l thunder booms again - petroleum news · page 15 don’t count out western canada natural gas vol....

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page 15 Don’t count out Western Canada natural gas Vol. 10, No. 16 • www.PetroleumNews.com North America’s source for oil and gas news Week of April 17, 2005 • $1.50 JUNEAU, ALASKA CANADA BREAKING NEWS April Petroleum Directory inside GULF OF MEXICO 9 China makes low-key entry: State-owned company acquires minority stake in Alberta oil sands start-up, drawn by technology advances 10 Four more deals: Chesapeake adds four more U.S. acquisitions totaling $686M, plans to invest $683M to drill, develop Texas properties 11 All systems go for Beaufort: Devon Canada gets environ- mental clearance and signs contracts to drill first well in 17 years Companies profiled in the April Petroleum Directory include Northern Air Cargo, Canspec and Alaska Anvil. Thunder booms again 500 feet of net pay uncovered before severe currents halt drilling at Thunder Hawk By RAY TYSON Petroleum News Houston Correspondent hunder Hawk, with at least another 500 feet of net pay to its credit, is rapidly shaping up into a deepwater field that could rival some of the larg- er oil discoveries in the Gulf of Mexico. But the curious will have to wait for the final results. Drilling at Thunder Hawk has been halted because of severe ocean currents in the Mississippi Canyon area, operator Murphy Oil said April 13. And the owners are uncertain when drilling might resume. Nevertheless, before drilling operations were shut down at the 23,765-foot level, the No. 2 appraisal well on Mississippi Canyon Block 734 encountered more than 500 feet of hydrocarbon pay in two high-quality zones, already placing it in the same league as other large deepwater discoveries in the U.S. Gulf, based on COURTESY SMALLWOODPHOTO.COM Deepwater drilling rig at Thunder Hawk No. 2. T see THUNDER HAWK page A24 TransCanada: ‘It’s the law’ Kvisle insists Northern Pipeline Act has no expiry date and remains valid; extends no olive branches to Enbridge fight over Canada leg of Alaska line By GARY PARK Petroleum News Houston Correspondent ransCanada Chief Executive Officer Hal Kvisle called the news media together in person and by phone on April 7 to tell them that talk of a fight between his firm and Enbridge over who will build the Canadian leg of an Alaska Highway gas pipeline was largely of their own making. “It has been important to me that we not get drawn into a sparring match with Enbridge,” he insisted. But, during a two-hour conference, Kvisle point- edly remarked that Enbridge was “not a critical player” in the project and later brusquely dismissed T TransCanada crews lowering pipe COURTESY TRANSCANADA see TRANSCANADA page A22 Cook Inlet platforms, CIGGS draw resolutions By KRISTEN NELSON Petroleum News Editor-in-Chief embers of the Alaska House and Senate Resource committees went to Kenai in February and asked the oil and gas industry what the Legislature could do to help increase exploration and production on the peninsula. The meeting produced a bill for Cook Inlet exploration incentives (see story on page 17) and three Senate resolutions. The resolutions, all from Senate Resources, urge the administration to develop oil and gas platform abandonment regula- tions, endorse ongoing programs to streamline oil and gas permitting and encourage the Regulatory Commission of Alaska to “expeditiously” complete its investigation of how the Cook Inlet Gas Gathering System, known as CIGGS, should be regulated. The RCA resolution was heard in Senate State Affairs April 12; the other two resolutions were heard in Senate Resources April 13. U.S. House supports ANWR drilling The U.S. House Committee on Resources delivered a sound (30-13) bipar- tisan thumping April 13 to Democratic efforts to prevent oil production in the Arctic National Wildlife Refuge. House Resources Chairman Richard Pombo, R-Calif., said America’s federal resources, including the 10.4 billion barrels of oil in the northern coastal plain of the Arctic National Wildlife Refuge, will sup- ply energy that continues to be the lifeblood of the American economy. “That’s twice as much as all the oil in Texas,” he said. “Today we declared a start to the end of the days of exporting American jobs and money overseas for our energy needs.” RICHARD POMBO DON YOUNG see ANWR page A22 M AOGCC Commissioner Dan Seamount JUDY PATRICK see RESOLUTIONS page A20

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Page 1: l Thunder booms again - Petroleum News · page 15 Don’t count out Western Canada natural gas Vol. 10, No. 16 • North America’s source for oil and gas news Week of April 17,

page

15Don’t count out WesternCanada natural gas

Vol. 10, No. 16 • www.PetroleumNews.com North America’s source for oil and gas news Week of April 17, 2005 • $1.50

l J U N E A U , A L A S K A

l C A N A D A

B R E A K I N G N E W S

April Petroleum Directory insidel G U L F O F M E X I C O

9 China makes low-key entry: State-owned company acquiresminority stake in Alberta oil sands start-up, drawn by technology advances

10 Four more deals: Chesapeake adds four more U.S. acquisitions

totaling $686M, plans to invest $683M to drill, develop Texas properties

11 All systems go for Beaufort: Devon Canada gets environ-

mental clearance and signs contracts to drill first well in 17 years

Companies profiled in the April Petroleum Directory includeNorthern Air Cargo, Canspec and Alaska Anvil.

Thunder booms again500 feet of net pay uncovered before severe currents halt drilling at Thunder Hawk

By RAY TYSON Petroleum News Houston Correspondent

hunder Hawk, with at least another 500 feet ofnet pay to its credit, is rapidly shaping up into adeepwater field that could rival some of the larg-er oil discoveries in the Gulf of Mexico.

But the curious will have to wait for the finalresults. Drilling at Thunder Hawk has been haltedbecause of severe ocean currents in the MississippiCanyon area, operator Murphy Oil said April 13. Andthe owners are uncertain when drilling might resume.

Nevertheless, before drilling operations were shutdown at the 23,765-foot level, the No. 2 appraisal wellon Mississippi Canyon Block 734 encountered morethan 500 feet of hydrocarbon pay in two high-qualityzones, already placing it in the same league as otherlarge deepwater discoveries in the U.S. Gulf, based on

CO

URT

ESY

SM

ALL

WO

OD

PHO

TO.C

OM

Deepwater drilling rig at Thunder Hawk No. 2.

T

see THUNDER HAWK page A24

TransCanada: ‘It’s the law’Kvisle insists Northern Pipeline Act has no expiry date and remains valid;extends no olive branches to Enbridge fight over Canada leg of Alaska line

By GARY PARK Petroleum News Houston Correspondent

ransCanada Chief Executive Officer Hal Kvislecalled the news media together in person andby phone on April 7 to tell them that talk of afight between his firm and Enbridge over who

will build the Canadian leg of an Alaska Highwaygas pipeline was largely of their own making.

“It has been important to me that we not getdrawn into a sparring match with Enbridge,” heinsisted.

But, during a two-hour conference, Kvisle point-edly remarked that Enbridge was “not a criticalplayer” in the project and later brusquely dismissed

T

TransCanada crews lowering pipe

CO

URT

ESY

TR

AN

SCA

NA

DA

see TRANSCANADA page A22

Cook Inlet platforms,CIGGS draw resolutions

By KRISTEN NELSONPetroleum News Editor-in-Chief

embers of the Alaska House andSenate Resource committeeswent to Kenai in February andasked the oil and gas industry

what the Legislature could do to helpincrease exploration and production onthe peninsula.

The meeting produced a bill for CookInlet exploration incentives (see story onpage 17) and three Senate resolutions.

The resolutions, all from Senate Resources,

urge the administration to develop oiland gas platform abandonment regula-tions, endorse ongoing programs tostreamline oil and gas permitting andencourage the Regulatory Commissionof Alaska to “expeditiously” completeits investigation of how the Cook InletGas Gathering System, known asCIGGS, should be regulated.

The RCA resolution was heard inSenate State Affairs April 12; the othertwo resolutions were heard in Senate

Resources April 13.

U.S. House supportsANWR drilling

The U.S. House Committee onResources delivered a sound (30-13) bipar-tisan thumping April 13 to Democraticefforts to prevent oil production in theArctic National Wildlife Refuge.

House Resources Chairman RichardPombo, R-Calif., said America’s federalresources, including the 10.4 billion barrelsof oil in the northern coastal plain of theArctic National Wildlife Refuge, will sup-ply energy that continues to be thelifeblood of the American economy.

“That’s twice as much as all the oil inTexas,” he said. “Today we declared a startto the end of the days of exportingAmerican jobs and money overseas for ourenergy needs.”

RICHARD POMBO

DON YOUNGsee ANWR page A22

MAOGCCCommissioner DanSeamount

JUD

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ATR

ICK

see RESOLUTIONS page A20

Page 2: l Thunder booms again - Petroleum News · page 15 Don’t count out Western Canada natural gas Vol. 10, No. 16 • North America’s source for oil and gas news Week of April 17,

A2 PETROLEUM NEWS • WEEK OF APRIL 17, 2005

Rig Owner/Rig Type Rig No. Rig Location/Activity Operator or Status

Alaska Rig StatusNorth Slope - Onshore

Doyon DrillingDreco 1250 UE 14 (SCR/TD) Milne Point, K pad MPK-22 BPSky Top Brewster NE-12 15 (SCR/TD) Kuparuk, well 3H-14B ConocoPhillipsDreco 1000 UE 16 (SCR) Workover, DS14-20 BPDreco D2000 UEBD 19 (SCR/TD) Exploration, CD3-110 ConocoPhillipsOIME 2000 141 (SCR/TD) Drilling NPR-A exploration, Kokoda #5 ConocoPhillips

Nabors Alaska DrillingTrans-ocean rig CDR-1 (CT) Stacked, Prudhoe Bay AvailableDreco 1000 UE 2-ES (SCR) Prudhoe Bay, 17-13A BPMid-Continent U36A 3-S Stacked, Deadhorse AvailableOilwell 700 E 4-ES (SCR) Prudhoe Bay, 17-11 BPDreco 1000 UE 7-ES (SCR/TD) Prudhoe Bay, P2-43 BPDreco 1000 UE 9-ES (SCR/TD) Niakuk Field, L-212i BPOilwell 2000 Hercules 14-E (SCR) Stacked, Deadhorse AvailableOilwell 2000 Hercules 16-E (SCR/TD) Stacked, Prudhoe Bay AvailableOilwell 2000 17-E (SCR/TD) Stacked, Point McIntyre AvailableEmsco Electro-hoist -2 18-E (SCR) Stacked, Deadhorse AvailableOIME 1000 19-E (SCR) Stacked, Deadhorse AvailableEmsco Electro-hoist Varco TDS3 22-E (SCR/TD) Stacked, Milne Point AvailableEmsco Electro-hoist 28-E (SCR) Stacked, Deadhorse AvailableOIME 2000 245-E Stacked, Kuparuk AvailableEmsco Electro-hoist Canrig 1050E 27-E (SCR/TD) ATARUQ #2 Kerr-McGee

Nordic Calista ServicesSuperior 700 UE 1 (SCR/CTD) Niakuk 28A BP

North Slope - OffshoreNabors Alaska DrillingOilwell 2000 33-E (SCR/TD) NorthStar, NS-28 BP

Nordic Calista ServicesSuperior 700 UE 2 (SCR/CTD) Endicott, 1B-13 BPIdeco 900 3 (SCR/TD) Nikaitchuq #3 Kerr-McGee

Cook Inlet Basin – OnshoreAurora Well ServiceFranks 300 Srs. Explorer III AWS 1 Shipping to west side of Cook

Inlet, 3 mile creek completion Aurora Gas

Pioneer Natural ResourcesWilson Super 38 96-19 Stacked in Wasilla yard Pioneer Natural Resources

Inlet Drilling Alaska/Cooper ConstructionKremco 750 CC-1 Stacked, Kenai Available

Kuukpik 5 Stacked Kenai Available

Marathon Oil Co.(Inlet Drilling Alaska labor contractor)Taylor Glacier 1 Not working due to road restrictions Marathon

Nabors Alaska DrillingNational 110 UE 160 (SCR) Stacked, Kenai AvailableContinental Emsco E3000 273 Stacked, Kenai AvailableFranks 26 Swanson River, Well 32-A15 UnocalIDECO 2100 E 429E (SCR) Stacked, removed from Osprey platform Available

Water Resources InternationalIdeco H-35 KD Stacking, Pre to MOB to Kenai Pelican Hill

Cook Inlet Basin – Offshore

Cudd Pressure Control 340K Stacked Available

Unocal (Nabors Alaska Drilling labor contractor)Not Available

XTO Energy (Inlet Drilling Alaska labor contract)National 1320 A Idle XTONational 110 C (TD) Completing well, C41-23LN XTO

Copper River BasinNabors Alaska DrillingRigmasters 850 129 AHTNA 1-19 Rutter & Wilbanks

Mackenzie Rig StatusMackenzie Delta-Onshore

AKITA EqutakDreco 1250 UE 62 (SCR/TD) Drilling Encana et al Umiak N-05 EnCanaDreco 1250 UE 63 (SCR/TD) Drilling Oliver H-01 Chevron TexacoNational 370 64 Racked in Inuvik, NT Available

Central Mackenzie ValleyAKITA/SAHTUOilwell 500 51 Racked in Norman Wells, NT Apache CanadaRigMaster P-850 40 Moving out after

drilling Sahcho L-71 Northrock Resources

Nabors Canada62 Racked Apache8 Stacked, Alberta Apache

Yukon Territories Rig StatusYukon

AKITA/KaskaNational 80UE 58 Racked in Fort Liard, NT Devon Canada

Ensign Resources Svc. Grp.Jackknife Double 55 Drilling completed, racked in Ft. Nelson Devon Canada

Alaska - Mackenzie Rig ReportThe Alaska - Mackenzie Rig Report as of April 14, 2005.

Active drilling companies only listed.

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*

April 8 April 1 Year AgoUS 1,327 1,329 1,138Canada 208 230 148Gulf 91 90 89

Highest/LowestUS/Highest 4530 December 1981US/Lowest 488 April 1999Canada/Highest 558 January 2000Canada/Lowest 29 April 1992

*Issued by Baker Hughes since 1944

Rig start-ups expected in next 6 monthsRig Owner/No. Rig Location/Activity Operator

Aurora Well ServiceAWS 1 May/June start-up Aurora Gas

The Alaska - Mackenzie Rig Report is sponsored by:

Nabors Alaska rig 9-ES

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Page 3: l Thunder booms again - Petroleum News · page 15 Don’t count out Western Canada natural gas Vol. 10, No. 16 • North America’s source for oil and gas news Week of April 17,

PETROLEUM NEWS • WEEK OF APRIL 17, 2005 A3

Dan Wilcox CHIEF EXECUTIVE OFFICER

Mary Lasley CHIEF FINANCIAL OFFICER

Kay Cashman PUBLISHER & MANAGING EDITOR

Kristen Nelson EDITOR-IN-CHIEF

Laura Erickson ASSOCIATE PUBLISHER

Gary Park CALGARY CORRESPONDENT

Ray Tyson HOUSTON CORRESPONDENT

Steve Sutherlin ASSOCIATE EDITOR

Wadeen Hepworth ASSISTANT TO THE PUBLISHER

F. Jay Schempf CONTRIBUTING WRITER (HOUSTON)

Alan Bailey STAFF WRITER

Allen Baker CONTRIBUTING WRITER

Rose Ragsdale CONTRIBUTING WRITER (MISSISSIPPI)

Sarah Hurst CONTRIBUTING WRITER

Paula Easley COLUMNIST

Judy Patrick Photography CONTRACT PHOTOGRAPHER

Firestar Media Services DIRECTORY PROFILES

Mapmakers Alaska CARTOGRAPHY

Susan Crane ADVERTISING DIRECTOR

Forrest Crane CONTRACT PHOTOGRAPHER

Steven Merritt PRODUCTION DIRECTOR

Tom Kearney ADVERTISING DESIGN MANAGER

Heather Yates CIRCULATION MANAGER

Tim Kikta CIRCULATION REPRESENTATIVE

Dee Cashman CIRCULATION REPRESENTATIVE

Petroleum News and its supplement,Petroleum Directory, are owned by

Petroleum Newspapers of Alaska LLC.The newspaper is published weekly.

