustries and the public sector.
Contractors — General
Alaska Interstate ConstructionP.O. Box 233769Anchorage, AK 99523Contact: John EllsworthPhone: (907) 562-2792Fax: (907) 562-4179Email: [email protected]: www.aicllc.comAIC provides cost-effective solutions toresource development industries. Weprovide innovative ideas to meet eachrequirement through the provision ofbest-in-class people and equipment cou-pled with exceptional performance.
American Marine Corp.6000 A St.Anchorage, AK 99518Contact: Tom Ulrich, reg. mgr. svc. groupPhone: (907) 562-5420Fax: (907) 562-5426Email: [email protected] site: www.amsghq.comAmerican Marine Corp. provides fullservice marine construction and divingservices throughout Alaska and thePacific Basin.
ASRC Energy Services3900 C St., Ste. 701Anchorage, AK 99503Contact: Jack Laasch, exec. vp strategicdev. and external affairsPhone: (907) 339-6200Fax: (907) 339-6212Email: [email protected] site: www.asrcenergy.comOil and gas services, engineering, con-struction, operations, maintenance,pipeline construction and maintenance,project management, geological andgeophysical, drilling and completionengineering, well stimulation, explo-ration services.
ASRC Energy Services – Operationsand Maintenance
3900 C St.Anchorage, AK 99503Contact: Mark Nelson, exec. vpPhone: (907) 339-6200Fax: (907) 339-6212Email: [email protected] site: www.asrcenergy.comOil and gas services, industrial construc-tion, operations and maintenance, mod-ule fabrication and assembly, projectmanagement and non-destructive test-ing.
CONAM Construction301 W. Northern Lights Blvd., Ste 300Anchorage, AK 99503Contact: Bob StinsonPhone: (907) 278-6600Fax: (907) 278-3255Email: [email protected], gas, and mining facility; pipeline,civil, and commercial construction.
Cruz ConstructionHC04 Box 9323Palmer, AK 99645Contact: Dave or Dana CruzPhone: (907) 746-3144Fax: (907) 746-5557Email: [email protected] contractor specializing in heavycivil construction, horizontal directiondrilling for utilities. Ice road and icebridge construction throughout Alaskain support of resource development.
Great NorthwestP.O. Box 74646Fairbanks, AK 99704-4646Contact: Buzz OtisPhone: (907) 452-5617Fax: (907) 456-7779Email: [email protected] site: www.grtnw.comSpecializing in cold weather and heavycivil construction, gravel and rock prod-ucts, site-work, petroleum industry con-struction, erosion control, undergroundutilities and reclamation services.
H.C. Price301 W. Northern Lights Blvd., #300Anchorage, AK 99503Contact: David L. MatthewsPhone: (907) 278-4400Fax: (907) 278-3255Other offices: Dallas, Texas, and interna-tional.Email: [email protected] contractor performing oilfield sup-port construction projects and otherheavy industrial projects statewide.
MWH1835 S. Bragaw St., Ste. 350Anchorage, AK 99508Contact: Brett JokelaPhone: (907) 248-8883Fax: (907) 248-8884Email: [email protected] engineers, scientists, and construc-tors of MWH provide innovative proj-ects and solutions for clients throughoutAlaska and Worldwide.
Peak Oilfield Service2525 C St., Ste. 201Anchorage, AK 99503Contact: Bill Stamps, business develop-ment/ex. affairsPhone: (907) 263-7000Fax: (907) 263-7070Email: [email protected] site: www.peakalaska.comAlaska based general contractors.
Udelhoven Oilfield System Services Anchorage office:184 E. 53rd Ave.Anchorage, AK 99518Phone: (907) 344-1577Fax: (907) 522-2541Nikiski office:P.O. Box 8349Nikiski, AK 99635Phone: (907) 776-5185Fax: (907) 776-8105Prudhoe office:Pouch 340103Prudhoe Bay, AK 99734Phone: (907) 659-8093Fax: (907) 659-8489Serving Alaska for more than 25 years.
Contractors — Pipeline
ASRC Energy Services – Pipeline,Power & Communications3900 C St., Anchorage, AK 99503
Contact: Wade BlasingamePhone: (907) 339-6400Fax: (907) 339-6444Email:[email protected] site: www.asrcenergy.comPipeline construction and maintenance,fiber optic cable installation.
CONAM Construction301 W. Northern Lights Blvd., Ste 300Anchorage, AK 99503Contact: Bob StinsonPhone: (907) 278-6600Fax: (907) 278-3255Email: [email protected], gas, and mining facility; pipeline,civil, and commercial construction.
H.C. Price301 W. Northern Lights Blvd., #300Anchorage, AK 99503Contact: David L. MatthewsPhone: (907) 278-4400Fax: (907) 278-3255Other offices: Dallas, Texas, and interna-tional.Email: [email protected] contractor performing oilfield sup-port construction projects and otherheavy industrial projects statewide.
Peak Oilfield Service2525 C St., Ste. 201Anchorage, AK 99503Contact: Bill Stamps, business develop-ment/ex. affairsPhone: (907) 263-7000Fax: (907) 263-7070Email: [email protected] site: www.peakalaska.comAlaska based general contractors.
Control Systems
Arctic Controls1120 E. 5th Ave.Anchorage, AK 99501Contact: Scott Stewart, presidentPhone: (907) 277-7555Fax: (907) 277-9295Email: [email protected]: www.arcticcontrols.comAn Alaskan owned and operated com-pany since,1985, Arctic Controls, Inc. hasbeen highly successful as manufacturerrepresentatives for the state of Alaska inthe Process Control and Instrumentationfield. Selling equipment to the oil andgas markets, mining and water waste-water/municipal markets.
Kakivik Asset Management5401 Fairbanks St., Ste. 3Anchorage, AK 99518Phone: (907) 770-9400Fax: (907) 770-9450Contact: Mark Hylen, president/CEOEmail: [email protected] site: www.kakivik.comFairbanks OfficePhone: (907) 451-4898Fax: (907) 451-4897Valdez OfficePhone: (907) 831-1390Offering all elements of nondestructivetesting, inspection services, quality con-trol and asset management
Drilling & Completion Products
Schlumberger Oilfield Services2525 Gambell St.Anchorage, AK 99503Contact: Daniel PalmerPhone: (907) 273-1700Fax: (907) 561-8317Email: [email protected] site: www.slb.comSchlumberger Oilfield Services providespeople and technology, working togeth-er to offer exploration and productionsolutions for the life of oil and gasreservoirs.
Unique Machine5839 Old Seward Hwy
Anchorage, AK 99518Contact: Pat Hanley, COOPhone: (907) 563-3012Fax: (907) 562-1376Email: [email protected] site: www.uniquemachineinc.comConnections; API 5CT, API 7B, GrantPrideco H-Series, Hydril, Hunting, AtlasBradford, NS Technology Co, Inc.,Vallourec and Vam PTS proprietary con-nections.
Drilling & Well Services
ASRC Energy Services – Engineeringand Technology3900 C St.Anchorage, AK 99503Contact: John Lewis, vp operationsPhone: (907) 339-6200Fax: (907) 339-6212Email: [email protected] site: www.asrcenergy.comDrilling and completion engineering,well stimulation, facilities engineering,upstream exploration and productionservices, geological and geophysicalservices, automation, electrical andinstrumentation, platform renovationand construction.
Baker Hughes Inteq7260 Homer Dr.Anchorage, AK 99518Contact: Dave Reimer, AK mgr.Phone: (907) 267-6600Cell Phone: (907) 250-6420Fax: (907) 267-6623Email: [email protected] site: www.bakerhughes.comBaker Hughes Inteq delivers advanceddrilling technologies and services thatdeliver efficiency and precise well place-ment. Major capabilities include direc-tional drilling, measurement-while-drilling (MWD), logging-while-drilling(LWD), drilling fluids, and well-site infor-mation management services.
Doyon Drilling101 W. Benson Blvd., Ste. 503Anchorage, AK 99503Contact: Ron WilsonPhone: (907) 563-5530Fax: (907) 561-8986Email: [email protected]
The Fairweather Companies2000 E. 88th Ave.Anchorage, AK 99507Contact: Bill PenrosePhone: (907) 258-3446Fax: (907) 279-5740Website: www.fairweather.comThe Fairweather Companies provideproject management, engineering,drilling, permitting, logistics, and opera-tional services to the exploration andproduction sectors of the petroleumindustry.
FMC Energy Systems700 W. International Airport Rd.Anchorage, AK 99518-1122Contact: Alan McArthur, area mgr.Phone: (907) 563-3990Fax: (907) 563-5810Email: [email protected] of wellheads and Christmastrees, to API specifications, with repairfacility and service organization to sup-port all North Slope and Cook Inlet loca-tions.
MI SWACO721 W. First Ave.Anchorage, AK 99501Contact: Brad BillonPhone: (907) 274-5526Fax: (907) 279-6729Email: [email protected], AK 99501Contact: Dana RhodesPhone: (907) 274-5541Email: [email protected] SWACO combines Alaska know-howand global strength to provide the oilindustry with a full-service drilling part-ner
Nabors Alaska Drilling2525 C St., Ste. 200Anchorage, AK 99503Contact: Leslie AdamsPhone: (907) 263-6000Fax: (907) 563-3734Email: [email protected]
B8 PETROLEUM NEWS • WEEK OF MAY 16, 2004PETROLEUM DIRECTORYNIED341 W. Tudor Rd., Ste. 206Anchorage, AK 99503Contact: Conrad PerryPhone: (907) 561-0650Fax: (907) 561-0763Email: [email protected] site: www.NIEDI.com
Nordic-Calista Services4700 Business Park Blvd., Bldg. E, #19Anchorage, AK 99503Phone: (907) 561-7458Fax: (907) 563-8347Contact: Phil Snisarenko, OperationsMgr. Email: [email protected] Services provides innova-tive, reliable workover/drilling rigsspecifically designer for arctic condi-tions. We strive to maximize productivi-ty and efficiency while promoting safetyand environmentally-conscious drillpractices.
Petroleum Equipment & Services5631 Silverado Way, Ste GAnchorage, AK 99518Contact: Kevin Durling/Donald ParkerPhone: (907) 248-0066Fax: (907) 248-4429Email: [email protected] site: www.pesiak.comP.E.S.I. provides both conventional andspecialty products and services for theAlaska oil industry. Regardless of yourlocation, you will receive products andservice that is guaranteed to meet yourrequirements.
Quadco6116 Nielson WayAnchorage, AK 99518Contact: David Baggett, vp, AK mgr.Phone: (907) 563-8999Fax: (907) 563-8985Email: [email protected] offices: Farmington NM, DenverCO, Casper WYQuadco has supplied services to theAlaska oilfield since 1976. We havetrained personnel to help with instru-mentation, solids control, pipe handlingand Top Drive drilling equipment. 24hour on call
Schlumberger Oilfield Services2525 Gambell St.Anchorage, AK 99503Contact: Daniel PalmerPhone: (907) 273-1700Fax: (907) 561-8317Email: [email protected] site: www.slb.comSchlumberger Oilfield Services providespeople and technology, working togeth-er to offer exploration and productionsolutions for the life of oil and gasreservoirs.
Unique Machine5839 Old Seward HwyAnchorage, AK 99518Contact: Pat Hanley, COOPhone: (907) 563-3012Fax: (907) 562-1376Email: [email protected] site: www.uniquemachineinc.comThe design, development, manufactureand distribution of oilfield construction,mining, fishing and government partsto industry quality standards.
Drug Testing
ArrowHealth Corp.4050 Lake Otis Pkwy., Ste. 207Anchorage, AK 99508Contact: Lea Counts, dir. SubstanceAbuse Testing Div.Phone: (907) 868-8885Fax: (907) 868-8882Email: [email protected] site: www.arrowhealthcorp.comArrowHealth is Alaska’s premier serviceprovider of occupational health andsubstance abuse testing. We service thelocal community, national contracts, andgovernment agencies alike with cus-tomized solutions.
Worksafe300 W. 36th Ave., Ste. AAnchorage, AK 99503Phone: (907) 563-8378Fax: (907) 563-8380Web site: www.worksafeinc.comWorksafe works to keep your employ-ees from getting hurt on the job if theyare using drugs or alcohol. Worksafe
Drug Testing increases productivity,reduces liability with fewer injuries andaccidents and provides insurance costsavings.
Electrical
Dowland-Bach6130 Tuttle Pl.Anchorage, AK 99507Contact: Lynn JohnsonPhone: (907) 562-5818Fax: (907) 563-4721Web site: www.dowlandbach.comIndustrial control and panel fabrication
Northern Lights1200 W. International Airport WayAnchorage, AK 99519Contact: Jeff CampbellPhone: (907) 562-2222Fax: (206) 563-1921Email: [email protected] Website: www.northern-lights.com Northern Lights Marine and industrialgensets (5-200 kW) have a legacy inAlaska. Reliability, efficiency and cus-tomization are built into every genset.
Udelhoven Oilfield System ServicesAnchorage office:184 E. 53rd Ave.Anchorage, AK 99518Phone: (907) 344-1577Fax: (907) 522-2541Nikiski office:P.O. Box 8349Nikiski, AK 99635Phone: (907) 776-5185Fax: (907) 776-8105Prudhoe office:Pouch 340103Prudhoe Bay, AK 99734Phone: (907) 659-8093Fax: (907) 659-8489Serving Alaska for more than 25 years.
Employee Services
Alaska’s People2600 Cordova St., Ste. 211Anchorage, AK 99503Contact: Teresa Nelson, directorPhone: (907) 263-7013Fax: (907) 263-7083Email: [email protected] site: www.alaskapeople.comEmployment reference services with anemphasis on qualified Alaska Nativesand American Indians.
ArrowHealth Corp.4050 Lake Otis Pkwy., Ste. 207Anchorage, AK 99508Contact: Lea Counts, dir. SubstanceAbuse Testing Div.Phone: (907) 868-8885Fax: (907) 868-8882
Email: [email protected] site: www.arrowhealthcorp.comArrowHealth is Alaska’s premier serviceprovider of occupational health andsubstance abuse testing. We service thelocal community, national contracts, andgovernment agencies alike with cus-tomized solutions.
Hawk Consultants200 W. 34th Ave., Ste. 809Anchorage, AK 99503Contact: Maynard Tapp, presidentPhone: (907) 278-1877Fax: (907) 278-1889Email: [email protected] people and resources to theoil, gas, power, telecommunication andpublic works industries. Services includestrategic planning, full service projectmanagement team consulting/outsourc-ing, supplemental professionals, profes-sionals, management consulting servic-es.
Worksafe300 W. 36th Ave., Ste. AAnchorage, AK 99503Phone: (907) 563-8378Fax: (907) 563-8380Web site: www.worksafeinc.comWorksafe works to keep your employ-ees from getting hurt on the job if theyare using drugs or alcohol. WorksafeDrug Testing increases productivity,reduces liability with fewer injuries andaccidents and provides insurance costsavings.
Energy Services
ASRC Energy Services3900 C St., Ste. 701Anchorage, AK 99503Contact: Jack Laasch, exec. vp strategicdev. and external affairsPhone: (907) 339-6200Fax: (907) 339-6212Email: [email protected] site: www.asrcenergy.comOil and gas services, engineering, con-struction, operations, maintenance,pipeline construction and maintenance,project management, geological andgeophysical, drilling and completionengineering, well stimulation, explo-ration services.
ASRC Energy Services – Operationsand Maintenance3900 C St.Anchorage, AK 99503Contact: Mark Nelson, exec. vpPhone: (907) 339-6200Fax: (907) 339-6212Email: [email protected] site: www.asrcenergy.comOil and gas services, industrial construc-tion, operations and maintenance, mod-
ule fabrication and assembly, projectmanagement and non-destructive test-ing.
Hunter 3-D9898 Bissonnet St., Ste. 362Houston, TX 77036Contact: Dan Huston, vice presidentPhone: (713) 981-4650Fax: (713) 981-4650Email: [email protected] site: www.hunter3dinc.comHunter 3-D is a geophysical consultingcompany based in Houston, Texas. Weinterpret seismic, gravity and magneticdata for projects in Alaska and world-wide.
