ÿþ<html xmlns:xsi="http://www.w3.org/2000/10/XMLSchema-instance" xmlns:my="http://localhost/namespace"> <head> <META http-equiv="Content-Type" content="text/html; charset=UTF-16"> <TITLE>Monthly Energy Chronology</TITLE> <meta name="Description" content=""> <meta name="Keywords" content=""> <meta http-equiv="pragma" content="no-cache"> <meta http-equiv="Content-Type" content="text/html; charset=windows-1252"> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> <LINK HREF="../cabs.css" TYPE="text/css" REL="StyleSheet"> </head> <body> <table width="670px" cellspacing="0" cellpadding="0" style="border:solid 1px #000000"> <tr valign="top"> <td align="left" colspan="2"><img src="../images/PrintHeader.jpg" alt="Country Analysis Briefs Header"><br><span class="cssPrintHeader" style="padding-left:10px;">Current Monthly Energy Chronology<br></span><span class="cssContent">Last Updated: January 2006<p></p></span></td> </tr> <tr valign="top"> <td><img src="../images/Blank.gif" width="125" height="1"></td> <td><img src="../images/Blank.gif" width="545" height="1"></td> </tr> <tr valign="top"> <td colspan="2" align="left"><span class="cssHeader1">January 2005</span></td> </tr> <tr valign="top"> <td colspan="2" class="cssContent"> <div><span style="font-weight: bold;">January 1</span> The EU launches the European Emissions Trading Scheme (ETS), the first greenhouse gas emissions trading market in Europe (the other is the Chicago Climate Exchange), which links energy-intensive industries to carbon dioxide emissions limits. Four EU countries are not participating, as they are still in the process of agreeing on their national carbon dioxide targets. The market allows firms to sell any unused carbon allowances or to buy extra allowances if needed. The firms participating encompass 50% of total European carbon dioxide emissions. (WMRC) <p></p> </div> <div><span style="font-weight: bold;">January 3 </span>Sinopec, a Chinese oil company, finds a sizeable oil and gas field in the remote province of Xinjiang in northwest China. The company estimates the Tahe field in the Tarim Basin contains almost 8 billion barrels of oil and over 2 trillion cubic feet of natural gas. Experts estimate that crude oil reserves from the new find could reach as high as 19 billion barrels. Based on the lower estimate of 8 billion barrels, the new find could represent over one-third of China's proven oil reserves. The beginning of gas production in the Kela-2 field in late 2004 is already expected to turn the Tarim Basin into the country s largest gas producing region in 2005. (Reuters, WMRC). <p></p> </div> <div class="security"><span style="font-weight: bold;">January 5 </span>After the resolution of a dispute in southeastern Nigeria, Royal Dutch/Shell resumes 114,000 bbl/d of crude oil production from the Odeama flow station. Vandalism and community feuds had closed down crude oil production in the Niger Delta and forced Shell to declare a <span style="font-style: italic;">force </span><span style="font-style: italic;">majeure</span> on December 22, 2004. However, Shell is still operating under a 114,000-bbl/d <span style="font-style: italic;">force </span><span style="font-style: italic;">majeure</span>, and the company warns customers that it will not be able to meet its export contracts from the Bonny terminal until early February. The shut-in had affected both Shell and ChevronTexaco, but ChevronTexaco negotiated a deal with the community to develop roads and infrastructure and allowed the company to resume production of some 20,000 bbl/d last week. (WMRC, Reuters)</div><p></p> <div><span style="font-weight: bold;">January 7 </span>India Oil Company (IOC) and Gas Authority of India Ltd (GAIL) sign a deal with the National Iranian Gas Export Corporation to buy 7.5 million metric tons per year of liquefied natural gas (equivalent to approximately 365 billion cubic feet of natural gas) beginning in 2009 and to participate in three oil and natural gas blocks. The IOC and GAIL will participate in Iran s Yadavaran and Jufeyr oil fields. (Reuters).<p></p> </div> <div><span style="font-weight: bold;">January 9 </span>A peace agreement is signed between the rebel Sudan People s Liberation Army based in the south and the Khartoum-based government after 21 years of fighting. Analysts predict that oil and gas companies will be eager to expand Sudan 's oil production from 2004 s average level of 342,500 barrels per day. The country has proven reserves of 635 million barrels, much of which could not be accessed during the war. The agreement gives the south political and religious autonomy and a share of the country's oil assets. It does not cover an unrelated conflict in Sudan's western region of Darfur. (WP, Reuters)<p></p> </div> <div><span style="font-weight: bold;">January 11 </span>The Nigerian government revokes development rights for 24 undeveloped oil blocks and will offer them again in the country's next major oil licensing round. The blocks had been awarded to oil majors including Royal Dutch/Shell, and ChevronTexaco, as well as to smaller oil companies. The companies are asking the Nigerian government to reconsider its decision. Under Nigerian law, the government may withdraw blocks that remain undeveloped for more than ten years from the time of award, though it is unclear whether all of the companies had held all of the blocks for at least ten years. (WMRC, DJ)<p></p> </div> <div class="security"><span style="font-weight: bold;">January 12 </span>The Iraqi State Oil Marketing Organization (SOMO) decides to reduce the volume of its Basra Light term contracts by 10% from February 1 for 6 months because of frequent sabotage, power cuts, and delays due to bad weather. Southern loadings are reduced to 1.46 million bbl/d during the week leading up to January 12, from a peak capacity of nearly 2 million bbl/d. SOMO also suspends contracted deliveries in the north for oil from Kirkuk. (WMRC)</div><p></p> <div><span style="font-weight: bold;">January 12</span> Venezuelan President Hugo Chavez replaces most of the directors of the state oil firm PdVSA in a major shake-up of the company's board. The PdVSA president announced plans late last year to align the company more strongly with the political and social policies of President Chavez. The previous board had served since March 2004. Venezuela is the world s fifth largest crude oil exporter, and produced approximately 2.5 million barrels of crude oil per day during 2004. (AP) <p></p> </div> <div><span style="font-weight: bold;">January 14 </span>Venezuela 's Foreign Minister Ali Rodriguez announces the suspension of a number of oil projects with neighboring Colombia . This includes a new oil pipeline and projects to expand refineries and petrochemical production. The move follows a dispute over Colombia  s arrest of a member of the country s main guerrilla group, the Revolutionary Armed Forces of Colombia (FARC), who was allegedly seized on Venezuelan soil. This incidence had already prompted Venezuela to recall its ambassador to Colombia . Despite these moves, Venezuela decides not to indefinitely suspend the oil pipeline project that will allow it to export oil to China via Colombia . (DJ, WMRC) <p></p> </div> <div><span style="font-weight: bold;">January 20 </span>Egypt exports its first-ever shipment of liquefied natural gas (LNG). The shipment was sent to Spain from the Mediterranean port of Damietta . The SEGAS plant in Damietta , a joint venture of Spain 's Union Fenosa and Italy 's ENI, can produce the equivalent of approximately 214 billion cubic feet of natural gas (4.4 million metric tons of LNG) per year. The operators expect the first shipments of LNG to the United States in March of this year. (Reuters) <p></p> </div> <div><span style="font-weight: bold;">January 24 </span>Norway's Petroleum Safety Authority gives Norwegian company Statoil the requisite approval to resume partial output at its Snorre oilfield in the North Sea, fully shut-in since a gas leak two months ago. The 130,000-bbl/d Snorre field and linked 75,000-bbl/d Vigdis field closed on November 28, 