Several of the individuals listed abovework for independent companies that

contract services to PetroleumNewspapers of Alaska LLC or are

freelance writers.

ADDRESSP.O. Box 231651Anchorage, AK 99523-1651

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Editorial [email protected]@petroleumnews.com

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Petroleum News (ISSN 1544-3612) • Vol. 10, No. 16 • Week of April 17, 2005Published weekly. Address: 5441 Old Seward, #3, Anchorage, AK 99518

(Please mail ALL correspondence to:P.O. Box 231651, Anchorage, AK 99523-1651)

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POSTMASTER: Send address changes to Petroleum News, P.O. Box 231651 • Anchorage, AK 99523-1651.

contents Petroleum News North America’s source for oil and gas news

www.PetroleumNews.com

ON THE COVERThunder booms again

500 feet of net pay uncovered beforesevere currents halt drillingat Thunder Hawk

TransCanada says‘it’s the law’

Kvisle insists Northern Pipeline Acthas no expiry date and remainsvalid; no olive branches extendedto Enbridge

11 All systems go for Beaufort

Devon Canada gets environmental clearance and signscontracts to drill first well in 17 years; four wells possibleover four winters

12 Could gas replace diesel for Nome?

An MMS study explores the challenging economics ofusing natural gas to generate rural electricity in Alaska’sNorton Sound basin

8 Municipalities appeal pipeline assessment

Fairbanks North Star Borough, city of Valdez, NorthSlope Borough disagree with drop in trans-Alaskapipeline taxable value

Cook Inlet platforms, CIGGS draw resolutions

U.S. House supports ANWR drilling

GUEST EDITORIAL

GOVERNMENT

EXPLORATION & PRODUCTION

FINANCE & ECONOMY

10 Colorado leaders on field trip to Canada

15 Congress may ignore Bush on research dollars

16 Texas mulls change in TRRC name, powers

7 Murkowski vetoes $24M in gas line funds

4 Virginia veto of offshore lobby bill holds

18 Rich gas, small line could be economic

22 CBM, tight gas vital to Western Canada gas

15 Don’t count out Western Canada gas

4 Alaska Rep. Vic Kohring:Recent oiltax hike hurting Alaska’s economy

INTERNATIONAL17 Far East Report: Shell Australian LNG

coming to America

4 Russia hits TNK-BP with $792M tax claim

8 Shell Oil tests new oil shale technology

9 China firm buys stake in Alberta oil sands start-up

17 Cook Inlet exploration incentives on table

6 Canada: Land, well permits keep upstream healthy

9 North Slope: Corrosion caused Produced water spill

5 Canada’s rig count falls 22, U.S. down by 2

7 BP has spill at Prudhoe Bay from lift line

10 Chesapeake rings up 4 more U.S. acquisitionsfor $686M

19 Crude futures rise from near 7-week lows

11 Oil sands power Alberta’s red-hot economy

PIPELINES & DOWNSTREAM

NATURAL GAS

15 Pt. Thomson roadengineering under way

PND wins design contract for Bullen Point Roadfrom Prudhoe Bay east to Point Thomson unit,stops 10 miles short of ANWR

14 Drillers looking for strongfirst quarter

Major companies expected to see21% 1st-quarter profit increase over4th quarter ’04, up 230% from 1stquarter ‘04

Note: Not all news briefs in this issue are listed in the contents

Page 4: l Thunder booms again - Petroleum News · page 15 Don’t count out Western Canada natural gas Vol. 10, No. 16 • North America’s source for oil and gas news Week of April 17,

A4 PETROLEUM NEWS • WEEK OF APRIL 17, 2005

l M O S C O W

Russia hits TNK-BPwith $792M tax claimOfficial calls bill for 2001 ‘very bad surprise’; it’s in addition to$144 million for ‘02 in for profit and value-added tax payments

By ALEX NICHOLSONAssociated Press Writer

he Russian-British joint oil ventureTNK-BP said April 11 that tax author-ities had levied a tax claim of $792 mil-lion against it for 2001.

While analysts said they didn’t expect arepeat of the politically charged tax case thatlead to the sale of the Yukos oil company’sbiggest production unit, the statement coin-cided with the first day of an importantinternational showcase for Russia’s econo-my and came just weeks after PresidentVladimir Putin promised to curb rampanttax probes.

“This is a very bad surprise,” Dow JonesNewswires quoted TNK-BP ExecutiveDirector Viktor Vekselberg as saying as heattended the Russian Economic Forum inLondon. “We’ll try to defend our position incourt if necessary.”

The claim comes in addition to a 4 bil-lion ruble ($144 million) bill for 2001 inconnection with profit and value-added taxpayments.

BP disagrees with claim TNK-BP spokesman Peter Henshaw

said the company, which is 50 percentowned by British oil company BP PLC, dis-agreed with the claim and was trying to re-negotiate it.

“We received the claim late last week,”Henshaw told Dow Jones Newswires. “Thisdidn’t come out of the blue. We’ve beenworking with the tax authorities on 2001since December.”

Earlier this year, members of Russia’supper house of parliament asked tax author-ities to investigate TNK-BP, alleging thatTNK had economized on its taxes by usingonshore tax havens between 2000 and 2003

before its merger with BP. The $7 billion merger between TNK,

which is controlled by tycoon MikhailFridman’s Alfa Group, and BP’s Russian oilassets went ahead to great fanfare in 2003with the Putin’s blessing. The deal was oneof the largest ever by a Western company inpost-communist Russia.

Not likely to be another YukosWhile the news could embarrass Russian

officials in London to tout Russia’s invest-ment case, it was unlikely to escalate into acampaign similar to the one authorities havepursued against Yukos, said Chris Weafer,chief strategist at Moscow’s Alfa Bank.

“That was a one-off with readily under-stood objectives,” Weafer said in an invest-ment note April 11. “This is a badly handledevent but not a surprise.”

Observers say the criminal trial of Yukosfounder Mikhail Khodorkovsky and theparallel $28 billion back tax claims againstYukos were organized by the Kremlin torecapture domination in the strategicallyimportant oil sector and to punishKhodorkovsky’s perceived political ambi-tions. Khodorkovsky is due to be sentencedApril 27, and prosecutors have asked that hereceive the maximum 10 years.

While no companies have received billsthat could match Yukos’, the affair markedan increase in the number of tax probeslaunched by authorities. Most prominentlyJapan Tobacco’s Russian wing is currentlyfighting a $79 million claim, while No. 2mobile operator Vimpelcom was slappedwith a $157 million claim in December thatwas later slashed to $17 million.

Putin told businessmen in March thatsteps would be taken to rein in overzealoustax inspectors by limiting their scope to con-duct back tax probes. l

T

FORT LAUDERDALE, FLA.Maverick to acquire Camden for 88M

Florida-based Maverick Oil and Gas has agreed to buy privately held CamdenResources of Texas for $88 million in cash, Maverick said April 11. The deal isexpected to close no later than June 10.

Camden’s oil and gas assets include total reserves amounting to about 71 billioncubic feet of gas equivalent, 59 bcfe of which are proved, Maverick said, adding thatabout 96 percent of the reserves are natural gas. Current production net to Camden isabout 6 million cubic feet per day. However, production is expected to increase sub-stantially after the transaction closes due to recent drilling success in the principalasset known as Hostetter Field located in McMullen County, Texas, Maverick said.

The producing fields are in south and southeast Texas and are made up of 17 oper-ated producing wells with an additional three wells being completed and one addi-tional well being drilled, Maverick said.

In addition, Camden participates in four producing non-operated wells in the samegeographical areas. Considerable development drilling will be conducted over thenext two years, which is expected to increase production to about 30 million cubic feetper day by mid-2007, Maverick said. The acquisition is being financed fromMaverick’s cash flow, plus a combination of debt and stock.

—RAY TYSON

RICHMOND, VA.Virginia veto of offshore lobby bill holds

The Virginia Senate on April 6 sustained the last veto of Gov. Mark R.Warner’s four-year term, killing a bill that would have required Virginia tolobby Congress for expanded oil and gas drilling off its Atlantic shore.

The Senate voted 16-20 against overriding the veto during the April 6 one-day reconvened session to consider bills Warner returned to legislators. Thatwas nine yes votes short of the 25 necessary to make the bill law over Warner’sveto.

The Democratic governor will leaveoffice in January without ever having a vetooverturned. April 6 was his final legislativeinteraction with the Republican-dominatedGeneral Assembly.

Sen. Frank Wagner’s bill would haveobligated the administration to lobbyCongress on behalf of a proposed measure toopen up the Atlantic Coast to petroleumexploration.

Environmental groups vigorouslyopposed the measure. Warner, however, based his veto on two objections: leg-islative intrusion into executive prerogatives and the questionable wisdom ofadvocating for federal legislation that hasn’t even been written.

In arguing to override the veto, Wagner said Virginia risked losing an enor-mous opportunity to cultivate jobs and rein in soaring energy costs by pushingfor a more aggressive energy policy.

“Not only is there a moratorium now on drilling and exploring, there’s evena moratorium against surveying,” said Wagner, R-Virginia Beach.

The bill would extend Virginia’s jurisdiction over drilling from three milesoff shore to 40 miles for natural gas and to 60 miles for oil. Better yet, he said,state government stands to take in about $3.5 billion a year in royalties forpetroleum and gas produced within its waters.

He dismissed pollution concerns, arguing that the same exploration has beenallowed off Canada’s rugged eastern coast for years without incident. In theGulf of Mexico, he said, areas near oil rigs yield the richest fisheries.

Sen. Mary Margaret Whipple, D-Arlington, said it was foolish to advocatefor a bill that doesn’t yet exist. She said the issue needs more study and notedthat the General Assembly has already commissioned one.

“We need to consider the impact this would have on coastal communities thatare very dependent on tourism,” Whipple said.

—THE ASSOCIATED PRESS

Sen. Frank Wagner’s billwould have obligated theadministration to lobbyCongress on behalf of a

proposed measure to openup the Atlantic Coast topetroleum exploration.

Page 5: l Thunder booms again - Petroleum News · page 15 Don’t count out Western Canada natural gas Vol. 10, No. 16 • North America’s source for oil and gas news Week of April 17,

PETROLEUM NEWS • WEEK OF APRIL 17, 2005 A5

Recent oil tax hike hurting Alaska’s economyBy ALASKA REP. VIC KOHRING

t is a truism in political economythat higher taxes cause lower pro-duction. Put another way, if we inthe Legislature wish to increase rev-

enue into our treasury, tax rates must belowered. The state recently found alegal way to take an additional $190million in taxes from oil companies,and the results are quickly becomingevident. There is already evidence thatactivity in Alaska’s oil patch is growingless than expected.

When arbitraryand instant newtaxes are laid uponthe oil and gasindustry, the effectis that producersbegin to reexaminewhere they placetheir investmentdollars. The uncer-tainty of not know-ing when new taxes will fall like aGuillotine, is causing money that wouldhave been spent in our state’s economyto be spent elsewhere. Case in point:since the new taxes were announced inJanuary, BP Exploration’s “I-100” wellat Prudhoe Bay has been deferredindefinitely. That well was supposed tohave been drilled this winter. It wasintended to be an “appraisal well” forthe Orion Satellite area in the westernpart of Prudhoe.

The word from industry people isthey intend to invest less than originallyplanned. They believe the state unfairlychanged tax rules on the slope afterinvestment decisions were made. Oneof the best things the state can do to

encourage economic growth and pros-perity is to have low taxes and a stable,known regulatory and tax policy. Thesetax increases may bring in temporarymillions of extra revenue, but they arecompromising the entire oil trade. It’slike winning a minor battle, but losingthe war.

When you are investing billions intohuge projects, you must clearly knowthe rules in advance. Can you blame oilcompany planners for asking how theyare supposed to plan if the state’s policyis prone to sudden change?

ConocoPhillips, hurting under thestate’s new policy, has delayed portionsof the Orion satellite field indefinitely,as the project is no longer able to com-pete with other investment opportuni-ties elsewhere. That means money thatwould have gone into the pockets ofAlaskans will now end up somewhereelse. This is one of the unintended con-sequences of instant taxation.

If giants like BP Exploration andConocoPhillips are finding these newtaxes a major challenge, smaller inde-pendent companies like Anadarko andUnocal that planned forays into Alaskaoil fields will have much less of achance. Small companies don’t have theresilience and ability to absorb millionsof dollars in taxes. The consequencewill be fewer Alaskans employed on theslope, and fewer dollars flowing intothe state treasury in the long run.

As these delays begin to reverberatethrough the economy, the stateDepartment of Revenue Fall Forecast

earlier predicted a $450 million wind-fall from the Orion field. Obviously, ifConocoPhillips delays or ultimatelydecides not to drill at all, the state willhave taken in $150-$190 million in newtaxes, but lost $450 million in futurerevenue!

I call on the state to take a new lookat the effect of this new tax policy nowthat the facts are becoming known, andconsider reversing it. We should notwait until there are new and even largercancellations of Alaska oil projects.

We have had the most robust oil pro-duction in the world and the lowest

prices for gas and oil relative to Europeand Asia. We got that way because of atradition of having freer markets andlower taxes. Let’s not charge our wayinto the abyss of a Third WorldEconomy that government interventionoften causes. Free the markets. Free theentrepreneurs and let the outcome be asit used to be … the envy of the entireworld.

Note: Rep. Vic Kohring is Chairmanof the House Oil & Gas Committee, andserves Wasilla and the Mat-Su in theAlaska State Legislature.

ICOMMENTARY

REP. VIC KOHRING

NORTH AMERICACanada’s rig count falls 22, U.S. down by 2

The number of rotary drilling rigs operating in the United States and Canada dur-ing the week ending April 8 stood at 1,535, down by a combined 24 rigs comparedto the prior week but up by a combined 249 rigs vs. the same period last year, accord-ing to rig monitor Baker Hughes.

The Canadian rig count alone fell by 22 from the previous week to 208, but wasstill up by 60 rigs compared to the year-ago period.

The number of rigs operating in the United States during the recent week stood at1,327, a decrease of two rigs compared to the previous week but an increase of 189rigs compared to the same period last year. Compared to the previous week alone,land rigs fell by three to 1,203, while offshore rigs increased by one to 95. Inlandwaters rigs were unchanged at 29.

Of the total number of rigs operating in the United States during the recent week,1,157 were drilling for natural gas and 170 for oil. Of the total, 823 were verticalwells, 338 directional wells and 166 horizontal wells.

Among the leading U.S. producing states, Oklahoma lost nine rigs during therecent week for a total of 146 rigs. Louisiana’s rig count fell by four to 178, whileWyoming’s decreased by two to 76, Colorado’s slipped by one to 71 and California’sslipped by one to 24. Texas gained 11 rigs for a total of 599. New Mexico wasunchanged with 79 rigs, as well as Alaska with 11 rigs.

—RAY TYSON

Page 6: l Thunder booms again - Petroleum News · page 15 Don’t count out Western Canada natural gas Vol. 10, No. 16 • North America’s source for oil and gas news Week of April 17,

By RAY TYSON Petroleum News Houston Correspondent

rofits for U.S.-based exploration andproduction independents, supportedby an exceptionally strong oil and gasprice environment, continued to rise

on average in the 2005 first quarter, accord-ing to a Petroleum News survey ofThompson-First Call earnings estimates for20 sector leading E&P companies.

Results show that net income for the 20companies is expected to increase an aver-age 6 percent in the 2005 first quarter com-pared to the previous quarter and increasejust over 28 percent vs. the same period lastyear. However, profits in the 2005 secondquarter are expected to dip about 7 percentfrom the first quarter.

Estimates for individual companies canbe higher or lower than the consensus andtend to change as the reporting seasonapproaches. Estimates also generallyexclude one-time charges against earningsand other special items.

Companies included in the survey arePioneer Natural Resources, Kerr-McGee,Anadarko Petroleum, Devon Energy,Unocal, Apache, Chesapeake Energy, XTOEnergy, EOG Resources, Noble Energy,Burlington Resources, NewfieldExploration, Forest Oil, Pogo Producing,Spinnaker Exploration, Cabot Oil & Gas,Magnum Hunter, Saint Mary Land &Exploration, Remington Oil & Gas andHouston Exploration.