Michael Baker Jr.4601 Business Park Blvd., Ste. 42Anchorage, AK 99503Contact: John M. Eldred, business unitmgr.Phone: (907) 273-1115Fax: (907) 273-1699Email: [email protected]: www.mbakercorp.comJuneau office: 175 Franklin St., Ste. 420Juneau, AK 99801Contact: McKie Campbell, sr. environ-mental mgr.Phone: (907) 463-3171Fax: (907) 463-3107Email: [email protected] skills include civil, structur-al, mechanical, electrical, project man-agement, GIS, and hydrology. Energyservices include CMMS (computerizedmaintenance management), managedoperation and maintenance,training/competency services, and otherrelated energy services.
Engineering Services
AES Lynx Enterprises1029 W. 3rd Ave., Ste.400Anchorage, AK 99501Contact: Mark Schindler, president &CEOContact: Diane Fleisher, office mgr. Phone: (907) 277-4611Fax: (907) 277-4717Email: [email protected] professionals offer the followingservices: major project strategic plan-ning and project management; onshoreand offshore projects, exploration anddevelopment phases, permits and right-of-way acquisition, NationalEnvironmental Policy Act (NEPA) docu-mentation, Environmental Assessment(EA) and Environmental ImpactStatement (EIS) preparation.
Alaska Anvil509 W. 3rd Ave.Anchorage, AK 99501–2237Contact: Frank Weiss
CO
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An AeroMap employee processes “raw” LIDAR data into digital elevation models. See the company profile on page B13.
PETROLEUM NEWS • WEEK OF MAY 16, 2004 B9PETROLEUM DIRECTORY
Phone: (907) 276-2747Fax: (907) 279-4088Web site: anvilcorp.comOther office: Kenai50720 Kenai Spur Hwy, Mile 24.5Kenai, AK 99611Phone: (907) 776-5870Fax: (907) 770-5871Multi-discipline engineering and designservices including construction manage-ment for petro-chemical and heavyindustrial client projects.
Alpine-Meadow11043 Tsusena CircleEagle River, AK 99577Contact: George Snodgrass, presidentPhone: (907) 694-7423Fax: (907) 694-7423Email: [email protected]: www.alpine-meadow.comWe are a small, low-cost, professional,personal company with 18 years engi-neering and environmental experiencein Alaska with major oil companies. Weoffer permitting and compliance, strate-gic planning, incident investigations, cri-sis management services.
Engineered Fire & Safety3138 Commercial Dr.Anchorage, AK 99501Contact: Don Maupin, gen. mgr.Phone: (907) 274-7973 ext. 123Fax: (907) 274-6265Email [email protected] site: www.efs-fire.comAn industry leader in the design, inte-gration and testing of safety solutionsfor high value risks. UL system certifica-tions and panel fabrication.
ENSR International1835 S. Bragaw St., Ste. 490 Anchorage, AK 99512Contact: Chris L. Humphrey, P.E.Phone: (907) 561-5700Fax: (907) 273-4555Email: [email protected] Alaska since 1977. ENSR is anenvironmental engineering and consult-ing firm with more than 70 officesworldwide providing environmentalplanning, assessment, permitting, com-pliance management and contamina-tion cleanup.
The Fairweather Companies2000 E. 88th Ave.Anchorage, AK 99507Contact: Bill PenrosePhone: (907) 258-3446Fax: (907) 279-5740Website: www.fairweather.comThe Fairweather Companies provideproject management, engineering,drilling, permitting, logistics, and opera-tional services to the exploration andproduction sectors of the petroleumindustry.
Great Northern Engineering137 E. Arctic Ave.Palmer, AK 99645Contact: John H. Riggs, general mgr.Phone: (907) 745-6988Fax: (907) 745-0591Email: [email protected]: www.greatnorthernengineer-ing.com
Anchorage office: 561-0200Kenai office: 283-5199Great Northern Engineering (GNE) is afull-service engineering firm specializingin industrial power and petro-chemicalengineering. Complete engineeringservices in mechanical, electrical, civil,structural, rotating equipment, and cor-rosion engineering. Consulting servicesin project design, preparation of projectdocuments, bid assistance, project man-agement, cost estimating and inspectionservices.
Kakivik Asset Management5401 Fairbanks St., Ste. 3Anchorage, AK 99518Phone: (907) 770-9400Fax: (907) 770-9450Contact: Mark Hylen, president/CEOEmail: [email protected] site: www.kakivik.comFairbanks OfficePhone: (907) 451-4898Fax: (907) 451-4897Valdez OfficePhone: (907) 831-1390Offering all elements of nondestructivetesting, inspection services, quality con-trol and asset management.
Kuukpik-LCMF139 E. 51st Ave.Anchorage, AK 99503Contact: Richard Rearick, architecturalmgr.Contact: Willey Wilhelm, engineeringmgr.Contact: Tony Hoffman, survey mgr.Phone: (907) 273-1830Phone: (800) 955-1830Fax: (907) 273-1831Email: [email protected] Offices:Barrow: (800) 478-8213Email: [email protected]: (907) 670-4739Email: [email protected] specialized architectural and engi-neering design for all structures;water/sewer, fuel and transportationsystems design; contractor support sur-veying and permitting for oil and gasdevelopment; dredging operations,remote site land and hydrographic sur-veying.
NANA/Colt Engineering700 G Street, 5th floorAnchorage, AK 99501Phone: (907) 273-3900Fax: (907) 273-3990Contact: John MinierNANA/Colt offers project management,engineering, design, construction man-agement, and procurement services tothe oil industry.
Natco CanadaP.O. Box 850, Stn. TCalgary, Alberta T2H2H3Contact: Kevin Baird, bus. dev. mgr.Phone: (403) 203-2103Fax: (403) 236-0488Email: [email protected] site: www.natco-ca.comNatco Group engineers, designs andmanufactures process, wellhead andwater treatment equipment and sys-tems used in the production of oil and
gas worldwide.
PDC Harris Group1231 Gambell St.Anchorage, AK 99501Contact: Steve ThenoPhone: (907) 644-4716Fax: (907) 561-7028Email: [email protected]: Mike MooraPhone: same as aboveFax: same as aboveEmail: [email protected] site: www.harrisgroup.comPDC-Harris Group provides front-endengineering design, detailed design,and environmental permitting servicesto the oil, gas, and power generationmarkets.
Petrotechnical Resources of Alaska(PRA)3601 C St., Ste. 1378Anchorage, AK 99503Contact: Tom WalshPhone: (907) 272-1232Fax: (907) 272-1344Email: [email protected] multidisciplinary staff of qualifiedand experienced professionals possess adiverse array of technical capabilities toprovide our clients with a full spectrumof geoscience and engineering consult-ing services.
VECO949 E. 36th Ave., Ste. 500Anchorage, AK 99508Contact: Emily CrossPhone: (907) 762-1510Fax: (907) 762-1001Email: [email protected] site: www.VECO.comVECO is a multi-national corporationthat provides services, project manage-ment, engineering, procurement, con-struction, operations and maintenance –to the energy, resource and processindustries and the public sector.
Environmental Engineering & Consulting
AES Lynx Enterprises1029 W. 3rd Ave., Ste.400Anchorage, AK 99501Contact: Mark Schindler, President &CEOContact: Diane Fleisher, office mgr. Phone: (907) 277-4611Fax: (907) 277-4717Email: [email protected] professionals offer the followingservices: major project strategic plan-ning and project management; onshoreand offshore projects, exploration anddevelopment phases, permits and right-of-way acquisition, NationalEnvironmental Policy Act (NEPA) docu-mentation, Environmental Assessment(EA) and Environmental ImpactStatement (EIS) preparation.
Alaska Anvil509 W. 3rd Ave.Anchorage, AK 99501–2237Contact: Frank WeissPhone: (907) 276-2747
Fax: (907) 279-4088Web site: anvilcorp.comOther office: Kenai50720 Kenai Spur Hwy, Mile 24.5Kenai, AK 99611Phone: (907) 776-5870Fax: (907) 770-5871Multi-discipline engineering and designservices including construction manage-ment for petro-chemical and heavyindustrial client projects.
Alpine-Meadow11043 Tsusena CircleEagle River, AK 99577Contact: George Snodgrass, presidentPhone: (907) 694-7423Fax: (907) 694-7423Email: [email protected]: www.alpine-meadow.comWe are a small, low-cost, professional,personal company with 18 years engi-neering and environmental experiencein Alaska with major oil companies. Weoffer permitting and compliance, strate-gic planning, incident investigations, cri-sis management services.
ENSR International1835 S. Bragaw St., Ste. 490 Anchorage, AK 99512Contact: Chris L. Humphrey, P.E.Phone: (907) 561-5700Fax: (907) 273-4555Email: [email protected] Alaska since 1977. ENSR is anenvironmental engineering and consult-ing firm with more than 70 officesworldwide providing environmentalplanning, assessment, permitting, com-pliance management and contamina-tion cleanup.
Golder Associates1750 Abbott Rd., Ste. 200Anchorage, AK 99507Contact: Bob Dugan, mgr., TomKrzewinski, Mark Musial, Bucky TartPhone: (907) 344-6001Fax: (907) 344-6011Website: www.golder.comProviding geotechnical engineering,water resource, and geosciences servicesin support of resource developmentprojects in Alaska and the Arctic. Otheroffices worldwide.
MWH1835 S. Bragaw St., Ste. 350Anchorage, AK 99508Contact: Brett JokelaPhone: (907) 248-8883Fax: (907) 248-8884Email: [email protected] engineers, scientists, and construc-tors of MWH provide innovative proj-ects and solutions for clients throughoutAlaska and Worldwide.
Pacific Environmental (PENCO)6000 A St.Anchorage, AK 99518Contact: Tom Ulrich, reg. mgr. AmericanMaine svc. groupPhone: (907) 562-5420Fax: (907) 562-5426Email: [email protected] site: www.amsghq.comPENCO provides environmental
B10 PETROLEUM NEWS • WEEK OF MAY 16, 2004PETROLEUM DIRECTORY
response, containment and clean up.Hazardous wastes and contaminatedsite clean up and remediation. Asbestosand lead abatement. Petroleum vesselservices and bulk fuel oil facility andstorage tank maintenance, manage-ment and operations.
PDC Harris Group1231 Gambell St.Anchorage, AK 99501Contact: Steve ThenoPhone: (907) 644-4716Fax: (907) 561-7028Email: [email protected]: Mike MooraPhone: same as aboveFax: same as aboveEmail: [email protected] site: www.harrisgroup.comPDC-Harris Group provides front-endengineering design, detailed design,and environmental permitting servicesto the oil, gas, and power generationmarkets.
Quadco6116 Nielson WayAnchorage, AK 99518Contact: David Baggett, vp, AK mgr.Phone: (907) 563-8999Fax: (907) 563-8985Email: [email protected] offices: Farmington NM, DenverCO, Casper WYQuadco has supplied services to theAlaska oilfield since 1976. We havetrained personnel to help with instru-mentation, solids control, pipe handlingand Top Drive drilling equipment. 24hour on call
Environmental Response & Cleanup
Alaska Interstate ConstructionP.O. Box 233769Anchorage, AK 99523Contact: John EllsworthPhone: (907) 562-2792Fax: (907) 562-4179Email: [email protected]: www.aicllc.comAIC provides cost-effective solutions toresource development industries. Weprovide innovative ideas to meet eachrequirement through the provision ofbest-in-class people and equipment cou-pled with exceptional performance.
ENSR International1835 S. Bragaw St., Ste. 490 Anchorage, AK 99512Contact: Chris L. Humphrey, P.E.Phone: (907) 561-5700Fax: (907) 273-4555Email: [email protected] Alaska since 1977. ENSR is anenvironmental engineering and consult-ing firm with more than 70 officesworldwide providing environmentalplanning, assessment, permitting, com-pliance management and contamina-tion cleanup.
Great NorthwestP.O. Box 74646Fairbanks, AK 99704-4646Contact: Buzz OtisPhone: (907) 452-5617Fax: (907) 456-7779Email: [email protected]
Web site: www.grtnw.comSpecializing in cold weather and heavycivil construction, gravel and rock prod-ucts, site-work, petroleum industry con-struction, erosion control, undergroundutilities and reclamation services.
Pacific Environmental (PENCO)6000 A St.Anchorage, AK 99518Contact: Tom Ulrich, reg. mgr. AmericanMaine svc. groupPhone: (907) 562-5420Fax: (907) 562-5426Email: [email protected] site: www.amsghq.comPENCO provides environmentalresponse, containment and clean up.Hazardous wastes and contaminatedsite clean up and remediation. Asbestosand lead abatement. Petroleum vesselservices and bulk fuel oil facility andstorage tank maintenance, manage-ment and operations.
Unitech of Alaska2130 E. Dimond Blvd.Anchorage, AK 99507Contact: Debbie HawleyPhone: (907) 349-5142Phone: (800) 649-5859Fax: (907) 349-2733Email: [email protected]: [email protected] is Alaska’s only 24-hour oil spillremediation, environmental and indus-trial supply company. Specialty areasinclude sorbents, geotextile, contain-ment berms, drums and ice melt.
Environmental Supplies
Pacific Environmental (PENCO)6000 A St.Anchorage, AK 99518Contact: Tom Ulrich, reg. mgr. AmericanMaine svc. groupPhone: (907) 562-5420Fax: (907) 562-5426Email: [email protected] site: www.amsghq.comPENCO provides environmentalresponse, containment and clean up.Hazardous wastes and contaminatedsite clean up and remediation. Asbestosand lead abatement. Petroleum vesselservices and bulk fuel oil facility andstorage tank maintenance, manage-ment and operations.
Unitech of Alaska2130 E. Dimond Blvd.Anchorage, AK 99507Contact: Debbie HawleyPhone: (907) 349-5142Phone: (800) 649-5859Fax: (907) 349-2733Email: [email protected]: [email protected] is Alaska’s only 24-hour oil spillremediation, environmental and indus-trial supply company. Specialty areasinclude sorbents, geotextile, contain-ment berms, drums and ice melt.
Equipment & Heavy Hauling
Alaska Interstate ConstructionP.O. Box 233769Anchorage, AK 99523Contact: John EllsworthPhone: (907) 562-2792
Fax: (907) 562-4179Email: [email protected]: www.aicllc.comAIC provides cost-effective solutions toresource development industries. Weprovide innovative ideas to meet eachrequirement through the provision ofbest-in-class people and equipment cou-pled with exceptional performance.
Carlile Transportation Systems1800 E. 1st Ave.Anchorage, AK 99501Contact: Linda LearyPh: (907) 267-7797Fax: (907) 276-6786Email: [email protected] Offices: Fairbanks, Prudhoe Bay,Kenai, Seward, Federal Way, WA,Houston, TX, Edomonton, ALTAAlaska owned and operated, full service,multi-modal, transportation and logis-tics company.
Crowley Alaska2525 C St., Ste. 303Anchorage, AK 99503Contact: Craig TorngaPhone: (907) 278-4978Fax: (907) 257-2828Email: [email protected] transportation throughoutAlaska. North Slope heavy hauling withCATCO all-terrain vehicles.
Northern Transportation310 K St., Ste. 200Anchorage, AK 99501Contact: John Marshall, Lynette StorozPhone: (907) 264-6682Fax: (907) 264-6602Email: [email protected] transportation along Alaska’sNorth Slope via Mackenzie River route.
TOTE-Totem Ocean Trailer Express2511 Tidewater RoadAnchorage, AK 99501Contact: Curt StonerPhone: (907) 265-7215Phone: (800) 234-8683Fax: (907) 278-9689Email: [email protected] site: www.totemocean.comTOTE’s roll on/roll off ships sail twotimes per week between the Port ofTacoma and the Port of Anchorage.Transit time is a fast 66 hours.
Weaver Brothers14223 Kenai Spur Hwy.Kenai, AK 99611Contact: Glen Dye, terminal mgr.Phone: (907) 283-7975Fax: (907) 283-3677Email: [email protected] Offices:Anchorage, AlaskaFairbanks, AlaskaTrucking company specializing in oilfield winch truck services. Bed tandems& loaders plus rig moving capabilities.Petroleum and chemical trailers, low-boys, bulk trailers, vans and flats.