2004, after a gas leak below the Snorre A platform forced a helicopter evacuation of the platform amid fears of a blowout. Statoil must now provide confirmation that the oilfield s existing production (approximately 100,000 bbl/d) is stable before it can resume full output. (WMRC)<p></p> </div> <div><span style="font-weight: bold;">January 27 </span>Yukos, Russia s top oil exporter last year, is left off of Transneft s export schedule for February, leaving newly enlarged state oil firm Rosneft to fill the export shortfall. Yukos will ship its entire oil output of around 600,000 bbl/d to domestic refineries and will have no spare crude oil for exports. Yukos shipped approximately 680,000 bbl/d in December 2004, a 30% decline from its November export level. (Reuters)<p></p> </div> <div><span style="font-weight: bold;">January 30 </span>OPEC decides to leave its crude oil production quotas unchanged at 27 million bbl/d after a meeting in Vienna. The current OPEC president, Sheik Ahmad Fahd Al-Sabah of Kuwait indicates that the producers will reduce their production levels before the next meeting, scheduled for March 26, if prices fall. OPEC also temporarily suspends its price band of $22 - $28 per barrel, which had been in effect since March 2000. (NYT, AP)<p></p> </div> <div><span style="font-weight: bold;">January 30 </span>Millions of Iraqis defy threats and suicide bombers to cast ballots in their country s first democratic national election. Iraq's Independent Electoral Commission estimates that approximately 60%, or about eight million, of the nearly 14 million registered voters actually vote. Another quarter of a million Iraqi exiles also vote, or 90% of those who had registered. (WP, NYT)<p></p> </div> <p></p> </td> </tr> <tr valign="top"> <td colspan="2" align="left"><span class="cssHeader1">February 2005</span></td> </tr> <tr valign="top"> <td colspan="2" class="cssContent"> <div><span style="font-weight: bold;">February 1 </span>The U.S. Senate confirms Samuel Bodman as the new Secretary of Energy, replacing Spencer Abraham. (Reuters, NYT) <p></p> </div> <div><span style="font-weight: bold;">February 4 </span>Royal Dutch/Shell Group again sharply cuts its estimate of energy reserves and says it replaced only about half as much crude oil and natural gas as it pumped last year. The company s news overshadows a surge in fourth-quarter profit to $4.48 billion. The world's third-largest publicly traded oil company by market capitalization says it reduced reserves by an additional 1.4 billion barrels of oil equivalent, significantly more than the 900 million additional barrels it had previously warned it might have to write off. The move marks the company s fifth such cut and brings its cumulative reserves reduction to about one-third since it first disclosed early last year that it had drastically overstated its reserves numbers. (WSJ)<p></p> </div> <div class="security"><span style="font-weight: bold;">February 7 </span>Two oil tankers collide off the Egyptian coast, spilling a total of approximately 9,000 barrels of crude oil into the Mediterranean. The accident, the second oil spill around the Suez canal in two months, takes place around 14 nautical miles from Damietta. (WMRC, Reuters)</div><p></p> <div><span style="font-weight: bold;">February 10 </span>Saudi Arabia, the world s largest crude oil producer, holds its first elections in more than 40 years. The election drew more than 1,800 candidates for half of the seats on 38 municipal councils in the greater Riyadh region. The elections are an experiment by the ruling Saud family in opening the political system to more public participation. The government will appoint the remaining seats. Women are not permitted to participate in the election. (NYT, AP, WP)<p></p> </div> <div><span style="font-weight: bold;">February 11 </span>Russia s natural resources ministry announces that foreign companies without at least a 51% Russian share will be barred from bidding in several upcoming key auctions for large mineral deposits during 2005. Large deposits open for bidding this year include crude oil and natural gas fields around Sakhalin Island, the Barents Sea, and the Arctic. The Natural Resources Ministry clarifies that international oil companies (IOCs) will still be allowed to participate in the development of these projects, but that the government will require that they be controlled from Russian territory. (WMRC, NYT) <p></p> </div> <div><span style="font-weight: bold;">February 11 </span>ConocoPhillips reaches a deal with Venezuela on developing the Corocoro oil field, which it discovered in 1999, and plans to produce 75,000 bbl/d there by 2007 according to state oil company PDVSA. ConocoPhillips planned to begin drilling 14 offshore wells on the oil and gas field, located just off Venezuela's eastern coast in December but the energy ministry halted activities shortly before drilling began. The agreed spending plan and other terms of the deal are not made publicly available after the parties sign the agreement. (Platts)<p></p> </div> <div><span style="font-weight: bold;">February 14 </span>BP launches the first commercial crude oil production from its  Azeri field off the Caspian Sea coast of Azerbaijan. The field will be a major contributor to the Baku-T bilisi-Ceyhan (BTC) pipeline that will run through the Caucasus region to the Mediterranean sea port of Ceyhan, Turkey. Since the BTC pipeline has been delayed until September 2005, BP will reroute the field s 2005 average production of 93,000 barrels per day to the Georgian port of Supsa and the Russian port of Novorossiysk. (Reuters, WMRC)<p></p> </div> <div><span style="font-weight: bold;">February 14 </span>Australia offers its first new type of major crude oil cargo in four years. The new crude oil type being produced, Mutineer-Exeter, will increase Australia s crude oil production by 100,000 bbl/d at its peak (an increase of around 20% from current production levels). At least one 600,000-barrel crude oil cargo from the field will be available for export each month. (Reuters)<p></p> </div> <div><span style="font-weight: bold;">February 15</span> After extensive repair work on Iraq s export pipeline from the Kirkuk oil fields, crude oil exports to the Turkish port of Ceyhan resume at a rate of 250,000 bbl/d. Plans are in place to increase the flows to 400,000 bbl/d by the end of the month, as long as further attacks do not continue. However, at the end of the month, after more sabotage to the pipeline, the Iraqi government shuts down the pipeline until further notice. (Bloomberg)<p></p> </div> <div><span style="font-weight: bold;">February 16</span> Norway's government says it will trim its majority stake in the country's energy group, Statoil, by 4.6 percentage points by selling 100 million shares worth about $1.7 billion. The sale will cut the state s stake to about 71.7 % from 76.3%. Under a parliamentary mandate, the government must retain two-thirds control. The energy ministry says that, in line with previous practice, another 17.65 million shares will be subsequently available for retail investors, at the same price as in the main sale. (Platts) <p></p> </div> <div><span style="font-weight: bold;">February 16</span> Eight years after it was first negotiated, the Kyoto Protocol on climate change goes into affect. Following Russia  s approval of the treaty in November 2004, the treaty s signatories comprised the requisite 55% of world greenhouse gas emissions in order for it to take effect. One of the Protocol s main goals is to achieve a reduction in greenhouse gas emissions of the six designated greenhouse gases to 1990 levels by 2012. A total of 140 countries have ratified the pact, the first major international effort to reduce industrial emissions. The Bush Administration announced three years ago that the United States would not join the accord, but it would instead pursue other voluntary reduction programs. (Reuters, NYT, LATimes)<p></p> </div> <div><span style="font-weight: bold;">February 22 </span>NYMEX WTI prompt month crude oil prices surge nearly 6 percent, or $2.80, to a 16-week high of $51.15 per barrel. The price increase is attributed in part to cold winter weather, which has kept heating fuel demand high in the United States and Europe. NYMEX WTI prompt month crude oil prices have risen more than $5 per barrel in the last two weeks to within reach of the record $55.67 per barrel hit during October 2004. (Reuters). <p></p> </div> <div><span style="font-weight: bold;">February 22</span> Libya plans to adjust terms for its next oil exploration bidding round, to be held in coming months. The government will make changes to the so-called EPSA-4 (Exploration and Production Sharing Agreements), including increased Libyan employment and stronger linkages between downstream and upstream activities. Because of the changes, Libya postpones the next exploration tender by up to three months. (Reuters)<p></p> </div> <div><span style="font-weight: bold;">February 25 </span>An affiliate of ChevronTexaco signs a $1.1 billion deal with South Korea's Daewoo Shipping and Marine Engineering to build a giant floating platform at the Agbami field, 45 miles off of Nigeria s coast. ChevronTexaco hopes to produce 250,000 bbl/d from the field. Other partners in the project include Petroleo Brasileiro Nigeria Limited, Statoil Nigeria Limited, Famfa Oil Limited, and the state-owned Nigerian National Petroleum Corporation. (AFP)<p></p> </div> <p></p> </td> </tr> <tr valign="top"> <td colspan="2" align="left"><span class="cssHeader1">March 2005</span></td> </tr> <tr valign="top"> <td colspan="2" class="cssContent"> <div><span style="font-weight: bold;">March 1 </span>Electricity demand in France reaches a record high of 86,027 MW, and the country must import 3% of its required generation from Spain and Germany. This marks the first time in more than 20 years that France is forced to rely on imported power generation. The peak demand is mainly due to an exceptionally cold weather front that is keeping temperatures around 10 degrees Fahrenheit lower than they normally are at this time of year. (WMRC, Reuters)<p></p> </div> <div class="security"><span style="font-weight: bold;">March 1</span> Iraq closes its northern crude oil export pipeline indefinitely due to sabotage concerns. The 600,000 bbl/d-pipeline, which runs from the city of Kirkuk to the Mediterranean port of Ceyhan has been the target of over 15 attacks since January 2005. The closure of the pipeline will make it difficult for Iraq to meet its targeted crude oil export level of 2 million barrels per day. (WMRC)</div><p></p> <div><span style="font-weight: bold;">March 1</span> A $700 million natural gas pipeline between southern Thailand and northern Malaysia starts commercial operations on Tuesday after five years of delays. The 227-mile pipeline began a trial delivery period in January with a flow of 5.3-7.0 billion cubic feet per day (bcf/d). Environmental groups, fishermen, and villagers, who lobbied for a change in the pipeline route, stalled approval of the pipeline for three years. (Reuters) <p></p> </div> <div><span style="font-weight: bold;">March 1</span> Mexican state-owned oil monopoly Pemex expects capital expenditures of $11.2 billion in 2005, up from $10.1 billion in 2004. Pemex says that 85% of its 2005 investment budget would go toward exploration and production. (Reuters)<p></p> </div> <div><span style="font-weight: bold;">March 2</span> The Federal Energy Regulatory Commission (FERC) approves the restarting and reversal of a Canadian oil pipeline that will link Canada  s western oil sands reserves to refineries in Oklahoma , Kansas and Texas . The $160 million Spearhead project will be operated by a subsidiary of Enbridge, a Canadian company, and is expected to be completed in January 2006. According to FERC, the project will help augment the United States  existing oil supply and will help ensure refineries have sufficient supplies of crude oil. (Reuters)<p></p> </div> <div><span style="font-weight: bold;">March 3</span> Men in eastern and southern Saudi Arabia go to the polls to choose municipal councils in the second stage of the kingdom's first nationwide elections. The election is for about half of the council memberships, the rest of which will be appointed. The third stage of elections next month will cover the western and northern regions of Saudi Arabia , including the holy cities of Mecca and Medina . (AP) <p></p> </div> <div><span style="font-weight: bold;">March 7</span> After five previous downward revisions to its oil and gas reserves estimates, Royal/Dutch Shell reports that its controversial 2002 figure was overstated by 41%. The amended report shows proven oil and gas reserves equivalent to 13.72 billion barrels, as opposed to 19.35 billion barrels. The United States Department of Justice is conducting a criminal inquiry into Shell s statements of its oil and gas reserves. (NYT)<p></p> </div> <div><span style="font-weight: bold;">March 16</span> OPEC meets in Isfahan , Iran , and agrees to lift oil production limits by 500,000 barrels per day (from 27 million bbl/d to 27.5 million bbl/d), effective immediately. OPEC also announces that it is prepared to add a further 500,000 barrels per day if prices stay high. In the days leading up to the OPEC meeting, Saudi oil minister Ali Naimi says that his country is willing to increase crude oil production by about 500,000 bbl/d or to its maximum capacity. EIA estimates that Saudi s maximum oil production capacity is around 10.5 million bbl/d. (OPEC website, Reuters, EIA)<p></p> </div> <div><span style="font-weight: bold;">March 16</span> Brazil s Supreme Court upholds the 1998 Petroleum Law that paved the way for foreign oil and gas exploration. Several large foreign oil companies froze investments as they waited for the decision, which could have declared the ownership rights held by foreign companies unconstitutional. Now, those companies are able to move into the development phase on a number of projects. Out of 11 judges in the court's plenary session, eight vote against the unconstitutionality motion. (Reuters)<p></p> </div> <div><span style="font-weight: bold;">March 17</span> The United States receives a shipment of LNG from a $200 million floating LNG terminal. This is the first new LNG terminal built in the U.S. in over 20 years. The LNG facility, known as the  EnergyBridge , is located 116 miles off the coast of Louisiana and is connected to the shore via a subsea pipeline. LNG carried on a specially designed tanker is re-gasified on board and is then fed into the pipeline. The company plans to launch a second tanker in April 2005 and a third in October 2006, bringing the total capacity of the terminal to about 500 million cubic feet per day of natural gas. ChevronTexaco will market the re-gasified LNG. ( Houston Chronicle, WMRC)<p></p> </div> <div class="security"><span style="font-weight: bold;">March 23</span> Widespread power blackouts affect the southern Chinese provinces of Guangdong , Guangxi , Guizhou , Yunnan and Hainan due to a lack of coal and hydroelectric power capacity. Around 30 generation plants in southern China are unable to meet their generation quotas, leaving the region short by 3,000 MW. Chinese press reports expect the blackouts to continue until the end of April. (WMRC)</div><p></p> <div class="security"><span style="font-weight: bold;">March 24</span> An explosion at BP s Texas City oil refinery kills 15 people and injures more than 70. In part due to market fears that the refinery blast will curtail gasoline supplies, the NYMEX prompt month contract for gasoline increases 1.5% to $1.599 per gallon and the NYMEX WTI prompt month crude oil contract increases $1.03 to close at $54.84 per barrel. The 460,000-bbl/d refinery accounts for approximately 3% of U.S. refining capacity; however, the refinery blast did not significantly affect actual U.S. gasoline production. BP attributes the explosion toignition sources near a vent stack. (NYT, DJ) </div><p></p> <div><span style="font-weight: bold;">March 28</span> PdVSA, the Venezuelan state oil company, announces it has increased its proven reserves