Largest gains expectedfrom Kerr-McGee

Among the 11 largest E&P independentssurveyed, Oklahoma’s Kerr-McGee is like-ly to report the largest gains in net incomefor the 2005 first quarter. The consensusestimate has the company earning $2.15 pershare in this year’s first quarter, double$1.07 per share earned in the prior quarterand 45 percent higher than $1.48 per sharein the year-ago quarter. However, the com-pany’s expected $1.83 per share for the2005 second quarter would be well belowfirst quarter earnings.

Apache’s expected profit of about $1.61per share in the 2005 first quarter would beabout 50 percent above the $1.06 per sharethe company earned a year earlier androughly 6 percent ahead of the $1.52 pershare earned in the previous quarter. Thecompany is expected to make about $1.49per share in the 2005 second quarter, whichalso would be below expected first quarterearnings.

Devon is expected to earn about $1.24per share in the 2005 first quarter, up sig-nificantly from the $1 per share earned inlast year’s first quarter but down from $1.31earned in the 2004 fourth quarter. Devon’santicipated profit of $1.03 per share for the2005 second quarter also would be downfrom first quarter expectations.

Anadarko should earn around $1.92 pershare in the 2005 first quarter, up from$1.72 per share a year earlier but downfrom $2.04 per share in the previous quar-

ter. The company’s profit for the 2005 sec-ond quarter is expected to be about $1.77per share, according to consensus esti-mates.

Unocal being taken overby ChevronTexaco

Unocal, which is being taken over byChevronTexaco in a cash and stock dealvalued at $18.4 billion, is expected to report2005 first-quarter earnings of around $1.32per share, up from $1.17 in the previousquarter and significantly up from 89 centsin the year-ago quarter. The company isexpected to earn about $1.14 per share inthe 2005 second quarter, down slightlyfrom the first quarter.

Chesapeake’s 2005 first-quarter profitshould come in around 50 cents per share.That compares to 44 cents in the 2004fourth quarter and 44 cents per share in theyear-ago quarter. The company is expectedto earn about 42 cents per share in the 2005second quarter.

Pioneer is expected to earn about 49cents per share in the 2005 first quarter,down from 69 cents per share in the previ-ous quarter and down from 50 cents pershare for the same quarter last year. Thecompany is expected to earn about 68 centsper share in the 2005 second quarter, up sig-nificantly from the previous quarter.

XTO’s profit for the 2005 first-quartershould be about 56 cents per share, up from52 cents per share in the previous quarterand up from 38 cents in the year-ago peri-od. For the 2005 second quarter, the com-pany is expected to make about 55 cents pershare, slightly below the first quarter.

Burlington’s profit for the 2005 firstquarter is expected to be about $1.03 pershare, down from $1.17 per share in theprevious quarter but up from 89 cents a yearearlier. The company is expected to earnabout 91 cents per share in the 2005 secondquarter, down from the first quarter.

EOG is expected to earn about 79 centsper share in the 2005 first quarter, com-pared to 81 cents per share in the previousquarter and 53 cents per share in the year-ago period. The company should earn about68 cents per share in the 2005 second quar-ter, also down from the first quarter, accord-ing to First Call’s mean estimate for thecompany.

Noble Energy’s expected net income of$1.55 per share for the 2005 first quarterwould be down from the company’s $1.63per share performance in the 2004 fourthquarter but would be up from Noble’s $1.30per share a year earlier. The company isexpected to make about $1.62 per share inthe 2005 second quarter, up from expectedfirst-quarter results.

Newfield down from previous quarter

Among small to middle size explorationand production independents included inthe survey, Newfield is expected to earn$1.78 per share in the 2005 first quarter,down from the $1.96 per share the compa-

ny made in the previous quarter but upfrom $1.50 per share in last year’s finalquarter. The company is expected to earnabout $1.63 per share in the 2005 secondquarter, which would be down from whatthe company is expected to make in thefirst quarter.

Forest’s expected 2005 first-quarterprofit of around 80 cents per share wouldbe slightly better than the company’s 78cents per share performance in the previousquarter and significantly better than its 36cents per share performance for the sameperiod last year. The company is expectedto make about 72 cents per share in the2005 second quarter, down from the priorquarter.

Pogo is expected to report 2005 first-quarter earnings of about $1.15 per share, asignificant increase over 78 cents per sharein the previous quarter and slightly betterthan the $1.12 per share the companyearned for the same period last year. Pogois expected to make about $1.15 per sharein the 2005 second quarter, on par withexpected first-quarter earnings.

Spinnaker’s expected profit of 40 centsper share in the 2005 first quarter would beslightly better than 39 cents earned in theprevious quarter and on par with the 40cents per share the company made in theyear-ago period. The company is expectedto earn about 38 cents per share in the 2005second quarter, slightly below first-quarterexpectations.

Cabot’s expected net income of 57 centsper share for the 2005 first quarter alsowould be better than the 52 cents per sharethe company made in the previous quarterbut substantially better than the 39 centsper share earned for the same period lastyear. The company should make about 58cents per share in the 2005 second quarter,which would be slightly above earningsresults expected for the first quarter.

Magnum Hunter beingacquired by Cimarex

Magnum Hunter, which is beingacquired by Denver’s Cimarex in a $2.1billion deal, is expected to earn about 42cents per share in the 2005 first quarter,down from 47 cents per share earned in theprevious quarter but up substantially from28 cents per share a year earlier. The com-pany should make about 40 cents per sharein the 2005 second quarter, down slightlyfrom first-quarter expectations.

Saint Mary’s expected first-quarterprofit of 53 cents per share in the 2005 firstquarter would be more than the 42 centsper share the company earned in the pre-ceding quarter and up from 33 cents pershare earned in the year-ago quarter. Thecompany is expected to make about 47cents per share in the 2005 second quarter,down from what the company is expectedto earn in the first quarter.

Remington should earn about 59 centsper share in the 2005 first quarter, com-pared to 67 cents per share in the previousquarter and 39 cents per share for the sameperiod last year. The company is expectedto earn about 57 cents per share in the 2005second quarter, down slightly from first-quarter expectations.

Houston Exploration’s expected $1.45per share profit in the 2005 first quarterwould be above $1.32 per share earned inthe previous quarter and above $1.27 pershare earned in last year’s first quarter. Thecompany is expected to make about $1.39per share in the 2005 second quarter, belowfirst-quarter expectations.l

A6 PETROLEUM NEWS • WEEK OF APRIL 17, 2005

l H O U S T O N

U.S. independents still riding high on pricesPetroleum News survey shows first-quarter profits to rise 6 percent from previous quarter, up 28 percent from year ago

PForest’s expected 2005 first-

quarter profit of around 80 centsper share would be slightly betterthan the company’s 78 cents per

share performance in the previousquarter and significantly better

than its 36 cents per shareperformance for the same period

last year.

Page 7: l Thunder booms again - Petroleum News · page 15 Don’t count out Western Canada natural gas Vol. 10, No. 16 • North America’s source for oil and gas news Week of April 17,

By MATT VOLZAssociated Press Writer

laska Gov. Frank Murkowski vetoed$24 million for gas pipeline negotia-tions and preparatory work April 7,displeased that lawmakers had put a

legislative committee in control of themoney.

Murkowski also vetoed $125,000 to beused to lobby for the opening of the ArcticNational Wildlife Refuge to oil drilling, say-ing he was concerned about the use ofAlaska Permanent Fund earnings to pay forit.

He cut another$200,000 meant forMount Edgecumbeboarding school inSitka, saying hisadministration hadagreed to provide thatmoney and a legisla-tive appropriationwas not necessary.

Murkowski said ina statement that hewould resubmit thegas pipeline fundingproposals to theLegislature for pas-sage this session.

“We believe theLegislature will rec-ognize the needshere,” spokeswomanBecky Hultberg said.

The state is in negotiations with threegroups interested in building a natural gaspipeline from the North Slope. The gover-nor’s office requested that $28 million insurplus oil revenue be used for those negoti-ations and to be ready to swing into action ifa proposal is approved.

The money was included in a $1 billionsupplemental spending bill passed by theLegislature in March, but lawmakers splitthe funding source between the general fundand permanent fund earnings, and funneledthe money through the Legislative Budgetand Audit Committee.

The governor objected to lawmakersallocating the money to the committeeinstead of giving it directly to the state agen-cies doing the work. He also said the fund-ing should come completely from the gener-al fund.

In a letter to Senate President BenStevens, Murkowski said giving the legisla-tive committee control violates the separa-tion of powers between the executive andlegislative branch.

“First, by giving a legislative committeepower to contract with executive agencies toprovide services that are necessary to exe-cute the law, the legislative committee isexercising executive power by supervisingthose agencies during their execution of thelaw,” Murkowski’s letter read.

Murkowski left more than $4 million ingeneral fund spending for gas pipeline workthat did not go through the committee.

Samuels says oversight neededRep. Ralph Samuels, R-Anchorage, co-

chairman of the Legislative Budget andAudit Committee, said the Legislature’sfinance committees set up the funding struc-ture so there would be more oversight ofhow the money is spent. He said he appreci-ated the need to keep pipeline negotiationsconfidential, but lawmakers needed to besure the money did not go to non-pipelineprojects.

Sen. Gene Therriault, R-North Pole, theother co-chairman, said he had his doubtsabout the governor’s separation of powersargument. But, he said, if the finance com-mittees can be convinced they have theinformation they need on how the moneywill be spent, a deal should be worked out.

“The Legislature will come up with someother way of getting the level of assurancethey need so the money can be appropriat-ed,” Therriault said.Hultberg did not give adirect answer to whether Murkowski wouldveto other bills that use permanent fundearnings. Several such proposals are now invarious stages of the legislative process.

“I think that actions speak louder thanwords,” Hultberg said. “We’ll have to waituntil those proposals are in front of us.” l

PETROLEUM NEWS • WEEK OF APRIL 17, 2005 A7

l A L A S K A

Murkowski vetoes$24M in gas line fundsAlaska governor will resubmit funding request; objected toallocation of monies to legislative committee, not state agencies

A

“First, by giving alegislative commit-tee power to con-tract with executiveagencies to provideservices that are nec-essary to executethe law, the legisla-tive committee isexercising executivepower by supervis-ing those agenciesduring their execu-tion of the law.” —Gov. FrankMurkowski in vetoletter

CANADALand, well permits keep upstream healthy

Land sales and new well permits point strongly to another lively year in Alberta’supstream, with coalbed methane and oil setting the pace.

To date the provincial government has raked in C$404 million from auctions ofexploration rights, while well licenses tallied 5,598 for the first three months, a size-able drop of 533 from the same period of 2004, but still one of the healthier years onrecord. The latest land sale on April 6 generated C$58 million for 277,000 acres,including 175,000 acres that was auctioned, while the balance was sold.

The foothills region of the Canadian Rockies drew the most competitive offers,averaging C$1,048 per hectare for licenses and C$645 per hectare for leases.

Alberta Energy and Utilities Board well authorizations, although down 9 percentoverall for the opening quarter, posted an increase in oil-targeted permits to 983 from939 and a surge in coalbed methane licenses to 635 from 209.

But conventional gas slumped to 3,198 gas wells from 4,131, although explorato-ry gas wells rose to 1,100 from 1,053.

For Western Canada’s other major producing regions, Saskatchewan approved 568gas wells (up 113 from a year earlier) and 357 oil wells (down 98).

British Columbia, dominated by its gas plays, slipped fractionally to 262 from 267. Regulators across Canada issued 6,912 licenses to the end of March, a drop of 7

percent from last year’s record pace of 7,411.—GARY PARK

NORTH SLOPEBP has spill at Prudhoe Bay from lift line

BP Exploration (Alaska) had a spill April 12 at Prudhoe Bay Drill Site 14from an artificial lift line.

The Alaska Department of Environmental Conservation said BP reportedapproximately 1.4 million standard cubic feet of natural gas and an unknownamount of crude oil were released as a mist which settled onto the manifoldbuilding, pipes, tanks and snow at Drill Site 14. DEC said the cause appeared tobe a weld failure in an artificial lift line that transports pressurized natural gas tothe drill site for injection. “The exact cause of the weld failure is yet to be deter-mined,” the agency said April 12.

BP estimates that there were fewer than30 barrels of liquids involved in the spill,Andrew Van Chau told Petroleum NewsApril 13. The liquids were composed ofabout 30 percent oil and the rest producedwater, said Van Chau, BP Exploration(Alaska)’s vice president of externalaffairs.

Some 40 people are working on thecleanup, he said, and cleaning up in a safemanner is the main focus right now. “Therehave been no injuries and we want to keepit that way,” Van Chau said.

The line has been shutdown and will berepaired after the cleanup, which is “most-ly stained snow,” he said.

DEC said the Greater Prudhoe Bay Spill Response Team was mobilized and15 response team technicians were brought in initially. Twenty-six responderswere flown in later in the day and another three were being brought in fromBarrow.

After the leaking line was isolated BP began bringing wells back online. Heavily oiled, compacted snow was removed from the roadways on the pad

using heavy equipment, allowing responders access to more areas, the depart-ment said.

BP estimated the oil-impacted area at nearly a mile in length and an averageof 300 feet in width. The majority of the oil sprayed on the manifold building,surrounding structures and on the gravel pad area, DEC said, with most of theremaining area lightly misted. Surveyors were hired to accurately map the oiledzone and an aerial photograph of the spill site was scheduled.

—KRISTEN NELSON

BP estimates that there werefewer than 30 barrels of

liquids involved in the spill,Andrew Van Chau told

Petroleum News April 13.The liquids were composed ofabout 30 percent oil and therest produced water, said Van

Chau, BP Exploration(Alaska)’s vice president of

external affairs.

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Page 8: l Thunder booms again - Petroleum News · page 15 Don’t count out Western Canada natural gas Vol. 10, No. 16 • North America’s source for oil and gas news Week of April 17,

THE ASSOCIATED PRESSith crude oil topping $50 a barrelmore than 20 years after the oilshale bust of the 1980s, Shell OilCo. is testing a new technology it

hopes will make extracting oil from rockbeneath northwestern Colorado profitableand environmentally sustainable.

The company is testing its patentedmethod of burying heaters encased in pipehundreds of feet underground to liquefy theoil trapped in the porous rock so it can thenbe pumped up to the surface, Shell’sspokesman Terry O’Connor said April 6.

Electrical heaters gradually heat therocks to between 650 to 700 degrees to pro-duce natural gas and light-grade oil. Heavierhydrocarbons remain within the formation.

“We’re still a couple of more test stagesaway from commercial production,”O’Connor said.

The new method is an improvement overthe previous method of extracting oil fromshale, which entailed digging up tons ofearth, heating the rock, then disposing of

petroleum byproducts. About 2,000 barrels of oil have been pro-

duced in tests of the heaters, which arespaced 10 to 20 feet apart over a five-acreparcel at the company’s 20,000-acreCathedral Bluffs property in Rio BlancoCounty, Colo. The tests have been ongoingfor at least five years.

Within the next two to three years, Shellwill expand its research operation as a nextstep toward commercialization, drilling togreater depths and sinking more well bores.O’Connor said the goal is to be commercialby about 2010.

“But that doesn’t mean in 2010 you’ll seemajor construction,” he said. “The technolo-gy works ... but how efficiently, that’s whatwe’re trying to find out.”

A commercial operation would meanmore heaters and much larger spacing, andgreater needs for electricity to run theheaters. So far the challenge has been find-ing an efficient heater that can keep a steadytemperature of about 600 degrees over aperiod of months or years.

“We’ve made some significant advancesin the last year and a half,” O’Connor said.

Commercial development of shale oilbegan in World War II and continued until1982 when a drop in oil prices forced Exxon(now ExxonMobil) to close its oil shaleproject and lay off 2,200 workers.

Bankruptcies and foreclosures quadru-pled in the years after the closure.

For years, industry observers said crudeoil would have to hit at least $40 a barrel tomake extracting oil from shale profitable.

Colorado Operations Manager KenBrown said Shell estimates its processwould be profitable with oil prices at $25 to$30 a barrel, if the technology works out. l

A8 PETROLEUM NEWS • WEEK OF APRIL 17, 2005

l F A I R B A N K S , A L A S K A

Municipalities to appeal pipeline assessmentFairbanks North Star Borough, city of Valdez, North Slope Borough disagree with drop in trans-Alaska pipeline taxable value

THE ASSOCIATED PRESS he Fairbanks North Star Borough will contest thestate’s assessment of the tax value of the trans-Alaskaoil pipeline.