Equipment Sales/Rental
ColvillePouch 340012Prudhoe Bay, AK 99734Contact: Rick Hofreiter or John DalyPhone: (907) 659-3197Fax: (907) 659-3190Diesel, gasoline, jet fuel, aviation gaso-
line in bulk and small quantity deliver-ies, electronic card-lock fleet manage-ment, solid waste and recycling, steel,industrial gases and solid waste.
CONAM Construction301 W. Northern Lights Blvd., Ste 300Anchorage, AK 99503Contact: Bob StinsonPhone: (907) 278-6600Fax: (907) 278-3255Email: [email protected], gas, and mining facility; pipeline,civil, and commercial construction.
Hanover Canada500, 101-6 Ave. SWCalgary, AB, T2P 3P4 CanadaContact: Rod Saville, Country Mgr.CanadaPhone: (403) 261-6801Fax: (403) 266-1066Email: [email protected] site: www.hanover-canada.comHanover Canada is the leading providerof natural gas compression services andequipment in Canada. We maintain an85,000 horsepower rental compressionfleet in Canada and over 3.6 millionhorsepower rental fleet worldwide.Hanover custom designs productionequipment in accordance with cus-tomer’s specifications using strict inter-nal engineering standards. We have thecapability to provide process, mechani-cal and instrument design engineeringfor any production equipment projectworldwide.
Kenworth Alaska2838 Porcupine Dr.Anchorage, AK 99501Contact: Jim Scherieble, branch mgr.Phone: (907) 279-0602Phone: (800) 478-0602Fax: (907) 258-6639Email: [email protected]: [email protected]: www.kenworthalaska.comFairbanks office:3730 Braddock St.Fairbanks, AK 99701Contact: Ed Lewis, branch mgr.Phone: (907) 455-9900Fax: (907) 479-8295Kenworth Alaska is a full service truckdealership in two locations – Anchorageand Fairbanks. New and used trucksales, parts and service.
NEI Fluid Technology3408 Arctic Blvd.Anchorage, AK 99503Contact: Kathryn Russell, presidentPhone: (907) 561-4820Fax: (907) 562-2316Email: [email protected] of petrochemical refuelingand testing equipment, meters andvalve systems for the oil and gas indus-try and portable measurement forpetroleum, chemicals and bulk liquids.We also supply refrigerant recovery andrecycling equipment.
Peak Oilfield Service2525 C St., Ste. 201Anchorage, AK 99503Contact: Bill Stamps, business develop-ment/ex. affairsPhone: (907) 263-7000Fax: (907) 263-7070Email: [email protected] site: www.peakalaska.comAlaska based general contractors.
ERIK
BR
AU
ND
NEI Fluid Technology, an Anchorage-based business, specializes in the sales, service and repair of filtration and flow measurement equipment. In addition to aviation and oil and gas, it alsoserves the chemical, food, waste, industrial and environmental industries. See the company profile on page B3.
PETROLEUM NEWS • WEEK OF MAY 16, 2004 B11PETROLEUM DIRECTORY
Petroleum Equipment & Services5631 Silverado Way, Ste GAnchorage, AK 99518Contact: Kevin Durling/Donald ParkerPhone: (907) 248-0066Fax: (907) 248-4429Email: [email protected] site: www.pesiak.comP.E.S.I. provides both conventional andspecialty products and services for theAlaska oil industry. Regardless of yourlocation, you will receive products andservice that is guaranteed to meet yourrequirements. for Alaska oil industry.
Quadco6116 Nielson WayAnchorage, AK 99518Contact: David Baggett, vp, AK mgr.Phone: (907) 563-8999Fax: (907) 563-8985Email: [email protected] offices: Farmington NM, DenverCO, Casper WYQuadco maintains a fleet of oil fieldinstrumentation, solids control andother equipment for oilfield and indus-trial needs. We represent Varco OilTools, MD Totco, Texas Oil Tools, SPM,Derrick Equipment and various othermanufacturers. 24 hours on call
Totem Equipment & Supply2536 Commercial Dr.Anchorage, AK 99501Contact: Mike Huston, vpPhone: (907) 276-2858Fax: (907) 258-4623Email: [email protected] site: www.toteminc.comTotem Equipment & Supply Inc. locallyowned and operated since 1961.Supplies light, medium and heavyequipment. Specializing in temporaryand permanent heating solutions.
Travco Industrial Housing, Ltd.1507 8 St.Nisku, Alberta, CanadaContact: Stewart Orange, sales rep.Phone: (888) 387-2826Fax: (780) 955-8938Email: [email protected] Web site: www.travco.caTravco is a world-class manufacturer ofindustrial and commercial modularstructures. Our modular structures areused around the world as work camps,offices, wellsites, resorts, schools, etc.
Expeditor/Clerk Services
Chiulista Camp Services6613 Brayton Dr., Ste. CAnchorage, AK 99507Contact: George B. Gardner, pres/gmPhone: (907) 278-2208Fax: (907) 677-7261Email: [email protected] 100 percent Alaska Native ownedand operated catering company on theNorth Slope, catering and housekeepingto your tastes, not ours.
Well Safe Inc.209 E. 51st Ave.Anchorage, AK 99503Contact: Ken Carroll, district mgr.Phone: (907) 743-9871Fax: (907) 743-9872Email: [email protected] site: www.wellsafe.comA full service safety company specializ-ing in remote medical support, expedi-tors, confined space rescue teams, H2Sand safety consultants, OSHA trainingand rental/sales of gas detection andbreathing air systems.
Fertilizer
AgriumP.O. Box 575Kenai, AK 99611Contact: Lisa Parker, govt. relationsPhone: (907) 776-3275Fax: (907) 776-5579Email: [email protected] site: www.agrium.comValue added manufacturer of fertilizerproducts.
Financial Services
Dynamic Capital Management471 W. 36th Ave., Ste. 201Anchorage, AK 99503Contact: David Gottstein
Phone: (907) 562-6374Toll free: (800) 280-3962 (DYNA)Fax: (907) 563-9502Alaska money management firm, offer-ing experienced professional judge-ment, leading edge technology, and cus-tomized portfolios. Individual and cor-porate clients.
UBS Financial Services, Inc.3000 A St., Ste 100Anchorage, AK 99503Contact: Steven Lukshin, financial advis-erPhone: (907) 261-5914Toll Free: (866) 261-5914Fax: (907) 261-5990Email: [email protected] site: www.ubs.com/fa/stevenlukshinUBS Financial Services is a leading U.S.financial service firm serving individuals,corporations and institutions offeringinvestments, cash management and401(k) services
Fire Protection
MEDC International5829 West Sam Houston Pkwy, North,Ste.1005Houston, TX 77041Contact: Phil Hausman, U.S. sales mgr.Phone: (713) 937-9772Fax: (713) 937-9773Email: [email protected] Office: MEDC Ltd. – UKWebsite: www.medc.comMEDC design, manufacture and sell arange of UL/CENELEC approved fielddevices for fire & gas and communica-tions systems for use in potentiallyexplosive atmospheres.
Freight/Shipping & Cargo
Air Logistics of Alaska1915 Donald Ave.Fairbanks, AK 99701Phone: (907) 452-1197Fax: (907) 452-4539Contact: Dave ScarbroughPhone: Anchorage: (907) 248-3335Email: [email protected] contract and charter services.
Alaska Airlines CargoP.O. Box 68900Seattle, WA 98168Contact: Keola Pang-Ching, director,cargo salesPhone: (206) 433-3122Fax: (206) 433-3225Email: [email protected] winning cargo services to moreplaces, more often, with more lift to,from, and within the state of Alaska.
Alaska RailroadP.O. Box 107500Anchorage, AK 99510Contact: Wende Lance, marketing andlogistics technicianPhone: (907) 265-2485Fax: (907) 265-2597Email: [email protected] Alaska Railroad Corporation offersreal estate, passenger and freight servic-es – including complete services to moveyour freight between Alaska, the Lower48 and Canada.
Alaska Terminals400 W 70th Ave., Ste.3Anchorage, AK 99518Contact: Calista WoodPhone: (907) 349-6657Fax: (907) 349-2045Email: [email protected] site: www.akterminals.comOther Offices: Mitchell Moving & Storage, SeattleGlacier State Moving & Storage,FairbanksAlaska Terminals provides full servicehousehold goods relocation services to,from, and within Alaska. International,and local residential and office moves;heated, and secured storage.
Brooks Range SupplyPouch 3400081 Old Spine RoadPrudhoe Bay, AK 99734Contact: Mike Kunkel/Craig Welch, gen-eral managersPhone: (907) 659-2550Toll Free: (866) 659-2550Fax: (907) 659-2650Email: [email protected]
Expediting and delivery of hardwareand more throughout oilfield and NorthSlope villages. Open 24 hours, 365 daysa year. Toll free number 866-659-2550.
CN Aquatrain3015 Madison WayAnchorage, AK 99508Contact: Laurie A. Gray, agentPhone: (907) 279-3131Toll free: (800) 999-0541Fax: (907) 272-3963CN Aquatrain has provided Alaska withdependable access to Canadian andLower 48 markets for 38 years.
Carlile Transportation Systems1800 E. 1st Ave.Anchorage, AK 99501Contact: Linda LearyPh: (907) 267-7797Fax: (907) 276-6786Email: [email protected] Offices: Fairbanks, Prudhoe Bay,Kenai, Seward, Federal Way, WA,Houston, TX, Edomonton, ALTAAlaska owned and operated, full service,multi-modal, transportation and logis-tics company.
Crowley Alaska2525 C St., Ste. 303Anchorage, AK 99503Contact: Craig Tornga
Phone: (907) 278-4978Fax: (907) 257-2828Email: [email protected] transportation throughoutAlaska. North Slope heavy hauling withCATCO all-terrain vehicles.
ERA Aviation6160 Carl Brady DriveAnchorage, AK 99502Contact: Bryan BlixhavnPhone: (907) 248-4422Fax: (907) 266-8383Email: [email protected] site: www.eraaviation.comHelicopter and fixed wing contract andcharter services; scheduled airline serv-ice.
F.S. Air6121 S. Airpark PlaceAnchorage, AK 99502Contact: Sandra ButlerPhone: (907) 248-9595Fax: (907) 243-1247
Kenai AviationP. O. Box 46Kenai, AK 99611Contact: Bob or Jim BielefeldPhone: (907) 283-4124Phone: (800) 478-4124 (within Alaska)Fax: (907) 283-5267Email: [email protected]
COMPANY NEWSNew Alaska principal for ASCG
Bernard Nidowicz, P.E., has been promoted by ASCGInc. to senior vice president and principal in charge ofAlaska operations.
He is now responsible for the Anchorage, Barrow andFairbanks offices of ASCG, a subsidiary of Arctic SlopeRegional Corp. that provides engineering, architectural andtechnical services.
Nidowicz, a professional civil engineer, has 27 years ofengineering and management experience. He has extensiveexperience dealing with permafrost for projects involvingstructures, pipelines, utilities and transportation.
He earned his B.S. and M.S. degrees in civil engineering from the Universityof Alaska Fairbanks.
—PETROLEUM NEWS
BERNARD NIDOWICZ
New undersea tree from SchlumbergerSchlumberger Oilfield Services has added a new high-performance tree for
subsea wells in water depths of up to 10,000 feet. The new SenTREE HP has a bore of 6 3/8 inches and a working pressure rat-
ing of 15,000 pounds per square inch. It can be used for horizontal subseaChristmas tree technology, and also can be brought in as a conventional tree.
The new technology will allow testing and completion of exploration, apprais-al and development wells in difficult underwater environments.
Schlumberger is upgrading its Commander telemetry in-riser controls to matchthe SenTREE HP system. The new control systems will provide a 15-secondresponse time to shut in the well and disconnect the landing string in any waterdepth.
More information is available at http://www.oilfield.slb.com/sentreehp/.—PETROLEUM NEWS
Schlumberger offers surveillance andcontrol package to boost subsea flows
Subsea developments perform at just 75 percent of the yield of land and plat-form wells, according to Schlumberger Oilfield Services. The company is offer-ing a package of services to help close that gap.
Operators of undersea wells don’t intervene routinely because of the costs andrisks, Schlumberger says, cutting industry revenue by up to $10 billion a year.
Schlumberger’s Subsea Production Assurance package combines the compa-ny’s expertise in project management, systems engineering and technology. Thecompany says its comprehensive approach ties the reservoir, wellbore, and pro-cessing facilities into one complete network, with data monitoring and controlacross the various systems.
The core of the system is flow surveillance, boosting and assurance servicesfrom Schlumberger. Flow surveillance allows real-time data to be analyzed tomaximize productivity and reduce risks. Flow boosting ensures optimal use oflifting and pressure boosting technologies. And flow assurance uses advance fluidsampling and analysis to optimize productivity.
A separate surveillance and control system has an advantage because the oper-ation doesn’t affect existing infrastructure, so it can be upgraded without affect-ing production, the company notes.
More information in Schlumberger’s service is available at http://www.oil-field.slb.com/subsea.
—PETROLEUM NEWS
B12 PETROLEUM NEWS • WEEK OF MAY 16, 2004PETROLEUM DIRECTORY
Keeping drugs out of the workplace17 years of experience, an exemplary reputation and cutting edge technology positions WorkSafe as the industry leader
By ALAN BAILEYPetroleum Directory Contributing Writer
ith so much safety awareness nowadays, keepingdrugs out of the workplace has become a criticalissue for many companies. Nobody can afford thesafety risks, the legal issues and the work ineffi-
ciency associated with drug use.During the past 17 years WorkSafe Inc., based in
Anchorage, Alaska, has moved to the forefront of drugand alcohol testing in the United States.
“We started in 1986 in criminal justice drug testing,eventually expanding into workplace drug testing,”Stephen Mihalik, general manager of WorkSafe, toldPetroleum News.
Eight years ago, NANA Development Corp., anAlaska Native regional corporation, bought the company.The company continued to grow under NANA’s owner-ship; WorkSafe is now the recognized leader in the indus-try, serving customers nationwide.
Mihalik explained that the company operates as a full-service, third-party administrator, coordinating all aspectsof drug testing for customers in regulated and non-regu-lated industries alike.
“We merge all the facets of drug testing — laboratory,collections, policy, medical review officer, DOT regula-tions — into one source for the customer,” Mihalik said.
Regulated testingDealing with government regulated testing has become
a major component of WorkSafe’s services — theDepartment of Transportation mandates drug testing forsafety-sensitive occupations in all forms public trans-portation, including the operation of oil and gas pipelines.
Matthew Fagnani, president of WorkSafe, comparedWorkSafe’s role in dealing with regulated testing to thatof a CPA providing tax services. The company’s expertscan explain how the regulations apply in a particular situ-ation, to make sure that the customer’s policies achievelegal compliance and coordinate the testing program.
“Oftentimes, federal regulations are confusing,”Fagnani said. “We make sure theyare operating in compliance with alegally defensible drug and alcoholtesting policy.”
Non-regulated testingEven in situations where govern-
ment drug testing regulations don’tapply, employers will often initiate aprogram of drug testing to improvesafety and efficiency in the work-place. In fact drug testing works tothe advantage of employees as wellas employers.
“If you have a fellow employeewho is worried about where theirnext fix is coming from rather thanbacking you up properly, you canimage how nerve wracking that canbe,” Fagnani said.
WorkSafe helps customers assesstheir needs and formulate drug-test-ing policies.
“Some clients do only pre-employment drug testing,”Mihalik said. “Other customers create a deterrent policysuch as random testing.”
In Alaska, WorkSafe also helps customers avoid litiga-tion by ensuring compliance with state statute 23.10 forworkplace drug testing.
“If an employee tests positive and the employer fol-lowed the steps of (statute) 23.10, then the employer inmost cases cannot be sued,” Mihalik said.
Testing for evidenceWorkSafe tests to find evidence of drug use rather than
for medical or health care purposes. This testing for evi-dence places some strict legal requirements on how to dothe sampling, test the samples and document the results.
“If a significant part of the documentation, the testingor the collection is flawed, that evidence is no longeradmissible,” Mihalik said.
It’s also critical to protect the person being tested byguaranteeing that the sample tested belongs to the donor
and that the test results remain confidential.“Our responsibility is to also make sure that there’s
donor integrity in the testing process,” Fagnani said.In the event of a positive test, WorkSafe engages the
services of a medical review officer. The medical reviewofficer is a qualified physician who contacts the donor todetermine if there is a medical explanation for the posi-tive test.