by 192 million barrels, or 0.3%, after drilling successes at two fields in the eastern part of the country. Also, the company will change the pricing system for its crude oil exports. Until now, PdVSA calculated export prices according to the physical and chemical characteristics of Venezuelan crude, but the company says that a new formula will link prices to 'public indicators' such as published prices in trade publications.Earlier in the month, Venezuela announced a five-year plan to invest almost $40 billion to increase its production capacity by over 2 million bbl/d, to 5 million bbl/d. PdVSA will invest $5 billion during 2005. EIA estimates that current crude oil production in Venezuela is approximately 2.6 million bbl/d. (EIA, Reuters, WMRC) <p></p> </div> <div><span style="font-weight: bold;">March 28</span> Sudan signs a $400 million deal to develop its southern Thar Jath oil fields. The country expects an initial capacity of 80,000 bbl/d by the end of March 2006. The deal is signed with the Sudanese White Nile Petroleum company, a consortium of Malaysian state oil firm Petronas (68%), India's state-run Oil and Natural Gas Corporation (24%), and Sudan's state oil company Sudapet (7%). The crude oil reserves of the Thar Jath oil fields, in Block 5a in the southern Unity state, are estimated at a minimum of 250 million barrels. White Nile Petroleum is expected to drill 45 wells in the coming year. (Reuters)<p></p> </div> <div><span style="font-weight: bold;">March 29 </span>After over a year of uncertainty about the status of the Kashagan oilfield in Kazakhstan , KazMunaiGaz, the National Oil and Gas Company of Kazakhstan and Agip KCO sign an agreement for KazMunaiGaz to obtain an 8.33% share in the North Caspian Project, which includes Kashagan. The Agip KCO consortium purchased the entire BG stake of 16.67% for $1.8 billion. The field is the world s largest oil find in the past 30 years, with estimated reserves of 9-13 billion barrels of oil. (APS Review, Reuters) <p></p> </div> <p></p> </td> </tr> <tr valign="top"> <td colspan="2" align="left"><span class="cssHeader1">April 2005</span></td> </tr> <tr valign="top"> <td colspan="2" class="cssContent"> <div><span style="font-weight: bold;">April 1 </span><a href="http://www.eia.doe.gov/emeu/cabs/algeria.html"><span style="font-decoration: underline;color: #CC0000;">Algeria s</span></a> legislature approves a draft hydrocarbon law that will pave the way for easier foreign investment in the country s oil sector. The bill is expected to improve the efficiency and competitiveness of state energy company Sonatrach and will transform the tendering process for international oil and gas contracts. Currently, Sonatrach is responsible for tendering oil and gas projects and automatically becomes a partner in any operating consortium. Under the new bill, concessions will be tendered by an independent body, and Sonatrach will have to compete for licenses with international oil companies. (DJ, Platts)<p></p> </div> <div><span style="font-weight: bold;">April 4 </span>In the largest oil-sector acquisition since 2001, Chevron agrees to buy Unocal for $16.7 billion ($4.4 billion of which will be in cash). According to Chevron, the deal will create a combined company with daily production of three million barrels of oil equivalent. Chevron already has the fourth largest non-state-owned oil reserves in the world, and the addition of Unocal augments its asset base in the Caspian Sea region and in Southeast Asia. The deal increases Chevron s reserves by 1.8 billion barrels of oil equivalent, or about 15%. (WSJ)<p></p> </div> <div><span style="font-weight: bold;">April 4 </span>After two years of negotiations, Norway and the U.K. sign a long-awaited treaty on cross-border cooperation in the offshore oil and gas sector, intended to increase development of resources in the North Sea. As the U.K. becomes a natural gas net importer, the new agreement will help the country obtain secure supplies of natural gas. The treaty also aids in the cooperation on future construction and operation of pipelines carrying oil and natural gas from Norway to the U.K., provides for the joint utilization of hydrocarbon reservoirs and infrastructure straddling the border, and accelerates the approval process for new cross-border oil and natural gas projects in each country s regulatory system. (Reuters)<p></p> </div> <div><span style="font-weight: bold;">April 7 </span>The <a href="http://www.theipe.com/"><span style="font-decoration: underline;color: #CC0000;">International Petroleum Exchange</span></a> (IPE) in London converts its open-outcry trading format to a fully screen-based system. Initially, the transition to the new system is smooth. However, some operational errors scare traders away from the IPE and cause higher volumes at the competing NYMEX commodities market. (FT)<p></p> </div> <div><span style="font-weight: bold;">April 11 </span>TNK-BP, a 50%-50% joint venture of British Petroleum and a Russian oil company, announces the government has issued it a back-tax bill of almost $1 billion for 2001, over six times higher than the company s previous bill for the same time period. For context, Russian oil company Yukos tax bill was for almost $27.5 billion. Although BP will pay the tax bill, Lord Brown, the BP chairman, later meets with Russian President Vladimir Putin to seek reassurances that the Russian energy sector will remain open to foreign involvement. (WSJ, Reuters)<p></p> </div> <div class="security"><span style="font-weight: bold;">April 12 </span>Russia, Bulgaria and Greece give political support to a $750-$800 million trans-Balkan oil <a href="http://www.eia.doe.gov/emeu/cabs/seeurope.html"><span style="font-decoration: underline;color: #CC0000;">pipeline</span></a> that will allow Russian crude oil to bypass the congested Bosporus and Dardanelles straits in Turkey. Ministers from the three states sign a memorandum for construction of the 178-mile pipeline, linking Bulgaria's Black Sea port of Bourgas with the northern Greek town of Alexandropoulis on the Aegean Sea. The pipeline will have an initial capacity of 300,000 bbl/d that will eventually rise to 700,000 bbl/d over 3 years. (Reuters)</div><p></p> <div><span style="font-weight: bold;">April 12 </span><a href="http://www.eia.doe.gov/emeu/cabs/iran.html"><span style="font-decoration: underline;color: #CC0000;">Iran s</span></a> parliament passes a proposal that will help the OPEC country to increase its crude oil production capacity from 4 million bbl/d to 5 million bbl/d over the next 5 years. Although the new plan does not provide any provisions to change Iran 's current buyback scheme, the method under which international firms can now participate in Iran 's hydrocarbon projects, the initiative does offer a number of financial incentives for those companies that want to invest in the country. (DJ)<p></p> </div> <div><span style="font-weight: bold;">April 12 </span>China National Offshore Oil Corp. (CNOOC) acquires a 16.69% stake in Canadian oil sands developer MEG Energy for approximately $120 million. This is the first oil sands deal in Canada by a Chinese oil company. Later during the month, Enbridge , Canada  s second largest pipeline company, announces an agreement with PetroChina on the development of a $2 billion pipeline project to move petroleum from northern Alberta to Canada  s West Coast. (EI Energy Compass)<p></p> </div> <div><span style="font-weight: bold;">April 14</span><a href="http://www.eia.doe.gov/emeu/cabs/venez.html"><span style="font-decoration: underline;color: #CC0000;">Venezuela s</span></a> state-owned oil company PdVSA announces that oil firms in 32 oil production areas in Venezuela have six months to switch their contracts to comply with a new law that calls for an increased 30% tax rate and the majority participation of PdVSA. Later in the same week, the administration calls for a second increase (from 30% to 50%) in the tax rate paid by private oil companies in Venezuela . The Chavez administration has been pressuring oil firms to migrate to the new law for more