Mayor Jim Whitaker said the borough, along withValdez and North Slope Borough officials, disagree withthe state petroleum property assessor’s $3 billion assess-ment of the pipeline and associated property for 2005.

That’s down from $3.017 billion in 2004 and does notmake sense during a time of rising property values andhigh crude prices, Whitaker said.

“We think it is nearly inconceivable that a devaluationcan be made for the trans-Alaska pipeline,” Whitaker toldthe Fairbanks Daily News-Miner.

Pipeline owners pay about $4 million a year in taxesand are the borough’s largest taxpayers, Whitaker said.

The municipalities filed an administrative appeal to theDepartment of Revenue in March, objecting to the state’smethod for assessing the pipeline and noting a failure touse expert economic analysis. The state upheld its originalassessment a few days ago.

Filing with the state assessment board is the secondstep in the appeal process. The North Slope Borough andValdez may also appeal, Whitaker said.

“We may all do it independently but we may all do itcollaboratively,” Whitaker said. “We have every reason tobelieve we’ll do it together.”

If rejected, the borough could sue in Alaska Superior

Court and the Alaska Supreme Court. The borough willtake the case to the Supreme Court, if necessary, Whitakersaid.

Deterioration, volume cited in assessment Rick Hoffbeck, the state petroleum property assessor,

said there were two main reasons he reduced the value ofthe pipeline: depreciation and decrease in function. Hebased the depreciation on physical deterioration of thepipeline. He declined to name the exact amount of deteri-oration, saying that was proprietary information.

Hoffbeck further reduced the pipeline’s value becauseit transports 1 million barrels of crude daily, not the 2 mil-lion barrels for which it was built. Also, he added a tem-porary deduction for the current outmoded method ofusing diesel for power generation at the pipeline’s pumpstations.

Alyeska Pipeline Service Co. is hooking some pumpstations to the electrical power grid. When that is com-pleted, the value will go up, Hoffbeck said.

The 800-mile Alaska oil pipeline from the North Slopeto Valdez is owned by BP Pipelines (Alaska),ConocoPhillips Transportation Alaska, ExxonMobilPipeline Co., Unocal Pipeline Co. and Koch AlaskaPipeline Co.

If the municipalities file an appeal to the assessmentboard, it will be second time that has happened, Hoffbecksaid.

Four years ago, the two boroughs and Valdez appealedthe pipeline’s value to the assessment board and won. Thepetroleum assessor was considering making the pipeline’svalue $3.017 billion but owners contended it should be$2.1 billion. The state assessor placed the value at $2.75billion.

The municipalities challenged the state’s pipelineassessment and got the value raised to $3.017 billion,translating into an extra $350,000 for the Fairbanks bor-ough. That marked the first time the pipeline’s value wentover $3 billion. l

l M E E K E R , C O L O .

Shell Oil tests newoil shale technologyHopes to make process commercial in northwestern Coloradoby 2010; patented method uses buried heaters to liquefy oil

Rick Hoffbeck, the state petroleum property assessor, saidthere were two main reasons he reduced the value of the 800-mile trans-Alaska oil pipeline from Prudhoe Bay to Valdez (pic-tured above): depreciation and decrease in function.

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Page 9: l Thunder booms again - Petroleum News · page 15 Don’t count out Western Canada natural gas Vol. 10, No. 16 • North America’s source for oil and gas news Week of April 17,

By GARY PARK Petroleum News Calgary Correspondent

nstead of a long-anticipated dive fromthe high board, China has made a low-key entry to the Alberta oil sands.

CNOOC (70.64 percent held bystate-owned China National Offshore OilCorp.) has acquired a 16.69 percent com-mon shareholder stake in MEG Energy, aprivately held oil sands start-up, forC$150 million.

Officials at CNOOC said April 12 theywelcomed the chance to get a taste of the“advanced technology and expertise ofoil sands development.”

CNOOC Chief Financial Officer YangHua said the MEG deal is a “low costentry into the oil sands,” but indicatedconfidence that “lower operating costsand higher recoveries resulting fromrecent advances in technologies havemade similar projects economicallyviable.”

After months of swirling rumors thatChina was gearing up to take the plungein an effort to diversify its oil supplysources and gain access to Alberta’s 175billion barrels of proved oil sandsreserves, the attention has been concen-trated on the other state-controlled com-panies, PetroChina and Sinopec.

The street talk had those two compa-nies kicking the tires of other oil sandsnewcomers, such as OPTI Canada, DeerCreek Energy and UTS Energy.

CNOOC-MEG deal a surprise The CNOOC-MEG deal came as a

surprise to most observers, given MEG’sbrief history in the oil sands.

Formerly McCaffrey Energy Group,MEG started assembling leases nearChristina Lake in northeastern Alberta in1999 and now holds about 33,000 acresholding an estimated 4.8 billion barrels ofbitumen in place, of which 2 billion bar-rels are thought to be recoverable.

The company has approval from theAlberta Energy and Utilities Board tobuild a pilot in situ project to come onstream in 2006 and produce 3,000 barrelsper day initially, growing to a 25,000 bpdcommercial operation by 2007-2008.

Beyond that, MEG has been circum-spect about its plans to embark on a full-scale commercial operation, although itsweb-site says its reserves could support a95,000 bpd project over 65 years.

Chief Financial Officer Dale Hohmtold Petroleum News that MEG is optingto grow in “bite size” stages, financingeach phase from cash flow.

Steam-assisted gravity drainage The pilot phase is a chance to test the

steam-assisted gravity drainage used toextract bitumen from deposits too deep tobe mined — a technology that Hohm saidis “tried and proven,” although each proj-ect has its own special requirements.

To date, Alberta has 11 steam-assistedgravity drainage projects in variousstages of development,with EnCana andPetro-Canada amongthe leading players.

MEG and DevonCanada also formed ajoint venture last yearto examine prospectsfor a pipeline, costing C$300 million andcarrying a 400,000 bpd bitumen blendover 180 miles from Christina Lake to theEdmonton refinery region.

Pending regulatory approval, theAccess Pipeline could come on stream inlate 2006.

Devon is moving ahead with its ownoil sands ventures, including its C$500million Jackfish steam-assisted gravitydrainage project, due to start producing in2007 and peak at 35,000 bpd in 2008.

As well, Devon has a 13 percent stakein the Surmont steam-assisted gravitydrainage project, with operatorConocoPhillips Canada and Total eachholding 43.5 percent. Production is due tostart this year at 27,000 bpd and grow to100,000 bpd in 2012.

Hohm said MEG — which raisedC$250 million in common shareholdercapital last year before the CNOCC deal— does not have any plans to go public,preferring to own and operate its oil sandsproject.

Over the last year, MEG has talked toabout 30 prospective common sharehold-ers and is now examining its financialrequirements, he said.

China could shoulder aside U.S. Because of China’s thirst for oil, there

is a “very real possibility” that Chinacould shoulder the United States aside asthe largest market for Canadian oil, said a

leading Canadian economist.If forecasts are correct China will

depend on imports for 80 percent of theoil it consumes within 10 years, saidSherry Cooper, global economic strate-gist for BMO Nesbitt Burns.

The spectacular growth in Chinesedemand opens up an “enormous opportu-nity” for Canada, which has the secondlargest proved reserves in the world, she

told a business audi-ence in Calgary onApril 5.

But she said that ifmore Canadian orMexican crude startsflowing to China thanto the United States,

Washington will be “pretty upset.”That would strengthen Canada’s bar-

gaining hand and could drive crude priceshigher than might otherwise have beenthe case.

Cooper predicted China’s share of

world oil consumption will double fromits current 12 percent over the next 15years.

Other observers don’t automaticallybuy into Cooper’s scenario.

Judith Dwarkin, chief economist withRoss Smith Energy Group, suggested ris-ing Chinese demand would be more like-ly to realign global markets.

She said the United States West Coastcould turn increasingly to Canadiancrude, while production from OPECcountries in the Middle East and SouthAmerica could be diverted to China.

Whatever the outcome, Canadian pro-ducers will “want to go first to the mar-kets where their netbacks are the greatestand that’s going to be the U.S. marketbecause it’s the closest and because theirrefineries are best adapted to our (heav-ier) kinds of crude,” she said.

What the two analysts agreed on was ashortage of pipeline infrastructure to han-dle large exports. l

PETROLEUM NEWS • WEEK OF APRIL 17, 2005 A9

l A L B E R T A

China makes low-key entry into oil sandsState-owned company acquires minority stake in Alberta oil sands start-up, drawn by advances in technologies

The CNOOC-MEG deal camewas a surprise to most

observers, given MEG’s briefhistory in the oil sands.

I

NORTH SLOPEProduced water spill at Kuparuk drillsite caused by internal corrosion

ConocoPhillips Alaska has reported to the Alaska Department ofEnvironmental Conservation that the cause of the produced water spill at theKuparuk River 2H drill site March 26 was internal corrosion of the injection waterpipeline.

The company told the department it has begun a comprehensive investigation,which will include a technical review of its Kuparuk corrosion and monitoringmitigation program.

Two acres were impacted by some 111,300 gallons (2,650 barrels) of a mixtureof 30 percent seawater and 70 percent produced water, which was released to bothgravel pad and tundra. Produced water is a mixture of water and crude oil.

The source of the spill was a six-inch produced water/seawater injection linethat transported water from central processing facility No. 2 to drill site 2H forinjection. The leak was in the below-grade section of the cased pipeline under thegravel pad.

When the pipe was removed they found a “small hole, about half the size of aneraser at the end of a pencil,” caused by internal corrosion, ConocoPhillips Alaskaspokeswoman Dawn Patience told Petroleum News. The pipe is being replacedwith new pipe, she said April 13.

—KRISTEN NELSON

Page 10: l Thunder booms again - Petroleum News · page 15 Don’t count out Western Canada natural gas Vol. 10, No. 16 • North America’s source for oil and gas news Week of April 17,

By JUDITH KOHLERAssociated Press Writer

olorado business and governmentleaders were set to take a field tripto Canada April 11 to try to boostcross-border investments and share

expertise in each region’s booming ener-gy industry as the two countries try toreduce their reliance on foreign oil.

Colorado Gov. Bill Owens and DenverMayor John Hickenlooper are heading acontingent of about 70 on stops over twodays in Calgary, Alberta, and the vast oilsands in Fort McMurray in the northeast-ern part of the province. Canadian energycompanies have invested more than $3billion in Colorado in the past coupleyears, including Suncor’s purchase of theConocoPhillips refinery in CommerceCity and EnCana’s purchase of TomBrown Inc., a Denver oil and gas compa-ny.

Both governments hope to see more ofthat as well as spending by U.S. compa-nies in Canada.

The idea for the trade mission evolvedas business and government leaders onboth sides of the border recognized thatthe world energy situation is changing,said Michael Fine, the Canadian consulgeneral in Denver.

“We in North America are going to

have to do a lot better job looking afterour own energy needs,” Fine said April 8.

The Rocky Mountain region is key todoing that, Fine and others said, becauseof its huge oil and natural gas deposits.

For the past few years, the Rockieshave led the United States in the growthof gas production and discoveries of newfields, said Peter Dea, president and chiefexecutive of the Denver-based companyWestern Gas Resources Inc., whichrecently opened an office in Calgary.Technological advances have made it eas-ier to extract the oil and gas from the tightsands and other tough-to-crack forma-tions of western Colorado.

Canada, which provides about 12 per-cent of all the oil used in the UnitedStates, is thought to be sitting atop theworld’s second-largest oil reserve, mostof which is in oil sands in northeasternAlberta.

In exchange, Canada hopes Coloradocompanies will share its expertise withcoalbed methane.

The group will meet with AlbertaPremier Ralph Klein, Calgary MayorDavid Bronconnier, energy companiesand investors.

“After our meetings, we would like tosee them come down here and take a clos-er look at what Colorado’s about,”Baumunk said. l

A10 PETROLEUM NEWS • WEEK OF APRIL 17, 2005

l C O L O R A D O

Colorado leaders preparefor field trip to Canada

C

l O K L A H O M A C I T Y

Chesapeake rings up 4 more U.S.acquisitions for $686 million

By RAY TYSON Petroleum News Houston Correspondent

t didn’t take long for Chesapeake Energy to hit the acquisi-tion trail with $686.4 million in announced U.S. onshoreproperty deals, bringing the Oklahoma-based explorationand production independent’s grand total to roughly $2.7 bil-

lion since early 2004.From four private companies, Chesapeake said April 12 that

it would be acquiring reserves totaling about 566 billion cubicfeet of natural gas equivalent, consisting of 289 bcfe of provedreserves and 277 bcfe of probable and pos-sible reserves.

Current daily net production from theproperties located in South Texas, EastTexas and the Permian basin was estimatedat 61 million cubic feet of natural gasequivalent production from 405 existingwells. Chesapeake said it plans to invest anadditional $683 million in future drillingand development.

“The acquisitions are heavily weightedto natural gas and the properties haveattractive operating and future develop-ment costs,” said Aubrey McClendon,Chesapeake’s chief executive officer.

He said Chesapeake’s acquisition costfor the 289 bcfe of estimated provedreserves would be $1.49 per thousandcubic feet of natural gas equivalent. Basedon the cost of the company’s projecteddevelopment plan, he added, the estimated“all-in cost” of acquiring and developingthe 566 bcfe of total reserves would be$2.42 per mcfe.

Company has operations in areasThe properties Chesapeake is acquiring also are located in

areas where the company already has extensive drilling and pro-

ducing operations. Moreover, the company said it has identified276 proved undeveloped and 375 probable and possible drillinglocations. With the new properties, Chesapeake’s provedreserve base would grow to 5.4 trillion cubic feet of natural gasequivalent, while the company’s unproven reserves wouldincrease to more than 4 tcfe.

The sellers were Houston-based Laredo Energy II, LLC andits partners, Houston-based Pecos Production Co., Midland-based Rubicon Oil & Gas I, LP, and an unidentified Dallas-based independent oil and gas company.

“These acquisitions have all of the attributes of … previousChesapeake transactions — acquisitions from private compa-nies of low-cost, high-margin proved producing natural gasreserves, exploitation potential of proved undeveloped, proba-ble and possible reserves and finally, exploration potential fornew reserves,” McClendon said.

Chesapeake said it recently closed one of the transactions forabout $228 million in cash and expects to close the remainingacquisitions by the end of May. The company said it intends tofinance the deals through a combination of senior notes and pre-ferred stock.

More than $2B in acquisitions in 2004 In 2004 alone, Chesapeake announced or closed acquisitions

totaling more than $2 billion, including $325 million in cash forindependent BRG Petroleum, founded and chaired by JamesBurkhart, a member of Texas A&M’s famed “Junction Boys”football team coached by legendary college coach Paul “Bear”Bryant in the 1950s. BRG’s primary focus area was the U.S.Mid-continent, particularly in the Sahara region of NorthwestOklahoma.

Other transactions during 2004 included $277 million forHallwood Energy properties in the prolific Barnett Shale field ofEast Texas, $590 million for South Texas and Mid-continentproperties from three private companies; $425 million for inde-pendent Greystone Petroleum that included Greystone’s posi-tion in the giant Sligo Field in Louisiana, and $420 million forMid-continent, Permian Basin, South Texas and onshore GulfCoast properties from Concho Resources. l

I

“These acquisitionshave all of the attrib-utes of … previousChesapeake transac-tions — acquisitionsfrom private compa-nies of low-cost,high-margin provedproducing naturalgas reserves,exploitation poten-tial of proved unde-veloped, probableand possible reservesand finally, explo-ration potential fornew reserves.” —Aubrey McClendon,Chesapeake EnergyCEO

To Subscribe:907.522.9469

Page 11: l Thunder booms again - Petroleum News · page 15 Don’t count out Western Canada natural gas Vol. 10, No. 16 • North America’s source for oil and gas news Week of April 17,

By GARY PARKPetroleum News Calgary Correspondent

program to explore for natural gas in theBeaufort Sea is squarely in the sights of DevonCanada.