Reliable servicesThe use of highly reliable people and organizations for
services such as sample collection and laboratory analysisis essential because of the legal ramifications of drug test-ing. A mistake in the testing process could prove disas-
trous for both employer and employee.WorkSafe’s Anchorage-based staff includes three certi-
fied substance abuse professionals. With its extensiveexperience in the drug testing business, the company haslinked up with a cadre of top-notch service providersacross Alaska and the rest of the United States.
DOT regulated drug testing requires the use of federal-ly certified testing laboratories. However, WorkSafe goesbeyond that standard by using federally certified laborato-ries for both regulated and non-regulated testing and bymaking sure that the laboratories meet WorkSafe’s ownstrict standards.
“In our mind not all labs are the same ... we gothrough some testing of our own,” Fagnani said. “Youpick a lab very carefully because you want to make surethat you’re representing your customer well.”
It’s also important that test results come back quickly,regardless of the test donor’s location in the UnitedStates. Test samples are sent by air, counter-to-counter, tothe laboratory. The laboratory downloads the results
through a secure link directly into WorkSafe’s computersystem.
TrainingMihalik sees training and awareness as key factors in
achieving a drug-free workplace. In particular, WorkSafeprovides training for the recognition of the signs andsymptoms of drug and alcohol use.
“Having a drug-free workplace is not a matter of hav-ing ink on paper,” Mihalik said. “It’s got to be a livingdocument ... there’s got to be a constant awareness tohave that deterrence.”
There’s also a critical issue around giving both theemployer and employee confidence in the drug testingprocess — explaining how the tests are conducted, howpeople’s identities are protected and how the test resultsare tied back to the donors. It’s important to addressemployee concerns that might range from the impact ofsocial drinking habits to worries about privacy.
“We’ll help with an employee orientation to explain tothe employees some of the protocols and what theemployer’s policy says,” Fagnani said.
National leadershipWorkSafe has achieved a pre-eminent national position
in its industry. The company has been actively involvedin the Substance Abuse Program Administrator’sAssociation — Fagnani is a past president of theAssociation board and Mihalik is a current board mem-ber.
This national involvement enables WorkSafe topromptly inform its customers about changes to the regu-lations and any new drug testing issues.
“Some of the things we’ve done to bring national lead-ership to Alaska is through seminars where we’ve broughtup representatives from Washington, D.C.,” Fagnani said.
WorkSafe has also established a national reputation forits training programs — through its affiliate company,Professional Training Systems, WorkSafe provides train-ing for drug testing companies throughout the nation.
“We’ve written and produced one of the premier train-ing programs in the country for our industry through deskreference guides, videos, Internet training, classroomtraining and seminar instructors,” said Fagnani. “We alsowrite and distribute a quality newsletter to report nationaltrends, new technologies, policy changes, etc.”
Fagnani attributes much of the company’s success toits years of experience. There’s no substitute for the depthof knowledge that comes from seeing how the testing reg-ulations, policies and procedures work out in practice.That depth of knowledge often proves essential in thiscomplex and legally sensitive field.
“We’ve learned in 17 years that experience does countin drug and alcohol testing,” Fagnani said. ●
Editor’s note: Alan Bailey owns Badger Productionsin Anchorage, Alaska
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Stephen Mihalik, C-SAPA, C-SI, WorkSafe’s General Manager conducting a drug awareness class.
WorkSafe’s state-of-the-art collection facility with five workstations designed tominimize the amount of time clients need to wait.
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PETROLEUM NEWS • WEEK OF MAY 16, 2004 B13PETROLEUM DIRECTORY
Measuring, mapping the earth’s surfaceAeroMap provides a wide range of aerial photography, remote sensing and geographic information system services
By ALAN BAILEYPetroleum Directory Contributing Writer
he use of computers to manipulate maps is dramati-cally improving the efficiency of anything fromurban planning to oil and gas exploration. And air-craft or satellite-based systems for acquiring so-called
geospatial data — images and other data that describe theearth’s surface — are transforming mapmaking from alabor-intensive handcraft into a rapid, automated process.
AeroMap U.S., based in Anchorage, Alaska, sits at theforefront of this technological revolution. The company’sthree aircraft, high-tech equipment and state-of-the-artcomputer systems provide customers with a completerange of services for capturing and processing geospatialdata.
“The company was founded in 1960 by CaseyFesperman,” Tony Follett, senior vice president ofAeroMap, told Petroleum News.
The company, originally called Air Photo Tech, mergedwith North Pacific Aerial Surveys in 1988 to formAeroMap. In 1993 Wisconsin-based Aero-Metric Inc.,which owned Walker Alaska Aerial Survey, acquiredAeroMap. The Alaska business has continued to operateunder the name of AeroMap U.S.
The company services a wide variety of clients inAlaska, as well as elsewhere in the United States andinternationally.
Aerial photographyFrom the outset, aerial photography has formed the
core of the company’s business.For map production, an aircraft equipped with a spe-
cial, large-format camera shoots photographs verticallydownwards. The aircraft follows a straight track at a setaltitude and the camera fires every few seconds, toachieve about a 60 percent overlap between adjacent pho-tos. This overlap enables the photos to be viewed asstereoscopic pairs when extracting elevation informationfrom the images.
“It’s all controlled by airborne GPS systems,” Follettsaid.
The camera setup also uses inertial measuring units —the same devices that are used for navigation on intercon-tinental ballistic missiles, Follett explained.
“These very finely determine the attitude, so everytime we take a picture ... we know pre-cisely where (the camera) is ... it’sautomatically fired by a computersystem when you travel a certaindistance or for a certain numberof seconds,” Follett said.
Digital photography hasalso entered the aerial pho-tography business. The cor-poration now owns a digi-tal mapping camera witha ground resolution thatcan be as fine as twoinches.
Although map pro-duction requires verti-cal images, customersoften want obliqueaerial photographs to illustrate loca-tions.
“For most people that’s howthey’re used to looking at things —from an angle, not looking straightdown,” Follett said.
Over the years AeroMap has amassed a huge library ofboth vertical and oblique aerial photographs.
“We’ve got aerial film that goes back to 1939 here inour library,” Follett said. “We’ve probably got well over1.5 million negatives in our library.”
Satellite imageryAeroMap also markets satellite imagery.“We are the Alaska reseller for DigitalGlobe, which is
a company that has the highest resolution commercialsatellite available today,” Follett said. “It’s got about atwo-foot pixel resolution from space.”
The satellite images prove especially valuable forapplications such as wildlife surveys or mapping the dis-tribution of ground features.
“For example, on the Kenai Peninsula there’s a lot ofinterest in using satellite imagery ... for detecting anddetermining how large the spread of bark beetle infesta-tion is,” Follett said.
Laser aerial surveysOne of the newest techniques for aerial surveying
involves firing pulses of laser light at the ground and tim-ing the reflections that return to the aircraft. This technolo-gy, known as LIDAR, accurately measures ground eleva-tion points at the rate of 70,000 per second from an air-craft sweeping across an area.
LIDAR gathers data as a string of elevation coordi-nates that form a so-called digital terrain model — a com-puter model that can generate colored perspective imagesof the ground relief as well as conventional contour maps.
“LIDAR is rapidly growing in popularity throughoutthe country because it’s fast,” Follett said.
The narrow beamfrom the laser systemcan penetrate gapsbetween vegetation,so that even in heavi-ly forested areas thesensor on the aircraftcan pick up reflec-tions from both thetop of the vegeta-tion and the under-lying ground.Computer pro-cessing of theLIDAR data canthen strip outthe reflectionsof the groundcover,including
buildings and other structures, to reveal the precise shapeof the ground surface.
Radar surveysRadar aerial surveys work in a similar fashion to
LIDAR but use radar pulses rather than a laser system. Theresolution’s not as good as the laser-based system andradar can’t penetrate vegetation as easily. However, radarprovides a quick and efficient way of mapping large areas,either using an aircraft or from a satellite. Also, radar sur-veys don’t require clear weather because the radar trans-missions can penetrate clouds.
AeroMap represents a company called InterMapTechnologies that does radar surveys from a jet aircraft fly-ing at 30,000 feet.
“We did it up in NPR-A for the Bureau of LandManagement,” Follett said. “We provide aerial photogra-
phy and they’re using radar for determining the groundsurface shape.”
AeroMap also resells and processes satellite radar sur-vey products from Radarsat.
The whole arena of remote sensing from the air extendsinto other technologies such as sensors for specified wave-lengths of light and thermal sensors for picking up heatpatterns. Thermal remote sensing, for example, supportsmany applications such as monitoring effluent dischargeand looking for leaks from underground steam lines.
Data processingIn addition to doing aerial surveys, AeroMap operates a
complete suite of data processing services for geospatialdata and aerial photographs. For example, a computer sys-tem converts raw aerial photographs into orthophotos thathave squared-up, accurate horizontal dimensions.
As part of its geographical information system servicesAeroMap can organize any form of geospatial data intocomputer files designed for displaying or analyzing data.
“We design geographical information systems, populatethe systems ... convert data from one system to another,”Follett said. Image processing systems can use a digitalimage of an area to generate maps that depict ground fea-tures such as different types of vegetation. A ground-basedexpert identifies what is on the ground at a location and anAeroMap specialist locates the so-called digital signatureor pattern that represents the ground feature in the image.Then a computer program can use the digital signature tomap the feature throughout the area of the image.
“We have a project with Fish and Wildlife Service tohelp with their national wetlands inventory, for classifyingwhat’s wetlands and what’s uplands, what’s bare earth,”Follett said.
TeamworkSuccess in all of this work depends on a multi-skilled
team of pilots, surveyors, geologists and so on. “We have 65 people and they have just a wide range of
backgrounds,” Follett said. “We have a number of folkswho are certified photogrammetrists ... we have twolicensed surveyors on the staff right now.”
But the team at AeroMap shares a common purpose ofhelping people improve the world that we live in. The useof maps and geospatial data has become a crucial part ofsuch essential activities as building roads, mitigating natu-ral disasters and providing security.
“Our business is increasingly important to improve thequality of life — we’re involved in things that make a dif-ference in people’s lives,” Follett said. “Really, an unseenbut very important part of our society is having good-quali-ty geospatial data.” ●
Editor’s note: Alan Bailey owns Badger Productions inAnchorage, Alaska
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Color elevation map ofHealy area generated
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A Navajo Chieftain configured for airborne imaging surveys.
B14 PETROLEUM NEWS • WEEK OF MAY 16, 2004PETROLEUM DIRECTORY
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CH2M Hill tackles anti-terrorismAlaska’s role in homeland security
By SUSAN BRAUND Petroleum Directory Contributing Writer
he sounds of a building alarm can trigger differentresponses, depending on the cultural perspective ofthreat. Because they have always lived in a threat-ened society, when people in Israel hear alarms, they
rush to a protected space in the building’s core, whileWesterners run outside, away from the perceived threat.
Since the events of 9-11, however, Americans’ normalresponses to and awareness of threats have been foreveraltered: We are alert to threats of terrorism from withinand without our borders. In March 2003 the U.S. govern-ment created the Department of Homeland Security “withone single overriding responsibility: to make Americamore secure. Along with the sweeping transformationwithin the FBI, the establishment of the Department ofDefense’s U.S. Northern Command and the creation ofthe multi-agency Terrorist Threat Integration Center andTerrorist Screening Center, America is better prepared toprevent, disrupt and respond to terrorist attacks than everbefore,” states the Homeland Security website.
The changing nature of security threats demands con-tinual upgrades to critical infrastructure and protectionmechanisms. Kim Bradley, CH2M Hill vice president,global business development manager, Anti-Terrorism,Threat Reduction and Security Services was inAnchorage in April to brief Alaska Support IndustryAlliance members and CH2M employees about the com-pany’s anti-terrorism security services and Alaska’s rolein Homeland Security. The company has 30-plus years ofexperience in engineering solutions for security chal-lenges in the Middle East, such as the West Bank andKuwait and does $100 million of security projects eachyear, including security for water/wastewater and chemi-cal plants, airports, port and harbors, national monuments,nuclear and government facilities and oil and gas.Bradley cites cost, continuing operations during upgrades,nurturing versus lockdown and acceptance as the mainchallenges for preventive security measures.
Alaska’s vulnerable bordersAlaska has the largest exposed borders of any state,
including the Canadian border and surrounding waters.The extensive maritime border makes it difficult to pro-tect, according to Bradley.
“Port security is vital, but we’re starting from scratch.There’s a mix of private and public usage of ports andharbors. It’s movement versus restricted movement, whenmovement equals dollars for general commerce, thecruise ship industry and ferries. The Navy can secure itsports, but in a public/private situation, it’s tougher.”
The good news is that Alaskans are already good atone crucial element of security readiness: interoperability,or relationship. Essential to mitigating the effects of anydisasters, interoperability refers to the communicationsand response coordination capabilities of initial respon-ders to an emergency event. Proficient interoperabilityrequires training and exercise of compatible equipment toachieve results, according to CH2M Hill Vice Presidentand Senior Program Manager Doug Sethness. “Anyactions taken by public, private, and military organiza-tions and agencies to create interoperability are crucial toour personal safety and security.”
“Alaska has a history of defending the homeland inWorld War II and the Cold War,” says Bradley. “You havedisaster experience and already know how to work
together. You have the best experience defending againstthreats, natural or manmade.”
“Protecting oneself to survive danger is a more normalpart of the Alaska culture than is prevalent in other areasof the Lower 48 states,” says Sethness. “I think the chal-lenge will be dealing with the accessibility and availabili-ty of critical facilities. Isolation of sites provides somedeterrent to attack but doesn’t reduce these factors …Ithink they are still a major issue. For example, it is diffi-cult to protect a vessel leaving the Port of Valdez from asmall boat attack even though you have to go a long wayto get there.”
Security regulations and legislationLegislation and regulations to protect pockets of vul-
nerability are gradually evolving: In 2002, Congressenacted the Maritime Security Act and the BioterroristAct. Pending legislation includes the Chemical SecurityAct (2005) and Wastewater Act (2004). Once legislationis in place, regulations can follow.
On Dec. 31, 2003, the Coast Guard became the regu-lating authority to monitor port and harbor securityplans. If port owners are not in compliance by July 1,2004, the Coast Guard can levy fines up to $10,000.
“The U.S. Coast Guard has publicized a no-tolerancemessage for facilities not meeting the federally mandatedsecurity requirements,” says Sethness. “I believe theymean it, and I would caution facility owners and opera-tors to become very familiar with the regulations andcompliance activities within their facilities.”
Industry concernsEvery industry is vulnerable, but the degree of vulner-
ability varies from industry to industry according toSethness. “I think the oil/gas/petroleum/petrochemicalindustry could be a major terrorist target for many rea-sons, not the least of which are the focus on industry inthe last Osama Bin Laden tape and the perceived tiebetween the invasion of Iraq and the oil industry. Therehave been requests for increased vigilance based oninformation received concerning Gulf Coast refiningfacilities. The biggest challenge is changing our way ofthinking, our culture, to deal with the terrorist threat.” ●
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The closure of the U.S. Department of Energy (DOE) Rocky Flats site in Golden, Colo., involves multiple security aspects. CH2MHill’s knowledge, experience, and safety recordin dealing with radiation containment — glove box environments, ventilation and filtration, and airflow controls in workspaces — is key to the overall security of the site.
Protecting national monuments like the Lincoln Memorialwhile allowing unimpeded traffic flow and public access callsfor soft security measures like vehicle barriers and strategiclandscaping.
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PETROLEUM NEWS • WEEK OF MAY 16, 2004 B15PETROLEUM DIRECTORY
Air taxi services provided since 1961state wide, mostly Cook Inlet. Singleengine and twin Bonanza.
LyndenAlaska Marine LinesAlaska Railbelt MarineAlaska West ExpressLynden Air CargoLynden Air FreightLynden InternationalLynden LogisticsLynden Transport6441 S. Airpark Pl.Anchorage, AK 99502Contact: Jeanine St. JohnPhone: (907) 245-1544Fax: (907) 245-1744Email: [email protected] combined scope of the Lynden com-panies includes truckload and less-than-truckload highway connections, sched-uled barges, intermodal bulk chemicalhauls, scheduled and chartered airfreighters, domestic and internationalair forwarding and international seaforwarding services.