than a year. The operating contracts are associated with approximately 500,000 bbl/d (or about 20%) of crude oil production in Venezuela . (DJ)<p></p> </div> <div class="security"><span style="font-weight: bold;">April 20</span> President Lucio Gutierrez of <a href="http://www.eia.doe.gov/emeu/cabs/ecuador.html"><span style="font-decoration: underline;color: #CC0000;">Ecuador</span></a> flees to Brazil after the Ecuadorian Congress voted to remove him and swear in Vice-President Alfredo Palacio as the new president. Later during the week, the government appoints Jose Gallardo as the new oil minister, but he refuses the position for personal reasons. Ecuador averaged approximately 532,000 barrels per day (bbl/d) of crude oil production during the first quarter of 2005. (EIA, NYT)</div><p></p> <div><span style="font-weight: bold;">April 25 </span>U.S. president George Bush meets with Crown Prince Abdullah, of Saudi Arabia, about rising oil prices and Saudi plans to increase oil production capacity over the next decade. President Bush and other administration officials are seeking commitments from Saudi Arabia to supply more oil to world markets in the short-run. Saudi Arabia's long-term plan, which it began discussing publicly weeks ago, calls for spending up to $50 billion to increase its maximum sustainable production capacity to 12.5 million barrels a day by 2009, and to 15 million in the subsequent decade, from about 10.5 million barrels now. Saudi Arabia currently produces approximately 9.6 million bbl/d of crude oil. Later during the week, President Bush announces new proposals to ease high oil prices including opening closed military bases to new refinery construction, renewing tax incentives for customers purchasing hybrid vehicles, and giving the Federal Energy Regulatory Commission ultimate siting authority for LNG terminals. (EIA, NYT)<p></p> </div> <div><span style="font-weight: bold;">April 26 </span>Valero Energy Corp. agrees to acquire refiner Premcor Inc. for $6.9 billion in cash and stock plus the assumption of about $1.8 billion of debt. The merger will create the largest refiner of crude oil in North America and marks a major step in the U.S. refinery industry's rapid consolidation. The deal between Valero and Premcor will give Valero total refining capacity of 3.3 million bbl/d and will raise it above Exxon Mobil Corp. s North American refinery capacity. Valero will then claim about 13% of the U.S. market for refined products. (WSJ)<p></p> </div> <div class="security"><span style="font-weight: bold;">April 26</span> Iraqi saboteurs attack the 50,000 bbl/d Bay Hassan oilfield west of the northern city of Kirkuk. An Iraqi oil official says that a  number of oil wells are shut down in response to the bombings, but export capacity will not be affected once flows resume from the northern oil pipeline to Ceyhan. (Reuters)</div><p></p> <div><span style="font-weight: bold;">April 26 </span>Indonesia offers incentives for oilfield operators to continue development of marginal reserves, in an attempt to stop further declines in the country's oil output. Eight operators who surrendered rights to 30 marginal fields will be offered the chance to take advantage of a 120% cost recovery for development work in the marginal areas, and a 20% rise on cost recovery available under regular production-sharing contracts (PSCs). The 120%-cost-of-recovery incentive will be withdrawn if the rate of return improves to 30% (currently under 15%). BP Migas, the Indonesian upstream regulatory agency, expects the incentives to quickly help improve petroleum production by 100,000 bbl/d and to restore petroleum production to around 1.3 million bbl/d by 2009. Indonesia currently produces approximately 950,000 bbl/d of crude oil. (Platts, WMRC)<p></p> </div> <div><span style="font-weight: bold;">April 28 </span>The price for the NYMEX WTI June crude oil contract declines $2.59 (or 4.8%) to $51.61 per barrel, the largest percentage drop this year. The price falls in part due to EIA s Weekly Petroleum Status Report, which says that commercial crude oil stocks rose 5.4 million barrels during the week ending April 22 to 324.4 million barrels. This is the highest level of commercial stocks since May 2002. (NYT)<p></p> </div> <div class="security"><span style="font-weight: bold;">April 29 </span>The Sabine Ship Channel near Houston is closed to oil tankers due to a collision between a large tanker and a 101-foot Coast Guard crew boat. The tanker sinks the crew boat and halts traffic through one of the nations busiest ship channels for over 2 days. Six oil tankers are forced to delay deliveries to four refineries in the Beaumont and Port Arthur areas. According to EIA data, those refineries account for about 6%, or about 1.05 million barrels, of the crude oil refined daily in the United States. (Reuters)</div><p></p> <p></p> </td> </tr> <tr valign="top"> <td colspan="2" align="left"><span class="cssHeader1">May 2005</span></td> </tr> <tr valign="top"> <td colspan="2" class="cssContent"> <div><span style="font-weight: bold;">May 4 </span>Fausto Cordovez is named the new energy minister of Ecuador . The announcement is part of the formation of a new government following the ouster of former president Lucio Gutierrez last month. Cordovez will implement Ecuador  s plans to increase its crude oil exports. Ecuador is the second-largest South American supplier of crude oil to the United States , sending 226,000 barrels per day (bbl/d) to the United States in 2004. (DJ) <p></p> </div> <div><span style="font-weight: bold;">May 5 </span>The Libyan National Oil Company opens a new round of bidding for oil and gas blocks. This is only the second international tender for exploration in the country since 2000. Libya is a member of the Organization of Petroleum Exporting Countries (OPEC), but the country was closed to U.S. oil companies for many years due to United States sanctions. (DJ)<p></p> </div> <div class="security"><span style="font-weight: bold;">May 6 </span>India announces that it will begin construction of a strategic oil reserve in early 2006. The project consists of two storage facilities in the south of the country holding enough crude oil to meet the country s needs for two weeks. The government expects to finish the project by 2010. Crude oil imports represent over 70 percent of India s crude oil consumption. (DJ)</div><p></p> <div class="security"><span style="font-weight: bold;">May 6 </span>Venezuela s oil minister announces that the country has deployed the military to guard oil infrastructure operated by state-owned PdVSA. President Hugo Chavez blames reduced oil production in the country in recent months on sabotage by opponents of his regime. Venezuela exported 1.3 million barrels per day of crude oil to the United States in 2004, the fourth-largest amount from a single country. (DJ) </div><p></p> <div><span style="font-weight: bold;">May 9 </span>Algeria s Sonatrach and Italy s Eni agree to increase the capacity of the Transmed natural gas pipeline between the two countries. Currently, Transmed, also called the Enrico Mattei pipeline, has a capacity of 27 billion cubic feet per year (Bcf/y), and the agreed expansion will increase that capacity to 33.5 Bcf/y by 2012. Algeria is one of the largest suppliers of natural gas to Europe, exporting 2.5 trillion cubic feet to the European Union (EU) in 2002. (DJ, AFP) <p></p> </div> <div><span style="font-weight: bold;">May 10 </span>Germany ceases operations of the 340-megawatt Obrigheim nuclear power plant. The Obrigheim facility is the second nuclear power plant closed in the country since 2003. The ruling Social Democrats (SPD) have pledged to close the remaining 17 nuclear plants in the country by 2021. (Reuters, DW)<p></p> </div> <div><span style="font-weight: bold;">May 11 </span>The Bolivian Congress approves a new hydrocarbons law that increases taxes on oil and gas operators in the country. President Carlos Mesa originally vetoed the bill earlier in the month, but later acquiesced after facing strong popular resistance and demonstrations in the capital. The hydrocarbons issue has divided Bolivian society between rural farmers who want the resource completely nationalized and local leaders in resource-rich provinces that want to allow foreign investment in the sector. Bolivia has the second-largest natural gas reserves in South America.