The unit of Devon Energy will not have toface any further environmental scrutiny before launch-ing a revival of drilling in the shallow waters off theMackenzie Delta with the first of four possible wells inearly 2006.

Michel Scott, vice president of government andpublic affairs, also disclosed to Petroleum News onApril 13 that contracts have been signed for a drillingplatform and ice breaker.

Canada’s Environment Minister Stéphane Dion saidApril 12 that he had decided the project was “not like-ly to cause significant adverse environmental effects”based on the mitigation measures outlined by DevonCanada and, therefore, did not need further assessmentby a review panel or mediator.

Scott said the company had spent millions of dollarspreparing a comprehensive study for the NationalEnergy Board and meeting with northern communitiesand environmentalists.

“We don’t anticipate we have left any gaping holes,”he said.

The final regulatory hurdle is a “technical” approvalfrom the NEB for drilling.

The drilling contracts were awarded after DevonCanada opted for an SDC – short for steel drilling cais-son — over a land-fast tender-assist drill unit or an iceisland.

The SDC is a former crude oil tanker converted intoa mobile Arctic platform. It has previously been usedfor exploration drilling in the Beaufort.

Scott said the ice breaker will tow the SDC intoplace this August. Once the platform has frozen intoplace drilling can start, likely in January.

Depending on results, three more wells could be

drilled — one each winter until 2008-2009.The wells are expected to cost C$55 million to C$60

million each in projected water depth of about 40 feetto depths of about 11,500 feet.

Gas would go into Mackenzie line The objective is to find gas reserves large enough to

flow into the proposed Mackenzie Valley pipeline. Scott doubts Devon Canada could bring any gas on

stream before 2012-2015. Before drilling stopped in the Beaufort in 1989, 26

significant discoveries were posted — 41 in shallowwater and 50 in deep water.

The NEB has estimated marketable reserves at 4.1trillion cubic feet and believes the area has the poten-tial for 50 tcf.

Despite delays in the scheduled start of public hear-ings and opposition from the Deh Cho First Nations,Scott said Devon Canada is “generally encouraged” byprogress on the pipeline.

Meantime, Devon Canada has plugged and aban-doned the first exploratory well in the Eagle Plains areaof the northern Yukon after failing to find commercialaccumulations of hydrocarbons.

Scott said Devon Canada was motivated to drill bylooming expiries on its licenses — it was “either drillor drop.”

Although it has no plans to drill further wells, thecompany has qualified to drill again within three orfour years, he said.

Eagle Plains is estimated to hold about 6 tcf of gas,which, if discovered, could be fed into the Mackenziepipeline. l

PETROLEUM NEWS • WEEK OF APRIL 17, 2005 A11

l C A N A D I A N B E A U F O R T

All systems go for Canadian Beaufort wellDevon Canada gets environmental clearance and signs contracts to drill first well in 17 years; four wells possible over four winters

The drilling contracts were awarded afterDevon Canada opted for a steel drilling

caisson (SDC) over a land-fast tender-assistdrill unit or an ice islandA

The SDC — short for steel drilling cassion — is a formercrude oil tanker that was converted into a mobile Arcticdrilling platform in 1982. It was last used to drill theMcCovey exploration well in the Alaska Beaufort by EnCana.

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ALBERTAOil sands powerred-hot economy

The scorching pace of economicgrowth in Alberta includes C$107 bil-lion worth of major projects recentlycompleted, under construction or due tostart within two years, the provincialgovernment reported.

And, to no one’s surprise, the oilsands sector has 49 ventures in thepipeline, carrying a combined price tagof more than C69 billion.

Alberta Economic Development said12 oil sands projects are in the construc-tion phase, with four of them in the C$1billion-plus category.

Of the province’s six regions, ColdLake-Wood Buffalo, center of the oilsands boom in the northeast corner, laysclaim to work valued at C$64 billion,followed by the Edmonton-Calgary cor-ridor at C$25 billion.

The largest scheme under construc-tion is a C$7.8 billion expansion ofSyncrude Canada, the world’s largestsource of synthetic crude.

Marcel Coutu, president of CanadianOil Sands Trust, Syncrude’s largest part-ner, said the Stage 3 phase should becompleted on schedule by mid-2006 andwithin budget. When it comes onstream, the expansion will raise outputto 350,000 barrels per day from its cur-rent 225,000 bpd and keep the consor-tium on track to meet its goal of morethan 500,000 bpd within a decade.

—GARY PARK

Page 12: l Thunder booms again - Petroleum News · page 15 Don’t count out Western Canada natural gas Vol. 10, No. 16 • North America’s source for oil and gas news Week of April 17,

A12 PETROLEUM NEWS • WEEK OF APRIL 17, 2005

l A L A S K A ’ S N O R T O N S O U N D

Could natural gas replace diesel for Nome?An MMS study explores the challenging economics of using natural gas to generate rural electricity in Alaska’s Norton Sound basin

By ALAN BAILEYPetroleum News Staff Writer

n common with much of rural Alaska, Nomeuses expensive diesel fuel to generate electrici-ty. So it might seem obvious that developingnatural gas from the nearby gas-prone Norton

basin could bring down electricity prices and per-haps generate an economic resurgence in theNome area.

But it’s not that simple.A recent study by Cameron Reitmeier, a petro-

leum geologist with the Minerals ManagementService in Anchorage, has concluded that the eco-nomics of this type of development are marginal.Reitmeier carried out his study as part of a mastersprogram at the University of Alaska Anchorage.

The Norton basin lies under the Norton Sound,south of Nome, and contains a sequence of gas-prone sedimentary rocks. A 1995 assessment byMMS concluded that there might be 2,708 billioncubic feet of undiscovered natural gas in the basin.

Drilling in the 1980sARCO drilled two stratigraphic test wells in the

Norton basin in the early 1980s. Then, looking tofind oil, Exxon and ARCO drilled six explorationwells in 1984 and 1985. Several of the wellsencountered gas shows and two of these wellsfound moderate to strong shows. However, therewas little interest in gas at the time and all of thewells were plugged and abandoned.

MMS has in the past looked at the potential forextracting gas from the Norton basin for liquefied naturalgas production. But the MMS analysts have found thatthe development costs make it highly unlikely that LNGfrom this modest sized basin could compete in worldmarkets.

Reitmeier’s new study instead focused on the potentialfor developing gas production for local use in the Nomearea.

“This was … a change for us … because in the pastwhen we looked at gas we were always looking at largeLNG facilities and that kind of thing,” said Larry Cooke,an MMS supervisory geologist.

A field near NomeGas production might be viable for local use if a sig-

nificant gas field lies not too far from Nome. And theMMS 1995 assessment did point to the possibility of asmuch as 18 billion cubic feet of gas that could be pro-duced over a 30-year period within about 30 miles of thecity.

So, for his analysis of gas economics for Nome use,Reitmeier has assumed gas production from a mid-Tertiary play in a 12,400-acre area 30 to 40 miles direct-ly south of Nome — the geology of the basin makes itunlikely that there’s a workable field much closer to land.And, to test the economics, Reitmeier assumed that a gas

field of appropriate size would definitely be found ataround this location.

Could a field like this prove viable?The Nome area currently consumes about 1.8 million

gallons per year of diesel fuel. That equates to the energyfrom about 97 million standard cubic feet of natural gasper year, a production rate that ought to be well within thecapabilities of the type of field that Reitmeier envisages.

The scale of the operation would be too small to sup-port a production platform, so Reitmeier’s economicmodeling assumes the use of subsea well completions,rather like a gas field that Statoil has developed in theBarents Sea. Subsea completions represent a theory thatneeds to become reality for future Alaska offshore explo-ration and production, Reitmeier said.

Two production wellsThe Norton Sound field would involve two production

wells and a disposal well. A 40-mile 4.5-inch subseapipeline would carry the gas to the existing electricalpower plant in Nome. An onshore base would remotelycontrol the offshore wells.

“The infrastructure that I assumed went directly to thepower plant … and then used the existing power lines,”Reitmeier said.

Reitmeier estimated that the field would cost about$42 million to develop, plus leasing and appraisal costs of

slightly more than $10 million. The pipeline wouldprobably cost about $47 million to construct.Reitmeier’s economic analysis then assumes oper-ating costs of $5 per mcf of produced gas, fixedcosts of $3.37 million per well per year and gastransportation costs of $2.22 per mcf.

High priced gasAlthough the costs of developing even a small

gas field like this seem rather daunting for a rela-tively small community, these costs would besomewhat offset by the potential for being able toprice the gas at a fairly high level in the closed localmarket.

“Basically they’re looking to power their lightsand they’re looking to drop their power bills — aslong as you do that it should work out,” Reitmeiersaid.

Essentially the gas would compete on price withdiesel fuel. Reitmeier calculated the volume of gasthat provides the equivalent energy to a gallon ofNo. 2 diesel fuel. He then determined that, at $1 pergallon for diesel fuel, $18.65 per mcf gas coulddeliver energy at the same cost as diesel. That’s aconsiderably higher gas price than current hubprices in the Lower 48 states. And the $18.65 pricemay be an underestimate since diesel prices arecurrently trending well above $1 per gallon.

Power cost equalization, a state program thatprovides funds to reduce the cost of rural domesticelectricity, could impact the gas price in Nome.However, power cost equalization in Nome is quite

small and would have little impact on the economics ofgas production, Reitmeier said.

Might make moneyReitmeier plugged the estimated costs, production vol-

umes and gas prices into an economic model thatassumed inflation-adjusted discount rates from 11.2 per-cent to 18.4 percent. A 30-year field life resulted in a netpresent value of $15.29 million for the project. The ratioof profit to required investment indicated a risky projectthat might just prove viable.

The economics weren’t totally negative, so you can’tdiscount the project, Reitmeier said.

However, the assumption that gas would definitely befound at a suitable location eliminated a significant riskfactor from the project economics. And discovering thegas would require a jack-up rig in Norton Sound — anunlikely proposition just to support this project.

“One idea is that (the jack-up rig) would have to be intransit — bringing one up wouldn’t be economic,” Cookesaid.

Other factorsHowever, there are some factors that Reitmeier did not

include in his calculations and that could help the eco-

I

A map showing exploration wells drilled in the Norton basin in the 1980s.The red cross marks the location of the hypothetical gas field used forCameron Reitmeier’s study of gas production for Nome. The contours showthe depth of the Norton basin at 2 km intervals

see NORTON BASIN page A13

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PETROLEUM NEWS • WEEK OF APRIL 17, 2005 A13

l N E W F O U N D L A N D

Rocket test shutsdown U.S. oil sourceU.S. Air Force said 10-ton rocket booster will crash into oceanwithin 15 miles of Hibernia rig, Terra Nova FPSO vessel

By GARY PARK Petroleum News Calgary Correspondent

rocket test by the U.S. Air ForceSpace Command over the NorthAtlantic is forcing the evacuationand complete shutdown of

Newfoundland’s Hibernia and Terra Novaoil fields at a possible cost of C$250 mil-lion.

Despite frantic efforts by Canada, theUnited States set April 17 to launch aTitan IVB rocket, carrying a sensitivePentagon satellite, from Cape Canaveralafter two earlier postponements for “tech-nical reasons.”

The Air Force has indicated that a 10-ton booster for the rocket will crash with-in 15 miles of the oil platforms.

Although U.S. officials have insistedthe odds of debris hitting the oil fields areone in a trillion, the Canada-Newfoundland Offshore PetroleumBoard ordered the evacuation of 234 peo-ple from the Hibernia rig and 78 peoplefrom Terra Nova’s floating production,storage and offloading vessel. The wellswill be shut down and the lines drained.

The full turnaround before productioncan resume will take about two weeks.

Hibernia produces more than 200,000barrels per day and Terra Nova haspumped up to 165,000 bpd, with the bulkof production from both fields exportedto the U.S.

Canadian objections made known Canada’s Deputy Prime Minister Anne

McLellan telephoned Vice President DickCheney and senior Canadian militaryofficials were in contact with the Space

Command to “make known our objec-tions,” said Defense Minister BillGraham.

Initially, Graham said the test has beenpostponed indefinitely while a new tra-jectory was developed, but SpaceCommand officials denied those claims.

They said reports of danger to the oilfields were exaggerated and would onlybecome a concern in the unlikely event ofa malfunction or disaster during flight.

That wasn’t good enough forNewfoundland Premier Danny Williams,who said the odds of an accident concernhim if there is even one chance in 10 tril-lion of an accident happening.

He demanded more information fromthe U.S. government and “guaranteesfrom somebody” that lives would not beat risk.

“I don’t think the Americans hadthought through how close (the flightpath) was to the Hibernia,” he said.

Williams, known for his feisty manner,conceded there was little Canada coulddo to stop the rocket launch.

But he did say “we’re looking at …whether Canada can physically stop theAmericans from doing this.

“Of course, there’s an obvious answerto that: I don’t think we have theresources to do it,” Williams toldreporters, without explaining exactlywhat he had in mind.

“But from an international diplomacyperspective, there’s some importantissues here.”

ExxonMobil, the Hibernia operator,and Terra Nova operator Petro-Canadawould only say they had been closely fol-lowing discussions between the Canadianand U.S. governments.l

A

Despite frantic efforts by Canada, the United States was set April 17 to launch a Titan IVBrocket, carrying a sensitive Pentagon satellite, from Cape Canaveral, Fla. The Air Force hasindicated that a 10-ton booster for the rocket will crash within 15 miles of two oil platformsoffshore Newfoundland.

nomics.In particular gold mining may start

again near Nome — NovaGold ResourcesInc. is considering re-opening the RockCreek mine just outside town. Miningrequires large quantities of electricity andthis industrial demand could really impactthe viability of gas development.

“That would help out the economics,just on an economy of scale,” Reitmeiersaid.

Reitmeier also excluded from his cal-culations the possibility of using gas forheating buildings in Nome. However, theconstruction of a domestic gas distributioninfrastructure would be fairly expensive.

There are also some federal incentivesthat could impact the economics.Reitmeier’s field design includes seques-tration of carbon dioxide that’s known to

exist in Norton basin gas. That sequestra-tion might qualify for an EPA incentive.Also, it’s quite likely that MMS wouldsuspend or reduce the royalty rate for thistype of gas production — Reitmeier’s cal-culations assumed a 12.5 percent royaltyrate.

And there are programs that help withrural energy projects. Internally we dis-cussed what it might take to get this start-ed — perhaps getting help from theDenali Commission, Department ofEnergy or whatever, Reitmeier said.

So, although the basic economics ofgas production from the Norton basindon’t look good under current conditions,future possibilities such as gold miningcould bring viability to a gas developmentproject. And possible future EPA regula-tions for sulfur content in no. 2 diesel fuelmay further escalate the price of diesel.

Perhaps the time will come to drill forgas under the Norton Sound. l

continued from page A12

NORTON BASIN

Page 14: l Thunder booms again - Petroleum News · page 15 Don’t count out Western Canada natural gas Vol. 10, No. 16 • North America’s source for oil and gas news Week of April 17,

By RAY TYSON Petroleum News Houston Correspondent

ajor drilling companies areapproaching near full throttle on theearnings front, with 2005 first-quar-ter profits on average expected to

rise a healthy 21 percent over the prior quar-

ter and rocket some 230 percent comparedto the same period last year. Moreover,2005 second-quarter profits could come inaround 30 percent higher than the first quar-ter.

First-quarter 2005 profits for other oilfield service companies are expected to fallon average 14 percent from the 2004 fourth

quarter but increase about 75 percent onaverage versus the year-ago quarter. Secondquarter 2005 profits are expected to rise 7-8percent from the first quarter.

Results were based on a PetroleumNews survey of Thompson-First Call earn-ings estimates for sector leading companies.Individual estimates can be higher or lowerthan the consensus and tend to change asthe reporting season approaches. Estimatesalso generally exclude one-time chargesagainst earnings and other special items.

Drilling companies surveyed wereTransocean, Diamond Offshore,GlobalSantaFe, Rowan, EnscoInternational, Pride International, NaborsIndustries, Parker Drilling, Noble and GreyWolf.