Northern Air Cargo3900 W. International Airport Rd. Anchorage, AK 99502Contact: Nick Karnos, acct. mgr.Anch./Prudhoe BayPhone: (907) 249-5161Fax: (907) 249-5194Email: [email protected] site: www.nac.aeroServing the aviation needs of ruralAlaska for almost 50 years, NAC is thestates largest all cargo carrier movingnearly 100 million pounds of cargo onscheduled flights to 17 of Alaska’sbusiest airports. NAC’s fleet of DC-6, B-727, and ATR-42 aircraft are availablefor charters to remote sites and flagstops to 44 additional communities.
Northern Transportation310 K St., Ste. 200Anchorage, AK 9950142003 McKenzie Hwy.Hay River, NWT X0E0R9Contact: John Marshall Phone: (867) 874-5167
Fax: (867) 874-5179Email: [email protected] site: www.ntcl.com Marine transportation along theMcKenzie River to the Beaufort Sea andAlaska’s North Slope.
Northwestern Arctic Air6231 S. Airpark Pl.Anchorage, AK 99502Contact: Judy McClellan, office mgr.Phone: (907) 245-4566Fax: (907) 245-4567Email: [email protected] site: www.NWArcticAirAK.comAll jet fleet 24/7. Large cargo doorsaccommodate long drilling equipment.HAZMAT and express package deliveryservices provided. Member MedallionFoundation.
Oilfield Transport6816 Lowell Cir.Anchorage, AK 99502Contact: Henry MinichPhone: (907) 229-9647Fax: (907) 245-8930Email: [email protected] on-site rig service and logisticssince 1975. Highway and remote trans-portation of equipment via barge or air,for mining or oilfield projects, to anylocation in Alaska.
Panalpina4305 W. International Airport Rd.Anchorage, AK 99502Contact: John Hodel, branch mgr.Phone: (907) 245-8008Fax: (907) 245-8018Email: [email protected] site: www.panalpina.comOther offices:Houston: (281) 446-0600Calgary: (403) 291-1137International and domestic freight for-warding and logistics services.Integrated solutions for supply chainmanagement. Specialists in oil and ener-gy projects.
Span-Alaska Consolidators8130 S. 216th St.Kent, WA 98032
Contact: Tom Landry, executive v. p.Phone: (800) 257-7726Phone: (907) 349-3606 (Anchorage)Fax: (253) 395-7986Email: [email protected]: www.spanalaska.comAlaskan freight consolidator/forwarderserving all of Alaska with timely andfriendly service. Inbound service fromthe Lower 48 to Alaska. “PromisesMade, Promises Delivere
Sourdough ExpressP.O. Box 73398Fairbanks, AK 99709Contact: Karen Conover, vice presidentPhone: 907-452-1181Fax: 907-451-6188Web site: www.sourdoughexpress.comSourdough Express Inc. provides truck-ing services, full service moving andstorage services, and conex containersales and rentals.
TOTE-Totem Ocean Trailer Express2511 Tidewater RoadAnchorage, AK 99501Contact: Curt StonerPhone: (907) 265-7215Phone: (800) 234-8683Fax: (907) 278-9689Email: [email protected] site: www.totemocean.comTOTE’s roll on/roll off ships sail twotimes per week between the Port ofTacoma and the Port of Anchorage.Transit time is a fast 66 hours.
Fueling Services
ColvillePouch 340012Prudhoe Bay, AK 99734Contact: John Daly, Kevin CilkPhone: (907) 659-3197Fax: (907) 659-3190Email: [email protected], gasoline, jet fuel, aviation gaso-line in bulk and small quantity deliver-ies, electronic card-lock fleet manage-ment, solid waste and recycling, indus-trial gases and solid waste. Tesoro fuelstation.
General Oilfield Supplies
Alaska Tent & Tarp529 Front St.Fairbanks, AK 99701Contact: Jim HaselbergerPhone: (907) 456-6328Phone: (800) 478-8368Fax: (907) 452-5260Email: [email protected] are a commercial and industrial fab-ric business. We make covers.
MRO Sales5631 Silverado Way, Unit GAnchorage, AK 99518Contact: Don PowellPhone: (907) 248-8808Fax: (907) 248-8878Email: [email protected] site: www.mrosalesinc.comOther offices:Kenai: Al Hull (907) 335-2782MRO Sales offers products and servicesthat are special to the Alaskan market.MRO can help solve the time problemon hard to find items.
NEI Fluid Technology3408 Arctic Blvd.Anchorage, AK 99503Contact: Kathryn Russell, presidentPhone: (907) 561-4820Fax: (907) 562-2316Email: [email protected] of petrochemical refuelingand testing equipment, meters andvalve systems for the oil and gas indus-try and portable measurement forpetroleum, chemicals and bulk liquids.We also supply refrigerant recovery andrecycling equipment.
Geophysical & GeologicalServices
ASRC Energy Services – Engineeringand Technology3900 C St.Anchorage, AK 99503Contact: John Lewis, vp operations
B16 PETROLEUM NEWS • WEEK OF MAY 16, 2004PETROLEUM DIRECTORYPhone: (907) 339-6200Fax: (907) 339-6212Email: [email protected] site: www.asrcenergy.comDrilling and completion engineering,well stimulation, facilities engineering,upstream exploration and productionservices, geological and geophysicalservices, automation, electrical andinstrumentation, platform renovationand construction.
ENSR International1835 S. Bragaw St., Ste. 490 Anchorage, AK 99512Contact: Chris L. Humphrey, P.E.Phone: (907) 561-5700Fax: (907) 273-4555Email: [email protected] Alaska since 1977. ENSR is anenvironmental engineering and consult-ing firm with more than 70 officesworldwide providing environmentalplanning, assessment, permitting, com-pliance management and contamina-tion cleanup.
Golder Associates1750 Abbott Rd., Ste. 200Anchorage, AK 99507Contact: Bob Dugan, mgr., TomKrzewinski, Mark Musial, Bucky TartPhone: (907) 344-6001Fax: (907) 344-6011Website: www.golder.comProviding geotechnical engineering,water resource, and geosciences servicesin support of resource developmentprojects in Alaska and the Arctic. Otheroffices worldwide.
Hunter 3-D9898 Bissonnet St., Ste. 362Houston, TX 77036Contact: Dan Huston, vice presidentPhone: (713) 981-4650Fax: (713) 981-4650Email: [email protected] site: www.hunter3dinc.comHunter 3-D is a geophysical consultingcompany based in Houston, Texas. Weinterpret seismic, gravity and magneticdata for projects in Alaska and world-wide.
Petrotechnical Resources of Alaska(PRA)3601 C St., Ste. 1378Anchorage, AK 99503Contact: Tom WalshPhone: (907) 272-1232Fax: (907) 272-1344Email: [email protected] multidisciplinary staff of qualifiedand experienced professionals possess adiverse array of technical capabilities toprovide our clients with a full spectrumof geoscience and engineering consult-ing services.
PGS Onshore341 W. Tudor Rd., Ste. 206Anchorage, AK 99503Contact: Larry Watt, Alaska area mgr. Phone: (907) 569-4049Fax: (907) 569-4047Email: [email protected] Office738 Hwy 6 South, Ste 900Houston, TX 77079Contact: Gehrig SchultzPhone: (281) 589-6732Fax: (281) 589-6685Email: [email protected] acquisition and processingfor the petroleum industry. PGS Onshoreprovides fully rubber tracked Arctic geo-physical crews to acquire the highestdensity data with the softest environ-mental footprint on the North Slope.
Schlumberger Oilfield Services2525 Gambell St.Anchorage, AK 99503Contact: Daniel PalmerPhone: (907) 273-1700Fax: (907) 561-8317Email: [email protected] site: www.slb.comSchlumberger Oilfield Services providespeople and technology, working togeth-er to offer exploration and productionsolutions for the life of oil and gasreservoirs.
Health Care Professionals
Aeromed International4700 Business Park Blvd., Ste. E25
Anchorage, AK 99503Contact: Brooks Wall, directorPhone: (907) 677-7501Fax: (907) 677-7502Email: [email protected] site: www.ykhc.orgAeromed International is an all jet criti-cal car air ambulance fleet based inAnchorage. Medical crews are certifiedFlight Nurses and certified FlightParamedics.
Alaska Massage & BodyworksHilton Anchorage Fitness Center500 W. 3rd Ave.Anchorage, AK 99501Contact: Patricia MainPhone: (907) 240-6880Email: [email protected] site: www.akmassage.comAlaska Massage & Bodyworks is the in-house professional massage therapyservice at the Hilton Anchorage Hotel.Sessions are available for hotel guestsand Anchorage residents. The service isavailable seven days a week on the fifthfloor of the hotel. Patricia Main, a certi-fied massage therapist, owns and oper-ates the service. The staff has specializedtraining in Swedish, deep tissue, injurytreatment and trigger point massage.
ArrowHealth Corp.4050 Lake Otis Pkwy., Ste. 207Anchorage, AK 99508Contact: Lea Counts, dir. SubstanceAbuse Testing Div.Phone: (907) 868-8885Fax: (907) 868-8882Email: [email protected] site: www.arrowhealthcorp.comArrowHealth is Alaska’s premier serviceprovider of occupational health andsubstance abuse testing. We service thelocal community, national contracts, andgovernment agencies alike with cus-tomized solutions.
Worksafe300 W. 36th Ave., Ste. AAnchorage, AK 99503Phone: (907) 563-8378Fax: (907) 563-8380Web site: www.worksafeinc.comWorksafe works to keep your employ-ees from getting hurt on the job if theyare using drugs or alcohol. WorksafeDrug Testing increases productivity,reduces liability with fewer injuries andaccidents and provides insurance costsavings.
Helicopter Contract & Charter Services
Air Logistics of Alaska1915 Donald Ave.Fairbanks, AK 99701Phone: (907) 452-1197Fax: (907) 452-4539Contact: Dave ScarbroughPhone: Anchorage: (907) 248-3335Email: [email protected] contract and charter services.
Era Aviation6160 Carl Brady Dr.Anchorage, AK 99502Contact: John HollandPhone: (907) 248-4422Fax: (907) 266-8383Helicopter and fixed wing contract andcharter services; scheduled airline serv-ice.
Evergreen Helicopters of Alaska1936 Merrill Field DriveAnchorage, AK 99501Contact: Joy Journeay, marketing mgr.Phone: (907) 257-1519Fax: (907) 279-6816Email: [email protected]: Greg Thies, director of market-ingPhone: (907) 257-1504Email: [email protected] office: (907) 443-5334Airlines office: (907) 257-1500Logistics: (907) 243-8677Website: evergreenaviation.comEvergreen’s diverse fleet has providedaward-winning safety to Alaskans since1960 in petroleum exploration & pro-duction, firefighting, forestry, construc-tion, search & rescue, cargo transport,and utility transmission.
Industrial Gases
ColvillePouch 340012Prudhoe Bay, AK 99734Contact: John Daly, Kevin CilkPhone: (907) 659-3197Fax: (907) 659-3190Email: [email protected], gasoline, jet fuel, aviation gaso-line in bulk and small quantity deliver-ies, electronic card-lock fleet manage-ment, solid waste and recycling, indus-trial gases and solid waste. Tesoro fuelstation.
Industrial Parts & Supply
Brooks Range SupplyPouch 3400081 Old Spine RoadPrudhoe Bay, AK 99734Contact: Mike Kunkel/Craig Welch, gen-eral managersPhone: (907) 659-2550Toll Free: (866) 659-2550Fax: (907) 659-2650Email: [email protected] source on the Slope for safety sup-plies, welding supplies, automotive andtruck parts, hardware, tools, steel, build-ing materials, glass, propane, hydraulichoses and fittings, paint and chemicals.Napa and True Value Hardware distribu-tion.
Unique Machine5839 Old Seward HwyAnchorage, AK 99518Contact: Pat Hanley, COOPhone: (907) 563-3012Fax: (907) 562-1376Email: [email protected]: www.uniquemachineinc.comConnections; API 5CT, API 7B, GrantPrideco H-Series, Hydril, Hunting, AtlasBradford, NS Technology Co, Inc.,Vallourec and Vam PTS proprietary con-nections.
U.S. Bearings & Drives611 E. International Airport Rd.Anchorage, AK 99518Contact: Dena Kelley, operations mgr.Phone: 563-3000Fax: 563-1003Email: [email protected] site: www.bearings.comU.S. Bearings & Drives, formerly BESCOhas been providing bearings and drivecomponents to our Alaskan customerssince 1952. We offer quality compo-nents and experienced personnel.
Inspection Services
Engineered Fire & Safety3138 Commercial Dr.Anchorage, AK 99501Contact: Don Maupin, gen. mgr.Phone: (907) 274-7973 ext. 123Fax: (907) 274-6265Email [email protected] site: www.efs-fire.comAn industry leader in the design, inte-gration and testing of safety solutionsfor high value risks. UL system certifica-tions and panel fabrication.
Kakivik Asset Management5401 Fairbanks St., Ste. 3Anchorage, AK 99518Phone: (907) 770-9400Fax: (907) 770-9450Contact: Mark Hylen, president/CEOEmail: [email protected] site: www.kakivik.comFairbanks OfficePhone: (907) 451-4898Fax: (907) 451-4897Valdez OfficePhone: (907) 831-1390Offering all elements of nondestructivetesting, inspection services, quality con-trol and asset management.
Udelhoven Oilfield System ServicesAnchorage office:184 E. 53rd Ave.Anchorage, AK 99518Phone: (907) 344-1577Fax: (907) 522-2541Nikiski office:P.O. Box 8349Nikiski, AK 99635Phone: (907) 776-5185Fax: (907) 776-8105Prudhoe office:
Pouch 340103Prudhoe Bay, AK 99734Phone: (907) 659-8093Fax: (907) 659-8489Serving Alaska for more than 25 years.
Instrumentation Systems
Arctic Controls1120 E. 5th Ave.Anchorage, AK 99501Contact: Scott Stewart, presidentPhone: (907) 277-7555Fax: (907) 277-9295Email: [email protected]: www.arcticcontrols.comAn Alaskan owned and operated com-pany since,1985, Arctic Controls, Inc. hasbeen highly successful as manufacturerrepresentatives for the state of Alaska inthe Process Control and Instrumentationfield. Selling equipment to the oil andgas markets, mining and water waste-water/municipal markets.
Epoch Well Services5801 Silverado WayAnchorage, AK 99518Contact: James R. Carson, AK div. mgr.Phone: (907) 561-2465Fax: (907) 561-2474Email: [email protected] is a complete digital drillinginstrumentation system that monitorsall drill floor and mud system parame-ters. Critical data is displayed andarchieved on workstations located atkey points on the rig.
Quadco6116 Nielson WayAnchorage, AK 99518Contact: David Baggett, vp, AK mgr.Phone: (907) 563-8999Fax: (907) 563-8985Email: [email protected] offices: Farmington NM, DenverCO, Casper WYQuadco maintains a fleet of oil fieldinstrumentation, solids control andother equipment for oilfield and indus-trial needs. We represent Varco OilTools, MD Totco, Texas Oil Tools, SPM,Derrick Equipment and various othermanufacturers. 24 hours on call
Laboratory Services
Kakivik Asset Management5401 Fairbanks St., Ste. 3Anchorage, AK 99518Phone: (907) 770-9400Fax: (907) 770-9450Contact: Mark Hylen, president/CEOEmail: [email protected] site: www.kakivik.comFairbanks OfficePhone: (907) 451-4898Fax: (907) 451-4897Valdez OfficePhone: (907) 831-1390Offering all elements of nondestructivetesting, inspection services, quality con-trol and asset management.
Legal Services
Perkins Coie1029 W. 3rd Ave., Ste. 300Anchorage, AK 99501Contact: Eric Fjelstad, attorneyEmail: [email protected]: Teresa Berwick, attorneyEmail: [email protected]: (907) 279-8561Fax: (907) 276-3108Other Offices: Beijing, Bellevue, Boise, Chicago,Denver, Hong Kong, Los Angeles, Menlo Park, Olympia,Portland, San Francisco, Seattle, Washington D.C.Website: www.perkinscoie.comPerkins Coie law firm handles oil spillplanning, air emissions, NPDES permits,hazardous waste, CERCLA, wetlands per-mits, NEPA, and other environmentaland natural resources issues.