<p></p> </div> <div><span style="font-weight: bold;">May 12 </span>Indonesia s energy ministry announces that the country will likely not develop the Donggi liquefied natural gas (LNG) export terminal. The country originally planned to bring the project onstream in 2008, but a combination of increased domestic natural gas demand and disappointing reserve finds in the Donggi block have raised doubts about the project. Indonesia is the world s largest LNG exporter. (DJ) <p></p> </div> <div><span style="font-weight: bold;">May 16 </span>The American Association of Petroleum Geologists and the Society of Petroleum Evaluation Engineers, two oil industry groups, agree to formulate an industry standard for the estimation of oil reserves. Currently, most companies report reserves based on accounting principles specified by government securities regulators, with those companies publicly traded in the United States following the rules of the Securities and Exchange Commission. The two groups hope that a global, professional certification will increase confidence in company reserves data and reassure investors. Financial scandals have plagued several international oil companies in recent years, because they overestimated the quantity of their proven reserves in their audited financial statements. (Reuters) <p></p> </div> <div><span style="font-weight: bold;">May 16 </span>Taking advantage of strong crude oil prices, Russia repays early some $15 billion in debt owed to the Paris Club. The repayment is the single-largest in history to the group, which includes 18 of the world s largest economies. The Russian government also establishes a budget-stabilization fund financed by oil revenues, with an initial deposit of $30 billion. Russia is the world s second-largest crude oil producer, after Saudi Arabia, and rising oil prices during the last year have dramatically increased the size of the state treasury. (WSJ)<p></p> </div> <div><span style="font-weight: bold;">May 18 </span>The Kazakh parliament passes a law concerning production-sharing agreements (PSA) for new, offshore oil projects. The law stipulates that foreign participation in any project will be limited to 50 percent and requires all projects to provide a certain amount of oil to domestic refineries. The new PSA framework will govern a planned licensing round that will offer up to 200 blocks in the Caspian Sea. Kazakhstan produces about 1.1 million bbl/d of crude oil, and the government hopes that it can triple this amount by 2015 through aggressive exploration of its offshore resources. (DJ)<p></p> </div> <div class="security"><span style="font-weight: bold;">May 20 </span>A strike in France shuts down five of six oil refineries operated by international oil major Total. The strike is a result of a dispute between the company and its workers over the number of vacation days allotted to employees. The strike affects over 930,000 bbl/d of crude oil refining capacity, or about 90% of the Total s total refining capacity in the country. The strike ends after a few days with a government-brokered agreement between Total and the union. France has the third-largest refinery capacity in Europe, with Total controlling some 56% of that capacity. (DJ)</div><p></p> <div class="security"><span style="font-weight: bold;">May 25 </span>The Baku-Tbilisi-Ceyhan Pipeline (BTC) officially opens at a ceremony south of the Azeri capital of Baku. A consortium of international oil companies, led by BP, built the $3.2 billion project. The 1,100-mile pipeline will eventually carry 1 million bbl/d of crude oil from fields in the Caspian Sea region to the port of Ceyhan, Turkey. Piping crude oil directly to Ceyhan will avoid the congested Bosporus Straits. Major oil consumers, such as Europe and the United States, hope that greater integration of the Caspian Sea oil reserves into the world market will reduce dependence upon the Middle East. (DJ)</div><p></p> <div class="security"><span style="font-weight: bold;">May 25 </span>An explosion and resulting fire at an electrical substation causes a massive power blackout in Moscow. Record heat and high levels of system utilization are blamed for the outage. Government officials estimate that some 2 million people lost power, with tens of thousands being trapped inside the subway. (WP)</div><p></p> <div><span style="font-weight: bold;">May 31 </span>A joint commission of the governments of Sao Tome and Nigeria awards five exploration licenses to international oil companies. Companies winning licenses included ERHC Energy, Devon, Noble, and Anadarko. The exploration blocks are located in the Gulf of Guinea, an area that had been the subject of a long-running territorial dispute between the two countries until a compromise resolution in 2000. (Reuters)<p></p> </div> <p></p> </td> </tr> <tr valign="top"> <td colspan="2" align="left"><span class="cssHeader1">June 2005</span></td> </tr> <tr valign="top"> <td colspan="2" class="cssContent"> <div><span style="font-weight: bold;">June 1 </span>Mikhail Khodorkovsky, former chief of Russian oil company Yukos, is sentenced to nine years in jail on charges of corruption and tax evasion. Khodorkovsky was arrested in October 2003, and his trial has been closely followed by the oil and gas industry. Yukos was once Russia  s largest oil company. However, its largest oil-producing asset, Yuganskneftegaz, is now owned by state-controlled Rosneft. (FT) <p></p> </div> <div><span style="font-weight: bold;">June 6 </span>Robert Pinzon, the recently-appointed president of Ecuador  s state-owned oil company Petroecuador, resigns. Pinzon had been appointed by Ecuador  s new president, Alfredo Palacio. Following his appointment, Ecuadorian media reported that Pinzon has unpaid debts to several government agencies, forbidden under Ecuadorian law. Ecuador is the second-largest South American crude oil exporter to the United States , behind Venezuela. (Reuters) <p></p> </div> <div><span style="font-weight: bold;">June 8 </span>Bolivian President Carlos Mesa resigns, replaced by Eduardo Rodriquez, the head of Bolivia s supreme court. Mesa, who served for 19 months following the resignation of his predecessor, had become the target of nationwide protests over the issue of Bolivia s natural gas reserves. Rodriquez announces that he will hold new elections by September. Bolivia has South America s second-largest natural gas reserves, after Venezuela. (AP)<p></p> </div> <div><span style="font-weight: bold;">June 13 </span>India and Iran announce a $22 billion, 25-year liquefied natural gas (LNG) deal between the two countries. Under the terms of the deal, Iran will send four million metric tons of LNG (250 billion cubic feet (Bcf) of regasified natural gas) per year to India starting in 2009, with an option to later increase that amount to five million metric tons (375 Bcf). The two countries also signed a memorandum of understanding over the construction of a natural gas pipeline from Iran to India, via Pakistan. India consumed 957 Bcf of natural gas in 2003, and according to EIA s <span style="font-style: italic;">International Energy Outlook</span>, India s natural gas consumption is forecasted to grow an average of 4.8 percent per year until 2025. (AFP) <p></p> </div> <div><span style="font-weight: bold;">June 14 </span>Nigerian oil officials offer an additional 14 oil exploration blocs as part of this year s licensing round. The new offerings increase the number of available blocs to 75. However, government officials comment that they will give preferential access to these blocks to companies that agree to tie production at the blocks to domestic energy projects such as power plants and oil refineries. Even though Nigeria is a major oil exporter and a member of the Organization of the Petroleum Exporting Countries (OPEC), it suffers from chronic power shortages and must import petroleum products due to a lack of operable domestic refining capacity. (Reuters) <p></p> </div> <div><span style="font-weight: bold;">June 15</span> At a meeting in Vienna, OPEC announces that it will increase its production quota by 500,000 bbl/d, to 28 million bbl/d. OPEC states that it will consider further quota increases later this year. (FT)<p></p> </div> <div class="security"><span style="font-weight: bold;">June 16 </span>Pirates attempt to raid an oil tanker anchored off Iraq s Basra oil terminal. The armed group boards the ship, but the crew is able to repel the attackers. There are no reported casualties, but the pirates escape before authorities can arrive. The attack occurs outside a security cordon established by U.S. naval forces. The raid is the second such attack in the month; pirates earlier raided the <span style="font-style: italic;">Nord</span><span style="font-style: italic;"> Millennium </span>oil tanker. Basra terminal handles most of Iraq s crude oil exports, especially because of problems of sabotage along its northern export pipelines. (Reuters) </div><p></p> <div><span style="font-weight: bold;">June 23 </span>The French government begins the sale of a 22 percent stake of Gaz de France (GdF) in an initial public offering (IPO). The IPO could net some $5 billion in proceeds, split between the French government and GdF. France s labor unions oppose the IPO and threaten to hold retaliatory, nationwide strikes this fall. The GdF IPO is a precursor to the partial privatization of Electricite de France (EdF) this October in an IPO that could raise double the amount of the GdF offer. GdF, the third-largest natural gas distributor in Europe, holds a virtual monopoly on the natural gas sector in France and has also sought to aggressively expand in foreign markets. (Reuters)<p></p> </div> <div><span style="font-weight: bold;">June 24 </span>Chinese oil company Cnooc Ltd. bids $18.5 billion, or $67 per share, for U.S.-based Unocal. The all-cash offer comes after international oil major Chevron had offered $60 per share in a stock-cash offer. The bid is the largest attempted Chinese acquisition of a U.S. company. Cnooc wants to gain control of Unocal s sizable production assets and reserves in Asia. However, Cnooc could face difficulties getting approval of its bid from Unocal s shareholders or U.S. regulators. (DJ, WSJ)<p></p> </div> <div><span style="font-weight: bold;">June 25</span> Mahmoud Ahmadinejad is elected president of Iran. Ahmadinejad, the former mayor of Tehran, called repeatedly during his campaign for reform of the country s oil sector, especially a crackdown on inefficiency and corruption at the state-owned National Iranian Oil Company (NIOC). While Ahmadinejad is viewed as conservative, there is no clear consensus on how his election will affect Iran s oil and gas sectors. Iran is the second-largest oil producer in OPEC, with June 2005 crude oil production of four million bbl/d. (WP) <p></p> </div> <div><span style="font-weight: bold;">June 27 </span>The price for near-month delivery of West Texas Intermediate (WTI) on the New York Mercantile Exchange (NYMEX) settles above $60 per barrel for the first time since the launch of the contract in 1983. The near-month WTI settlement price has risen 61 percent in the last twelve months. (Reuters)<p></p> </div> <div><span style="font-weight: bold;">June 28 </span>The International Thermonuclear Experimental Reactor (ITER) consortium chooses France as the site for the world s first prototype nuclear fusion reactor. The decision follows a contentious process to determine a final location for the $14 billion facility, with part of the consortium favoring a site in southern Japan. Slated for completion in 2014, ITER hopes to demonstrate that using fusion power to generate electricity is safe and commercially viable. (AP) <p></p> </div> <div><span style="font-weight: bold;">June 28 </span>Shareholders in Royal Dutch/Shell Group approve a plan to merge the two companies together into a single holding company. Since the establishment of their  partnership in 1907, the two have coordinated operations but maintained separate headquarters and boards of directors. Some blame the bifurcated management structure for contributing to a series of financial scandals that plagued the company in the past few years, including a large restatement of its hydrocarbon reserves that prompted regulatory investigations, shareholder lawsuits, and over $150 million in fines. The new company, dubbed Royal Dutch Shell Plc, will be the third-largest private oil company in the world. (Bloomberg) <p></p> </div> <p></p> </td> </tr> <tr valign="top"> <td colspan="2" align="left"><span class="cssHeader1">July 2005</span></td> </tr> <tr valign="top"> <td colspan="2" class="cssContent"> <div><span style="font-weight: bold;">July 5 </span>The United Kingdom receives its first delivery of liquefied natural gas (LNG) in over 20 years. An Algerian ship delivers the LNG to the new Isle of Grain LNG terminal, located near London. The United Kingdom is one of the world s largest producers of natural gas. However, the British government has stated that, due to falling natural gas production in the UK sector of the North Sea and booming domestic demand, the country will likely become a net gas importer by the end of the decade. In 2003, the UK produced 3.63 trillion cubic feet (Tcf) of natural gas, while consuming 3.36 Tcf; however, natural gas production has declined by 14 percent since peaking in 2000. (IOD)<p></p> </div> <div class="security"><span style="font-weight: bold;">July 5 </span>Tropical storm Cindy disrupts oil and natural gas production in the U.S. Gulf of Mexico (GOM) region. The storm shuts-in oil and gas platforms and forces the closure of the Louisiana Offshore Oil Port, the largest U.S. oil import terminal. Cindy also causes some oil refineries in the region to cease operations. According to the Department of the Interior s Minerals Management Service (MMS), there is a total of 312.1 thousand barrels (bbl) of oil production and 1.68 billion cubic feet (Bcf) of natural gas production shut-in in federal waters due to Cindy. (Bloomberg, MMS)</div><p></p> <div><span style="font-weight: bold;">July 6 </span>Nigeria s Senate confirms the appointment of Edmund Daukoru as the country s new oil minister. Daukoru has acted as the chief presidential advisor on petroleum issues since 2003, but had no formal role in the government. Nigeria is a member of the Organization of the Petroleum Exporting Countries (OPEC), and in 2004, the country produced 2.5 million barrels per day (bbl/d) of crude oil. (DJ)<p></p> </div> <div class="security"><span style="font-weight: bold;">July 7</span> China suffers nationwide power shortages due to a heat wave and rising electricity demand. The temperature in Beijing climbs to 102 degrees Fahrenheit, the hottest recorded in 70 years. The shortages cause power rationing for large industrial consumers and the temporary suspension of some construction projects. China was the second-largest electricity consumer in the world in 2003, after the United States, with total electricity consumption of 1,671 billion kilowatthours (Bkwh). (Reuters)</div><p></p> <div><span style="font-weight: bold;">July 7 </span>Russian state-owned energy company Gazprom, the largest natural gas producer in the world, signs a memorandum of understanding with Royal Dutch Shell over an asset swap between the two companies. Shell will give Gazprom a 25 percent stake in its Sakhalin-2 natural gas project, located off the east coast of Russia; in return, Gazprom will grant Shell access to the giant Zapolyarnoye-Neocomian field in northern Russia, which contains an estimated 14 Tcf of natural gas and 400 million bbl of gas condensates. The Sakhalin-2 project contains an estimated 18 Tcf of natural gas, and Shell leads an international consortium seeking to build an LNG export terminal there to supply natural gas to the Pacific Rim. (AP)<p></p> </div> <div><span style="font-weight: bold;">July 8 </span>ExxonMobil, Saudi Aramco, and Chinese oil refiner Sinopec sign a $3.5 billion agreement to expand the capacity of a crude oil refinery in China s Fujian province. The deal will increase the capacity of the facility to 230,000 bbl/d and include the construction of other supplementary facilities for refined products. As part of their investment, ExxonMobil and Saudi Aramco will also gain access to China s retail oil products market. (AP)<p></p> </div> <div><span style="font-weight: bold;">July 8 </span>The G8 summit closes in Gleneagles, Scotland. In their final statement from the summit, the G8 leaders take note of the high and volatile nature of global crude oil prices. They pledge to implement policies to increase energy security and conservation. The ministers also call for greater investment in oil-producing countries, in order to increase oil supply in the near future, and increased transparency of oil market information. (Reuters)<p></p> </div> <div><span style="font-weight: bold;">July 8 </span>A strike by local workers at Angola s Block 0 offshore oil project shuts-in almost all production at the project. The local workers demand a pay increase to bring their salaries on par with expatriates. The strike ends later in the week, when local workers agree to return to the site while they negotiate with management. According to Chevron, the field s operator, Block 0 produces 450,000 bbl/d, almost one-half of Angola s total oil production of about 1.15 million bbl/d. (Reuters)<p></p> </div> <div class="security"><span style="font-weight: bold;">July 11 </span>Hurricane Dennis shuts-in almost all offshore oil and gas production in the US GOM region. According to MMS, Dennis affects more than 92 percent of the oil and 62 percent of the natural gas production in federal lease areas. However, there is little permanent damage to production facilities, except for the under-construction Thunder Horse platform (see below). Oil and gas companies begin to restore production immediately after the storm passes. (Reuters, AP)</div><p></p> <div class="security"><span style="font-weight: bold;">July 11 </span>Hurricane Dennis causes serious damage to the Thunder Horse project, a semi-submersible platform under development by BP. According to reports, the storm damages one of the platform s ballast tanks, causing Thunder Horse to list some 30 degrees. BP is able to properly right the platform after a week of repairs. Thunder Horse was originally scheduled to come onstream by the end of 2005 with crude oil production of 250,000 bbl/d, but BP stated that it will not come online before the end of 2005. (DJ) </div><p></p> <div class="security"><span style="font-weight: bold;">July 11 </span>Indonesia suffers from domestic oil products shortages, leading to long lines at gasoline stations and calls for rationing by industrial users. Falling domestic oil production caused the OPEC country to become a net oil importer for the first time earlier this year. (Reuters)</div><p></p> <div><span style="font-weight: bold;">July 18 </span>Production begins at Angola s offshore Kizomba B field. Operated by a unit of ExxonMobil, the field has an initial crude oil production capacity of 250,000 bbl/d. (Reuters)<p></p> </div> <div class="security"><span style="font-weight: bold;">July 19 </span>Hurricane Emily shuts in most of Mexico s offshore oil production in the GOM region. State-owned Pemex evacuates all workers from offshore rigs in the Gulf of Campeche, home to over 80 percent of Mexico s crude oil production. Several oil export terminals are also shut-in. Hurricane Emily does not cause any permanent damage to oil facilities, and Pemex resumes production after the passing of the storm. (Reuters, DJ)</div><p></p> <div><span style="font-weight: bold;">July 21 </span>Some two dozen people die in riots in Yemen, after the government announces that it will cut fuel price subsidies. Thousands of people protest the move, which would almost double fuel prices in the country. Following the riots, the Yemeni government cancels the policy and announces a 10 percent decrease in fuel prices. (Reuters)<p></p> </div> <div><span style="font-weight: bold;">July 26 </span>The board of directors of Unocal approves a bid by Chevron to purchase the company, thereby rejecting a higher, all-cash offer by Chinese oil company CNOOC. The bid now goes before Unocal s shareholders. The CNOOC offer prompted reservations in the US Congress, where many members questioned the national security implications of the deal. (DJ)<p></p> </div> <div><span style="font-weight: bold;">July 26 </span>The Kuwaiti parliament approves a draft law to allow, for the first time, private investment in the country s upstream oil sector. The law paves the way for the Project Kuwait, which would add over 400,000-bbl/d of crude oil production capacity. Three international consortiums headed by BP, ExxonMobil, and Chevron, respectively, have bid for the project. The law will now go before the full parliament for debate. (Reuters)<p></p> </div> <div><span style="font-weight: bold;color: #000000;">July 28 </span><span style="color: #000000;">The </span><span style="color: #000000;">United States</span><span style="color: #000000;">, </span><span style="color: #000000;">Australia</span><span style="color: #000000;">, </span><span style="color: #000000;">China</span><span style="color: #000000;">, </span><span style="color: #000000;">India</span><span style="color: #000000;">, and </span><span style="color: #000000;">South Korea</span><span style="color: #000000;"> agree to the  </span>Asia Pacific Partnership on Clean Development and Climate. The pact seeks to use scientific innovation and technology transfers to reduce carbon dioxide (CO<span style="vertical-align: sub;">2</span>) emissions, in contrast to the binding emissions targets of the Kyoto Protocol. The United States and Australia have not ratified Kyoto, while the other three are Annex II nations under the pact, and are therefore exempt from emissions limits. (Reuters, AP)<p></p> </div> <div class="security"><span style="font-weight: bold;">July 27 </span>Twelve people die in a fire on a large production platform in India s Bombay High offshore oil field. The fire destroys the platform, which produces roughly 100,000 bbl/d of crude oil. The Indian government announces that replacement of the platform will cost $300 million, but that it expects to reinstate 70 percent of the lost production by re-routing it through other platforms in the field. (Lloyd s List, Reuters)</div><p></p> <p></p> </td> </tr> <tr valign="top"> <td colspan="2" align="left"><span class="cssHeader1">August 2005</span></td> </tr> <tr valign="top"> <td colspan="2" class="cssContent"> <div><span style="font-weight: bold;">August 1 </span>King Fahd of Saudi Arabia, dies, with Crown Prince Abdullah replacing him as king. Abdullah has largely handled the day-to-day operations of the county since Fahd suffered a stroke in 1995. Abdullah vows that he will not make any major changes to Saudi oil policy. (Reuters, DJ, AP)<p></p> </div> <div><span style="font-weight: bold;">August 1 </span>Operators of the Interconnector Limited, a natural gas pipeline linking the United Kingdom and Belgium, announce that they will reverse the flow of the pipeline. Currently, the Interconnector exports natural gas from the UK to Continental Europe in  Forward Mode , but the link will now import natural gas from Continental Europe to the UK in  Reverse Mode . The Interconnector has a capacity in Forward Mode of 710 billion cubic feet per year (Bcf/y), and a capacity in Reverse Mode of 300 Bcf/y. The reversal is commensurate with the long-running decline in UK natural gas production, with the country expected to transition from net exporter to net importer of natural gas by the end of the decade. (DJ)<p></p> </div> <div><span style="font-weight: bold;">August 2 </span>The Chinese National Offshore Oil Company (CNOOC) withdraws its $18.5 billion offer for U.S.-based Unocal. The move is seen as a victory for Chevron, which has put forth its own $17.3