Other major service companies surveyedwere Halliburton, Schlumberger, BakerHughes, Smith International, WeatherfordInternational, National Oilwell andMcDermott International.

Improving day rates, rig utilization Among the drilling companies, improv-

ing day rates and rig utilization are mostoften cited as the main drivers behind thatindustry’s steady recovery. A year ago, fourof the companies surveyed reported nega-tive earnings.

Transocean, the world’s largest offshoredriller, is expected to report 17 cents pershare in profit for the 2005 first quarter, upfrom just 1 cent a share in the 2004 fourthquarter and 15 cents a share a year earlier.Early estimates for the 2005 second quarterhave the driller earnings around 32 centsper share.

Diamond Offshore’s earnings haveundergone remarkable improvement overthe past year. The driller should report about18 cents per share in the 2005 first quartercompared to a loss of 8 cents per share inthe year-ago period. Diamond earned 9cents per share in the 2004 fourth quarterand is expected to report a profit of around29 cents per share in the 2005 second quar-ter.

GlobalSantaFe, another large offshoredrilling contractor, is expected to weigh inwith earnings of around 21 cents per sharein the 2005 first quarter. That compares to

earnings of 15 cents per share in the previ-ous quarter and 2 cents per share a year ear-lier. Earnings could jump to 30 cents pershare in the 2005 second quarter, accordingto consensus estimates.

Rowan is another offshore driller thathas dug itself out of a financial hole. Thecompany is expected to post a profit of 22cents per share in the 2005 first quarter,compared to a loss of 11 cents per share forthe same period last year. Rowan earned 16cents per share in the 2004 fourth quarterand is expected to earn a healthy 30 centsper share in the 2005 second quarter.

Ensco is expected to earn about 24 centsper share in the 2005 first quarter, downslightly from 26 cents per share in the pre-vious quarter but up significantly from the14 cents per share the company earned inthe year-ago quarter. The company isexpected to generate 34 cents per share inthe 2005 second quarter, according to pre-liminary estimates.

Land drillers also upParker Drilling should just pull out of the

red with 1 cent per share in the 2005 firstquarter, compared to a loss of 9 cents pershare for the year-ago period. The companymade 2 cents per share in the 2004 fourthquarter and is expected to improve slightlyto 3 cents per share in the 2005 secondquarter.

Noble’s expected 2005 first-quarter per-formance of 34 cents per share would bebelow the 39 cents per share the companyearned in the previous quarter. However,2005 first quarter earnings were up consid-erably from the 21 cents per share Nobleearned in the year ago period. The companyalso is expected to earn around 56 cents pershare in the 2005 second quarter.

Pride International’s earnings for the2005 first quarter were estimated at about 9cents per share, up from 7 cents in the pre-vious quarter and up from 3 cents per sharein the year ago period. The company isexpected to earn around 13 cents per sharein the 2005 second quarter.

Land drilling contractor NaborsIndustries is expected to earn 75 cents pershare in the 2005 first quarter, up from 68cents per share in the previous quarter andup from 46 cents per share in the year-ago

A14 PETROLEUM NEWS • WEEK OF APRIL 17, 2005

l H O U S T O N

Drillers looking for strong first quarterMajor companies expected to see 21 percent 1st-quarter profit increase over 4th quarter ’04, up 230% from 1st quarter ‘04

M

Land drilling contractor Nabors Industries isexpected to earn 75 cents per share in the2005 first quarter, up from 68 cents pershare in the previous quarter and up from46 cents per share in the year-ago quarter.Nabors could earn about 62 cents per sharein the 2005 second quarter, according toindustry analysts.

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see DRILLERS page A15

Page 15: l Thunder booms again - Petroleum News · page 15 Don’t count out Western Canada natural gas Vol. 10, No. 16 • North America’s source for oil and gas news Week of April 17,

BY THE ASSOCIATED PRESSongress probably will not followPresident Bush’s recommendation tocut off federal oil and gas research,U.S Sen. Lisa Murkowski said.

Murkowski, R-Alaska, said Congressprobably will continue to support federalresearch into methanehydrates.

Murkowski com-mented April 7 whiletalking to reportersabout a bill she intro-duced to speed studyof the potentially vastenergy source.

The bill, co-spon-sored by Sens. TedStevens, R-Alaska,and Daniel Akaka, D-Hawaii, wouldauthorize spending $165 million through2010. A separate appropriations bill alsowould be needed.

The Bush administration, in the pro-posed budget released in early February,said it wants to eliminate federal spendingon oil and gas research.

The programs cost about $79 millionthis fiscal year. Bush suggested $20 millionnext year, enough for “orderly termination.”

Murkowski said Congress probably willnot follow that advice.

“I do think that there is a good chancethat we get it back in there,” she said.

Huge resource for Alaska Methane hydrate is a solid form of

methane trapped in water molecules underhigh pressure and, on Alaska’s North Slope,cold conditions.

Murkowski said Alaska has close to 600trillion cubic feet of onshore methane

hydrates, dwarfing the 33 trillion cubic feetof conventional gas. (Alaska Division of Oiland Gas Director Mark Myers said inJanuary that 35 tcf is known at Prudhoe Bayand Point Thomson, but that federal andstate geologists believe the North Slope andoffshore conventional mean technically

recoverable undis-covered resourcepotential exceeds 236tcf.) Counting off-shore hydrates, thetotal is 32,000 trillioncubic feet, enough topower the country for1,000 years at pro-jected consumptionrates, Murkowskisaid.

Methane hydrates,however, are unstable and no one has founda certain method for collecting them forcommercial use.

Myers visited Washington over the win-ter to ask for $70 million to test productionmethods. Hydrates found in most areas ofthe world are mixed with sediment and hardto extract, Myers said, but at Prudhoe Baythey appear to be concentrated above theexisting natural gas cap and just below per-mafrost.

Murkowski’s bill is an expansion of leg-islation proposed five years ago by Sen.Akaka. Besides authorizing the $165 mil-lion, it would establish a scientific peerreview process for projects, expandresearch to investigate commercial devel-opment authorize one or more productiontest wells.

—Petroleum News contributed to thisarticle.

PETROLEUM NEWS • WEEK OF APRIL 17, 2005 A15

quarter. Nabors could earn about 62 centsper share in the 2005 second quarter,according to industry analysts.

Grey Wolf, another land driller, also isexpected to climb out of the red in the 2005first quarter with a profit of about 7 centsper share, compared to a loss of 4 cents pershare in the year-ago quarter. The companyearned 5 cents per share in the 2004 fourthquarter and is expected to make 8 cents pershare in the 2005 second quarter.

Oilfield service companies also up from a year ago

Among the big oilfield service compa-nies, Schlumberger is expected to post aprofit of about 61 cents per share in the2005 first quarter, up from 59 cents pershare reported in the previous quarter andup from the 43 cents per share recorded inthe year-ago quarter. The company shouldmake around 64 cents per share in the 2005second quarter, according to the consensusestimate.

Halliburton’s profit for the 2005 firstquarter should be around 45 cents per share,up slightly from 44 cents per share in the2004 fourth quarter and up significantlyfrom the 29 cents per share Halliburtonearned in the year-ago period. The compa-ny is expected to earn about 46 cents pershare in the 2005 second quarter.

Baker Hughes should make around 42cents per share in the 2005 first quarter,down from 53 cents per share the companyearned in the previous quarter but up signif-icantly from the 29 cents per share earned inthe year-ago period. The company couldearn about 46 cents per share in the 2005second quarter.

Smith International is expected to reporta profit of about 61 cents per share in the2005 first quarter, an increase from 57 centsper share in the previous quarter and anincrease from 44 cents per share earned forthe same period last year. The company isexpected to make about 64 cents per sharein the 2005 second quarter.

Weatherford International’s profit for the2005 first quarter should come in around 59cents per share. That would be an increasefrom 55 cents per share in the previousquarter and a significant increase from 38cents per share earned in the year-ago quar-ter. The company is expected to report aprofit of about 60 cents per share in the2005 second quarter.

McDermott International should earnabout 14 cents per share in the 2005 firstquarter, down from 61 cents earned in theprevious quarter but significantly up fromthe company’s 21 cents per share loss in theyear-ago quarter. McDermott is expected tomake about 24 cents per share in the 2005second quarter. l

l W A S H I N G T O N , D . C .

Congress may ignoreBush on research dollarsSen. Murkowski predicts funding will continue for methanehydrates research, notes 600 tcf onshore in Alaska alone

C

U.S. Ted Stevens, R-Alaska

U.S. Sen. LisaMurkowski, R-Alaska

continued from page A14

DRILLERS

WESTERN CANADADon’t count out Western Canadian gas

Talk of Western Canada’s early demise as a natural gas supply source are great-ly exaggerated, a senior executive of the Canadian Association of PetroleumProducers told a Houston conference this month.

The growing emphasis on coalbed methane could contribute to a slightincrease in volumes, or, at worst, flat-line production, Greg Stringham, the asso-ciation’s vice president of markets and fiscal policy, said atthe Ziff Energy gas strategies conference.

He also downplayed suggestions that oil sands productionwill drain new gas supplies to support extraction and pro-cessing of raw bitumen.

Some have suggested that the entire start-up in theMackenzie Delta of 800 million to 1.2 billion cubic feet perday will never flow south of the oil sands region.

Stringham said a number of efficient alternatives areemerging to generate the heat, steam and power needed toexploit the oil sands.

However, Stringham and Jim Dilay, a member of theAlberta Energy and Utilities Board, conceded that a doubling of finding anddevelopment costs in the Western Canada Sedimentary Basin is a cause for con-cern.

Dilay was encouraged by a new joint Alberta Energy and Utilities Board andNational Energy Board study that pointed to a 12 percent hike in the basin’s ulti-mate potential to 223 trillion cubic feet, which he said reflected a “vastlyimproved knowledge” of the region.

But he said that heavy investment in exploration is vital to meet growingdemands.

—GARY PARK

GREG STRINGHAM

Tesoro Alaska plans summer pipelinemaintenance work on bulk fuel line

Tesoro Alaska is planning summer maintenance work on its pipeline that car-ries jet fuel, diesel and gasoline to the Port of Anchorage.

The company plans to replace 6,800 feet of the 68-mile line in the “proactivemaintenance” project.

The bulk of the construction will take place in June and is expected to takeabout three weeks, said Steve Hansen, vice president of refining for TesoroAlaska. The company has an oil refinery in Nikiski.

The pipeline starts at Point Possession on the northern Kenai Peninsula andtravels under water in Cook Inlet and Turnagain Arm to the Port of Anchorage.

“We have a responsibility to make sure that line is always in the best condi-tion,” Hansen said.

The pipeline carries about 1,600 to 1,800 barrels of fuel per hour, the bulk ofit jet fuel, Hansen said. During construction, provisions will be made to ensurethe demands of the marketplace are met, he said.

It is not unusual for companies to conduct this type of maintenance on theirpipelines, said Michael Munger, executive director of the Cook Inlet RegionalCitizens Advisory Council.

The council is a federally mandated nonprofit organization that promotes envi-ronmentally safe marine transportation and oil facility operations on the inlet.

While refined products, such as gasoline, are easier to clean up than crude oil,the pipeline goes through an area with strong currents and tidal fluctuations,Munger said. This would make a spill in that area difficult to clean up, he said.

“Anytime a company conducts activities in that regard it’s a very proactiveapproach,” Munger said. “I applaud Tesoro for their approach.”

—THE ASSOCIATED PRESS

COOK INLET

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By DAVID KOENIGAssociated Press Writer

he Texas Railroad Commission,which dates to 1891 and for decadesused its power to limit production inthe world’s most important oil fields,

could soon undergo a facelift and lose itsstoried name.

A bill pending in the Legislaturewould rename the agency the TexasEnergy Commission.

The commission would keep authorityover the state’s oil and gas industry, butthe Department of Transportation wouldtake over the commission’s original job ofrailroad regulation.

Changing the commission’s name andduties has been discussed for years butgot new life from a council created byGov. Rick Perry and led by RailroadCommission Chairman Victor Carrillo.

In December, the group proposed a 10-point energy plan that included overhaul-ing the commission’s focus, approvingtax breaks for drilling exploratory oil andgas wells and encouraging the construc-tion of Gulf Coast terminals to import liq-uefied natural gas.

In March, Sen. Florence Shapiro, R-Plano, introduced a bill containing thepanel’s recommendations to restructureand rename the Railroad Commission.The chairman of the Senate GovernmentOrganization Committee plans a hearingthis month, an aide said.

There is no guarantee that Shapiro,whose office declined an interview, willsucceed.

Shapiro has already promised to drop aprovision that upset Comptroller CaroleKeeton Strayhorn. It would have movedan energy-conservation unit fromStrayhorn’s office to the new energydepartment.

Rep. David Farabee, D-Wichita Falls,who proposes to eliminate two of threeseats on the Railroad Commission, pre-dicted the name change would passbecause it reflects the agency’s job.

Institutional resistance to change However, proposals to change the

Railroad Commission run into stronginstitutional resistance, said Rex H. WhiteJr., a former general counsel to the com-mission.

A proposal to merge the agency andthe Public Utility Commission died twoyears ago on the Senate floor. White saideven oil and gas producers who love togrouse about the Railroad Commissionfear change, having grown accustomed to

the agency’s ways. “The name is, in one sense, mislead-

ing, but they’re known all across theUnited States and in Congress as theRailroad Commission,” White said. “Billsdesigned to restructure the commissionare usually pretty hard-fought, and notmany of them make it.”

The Legislature created the commis-sion in 1891 to set railroad shipping rates.In 1917 _ 16 years after the first big oilgusher at Spindletop _ the Legislatureadded oil and gas pipelines to the com-mission’s jurisdiction. Two years later,lawmakers gave the commission the jobof enforcing a state law against wastingoil and gas, by then already a critical partof the state economy.

Over the years, the commission’spower grew. It told operators how farapart to drill wells and how much oil topump out of the ground to avoid wastingthe state’s most important naturalresource.

Producers often chafed under the com-mission’s production limits, called prora-tioning. In the 1930s, troops were calledin to maintain peace when the commis-sion limited production in the then-newEast Texas oil field. Producers wanted torun their wells wide open, but the courtsand Legislature sided with the commis-sion.

The United States was the world’slargest oil producer until 1974, and Texaswas the biggest oil state, so the RailroadCommission’s actions affected oil priceseverywhere.

“At one time, it had influence farbeyond the boundaries of the state,”White said. “The commission neverdelved into pricing, but there was a sideeffect on prices.”

The commission was forced to aban-don production limits in the early 1970s,as the nation’s oil surplus ran out andAmericans waited in long gas lines. TheOrganization of Petroleum ExportingCountries, took on the power to influenceoil prices.

Carrillo, the Railroad Commissionchairman, said he favors changing thename because the agency simply doesn’thave much to do with rails anymore. Hesaid only 14 of the commission’s 700-plus employees are assigned to rail safety.

“I must admit I like the historicalaspect of what the Railroad Commissionstands for,” Carrillo said. “When Texasdominated the world oil market, it was asimportant as the role OPEC plays today.But it’s time for that name to reflect whatwe do in 2005 instead of 1891.” l

A16 PETROLEUM NEWS • WEEK OF APRIL 17, 2005

l T E X A S

Texas mulls change inTRRC name, powersBill in Legislature would end Railroad Commission’s 114-yearrun, give railroad authority to transportation department

T

COLORADOColorado to issue record number ofpermits; likely 17% above last year

Colorado is on track for a second straight record-setting year for the number ofoil and natural gas permits issued.

The Colorado Oil and Gas Conservation Commission this year expects thestate to issue at least 3,400 permits, or 17 percent above the record 2,917 permitsissued last year. The jump comes as surging oil and natural gas prices, coupledwith the Bush administration’s pushto open up the West for energy devel-opment, have galvanized companiesto drill more wells.

“It was a big story last year, and itwill be even more dramatic thisyear,” said Brian Macke, director ofthe oil and gas commission. “Thisyear, we are expecting 3,400 permitsor even way beyond that. We alreadyare seeing a significant increase inthe level of activity in the first fewmonths.”

So far, massive drilling inGarfield, Weld and Yuma countieshas helped Colorado issue 847 per-mits through March, up 31 percentfrom the same quarter last year.