Lodging
Hilton Anchorage Hotel500 West Third Ave.Anchorage, AK 99501
PETROLEUM NEWS • WEEK OF MAY 16, 2004 B17PETROLEUM DIRECTORY
Contact: Karen BoshellPhone: (907) 272-7411Phone: 1-800-445-8667Fax: (907) 265-7042Web site: www.anchorage.hilton.comAt the Hilton, guests discover unexpect-ed luxury. We are just steps away fromshopping, day tours, fishing and theconvention center. The Hilton’s 600guest rooms and suites, three restau-rants, indoor pool, and native art collec-tion will make your stay complete.
Millennium Hotel4800 Spenard Rd.Anchorage, AK 99517Contact: Raegan KelliherPhone: (907) 243-2300Phone: (800) 544-0553Fax: (907) 243-8815Email: [email protected] site:www.millenniumhotels.com/anchorageThe Millennium Alaskan HotelAnchorage is located just one mile fromAnchorage International Airport andten minutes from downtown. TheMillennium is surrounded by the splen-dor of the great Alaskan outdoors. TheMillennium is ideally situated for busi-ness and leisure travelers alike.
Logistics
Alaska RailroadP.O. Box 107500Anchorage, AK 99510Contact: Wende Lance, marketing andlogistics technicianPhone: (907) 265-2485Fax: (907) 265-2597Email: [email protected] Alaska Railroad Corporation offersreal estate, passenger and freight servic-es – including complete services to moveyour freight between Alaska, the Lower48 and Canada..
Carlile Transportation Systems1800 E. 1st Ave.Anchorage, AK 99501Contact: Linda LearyPh: (907) 267-7797Fax: (907) 276-6786Email: [email protected] Offices: Fairbanks, Prudhoe Bay,Kenai, Seward, Federal Way, WA,Houston, TX, Edomonton, ALTAAlaska owned and operated, full service,multi-modal, transportation and logis-tics company.
Crowley Alaska2525 C St., Ste. 303Anchorage, AK 99503Contact: Craig TorngaPhone: (907) 278-4978Fax: (907) 257-2828Email: [email protected] materials supply services toremote locations. Marine transportthroughout Alaska. Oil field servicesincluding heavy hauling with all-terrainvehicles on North Slope.
Evergreen Helicopters of Alaska1936 Merrill Field DriveAnchorage, AK 99501Contact: Joy Journeay, marketing mgr.Phone: (907) 257-1519Fax: (907) 279-6816Email: [email protected]: Greg Thies, director of market-ingPhone: (907) 257-1504Email: [email protected] office: (907) 443-5334Airlines office: (907) 257-1500Logistics: (907) 243-8677Website: evergreenaviation.comEvergreen’s diverse fleet has providedaward-winning safety to Alaskans since1960 in petroleum exploration & pro-duction, firefighting, forestry, construc-tion, search & rescue, cargo transport,and utility transmission.
The Fairweather Companies2000 E. 88th Ave.Anchorage, AK 99507Contact: Bill PenrosePhone: (907) 258-3446Fax: (907) 279-5740Website: www.fairweather.comThe Fairweather Companies provideproject management, engineering,drilling, permitting, logistics, and opera-tional services to the exploration andproduction sectors of the petroleumindustry.
LyndenAlaska Marine LinesAlaska Railbelt MarineAlaska West ExpressLynden Air CargoLynden Air FreightLynden InternationalLynden LogisticsLynden Transport6441 S. Airpark Pl.Anchorage, AK 99502Contact: Jeanine St. JohnPhone: (907) 245-1544Fax: (907) 245-1744Email: [email protected] combined scope of the Lynden com-panies includes truckload and less-than-truckload highway connections, sched-uled barges, intermodal bulk chemicalhauls, scheduled and chartered airfreighters, domestic and internationalair forwarding and international seaforwarding services.
MRO Sales5631 Silverado Way, Unit GAnchorage, AK 99518Contact: Don PowellPhone: (907) 248-8808Fax: (907) 248-8878Email: [email protected] site: www.mrosalesinc.comOther offices:Kenai: Al Hull (907) 335-2782Prudhoe Bay: Joe Bob Bruster (907) 659-2868We provide Professional ProcurementService for hard-to-find supplies, partsand equipment. Regardless of your loca-tion, you will receive service that isguaranteed to meet your requirements.From Anchorage to Siberia, from ship-ping to communications, you receiveservice from the experts that have ‘BeenThere, Done That’
Northern Air Cargo3900 W. International Airport Rd. Anchorage, AK 99502Contact: Nick Karnos, acct. mgr.Anch./Prudhoe BayPhone: (907) 249-5161Fax: (907) 249-5194Email: [email protected] site: www.nac.aeroServing the aviation needs of ruralAlaska for almost 50 years, NAC is thestates largest all cargo carrier movingnearly 100 million pounds of cargo onscheduled flights to 17 of Alaska’sbusiest airports. NAC’s fleet of DC-6, B-727, and ATR-42 aircraft are availablefor charters to remote sites and flagstops to 44 additional communities.
Northern Transportation310 K St., Ste. 200Anchorage, AK 9950142003 McKenzie Hwy.
Hay River, NWT X0E0R9Contact: John Marshall Phone: (867) 874-5167Fax: (867) 874-5179Email: [email protected] site: www.ntcl.com Marine transportation along theMcKenzie River to the Beaufort Sea andAlaska’s North Slope.
Northwestern Arctic Air6231 S. Airpark Pl.Anchorage, AK 99502Contact: Judy McClellan, office mgr.Phone: (907) 245-4566Fax: (907) 245-4567Email: [email protected] site: www.NWArcticAirAK.comOn-demand, worldwide, air charter serv-ice, Russia Far-East experience, medicaltransports, express package delivery,secure convenient, cost-effective, 24/7.Member Medallion Foundation.
Panalpina4305 W. International Airport Rd.Anchorage, AK 99502Contact: John Hodel, branch mgr.Phone: (907) 245-8008Fax: (907) 245-8018Email: [email protected] site: www.panalpina.comOther offices:Houston: (281) 446-0600Calgary: (403) 291-1137International and domestic freight for-warding and logistics services.Integrated solutions for supply chainmanagement. Specialists in oil and ener-gy projects.
Span-Alaska Consolidators8130 S. 216th St.Kent, WA 98032Contact: Tom Landry, executive v. p.Phone: (800) 257-7726Phone: (907) 349-3606 (Anchorage)Fax: (253) 395-7986Email: [email protected]: www.spanalaska.comAlaskan freight consolidator/forwarderserving all of Alaska with timely andfriendly service. Inbound service fromthe Lower 48 to Alaska. “PromisesMade, Promises Delivered.”
Umiat Commercial2700 S. Cushman St.Fairbanks, AK 99701Contact: Mike TolbertPhone: (907) 452-6631Fax: (907) 451-8632Email: [email protected] provides lodging and fuel sales atUmiat located on the Colville River. Weare open 24 hours a day everyday of theyear.
MachiningUnique Machine5839 Old Seward HwyAnchorage, AK 99518Contact: Pat Hanley, COOPhone: (907) 563-3012Fax: (907) 562-1376Email: [email protected] site: www.uniquemachineinc.comThe design, development, manufactureand distribution of oilfield, construction,mining, fishing, and government partsto industry quality standards.
Maintenance
Alaska Tent & Tarp529 Front St.Fairbanks, AK 99701Contact: Jim HaselbergerPhone: (907) 456-6328Phone: (800) 478-8368Fax: (907) 452-5260Email: [email protected] are a commercial and industrial fab-ric business. We make covers.
Arctic Controls1120 E. 5th Ave.Anchorage, AK 99501Contact: Scott Stewart, presidentPhone: (907) 277-7555Fax: (907) 277-9295Email: [email protected]: www.arcticcontrols.comAn Alaskan owned and operated com-pany since,1985, Arctic Controls, Inc. hasbeen highly successful as manufacturerrepresentatives for the state of Alaska inthe Process Control and Instrumentationfield. Selling equipment to the oil andgas markets, mining and water waste-water/municipal markets.
ASRC Energy Services – Operationsand Maintenance3900 C St.Anchorage, AK 99503Contact: Mark Nelson, exec. vpPhone: (907) 339-6200Fax: (907) 339-6212Email: [email protected] site: www.asrcenergy.comOil and gas services, industrial construc-tion, operations and maintenance, mod-ule fabrication and assembly, projectmanagement and non-destructive test-ing.
Engineered Fire & Safety3138 Commercial Dr.Anchorage, AK 99501Contact: Don Maupin, gen. mgr.Phone: (907) 274-7973 ext. 123Fax: (907) 274-6265Email [email protected] site: www.efs-fire.com
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From left, Dr. Mary DeMers, WorkSafe’s medical review officer, General Manager Stephen Mihalik and President Matthew Fagnani dis-cuss federal regulations. See the company profile on page B12.
B18 PETROLEUM NEWS • WEEK OF MAY 16, 2004PETROLEUM DIRECTORYAn industry leader in the design, inte-gration and testing of safety solutionsfor high value risks. UL system certifica-tions and panel fabrication.
MRO Sales5631 Silverado Way, Unit GAnchorage, AK 99518Contact: Don PowellPhone: (907) 248-8808Fax: (907) 248-8878Email: [email protected] site: www.mrosalesinc.comOther offices:Kenai: Al Hull (907) 335-2782We are a stocking distributor for top-of-the-line waste oil heaters (Reznor),waste water flocculants (Waterclear),environmentally friendly solvents foryour parts washer (PT Technology), cor-rosion and erosion repair and mainte-nance polymers (Belzona), Vapor phase(VpCI™) and Migrating CorrosionInhibitors (MCI) (Cortec) and valve lubri-cants and sealants (Chemola).
Management Consultant
Hawk Consultants200 W. 34th Ave., Ste. 809Anchorage, AK 99503Contact: Maynard Tapp, presidentPhone: (907) 278-1877Fax: (907) 278-1889Email: [email protected]
Providing people and resources to theoil, gas, power, telecommunication andpublic works industries. Services includestrategic planning, full service projectmanagement team consulting/outsourc-ing, supplemental professionals, profes-sionals, management consulting servic-es.
Maps
AeroMap U.S.2014 Merrill Field Dr.Anchorage, AK 99501Contact: Holly Holmes, MarketingPhone: (907) 272-4495Fax: (907) 274-3265Email: [email protected] site: www.aeromap.comAeroMap provides geospatial informa-tion about the earth utilizing land, air-borne and satellite sensors. We defineits topography, measure its features,and chronicle its condition.
Mapmakers Alaska259 S. Alaska St.Palmer, AK 99645Contact: Brit Lively, managerPhone: (907) 745-3398Fax: (907) 745-6733Maps for oil and gas industry and cus-tom map work
Marine Propulsion
Northern Lights1200 W. International Airport WayAnchorage, AK 99519Contact: Jeff CampbellPhone: (907) 562-2222Fax: (206) 563-1921Email: [email protected] Website: www.northern-lights.com Lugger marine diesels (70-900 HP) weredeveloped for Alaskan fishermen, andare now found in commercial and yachtapplications worldwide. Reliability andfuel efficiency are key.
Marine Services & Construction
American Marine Corp.6000 A St.Anchorage, AK 99518Contact: Tom Ulrich, reg. mgr. svc. groupPhone: (907) 562-5420Fax: (907) 562-5426Email: [email protected] site: www.amsghq.comAmerican Marine Corp. provides fullservice marine construction and divingservices throughout Alaska and thePacific Basin.
Offshore Divers5400 Eielson St.
Anchorage, AK 99518Contact: Don Ingraham, owner/mgr.Contact: Leif Simcox, owner/oper. mgr.Phone: (907) 563-9060Fax: (907) 563-9061Email: [email protected] site: http//www.offshoredivers.comOffshore Divers is an Alaska owned div-ing contractor specializing in sub-sea oil-field work on mooring systems,pipelines, platforms and docks in CookInlet, on the North Slope and in Valdez.
Peak Oilfield Service2525 C St., Ste. 201Anchorage, AK 99503Contact: Bill Stamps, business develop-ment/ex. affairsPhone: (907) 263-7000Fax: (907) 263-7070Email: [email protected] site: www.peakalaska.comAlaska based general contractors.
Storm Chasers Marine ServicesP.O. Box 757Seward, AK 99664Contact: Mica Van BuskirkPhone: (907) 224-3536Fax: (907) 224-6080Email: [email protected] quality marine services inAlaska for over 15 years. Commercialdiving, underwater welding, underwa-ter inspection with video, vessel repair,marine construction and marine salvageservices.
Mat Systems
Alaska Dreams522 Goldstreak Rd.Fairbanks, AK 99712Contact: M. Huser, presidentPhone: (907) 455-7712Fax: (907) 455-7713Email: [email protected] fabrication of timber or timberwith steel combination heavy-dutyequipment or road mats, prefabricatedretaining walls, containment enclosuresor helicopter landing platforms.
Mechanical & ElectricalInspection
Udelhoven Oilfield System Services Anchorage office:184 E. 53rd Ave.Anchorage, AK 99518Phone: (907) 344-1577Fax: (907) 522-2541Nikiski office:P.O. Box 8349Nikiski, AK 99635Phone: (907) 776-5185Fax: (907) 776-8105Prudhoe office:Pouch 340103Prudhoe Bay, AK 99734Phone: (907) 659-8093Fax: (907) 659-8489Serving Alaska for more than 25 years.
Meetings & Conventions
Hilton Anchorage Hotel500 West Third Ave.Anchorage, AK 99501Contact: Karen BoshellPhone: (907) 272-7411Phone: 1-800-445-8667Fax: (907) 265-7042Web site: www.anchorage.hilton.comAt the Hilton, guests discover unexpect-ed luxury. We are just steps away fromshopping, day tours, fishing and theconvention center. The Hilton’s 600guest rooms and suites, three restau-rants, indoor pool, and native art collec-tion will make your stay complete.
Millennium Hotel4800 Spenard Rd.Anchorage, AK 99517Contact: Raegan KelliherPhone: (907) 243-2300Phone: (800) 544-0553Fax: (907) 243-8815Email: [email protected] site:www.millenniumhotels.com/anchorageThe Millennium Alaskan HotelAnchorage is located just one mile fromAnchorage International Airport andten minutes from downtown. The
PETROLEUM NEWS • WEEK OF MAY 16, 2004 B19PETROLEUM DIRECTORY
Millennium is surrounded by the splen-dor of the great Alaskan outdoors. TheMillennium is ideally situated for busi-ness and leisure travelers alike.
Metal Distributors
Alaska Steel Co.1200 W. DowlingAnchorage, AK 99518Contact: Joe Lombardo, vice presidentPhone: (907) 561-1188Toll free: (800) 770-0969 (AK only)Fax: (907) 561-2935Email: [email protected] office:2800 S. CushmanContact: Dan Socha, branch mgr.Phone: (907) 456-2719Fax: (907) 451-0449Kenai office:205 Trading Bay Rd.Contact: Will Bolz, branch mgr.Phone: (907) 283-3880Fax: (907) 283-3759Full-line steel and aluminum distributor.Complete processing capabilities,statewide service. Specializing in lowtemperature steel.
Mining
Usibelli Coal Mine100 Cushman St., Ste. 210Fairbanks, AK 99701Contact: Bill Brophy, vp cust. relationsPhone: (907) 452-2625Fax: (907) 451-6543Email: [email protected] site: www.usibelli.comOther OfficeP. O. Box 1000Healy, AK 99743Phone: (907) 683-2226Usibelli Coal Mine is headquartered inHealy, Alaska and has 200 million tonsof proven coal reserves. Usibelli pro-duced one million tons of sub-bitumi-nous coal this year.
Movers/Relocation
Alaska Terminals400 W 70th Ave., Ste.3Anchorage, AK 99518Contact: Calista WoodPhone: (907) 349-6657Fax: (907) 349-2045Email: [email protected] site: www.akterminals.comOther Offices: Mitchell Moving & Storage, SeattleGlacier State Moving & Storage,FairbanksAlaska Terminals provides full servicehousehold goods relocation services to,from, and within Alaska. International,and local residential and office moves;heated, and secured storage.