Garfield County issued 242 permits through March; Weld issued 241; Yuma,122; and Las Animas 81. A record 77 drilling rigs are working, up from 56 rigs ayear ago and nearly double the number in use at the beginning of 2003.

Macke said that if activity increases, the commission would be concernedabout promptly processing permits. Only three staff members are responsible forviewing applications for permits, and it takes an average of 30 days to approve anapplication. The commission has a roughly $3.3 million annual budget.

Western Business Roundtable executive director Jim Sims said legislation isneeded to streamline the application process.

“Much of the West’s energy resources are located on government-controlledlands. To access those resources, energy producers are forced to navigate througha complicated, lengthy labyrinth of regulations,” said Sims, whose group lobbiesfor more access to the Rocky Mountains for oil and gas drilling.

—THE ASSOCIATED PRESS

The Colorado Oil and GasConservation Commission this

year expects the state to issue atleast 3,400 permits, or 17 percent

above the record 2,917 permitsissued last year. The jump comes

as surging oil and natural gasprices, coupled with the Bush

administration’s push to open upthe West for energy development,

have galvanized companies to drillmore wells.

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By KRISTEN NELSONPetroleum News Editor-in-Chief

he Alaska Senate ResourcesCommittee is considering ways toextend oil and gas exploration incen-tives to Cook Inlet. Incentives enacted

for the North Slope do not work because thetest for those incentives is distance fromexisting wells, and in Cook Inlet explo-ration may be in different horizons, ratherthan miles from existing fields.

Mark Myers, state geologist and thedirector of the Alaska Division of Oil andGas and the Alaska Division of Geologicaland Geophysical Surveys, said committeeChair Tom Wagoner, R-Kenai, asked “whatcould be done in the incentive to make itefficient for Cook Inlet?”

While a large number of wells have beendrilled in Cook Inlet, “there are still somelegitimate exploration targets that have notbeen explored for,” Myers said. The previ-ous incentive defined exploration by dis-tance from other wells, but that’s just onetest you can apply, he said.

A lot of geological targets in Cook Inlet“are in deeper horizons near existing infra-structure — but they’re no less risky geo-logically than a frontier or a wildcat in thesense of the geologic risk, because it couldbe a totally unexplored area. In particular inthe deeper parts of the basin in Cook Inlet

there is potential inthe Jurassic sectionthat’s below the tradi-tional producinghorizons,” Myerssaid.

There could alsobe “fault-separatedtrapping mecha-nisms” that have notbeen explored.

These types ofexploration, he said,“are geologically asrisky as a frontierexploration play.”

The proposed legislation uses a geologi-cal test.

A company would make its case to theDepartment of Natural Resources based onseismic and well data or other geologic or

geophysical data, “and the commissionerwould predetermine: is it distinctly sepa-rate? Is it a separate target?” Or it is just adevelopment or delineation well for anexisting discovery.

If the company makes its case that a tar-get can be reasonably estimated to be geo-logically distinct, the commission ofNatural Resources would then pre-certifythat the well qualified for the credit, Myerssaid, giving a company certainty ahead oftime.

Myers said exploration is expensive inCook Inlet, particularly offshore, “you haveno equipment to do it. You need to bring invery expensive jack-up rigs to do it, or youhave to use highly deviated wells fromexisting platforms or infrastructure: both ofthem pretty expensive propositions.” And,he said, the size of remaining accumula-tions is believed to be small, as Cook Inlet

is a mature basin and the more obviousplays have been drilled, “leaving the morerisky deeper zones or potentially smallertargets.”

Myers said the department believes aCook Inlet incentive would improve theodds of getting investment.

Sen. Kim Elton, D-Juneau, asked ifincentives were needed with today’s highoil prices, and Myers said “the larger inde-pendents and the majors are basically justproducing.” They are involved in a coupleof exploration plays, he said, but the realexplorers are smaller independent compa-nies. Those companies, he said, “are typi-cally less capitalized up front” so explo-ration incentives would help those compa-nies in drilling relatively expensive wells orhelp to bring in a jack-up rig to drill off-shore.

The bill was heard and held. l

PETROLEUM NEWS • WEEK OF APRIL 17, 2005 A17

l I N T E R N A T I O N A L

Shell Australian LNG coming to America Deal for Gorgon project replaces some Sakhalin LNG to Sempra at Baja; Gazprom prepares to trade with Shell for Sakhalin stake

BY ALLEN BAKERPetroleum News Contributing Writer

oyal Dutch/Shell Group has made a commitment toship up to 2.5 million tonnes of LNG annually fromthe Gorgon offshore field near Australia to Sempra’sEnergia Costa Azul terminal, now under construction

on the Pacific Coast near Ensenada, Mexico. The deal, announced in Australia April 11, is considered

a boost for development of the huge Gorgon area, whichcontains around 40 trillion cubic feet of gas reserves. Thejoint venture project is expected to cost about $8.5 billion,with a final financing decision expected in the middle ofnext year.

Shell’s commitment represents the company’s entireshare of the projected 10 million tonnes annually that wouldbe produced initially from the Gorgon field, starting in2010. The commitment spans 20 to 25 years, and is worthmore than $10 billion, Shell said. It’s the equivalent ofabout 330 million cubic feet a day.

Shell and its Gorgon partners, ChevronTexaco andExxonMobil, earlier in April integrated their interests invarious Gorgon leases, with ExxonMobil agreeing to add itshuge Jansz discovery and the Io field to the pot. OperatorChevronTexaco now holds 50 percent of the joint venture

and the other partners 25 percent each. The venture has been trying to hammer out a deal with

China National Offshore Oil Corp. that would be worth inthe neighborhood of $25 billion, for shipment of 80 millionto 100 million tonnes of LNG to China over 25 years. Thecompanies are also targeting markets in Japan and Korea, aswell as China, Shell said.

Sakhalin replacementThe Gorgon sales will dovetail with Shell’s Sakhalin

plans. Shell has rights to half of the capacity at Sempra’sMexican terminal. That amounts to 3.7 million tonnes ofLNG per year, or the equivalent of 500 million cubic feet ofnatural gas daily.

Shell said in the fall that it would fill its share of theEnsenada capacity by delivering LNG from the Sakhalin 2venture, where Shell has held a 55 percent stake.

But Shell also has commitments to customers elsewherein Asia for later years, and so the Gorgon production wouldneatly fill much of Shell’s share of the Sempra terminal’scapacity. Sakhalin cargoes could be redirected elsewhere.

Sempra, the owner and operator of Energia Costa Azul,broke ground and began major construction on the $800million terminal March 30.

Sempra has a long-term contract to fill its half of the ter-minal’s initial capacity with 3.7 million tonnes of LNGannually from the BP-led Tangguh project in Indonesia.

Gazprom dealShell may have other motives for finding an alternative

to Sakhalin 2 for supplying the West Coast terminal. Thecompany has been talking with Russia’s Gazprom for atrade of a large stake in the Sakhalin project.

Gazprom could get a quarter of Sakhalin 2 in exchangefor half of the Zapolyarnoye gas field in far northwesternSiberia, according to Russian executives.

Gazprom is already in line for a 20 percent stake inSakhalin 1 when it merges with government-ownedRosneft and becomes majority-owned by the Russian state.The company also has interests in Sakhalin 4 and Sakhalin5.

A focus on Sakhalin by the huge gas company could beanother blow to TNK-BP, which is depending heavily onSiberia’s $18 billion Kovykta development, which needsGazprom approval.l

RFAREAST report

l C O O K I N L E T

Cook Inlet exploration incentives on table

TMark Myers, stategeologist and thedirector of theAlaska Division ofOil and Gas and theAlaska Division ofGeological andGeophysical Surveys

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By KRISTEN NELSONPetroleum News Editor-in-Chief

f you want to move North Slope natu-ral gas to Southcentral Alaska, thinkof including ethane, butane andpropane — and think of moving that

rich gas mixture in a small high-pressurepipeline.

That was one thing that came out of areport prepared for the Alaska NaturalGas Development Authority by MichaelBaker, which wascontracted to furtherdefine an all-Alaskaliquefied natural gasproject.

Ward Whitmore,an engineer withMichael Baker, gavethe authority’s boardan overview of thedraft report April 4.

Harold Heinze,the authority’s chiefexecutive officer, said Michael Baker wasasked to identify “the key pieces we needto understand to figure out how topipeline North Slope gas to tidewater.”He told the board the report indicatesthere are “ways to get North Slope gas totidewater that make sense.”

Expandable or non-expandable pipe What the authority wanted, Whitmore

said, was to have “key leveraging techni-cal and design issues” identified.

One of those issues is the pipe, he said,even though for a liquefied natural gasproject the pipe is only 35-40 percent ofproject cost.

What’s at theends of the pipe,“the conditioningplant, the liquefac-tion, the trains — allthat can be added indiscrete units as theflow rate increase,but your pipe can-not,” Whitmore said.

That, he said,makes whether youplan an expandable or a non-expandablepipeline an important issue.

Whitmore said Baker found that “forabout the same capital cost, about thesame cost of service, you can either put ina small-diameter pipe with a whole lot of(compressor) stations … or you can put in

a large-diameter pipe with fewer sta-tions.” A smaller pipe makes sense for avery low flow rate, he said. But if youhave increasing flow rates over time, youcan only add so many compressor sta-tions to a small line before the smallerdiameter line isn’t economic.

ANGDA asked for an analysis of flowrates in the range of 1 billion to 2 billioncubic feet a day, a rate at which cost ofservice is about the same for a 30-inchpipe with more stations or a 36-inch pipewith fewer stations, Whitmore said. Withthe smaller line, once you expand beyondwhat you can do by adding stations youhave to go to looping, “putting parallellines between your stations to get theflow rate up;” with the larger-diameterline you have more ability to handleincreased flow by adding compressor sta-tions.

The economic conclusion from a cost-of-service analysis “was pretty straight-forward: if you have a choice, put in anexpandable pipe,” Whitmore said. Inaddition to capital cost and cost of serv-ice, Baker also looked at return on invest-ment. Not surprisingly, he said, for a verylow flow rate “putting in a smaller pipemakes sense.” If the flow rate remainslow and you put “in a huge pipe, younever return that capital, you never usethat capacity.”

But an analysis for larger and largerflow rates, he said, shows that as you addmore and more compressor stations youalso have rising fuel costs, and the small-er diameter pipe doesn’t make sense.

Whitmore said a 30-inch pipe withmore compressor stations or a 36-inchpipe with fewer stations had similar costsof service over time.

Smaller line: enriched gas One thing Baker spent quite a bit of

time looking at, Whitmore said, is gascomposition.

Methane, ethane, propane and butaneare recoverable at Prudhoe Bay. “Rightnow anything heavier than butane — andpart of the butane —they blend in withthe oil” for sale down the trans-Alaska oilpipeline.

Some of the larger projects being dis-cussed “exhaust all the reserves atPrudhoe Bay,” he said, but a smaller proj-ect such as ANGDA’s 1 billion cubic foota day project, theoretically could exhaustthe ethane, propane and butane in 25years, but not exhaust the methane.

And a small ANGDA pipeline wouldwant to preferentially carry heavier gases,which enrich the gas, raising the heatingvalue of the gas and per-unit revenues.

This requires a dense-phase pipeline. All of the projects under discussion to

take North Slope gas to market are dense-phase, high-pressure lines, quoted at2,500 pounds per square inch pressure.These pipelines are designed to keep theheavier gas from dropping out as liquidsby keeping them in what is called densephase which “essentially has properties ofboth a gas and a liquid,” Whitmore said.

At a compressor station the line is at2,500 psi, and it may drop to 1,500 psibefore it reaches the next station, a “phaseenvelope” which prevents heavier gasesfrom condensing out, collecting in lowparts of the line and periodically movingthrough the line as a slug of liquid whichcan damage the pipe and equipment atcompressor stations.

Small line to Nikiski One thing Baker looked at was a

small-diameter pipeline from Prudhoe toNikiski: it demonstrates some of the con-cepts in the report, Whitmore said, and isa scenario that hasn’t been looked at.

The facilities at Prudhoe “alreadypreferentially extract ethane, propane andbutane that they use for enhanced oilrecovery,” he said. The theory behind thesmaller line is that since those heavierhydrocarbons are available you use asmall, high-pressure line to ship them toNikiski, with a relatively small amount ofmethane, “split it out down there and sellthe propane to Asia, sell the ethane andbutane locally and essentially use the rev-

enues from these NGLs (natural gas liq-uids) to help subsidize the gas delivery toCook Inlet.”

Baker looked at three different flowrates through a 24-inch pipeline and ransome estimates on costs of delivered gasin Cook Inlet.

“The purpose of this was not to identi-fy any specific concept,” Whitmore said,but just to say “here’s a different way oflooking at it that might make sense in thefuture.”

And, he noted, a 24-inch line toNikiski doesn’t let you market all of thenatural gas off the slope.

Bringing North Slope gas to CookInlet wouldn’t be economic for just heat-ing and power generation, Heinze said.With today’s large industrial customers, a24-inch line would supply the gas need-ed. If you see more industrial use in thefuture, you may want to look at a largerline. “But 24-inch will supply easily dou-ble the current Cook Inlet usage entirelyby itself.”

Pipeline, gas composition crucial Whitmore said that while there are a

lot of details in the report, it boils down totwo things: “you can impact the projecteconomics by how you configure thepipeline” and “you can impact the eco-nomics by what you put through thepipe.”

Heinze said Michael Baker alsoworked with Williams Brothers and AGEdwards on the report, each “very rep-utable” in their fields. “The tools thatwere used here are very standard tools

A18 PETROLEUM NEWS • WEEK OF APRIL 17, 2005

l A L A S K A

Rich gas, small line could be economicPipe configuration, gas composition affect possibility of moving Alaska North Slope gas to Cook Inlet, says report prepared for ANGDA

I

Ward Whitmore,Michael Baker

Harold Heinze,Alaska Natural GasDevelopmentAuthority

Some of the larger gas line projects being discussed to free the North Slope’s stranded nat-ural gas exhaust all the reserves at Prudhoe Bay (pictured above) Whitmore said, but a small-er project such as ANGDA’s 1 billion cubic foot a day project, theoretically could exhaust theethane, propane and butane in 25 years, but not exhaust the methane.

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that are kind of industry standards andpretty reproducible.”

A lot of people have spent a lot ofmoney designing pipelines to take NorthSlope gas to market, Heinze said. “Butwe’ve never seen any of the details …And this study at least is an attempt to putthe kind of details on the table that weknow they did. This — we worked theproblem the way they would work theproblem.”

The study was focused on 2 billion

cubic feet a day and smaller because thereare “already enough people out therelooking at larger” pipelines. The focus ofthis study, Heinze said, is an Alaska-sizedline.

Earlier lines lower pressure Heinze said getting the technical infor-

mation out on higher-pressure pipelineswas one of the points of the report.

“Everybody who has talked about andis proposing a pipeline, including our-selves, is talking about operating at thishigher pressure, 2,500 psi.” When appli-cations were filed for the original proj-

ects, those applications looked at pres-sures “at least half that,” he said.

That’s because what people are pro-posing to transport today is different thanwhat they looked at 25-30 years ago.

“The Canadian system moving out ofAlberta is premised on about 1,000 psipressure,” Heinze said. “The stuff wewould be carrying would be incompatiblewith their system. … in Delta we couldmake our stuff compatible with their sys-tem and keep all the goodies.”

Heinze said “the actual design welooked at was premised on taking halfout.”

He said ANGDA has “estimated that

you could meet the energy needs of theYukon-Kuskokwim with about 2,500 bar-rels a day of propane.” There would be100,000 bpd of propane going through theline and if ANGDA took 50,000 barrelsoff, “we could probably supply thecoastal communities and all that and stillhave 30,000 to 40,000 barrels a day ofpropane left over.”

How the facilities are operated on theNorth Slope is a big part of this, Heinzesaid, and “there is nothing in the publicrecord that helps you and that’s one of thepurposes of a whole chapter in this reportis to put it out there.”l

PETROLEUM NEWS • WEEK OF APRIL 17, 2005 A19

l V I E N N A , A U S T R I A

Crude futures rise from near 7-week lowsAnalysts: crude not expected to slip below $50 a barrel; prices down after Department of Energy said crude supply up for 9th week

By GEORGE JAHN Associated Press Writer

rude prices rose April 14 from near seven-weeklows reached after a U.S. government reportshowed an increase in the country’s crude oil andgasoline stocks.