Capital Office Systems1120 E, 35th Ave.Anchorage, AK 99508Contact: Leslye Langla, managing direct.Phone: (907) 777-1501Fax: (907) 777-1515Email: [email protected] management, systems furniture,project coordination, space planning,systems delivery/installation, furniturerefurbishing, and relocation/remodelservices. Authorized Steelcase dealer forAlaska.
Sourdough ExpressP.O. Box 73398Fairbanks, AK 99709Contact: Karen Conover, vice presidentPhone: 907-452-1181Fax: 907-451-6188Web site: www.sourdoughexpress.comSourdough Express Inc. provides truck-ing services, full service moving andstorage services, and conex containersales and rentals.
Mud & Mudlogging
Epoch Well Services5801 Silverado WayAnchorage, AK 99518Contact: James R. Carson, AK div. mgr.Phone: (907) 561-2465Fax: (907) 561-2474Email: [email protected] over 250 wells logged since 1989,Epoch is the leading provider ofadvanced mudlogging services in
Alaska. Our DML 2000 software assimi-lates a comprehensive database of geo-logical and drilling information withpresentations available in a variety ofhardcopy and digital formats.
Office Furniture
Capital Office Systems1120 E, 35th Ave.Anchorage, AK 99508Contact: Leslye Langla, managing direct.Phone: (907) 777-1501Fax: (907) 777-1515Email: [email protected] management, systems furniture,project coordination, space planning,systems delivery/installation, furniturerefurbishing, and relocation/remodelservices. Authorized Steelcase dealer forAlaska.
Oil Field Service & Rig Up
Weaver Brothers14223 Kenai Spur Hwy.Kenai, AK 99611Contact: Glen Dye, terminal mgr.Phone: (907) 283-7975Fax: (907) 283-3677Email: [email protected] Offices:Anchorage, AlaskaFairbanks, AlaskaTrucking company specializing in oilfield winch truck services. Bed tandems& loaders plus rig moving capabilities.Petroleum and chemical trailers, low-boys, bulk trailers, vans and flats.
On-site Medical Services
Kuukpik Arctic Catering5761 Silverado Way, Ste PAnchorage, AK 99518
Contact: Rick MacMillanPhone: (907) 562-5588Fax: (907) 562-5898Email: [email protected]
Well Safe Inc.209 E. 51st Ave.Anchorage, AK 99503Contact: Ken Carroll, district mgr.Phone: (907) 743-9871Fax: (907) 743-9872Email: [email protected] site: www.wellsafe.comA full service safety company specializ-ing in remote medical support, expedi-tors, confined space rescue teams, H2Sand safety consultants, OSHA trainingand rental/sales of gas detection andbreathing air systems.
Photography
AeroMap U.S.2014 Merrill Field Dr.Anchorage, AK 99501Contact: Holly Holmes, MarketingPhone: (907) 272-4495Fax: (907) 274-3265Email: [email protected] site: www.aeromap.comAeroMap provides geospatial informa-tion about the earth utilizing land, air-borne and satellite sensors. We defineits topography, measure its features,and chronicle its condition.
Judy Patrick Photography430 W. 7th Ave., Ste. 220Anchorage, AK 99501Contact: Judy PatrickPhone: (907) 258-4704Fax: (907) 258-4706Email: [email protected] site: JudyPatrickPhotography.comCreative images for the resource devel-
opment industry.
Pipe & Fittings
Petroleum Equipment & Services5631 Silverado Way, Ste GAnchorage, AK 99518Contact: Kevin Durling/Donald ParkerPhone: (907) 248-0066Fax: (907) 248-4429Email: [email protected] site: www.pesiak.comP.E.S.I. provides both conventional andspecialty products and services for theAlaska oil industry. Regardless of yourlocation, you will receive products andservice that is guaranteed to meet yourrequirements.
Pipeline Maintenance
American Marine Corp.6000 A St.Anchorage, AK 99518Contact: Tom Ulrich, reg. mgr. svc. groupPhone: (907) 562-5420Fax: (907) 562-5426Email: [email protected] site: www.amsghq.comAmerican Marine Corp. provides fullservice marine construction and divingservices throughout Alaska and thePacific Basin.
ASRC Energy Services – Pipeline,Power & Communications3900 C St., Anchorage, AK 99503Contact: Wade BlasingamePhone: (907) 339-6400Fax: (907) 339-6444Email:[email protected] site: www.asrcenergy.comPipeline construction and maintenance,fiber optic cable installation.
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Shaded relief map of Adak Island produced by AeroMap from Interferometric Synthetic Aperture Radar (IFSAR). See the company pro-file on page B13.
B20 PETROLEUM NEWS • WEEK OF MAY 16, 2004PETROLEUM DIRECTORYOffshore Divers5400 Eielson St.Anchorage, AK 99518Contact: Don Ingraham, owner/mgr.Contact: Leif Simcox, owner/oper. mgr.Phone: (907) 563-9060Fax: (907) 563-9061Email: [email protected] site: http//www.offshoredivers.comOffshore Divers is an Alaska owned div-ing contractor specializing in sub-sea oil-field work on mooring systems,pipelines, platforms and docks in CookInlet, on the North Slope and in Valdez.
Peak Oilfield Service2525 C St., Ste. 201Anchorage, AK 99503Contact: Bill Stamps, business develop-ment/ex. affairsPhone: (907) 263-7000Fax: (907) 263-7070Email: [email protected] site: www.peakalaska.comAlaska based general contractors.
VECO949 E. 36th Ave., Ste. 500Anchorage, AK 99508Contact: Emily CrossPhone: (907) 762-1510Fax: (907) 762-1001Email: [email protected] site: www.VECO.comVECO is a multi-national corporationthat provides services, project manage-ment, engineering, procurement, con-struction, operations and maintenance –to the energy, resource and processindustries and the public sector.
Plumbing
Udelhoven Oilfield System ServicesAnchorage office:184 E. 53rd Ave.Anchorage, AK 99518Phone: (907) 344-1577Fax: (907) 522-2541Nikiski office:P.O. Box 8349Nikiski, AK 99635Phone: (907) 776-5185Fax: (907) 776-8105Prudhoe office:Pouch 340103Prudhoe Bay, AK 99734Phone: (907) 659-8093Fax: (907) 659-8489Serving Alaska for more than 25 years.
Process Equipment
Hanover Canada500, 101-6 Ave. SWCalgary, AB, T2P 3P4 CanadaContact: Rod Saville, Country Mgr.CanadaPhone: (403) 261-6801Fax: (403) 266-1066Email: [email protected] site: www.hanover-canada.comHanover Canada is the leading providerof natural gas compression services andequipment in Canada. We maintain an85,000 horsepower rental compressionfleet in Canada and over 3.6 millionhorsepower rental fleet worldwide.
Hanover custom designs productionequipment in accordance with cus-tomer’s specifications using strict inter-nal engineering standards. We have thecapability to provide process, mechani-cal and instrument design engineeringfor any production equipment projectworldwide.
Natco GroupP.O. Box 850, Stn. TCalgary, Alberta T2H2H3Contact: Kevin Baird, bus. dev. mgr.Phone: (403) 203-2103Fax: (403) 236-0488Email: [email protected] site: www.natco-ca.comNatco Group engineers, designs andmanufactures process, wellhead andwater treatment equipment and sys-tems used in the production of oil andgas worldwide.
Procurement Services
Alaska Anvil509 W. 3rd Ave.Anchorage, AK 99501–2237Contact: Frank WeissPhone: (907) 276-2747Fax: (907) 279-4088Web site: anvilcorp.comOther office: Kenai50720 Kenai Spur Hwy, Mile 24.5Kenai, AK 99611Phone: (907) 776-5870Fax: (907) 770-5871Multi-discipline engineering and designservices including construction manage-ment for petro-chemical and heavyindustrial client projects.
MRO Sales5631 Silverado Way, Unit GAnchorage, AK 99518Contact: Don PowellPhone: (907) 248-8808Fax: (907) 248-8878Email: [email protected] site: www.mrosalesinc.comOther offices:Kenai: Al Hull (907) 335-2782We provide Professional ProcurementService for hard-to-find supplies, partsand equipment. Regardless of your loca-tion, you will receive service that isguaranteed to meet your requirements.From Anchorage to Siberia, from ship-ping to communications, you receiveservice from the experts that have ‘BeenThere, Done That’
NANA/Colt Engineering700 G Street, 5th floorAnchorage, AK 99501Phone: (907) 273-3900Fax: (907) 273-3990Contact: John MinierNANA/Colt offers project management,engineering, design, construction man-agement, and procurement services tothe oil industry.
Phone: (907) 265-2485Fax: (907) 265-2597Email: [email protected] Alaska Railroad Corporation offersreal estate, passenger and freight servic-es – including complete services to moveyour freight between Alaska, the Lower48 and Canada.
Prudhoe Bay Shop & StorageDeadhorse AirportDeadhorse, AK 99734Contact: J. Harper Gaston, presidentP.O. Box 670Greenville, GA 30222Phone: (706) 672-0999Fax: (706) 672-1188Email: [email protected] designed for oilfield services.Located one-half mile north ofDeadhorse airport. 800 sf.–1,200 sf.individual or combined units. Rentincludes heat, snow removal, mainte-nance and repairs.
Recycling Waste Management
ColvillePouch 340012Prudhoe Bay, AK 99734Contact: John Daly, Kevin CilkPhone: (907) 659-3197Fax: (907) 659-3190Email: [email protected], gasoline, jet fuel, aviation gaso-line in bulk and small quantity deliver-ies, electronic card-lock fleet manage-ment, solid waste and recycling, indus-trial gases and solid waste. Tesoro fuelstation.
NEI Fluid Technology3408 Arctic Blvd.Anchorage, AK 99503Contact: Kathryn Russell, presidentPhone: (907) 561-4820Fax: (907) 562-2316Email: [email protected] of petrochemical refuelingand testing equipment, meters andvalve systems for the oil and gas indus-try and portable measurement forpetroleum, chemicals and bulk liquids.We also supply refrigerant recovery andrecycling equipment.
Pacific Environmental (PENCO)6000 A St.Anchorage, AK 99518Contact: Tom Ulrich, reg. mgr. AmericanMaine svc. groupPhone: (907) 562-5420Fax: (907) 562-5426Email: [email protected] site: www.amsghq.comPENCO provides environmentalresponse, containment and clean up.Hazardous wastes and contaminatedsite clean up and remediation. Asbestosand lead abatement. Petroleum vesselservices and bulk fuel oil facility andstorage tank maintenance, manage-ment and operations.
Quadco6116 Nielson WayAnchorage, AK 99518Contact: David Baggett, VP, Alaska man-agerPhone: (907) 563-8999Fax: (907) 563-8985Email: [email protected] offices: Farmington NM, DenverCO, Casper WYQuadco has supplied services to theAlaska oilfield since 1976. We havetrained personnel to help with instru-mentation, solids control, pipe handlingand Top Drive drilling equipment. 24hour on call
Reporting Software
Epoch Well Services5801 Silverado WayAnchorage, AK 99518Contact: James R. Carson, AK div. mgr.Phone: (907) 561-2465Fax: (907) 561-2474Email: [email protected] is a Windows based relationaldatabase program for morning reports,well planning, drilling, completion andworkover reports. RIGREPORT providescontractors with an electronic tour sheetfor morning reports and payroll report-ing.
Restaurants
Millennium Hotel4800 Spenard Rd.Anchorage, AK 99517Contact: Raegan KelliherPhone: (907) 243-2300Phone: (800) 544-0553Fax: (907) 243-8815Email: [email protected] site:www.millenniumhotels.com/anchorageThe Millennium Alaskan HotelAnchorage is located just one mile fromAnchorage International Airport andten minutes from downtown. TheMillennium is surrounded by the splen-dor of the great Alaskan outdoors. TheMillennium is ideally situated for busi-ness and leisure travelers alike.
Right of Way Maintenance
Cruz ConstructionHC04 Box 9323Palmer, AK 99645Contact: Dave or Dana CruzPhone: (907) 746-3144Fax: (907) 746-5557Email: [email protected] contractor specializing in heavycivil construction, horizontal directiondrilling for utilities. Ice road and icebridge construction throughout Alaskain support of resource development.
Safety Equipment & Supplies
Brooks Range SupplyPouch 3400081 Old Spine RoadPrudhoe Bay, AK 99734Contact: Mike Kunkel/Craig Welch, gen-eral managersPhone: (907) 659-2550Toll Free: (866) 659-2550Fax: (907) 659-2650Email: [email protected] source on the Slope for safety sup-plies, welding supplies, automotive andtruck parts, hardware, tools, steel, build-ing materials, glass, propane, hydraulichoses and fittings, paint and chemicals.Napa and True Value Hardware distribu-tion.
Jackovich Industrial & ConstructionSupplyFairbanks: 1600 Wells St.Attn: Buz JackovichPhone: (907) 456-4414Fax: (907) 452-4846Anchorage: 1716 Post RoadAttn: Steve SlonePhone: (907) 277-1406Fax: (907) 258-170024 hour emergency service. With 30 yearsof experience, we're experts on Arctic con-ditions and extreme weather.
MEDC International5829 West Sam Houston Pkwy, North,Ste.1005Houston, TX 77041Contact: Phil Hausman, U.S. sales mgr.Phone: (713) 937-9772Fax: (713) 937-9773Email: [email protected] Office: MEDC Ltd. – UKWebsite: www.medc.comMEDC design, manufacture and sell arange of UL/CENELEC approved fielddevices for fire & gas and communica-tions systems for use in potentiallyexplosive atmospheres.
Unitech of Alaska2130 E. Dimond Blvd.Anchorage, AK 99507Contact: Debbie HawleyPhone: (907) 349-5142Phone: (800) 649-5859Fax: (907) 349-2733Email: [email protected]: [email protected] is Alaska’s only 24-hour oil spillremediation, environmental and indus-trial supply company. Specialty areasinclude sorbents, geotextile, contain-ment berms, drums and ice melt.
Well Safe Inc.209 E. 51st Ave.Anchorage, AK 99503Contact: Ken Carroll, district mgr.Phone: (907) 743-9871Fax: (907) 743-9872Email: [email protected] site: www.wellsafe.com
PETROLEUM NEWS • WEEK OF MAY 16, 2004 B21PETROLEUM DIRECTORY
A full service safety company specializ-ing in remote medical support, expedi-tors, confined space rescue teams, H2Sand safety consultants, OSHA trainingand rental/sales of gas detection andbreathing air systems.
Security
Kuukpik Arctic Catering5761 Silverado Way, Ste PAnchorage, AK 99518Contact: Rick MacMillanPhone: (907) 562-5588Fax: (907) 562-5898Email: [email protected]
Seismic & Geophysical
Hunter 3-D9898 Bissonnet St., Ste. 362Houston, TX 77036Contact: Dan Huston, vice presidentPhone: (713) 981-4650Fax: (713) 981-4650Email: [email protected] site: www.hunter3dinc.comHunter 3-D is a geophysical consultingcompany based in Houston, Texas. Weinterpret seismic, gravity and magneticdata for projects in Alaska and world-wide.
Kuukpik/Veritas2000 E. 88th Ave.Anchorage, AK 99507Contact: Jeff HastingsPhone: (907) 276-6037Fax: (907) 279-5740Email: [email protected]
PGS Onshore341 W. Tudor Rd., Ste. 206Anchorage, AK 99503Contact: Larry Watt, Alaska area mgr. Phone: (907) 569-4049Fax: (907) 569-4047Email: [email protected] Office738 Hwy 6 South, Ste 900Houston, TX 77079Contact: Gehrig SchultzPhone: (281) 589-6732Fax: (281) 589-6685Email: [email protected] acquisition and processingfor the petroleum industry. PGS Onshoreprovides fully rubber tracked Arctic geo-physical crews to acquire the highestdensity data with the softest environ-mental footprint on the North Slope.
Shops/Storage Space
Prudhoe Bay Shop & StorageDeadhorse AirportDeadhorse, AK 99734Contact: J. Harper Gaston, presidentP.O. Box 670Greenville, GA 30222Phone: (706) 672-0999Fax: (706) 672-1188Email: [email protected] designed for oilfield services.Located one-half mile north ofDeadhorse airport. 800 sf.–1,200 sf.individual or combined units. Rentincludes heat, snow removal, mainte-nance and repairs.
Soil Stabilization
Arctic Foundations5621 Arctic Blvd.Anchorage, AK 99518-1667Contact: Ed YarmakPhone: (907) 562-2741Fax: (907) 562-0153Email: [email protected] site: www.arcticfoundations.comSoil stabilization – frozen barrier andfrozen core dams to control hazardouswaste and water movement.Foundations – maintain permafrost fordurable high capacity foundations.
Space Design/Planning
Capital Office Systems1120 E, 35th Ave.Anchorage, AK 99508Contact: Leslye Langla, managing direct.Phone: (907) 777-1501Fax: (907) 777-1515Email: [email protected] management, systems furniture,project coordination, space planning,
systems delivery/installation, furniturerefurbishing, and relocation/remodelservices. Authorized Steelcase dealer forAlaska.
Steel Fabrication
Alaska Steel Co.1200 W. DowlingAnchorage, AK 99518Contact: Joe Lombardo, vice presidentPhone: (907) 561-1188Toll free: (800) 770-0969 (AK only)Fax: (907) 561-2935Email: [email protected] office:2800 S. CushmanContact: Dan Socha, branch mgr.Phone: (907) 456-2719Fax: (907) 451-0449Kenai office:205 Trading Bay Rd.Contact: Will Bolz, branch mgr.Phone: (907) 283-3880Fax: (907) 283-3759Rebar fabrication full service with inhouse estimating and detailing.
Peak Oilfield Service2525 C St., Ste. 201Anchorage, AK 99503Contact: Bill Stamps, business develop-ment/ex. affairsPhone: (907) 263-7000Fax: (907) 263-7070Email: [email protected] site: www.peakalaska.comAlaska based general contractors.
STEELFAB2132 Railroad Ave. Anchorage, AK 99501Contact: Janet Faulkner, vice presidentPhone: (907) 264-2819Fax: (907) 276-3448Email: [email protected] is the largest Alaskan-ownedsteel service center in the state. It pro-vides pressure vessels, modules, specialdesign items and raw steel products.
Totem Equipment & Supply2536 Commercial Dr.Anchorage, AK 99501Contact: Mike Huston, vpPhone: (907) 276-2858Fax: (907) 258-4623Email: [email protected] site: www.toteminc.comTotem Equipment & Supply Inc. locallyowned and operated since 1961.Supplies light, medium and heavyequipment. Specializing in temporaryand permanent heating solutions.
Udelhoven Oilfield System Services Anchorage office:184 E. 53rd Ave.Anchorage, AK 99518Phone: (907) 344-1577Fax: (907) 522-2541Nikiski office:P.O. Box 8349Nikiski, AK 99635Phone: (907) 776-5185Fax: (907) 776-8105Prudhoe office:Pouch 340103Prudhoe Bay, AK 99734Phone: (907) 659-8093Fax: (907) 659-8489Serving Alaska for more than 25 years.
Steel Sales
Alaska Steel Co.1200 W. DowlingAnchorage, AK 99518Contact: Joe Lombardo, vice presidentPhone: (907) 561-1188Toll free: (800) 770-0969 (AK only)Fax: (907) 561-2935Email: [email protected] office:2800 S. CushmanContact: Dan Socha, branch mgr.Phone: (907) 456-2719Fax: (907) 451-0449Kenai office:205 Trading Bay Rd.Contact: Will Bolz, branch mgr.Phone: (907) 283-3880Fax: (907) 283-3759Full-line steel and aluminum distributor.Complete processing capabilities,statewide service. Specializing in lowtemperature steel.
ColvillePouch 340012Prudhoe Bay, AK 99734Contact: John DalyPhone: (907) 659-3197Fax: (907) 659-3190Diesel, gasoline, jet fuel, aviation gaso-line in bulk and small quantity deliver-ies, electronic card-lock fleet manage-ment, solid waste and recycling, steel,industrial gases and solid waste.
STEELFAB2132 Railroad Ave. Anchorage, AK 99501Contact: Janet Faulkner, vice presidentPhone: (907) 264-2819Fax: (907) 276-3448Email: [email protected] is the largest Alaskan-ownedsteel service center in the state. It pro-vides pressure vessels, modules, specialdesign items and raw steel products.
Surveying & Mapping
AeroMap U.S.2014 Merrill Field Dr.Anchorage, AK 99501Contact: Holly Holmes, MarketingPhone: (907) 272-4495Fax: (907) 274-3265Email: [email protected] site: www.aeromap.comAeroMap provides geospatial informa-tion about the earth utilizing land, air-borne and satellite sensors. We defineits topography, measure its features,and chronicle its condition.
ASTAC/fm, a division of ASTAC4300 B St., Ste. 501Anchorage, AK 99503Contact: Don NelsonPhone: (907) 563-3989Phone: 1-800-478-6409Fax: (907) 563-1932Email: [email protected] expertise in implementing GIStechnology whether it be data conver-sions or a complete turnkey solution.
Kuukpik-LCMF139 E. 51st Ave.Anchorage, AK 99503Contact: Richard Rearick, architecturalmgr.Contact: Willey Wilhelm, engineeringmgr.Contact: Tony Hoffman, survey mgr.Phone: (907) 273-1830Phone: (800) 955-1830Fax: (907) 273-1831Email: [email protected] Offices:Barrow: (800) 478-8213Email: [email protected]: (907) 670-4739Email: [email protected] contractor project supportsurveyors; remote site land and hydro-graphic surveys for government and pri-vate; oil and gas development survey-ing, mapping, and permitting.
Lounsbury and Associates723 W. 6th Ave.Anchorage, AK 99501Contact: Craig L. Savage, presidentE-mail: [email protected]: Jim Sawhill, vp
Email: [email protected]: (907) 272-5451Fax: (907) 272-9065Toll Free: (800) 478-5451Website: www.lounsburyinc.comSpecializing in surveying for Alaska oiland gas exploration, oilfield develop-ment and transportation systems, con-ventional and GPS surveying, and map-ping.
Tank Fabrication
Northern Transportation310 K St., Ste. 200Anchorage, AK 9950142003 McKenzie Hwy.Hay River, NWT X0E0R9Contact: John Marshall Phone: (867) 874-5167Fax: (867) 874-5179Email: [email protected] site: www.ntcl.com Marine transportation along theMcKenzie River to the Beaufort Sea andAlaska’s North Slope.
Telephone Equipment & Sales
ASTAC4300 B St., Ste. 501Anchorage, AK 99503Contact: Erin EalumPhone: (907) 563-3989Phone: 1-800-478-6409Fax: (907) 563-1932Email: [email protected] local and long distance serv-ice, Internet, maintenance and training,consultation, installation, engineering,Centrex, custom calling features, digitalcross connect service, and digital dataservice to the North Slope region ofAlaska.
Temporary Placement Services
Alaska’s People2600 Cordova St., Ste.211Anchorage, AK 99503Contact: Teresa Nelson, directorPhone: (907) 263-7013Fax: (907) 263-7083Email: [email protected] site: www.alaskapeople.comEmployment reference services with anemphasis on qualified Alaska Nativesand American Indians.
Chiulista Camp Services6613 Brayton Dr., Ste. CAnchorage, AK 99507Contact: George B. Gardner, pres/gmPhone: (907) 278-2208Fax: (907) 677-7261Email: [email protected] 100 percent Alaska Native ownedand operated catering company on theNorth Slope, catering and housekeepingto your tastes, not ours.
Training
Pacific Rim Institute of Safety &Management (PRISM)P.O. Box 3670Kenai, AK 99611Contact: David C. Burnett, program mgr.Phone: (907) 283-3054
B22 PETROLEUM NEWS • WEEK OF MAY 16, 2004PETROLEUM DIRECTORYFax: (907) 283-1853Email: [email protected] site: www.AAICorp.comProviding a full spectrum of compliancebased training for workers in the field ofhealth, safety and emergency response,all in one location. Basic rigging, forkliftand manlift operations, confined spacerescue, hazardous materials, maritime(BST, STCW certified), industrial fire fight-ing (NFPA 600).
Well Safe Inc.209 E. 51st Ave.Anchorage, AK 99503Contact: Ken Carroll, district mgr.Phone: (907) 743-9871Fax: (907) 743-9872Email: [email protected] site: www.wellsafe.comA full service safety company specializingin remote medical support, expeditors,confined space rescue teams, H2S andsafety consultants, OSHA training andrental/sales of gas detection and breath-ing air systems.
Underwater NDT & Photography
American Marine Corp.6000 A St.Anchorage, AK 99518Contact: Tom Ulrich, reg. mgr. svc. groupPhone: (907) 562-5420Fax: (907) 562-5426Email: [email protected] site: www.amsghq.comAmerican Marine Corp. provides full serv-ice marine construction and diving servic-es throughout Alaska and the PacificBasin.
Offshore Divers5400 Eielson St.Anchorage, AK 99518Contact: Don Ingraham, owner/mgr.Contact: Leif Simcox, owner/oper. mgr.Phone: (907) 563-9060Fax: (907) 563-9061Email: [email protected] site: http//www.offshoredivers.comOffshore Divers is an Alaska owned div-ing contractor specializing in sub-sea oil-field work on mooring systems, pipelines,platforms and docks in Cook Inlet, on theNorth Slope and in Valdez.
Storm Chasers Marine ServicesP.O. Box 757Seward, AK 99664Contact: Mica Van BuskirkPhone: (907) 224-3536Fax: (907) 224-6080Email: [email protected] quality marine services inAlaska for over 15 years. Commercial div-ing, underwater welding, underwaterinspection with video, vessel repair,marine construction and marine salvageservices.
Underwater Welding
American Marine Corp.6000 A St.Anchorage, AK 99518Contact: Tom Ulrich, reg. mgr. svc. groupPhone: (907) 562-5420Fax: (907) 562-5426Email: [email protected] site: www.amsghq.comAmerican Marine Corp. provides full serv-ice marine construction and diving servic-es throughout Alaska and the PacificBasin.
Offshore Divers5400 Eielson St.Anchorage, AK 99518Contact: Don Ingraham, owner/mgr.Contact: Leif Simcox, owner/oper. mgr.Phone: (907) 563-9060Fax: (907) 563-9061Email: [email protected] site: http//www.offshoredivers.comOffshore Divers is an Alaska owned div-ing contractor specializing in sub-sea oil-field work on mooring systems, pipelines,platforms and docks in Cook Inlet, on theNorth Slope and in Valdez.
Storm Chasers Marine ServicesP.O. Box 757Seward, AK 99664Contact: Mica Van BuskirkPhone: (907) 224-3536Fax: (907) 224-6080Email: [email protected] quality marine services in
Alaska for over 15 years. Commercial div-ing, underwater welding, underwaterinspection with video, vessel repair,marine construction and marine salvageservices.
Vehicle Repair
Kenworth Alaska2838 Porcupine Dr.Anchorage, AK 99501Contact: Jim Scherieble, branch mgr.Phone: (907) 279-0602Phone: (800) 478-0602Fax: (907) 258-6639Email: [email protected]: [email protected]: www.kenworthalaska.comFairbanks office:3730 Braddock St.Fairbanks, AK 99701Contact: Ed Lewis, branch mgr.Phone: (907) 455-9900Fax: (907) 479-8295Kenworth Alaska is a full service truckdealership in two locations – Anchorageand Fairbanks. New and used truck sales,parts and service.
Seekins Ford Lincoln Mercury1625 Old Steese Hwy.Fairbanks, AK 99701Contact: Steven Angel, fleet sales mgr.Phone: (907) 459-4044Fax: (907) 450-4007Email: [email protected] site: www.seekins.comFord Lincoln Mercury dealer located inFairbanks Alaska providing solutions toyour transportation needs. Parts and serv-ice support in Fairbanks and Prudhoe Bay.
Vehicle Sales/Rental
Seekins Ford Lincoln Mercury1625 Old Steese Hwy.Fairbanks, AK 99701Contact: Steven Angel, fleet sales mgr.Phone: (907) 459-4044Fax: (907) 450-4007Email: [email protected] site: www.seekins.comFord Lincoln Mercury dealer located inFairbanks Alaska providing solutions toyour transportation needs. Parts and serv-ice support in Fairbanks and Prudhoe Bay.
Welding
Udelhoven Oilfield System ServicesAnchorage office:184 E. 53rd Ave.Anchorage, AK 99518Phone: (907) 344-1577Fax: (907) 522-2541Nikiski office:P.O. Box 8349Nikiski, AK 99635Phone: (907) 776-5185Fax: (907) 776-8105Prudhoe office:
Pouch 340103Prudhoe Bay, AK 99734Phone: (907) 659-8093Fax: (907) 659-8489Serving Alaska for more than 25 years.
Weld Repairs/Manufacturing
Hanover Canada500, 101-6 Ave. SWCalgary, AB, T2P 3P4 CanadaContact: Rod Saville, Country Mgr.CanadaPhone: (403) 261-6801Fax: (403) 266-1066Email: [email protected] site: www.hanover-canada.comHanover Canada is the leading providerof natural gas compression services andequipment in Canada. We maintain an85,000 horsepower rental compressionfleet in Canada and over 3.6 millionhorsepower rental fleet worldwide.Hanover custom designs productionequipment in accordance with customer’sspecifications using strict internal engi-neering standards. We have the capabili-ty to provide process, mechanical andinstrument design engineering for anyproduction equipment project world-wide.
Natco CanadaP.O. Box 850, Stn. TCalgary, Alberta T2H2H3Contact: Kevin Baird, bus. dev. mgr.Phone: (403) 203-2103Fax: (403) 236-0488Email: [email protected] site: www.natco-ca.comNatco Group engineers, designs andmanufactures process, wellhead andwater treatment equipment and systemsused in the production of oil and gasworldwide.
Peak Oilfield Service2525 C St., Ste. 201Anchorage, AK 99503Contact: Bill Stamps, business develop-ment/ex. affairsPhone: (907) 263-7000Fax: (907) 263-7070Email: [email protected] site: www.peakalaska.comAlaska based general contractors.
STEELFAB2132 Railroad Ave. Anchorage, AK 99501Contact: Janet Faulkner, vice presidentPhone: (907) 264-2819Fax: (907) 276-3448Email: [email protected] is the largest Alaskan-ownedsteel service center in the state. It pro-vides pressure vessels, modules, specialdesign items and raw steel products.
Unique Machine5839 Old Seward HwyAnchorage, AK 99518
Contact: Pat Hanley, COOPhone: (907) 563-3012Fax: (907) 562-1376Email: [email protected] site: www.uniquemachineinc.comThe design, development, manufactureand distribution of oilfield construction,mining, fishing and government parts toindustry quality standards.
OIL COMPANIES
Operators
ConocoPhillips Alaska700 G St.P.O. Box 100360Anchorage, AK 99510-0360Contact: Kevin O. Meyers, president & CEOPhone: (907) 265-6134Fax: (907) 265-1502
Marathon Oil3201 C St., Ste 800Anchorage, AK 99503Contact: John A. Barnes, regional mgr.Phone: (907) 561-5311Fax: (907) 564-6489Website: www.marathon.com
Unocal Alaska909 W. 9th Ave.Anchorage, AK 99501Contact: Roxanne SinzPhone: (907) 263-7623Fax: (907) 263-7693Email: [email protected] 100 years ago Unocal came toAlaska to sell petroleum in the territory.By 1939, the company had geologicalteams in Southcentral Alaska who helpeddiscover the Swanson River oil field in1957 and then the first gas field a yearlater. Today Unocal is the largest operatorin Cook Inlet, operating 10 of the 16 plat-forms, 6 of 11 producing gas fields andseveral onshore facilities.
XTO Energy810 Houston St., Ste. 2000Fort Worth, TX 76102Contact: Vaughn O. Vennerberg, IIPhone: (817) 870-2800Fax: (817) 870-0379Other Office: XTO Energy, 52260 ShellRoad, Kenai, AK 99611, Doug Marshall,production superintendentXTO Energy, established in 1986, isengaged in the acquisition and develop-ment of quality, long-lived producing oiland gas properties and exploration foroil and gas.
CO
URT
ESY
OF
AER
OM
AP
The AeroMap facility, based at Merrill Field in Anchorage, Alaska. See the company profile on page B13.
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