Noting the upward trend as the trading day pro-gressed, analysts said that — barring unforeseen news —oil was not expected to slip below the $50 level.

Light, sweet crude for May delivery was up 18 centsat $50.40 per barrel by late morning in Europe in elec-tronic trading on the New York Mercantile Exchange.Despite April 13’s $1.64 decline to settle at $50.22 — thelowest closing price since Feb. 18 — the commodityremains about 35 percent higher than a year ago.

Heating oil was up by more than a cent at $1.4540 agallon, while unleaded gas rose less than half a cent to$1.4870 a gallon.

In London, Brent crude was up 47 cents at $50.95 onthe International Petroleum Exchange.

Oil prices fell April 13 after the U.S. Department of

Energy said the nation’s supply of crude oil grew theweek of April 4 by 3.6 million barrels to 320.7 millionbarrels, or 8.7 percent above year ago levels. It was theninth straight week in which U.S. oil inventoriesincreased.

Gasoline inventories increased by 800,000 barrels to213.1 million barrels, or 5.8 percent above year-ago lev-els, the agency said. The supply of distillate fuel, whichincludes heating oil and diesel, slipped by 100,000 bar-rels to 104.0 million barrels, less than 1 percent aboveyear ago levels.

Nymex crude futures down Nymex crude futures have fallen by roughly 14 per-

cent since reaching an intraday high above $58 a barrelApril 4, after the Paris-based International EnergyAgency April 12 forecast slower demand growth in2005.

“The facts are right now we haven’t seen any signsthat demand is slowing. Nonetheless the rumor of slow-ing demand is now being sold,” said Phil Flynn, an ana-

lyst with Chicago-based Alaron Trading Corp. on itsWeb site.

In Vienna, analyst Ehsan Ul-Haq of PVM GmbHenergy consultants suggested prices would not test theUS$50 level, despite the push-pull of positive and nega-tive market undercurrents.

“Bullish factors are that demand in Asia remainsstrong, despite high prices,” he said. “Negative is that oilstocks are rising.”

He suggested the upward trend would prevail, pre-dicting even more demand in Asia after refining capaci-ties now out for maintenance come back on line by Juneor July.

Energy traders have been skittish all year because ofrising demand in the United States and China, andbecause of the world’s limited excess production capac-ity, which they say leaves the oil market more vulnerablethan usual to supply disruptions.

Global demand will average more than 84 millionbarrels a day, according to various industry estimates,while spare output capacity is believed to be about 1.5million barrels.l

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Sen. Tom Wagoner, R-Kenai, is chair ofSenate Resources and vice-chair of SenateState Affairs, and said in his sponsor’s state-ment for the RCA resolution that it “shouldnot be construed as a position statement foror against any party” identified with theCIGGS case before the commission.

Asked by State Affairs Chair GeneTherriault, R-North Pole, if she saw any-thing in the resolution that caused her “anyconcern that either side of the complaint ordocket will be able to wave this as a justifi-cation for their particular argument,” RCAChair Kate Giard told the committee: “Aslong as I keep within the yellow lines, I thinkyou guys are free to wander as you will, butI don’t believe that you do in this.”

Giard noted that there were highlyrespected entities on both sides in theCIGGS dispute, both with significant eco-nomic impact on Cook Inlet. “The issues,when those two clash, can be quite divisiveand quite technical in nature.” Giard said shethinks “the resolution as it’s drafted isrespectful of the complexity of those issues.”

Therriault also asked if time sensitivitiesin the issue were such that just by weighingin the Legislature “benefited one side overthe other?”

“No,” Giard responded, “because we’llignore you if we feel that what you are doingis going to put this case into conflict withdue process. Respectfully, though.”

She said that whatshe hears legislatorssaying is “that youwant us to act expedi-tiously but carefully.… Consider the mat-ter, don’t let it sit, toomuch is at stake. Andwe hear you.”

Giard noted thatthe commissionadopted an expeditedschedule for theCIGGS dispute earlyin March, “so as aresult of conversa-tions we had earlier inthe year, down on the Kenai, we had a senseof urgency as well.”

Therriault asked if the issues in CIGGSwill impact “gas pipelines from the slopeand spur lines to Southcentral?”

Giard said the RCA’s order will address“the statutory and decisional process that wewent through.” What generally happens, shesaid, is that parties take a decision and inter-pret it and look for precedents.

Review of Cook Inlet platforms urged A separate resolution urges the governor

to direct the Department of NaturalResources to review Cook Inlet oil and gasplatform abandonment and develop aban-donment regulations.

Mark Myers, director of the Division ofOil and Gas, told the committee that with theexception of the Osprey platform most of the

inlet’s 16 platforms have been there formany years, many are nearing the end oftheir usefulness and some have already beenpartially abandoned. The issue of abandon-ment involves a lot of stakeholders: thoseconcerned about navigation, the Departmentof Environmental Conservation for pipelineabandonment, the Alaska Oil and GasConservation Commission for downholeabandonment and DNR for facilitiesremoval: “should they be removed; whatcondition should the environment bebrought back to?” Leases require “full aban-donment, full removal, and back to originalcondition,” Myers said.

Another question is, are there “better orhigher” uses for the platforms? And whoretains liability at point of abandonment?

Some of the platforms, he said, “mayhave extended life if small operators cantake over the platforms and operate them atlower costs” and that has already happenedwith XTO taking over old Shell platforms.But, he said, the state needs to make surethat if there is a change of platform owner-ship, it is “fully protected on the liability.”

Liability is also an issue, he said, whencompanies want to sell platforms, and com-panies “are entitled to some certainty” aboutwhat standards the state will hold the lesseeto. We need a regulatory process: The statehas never gone through full abandonment ofplatforms, so this is new territory, he said,and the state expects to go through the pro-cedure to develop regulations this year.

It will take some time to prepare, and allstakeholders need to be at the table, butMyers said the department expects to beginthe process of developing regulations thisfall.

Commission wants more drilling Dan Seamount, one of three commission-

ers on the Alaska Oil and Gas ConservationCommission, told the committee the com-mission looks at the platform issue “from theaspect of conservation of resources” andwants to see platforms used to develop oilremaining in the inlet. There is, he said, “alot of oil left in the known reservoirs,” withless than 30 percent recovery from someareas, compared to fields like Prudhoe Baywhere recovery is more than 50 percent oforiginal oil in place.

“We believe that there are hundreds ofmillions of barrels of oil left in the producedfields at Cook Inlet in known reservoirs,”Seamount said. Companies should beencouraged to use new technology to recov-er known resources reachable from the plat-

forms. There is also “exploration potential left

within reach,” he said. There have beenfewer than 300 exploration wells drilled inthe Cook Inlet basin and only a thousandtotal wells drilled in the 10,000-square-mileCook Inlet basin.

Seamount, a geologist, said he worked ina similar-sized basin in the RockyMountains which has 29,000 wells andwhere discoveries are still being made.

Jurassic needs exploration A USGS expert geologist and geo-

chemist “concluded that only 4 percent ofthe total oil generated in the Cook Inlet basinhas ever been found,” Seamount said. Thatmissing oil could have escaped to the sur-face, he said, or could still be trapped inundiscovered oil fields or both, “but there’sa lot of oil that has not been accounted foryet.”

In addition to “untested fault blocks”within reach of the platforms, there are also“exploratory prospects that have been iden-tified by many petroleum explorationistsover the last 50 years.”

Seamount said the pre-TertiaryCretaceous, the Jurassic rocks where almostall the oil was generated, may have the high-est potential.

“To date,” he said, “only 55 wells havebeen drilled to this section and most havebeen drilled only to the very top,” so little isknown of the productive potential of theserocks.

The offshore platforms “represent viableinfrastructure” with idle well bores that canbe used to drill deeper. Five thousand feet isan arbitrary number, he said, “but it probablycomes close to fully evaluating the pre-Tertiary section potential.”

The commission wants all parties to be“very careful when considering abandon-ment and do everything they can to have allpotential oil and gas reserves tested beforeabandonment. There’s a window of opportu-nity right now to capture additional reserves.Platform abandonment would close thatwindow,” Seamount said.

Wagoner said there is another angle:more than 300 jobs are now directly relatedto the Cook Inlet platforms.

Mike Munger, executive director of theCook Inlet Regional Citizens’ AdvisoryCouncil, said the council has been taking adetailed look at dismantlement, removal andrestoration of the platforms, and will have awhite paper available on DR&R issues inMay. l

A20 PETROLEUM NEWS • WEEK OF APRIL 17, 2005

l N O R T H S L O P E

Pt. Thomson road engineering under wayPND wins design contract for Bullen Point Road from Prudhoe Bay east to Point Thomson unit, stops 10 miles short of ANWR

PETROLEUM NEWShe state of Alaska is moving ahead with its BullenPoint Road, part of the Department of Transportationand Public Facilities’ industrial roads program andGov. Frank Murkowski’s plan to expand the North

Slope year-round gravel road system to accommodate devel-opment of oil and gas resources.

Anchorage-based PND Inc. has been hired to do thedesign work for the project, a 50-60 mile coastal road fromthe Dalton Highway at Prudhoe Bay to the ExxonMobil-operated Point Thomson unit, an undeveloped high-pressurecondensate field on the eastern edge of North Slope statelands adjacent to the 1002 area of the Arctic NationalWildlife Refuge.

The road is expected to terminate about 10 miles from the1002 area.

PND’s contract also includes putting together the infor-mation necessary to prepare a separate pipeline right of wayapplication from Point Thomson to facilities in Prudhoe Bay.

The design work, which includes engineering, surveyinggeotechnical, hydrological and environmental services, isexpected to take up the three years, Shannon McCarthy, the

department’s northern region public information officer, toldPetroleum News.

A separate consultant will be hired to do an environmen-tal impact statement, work which is expected to take 18months, McCarthy said.

Because of an old agreement with the state of Alaska, theoriginal Point Thomson leases have been extended beyondtheir basic terms, awaiting a pipeline to connect the unit tothe trans-Alaska oil pipeline at Prudhoe Bay. ExxonMobil,BP, ChevronTexaco and ConocoPhillips are the major leaseowners at Point Thomson, which is thought to hold 350 mil-lion to 450 million barrels of oil and condensate and 8 tril-lion cubic feet of natural gas.

Under terms of a 2001 Point Thomson unit expansionagreement development drilling must begin by June 15,2006, or the state pockets $20 million.

Economic project not identified But the Point Thomson owners said in 2004 that they

have been unable to identify an economic stand-alone con-densate project at Point Thomson, and would prefer insteadto concentrate on designing a natural gas project in connec-tion with ExxonMobil, BP and ConocoPhillips’ tentative

plans to build a natural gas pipeline south from Prudhoe Bayto Canada and Lower 48 markets.

ExxonMobil told the state “a stand-alone project prior togas sales is not economically viable under the current fiscalsystem.” The cost for producing and reinjecting the high-pressure gas was too great, the company said.

The unit owners tried to identify a smaller gas injectionproject which would be viable, but were unable to make itviable, the companies said in their review of the 2003-04work plan.

In its spring revenue forecast the Alaska Department ofRevenue said “if ultimate development of Point Thomson isnot associated with a gas pipeline we believe first productioncould begin as soon as FY 2010-FY 2011.”

If, however, Point Thomson production was linked to anatural gas pipeline, “first production could be delayed untilFY 2012 or beyond.”

Satellite fields in the Point Thomson area were forecast tocome on line contributing an additional total 100 millionbarrels beginning in FY 2015.

PND subcontractors for the Bullen Point Road includeLounsbury and Associates, NANA/Colt Engineering, AESLynx and Purcell Services. l

T

continued from page A1

RESOLUTIONS

RCA Chair KateGiard told the com-mittee: “As long as Ikeep within the yel-low lines, I thinkyou guys are free towander as you will,but I don’t believethat you do in this.”

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PETROLEUM NEWS • WEEK OF APRIL 17, 2005 A21

Companies involved in NorthAmerica’s oil and gas industry

ADVERTISER PAGE AD APPEARS ADVERTISER PAGE AD APPEARS

Business Spotlight

AAeromapAeromedAES Lynx EnterprisesAgriumAir LiquideAir Logistics of Alaska . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A11Alaska Airlines CargoAlaska AnvilAlaska CoverallAlaska DreamsAlaska Interstate ConstructionAlaska Marine LinesAlaska Railroad Corp.Alaska Rubber & SupplyAlaska SteelAlaska TelecomAlaska Tent & TarpAlaska TextilesAlaska USA Mortgage Company . . . . . . . . . . . . . . . . . . . . . A6Alaska West ExpressAlaska’s PeopleAlliance, TheAlpine-MeadowAlyeska Prince HotelAmerican Marine. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A8Arctic ControlsArctic Fire & SafetyArctic FoundationsArctic Slope Telephone Assoc. Co-op . . . . . . . . . . . . . . . . . A18Arctic StructuresArctic Wire Rope & SupplyASRC Energy Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A5

Engineering & Technology . . . . . . . . . . . . . . . . . . . . . A5Operations & Maintenance. . . . . . . . . . . . . . . . . . . . . A5Pipeline Power & Communications . . . . . . . . . . . . . . A5

Avalon Development

B-FBadger ProductionsBaker HughesBroadway SignsBrooks Range SupplyCanspec Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A13Capital Office Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A14Carlile Transportation Services . . . . . . . . . . . . . . . . . . . . . . . A7Carolina MatChiulista Camp ServicesCN AquatrainColvilleConocoPhillips AlaskaConstruction Machinery IndustrialCoremongers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A13Crowley AlaskaCruz Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A14Dowland - Bach Corp.Doyon DrillingDoyon LTDDoyon Universal ServicesDynamic Capital ManagementEngineered Fire and SafetyENSR AlaskaEpoch Well ServicesEra AviationESS/On-Site Camp ServicesEvergreen Helicopters of AlaskaFairweather Companies, TheFriends of Pets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A22

G-MGene's ChryslerGreat Northern Engineering . . . . . . . . . . . . . . . . . . . . . . . . . A8Great NorthwestHanover CanadaHawk Construction ConsultantsH.C. PriceHilton Anchorage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A9Holaday-ParksHorizon Well Logging, Inc.Hotel Captain Cook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A15Identity WearhouseIndustrial Project ServicesInspirations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B6Jackovich Industrial

& Construction SupplyJudy Patrick PhotographyKenai Aviation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A9Kenworth AlaskaKuukpik Arctic CateringKuukpik/Veritas

Kuukpik - LCMFLasser Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A10LCMFLCMF - Barrow Village Response Team (VRT)Lynden Air CargoLynden Air FreightLynden Inc.Lynden InternationalLynden LogisticsLynden TransportMapmakers of AlaskaMarathon OilMarketing SolutionsMayflower CateringMEDC InternationalMercer ValveMI SwacoMichael Baker Jr.MWHMRO Sales

N-PNabors Alaska DrillingNabors IndustriesNANA/Colt EngineeringNANA Oilfield ServicesNatco CanadaNature Conservancy, TheNEI Fluid TechnologyNordic CalistaNorth Slope TelecomNorthern Air CargoNorthern Transportation Co.Northwestern Arctic AirOffshore Divers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A4Oilfield ImprovementsOilfield TransportPacific Detroit Diesel-AllisonPacific Rim Institute

of Safety and Management (PRISM)PanalpinaPDC/Harris GroupPeak Oilfield Service Co.PencoPerkins CoiePetroleum Equipment & Services . . . . . . . . . . . . . . . . . . . . A20Petrotechnical Resources of AlaskaPGS OnshorePrecision PowerPrudhoe Bay Shop & Storage . . . . . . . . . . . . . . . . . . . . . . . A17PTI Travco Modular Structures. . . . . . . . . . . . . . . . . . . . . . . A16

Q-ZQUADCORAE Systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A24Rain for RentRanes & Shine WeldingRenew Air TaxiSalt + Light Creative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A17Scan Home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A4Schlumberger. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A12Security AviationSeekins FordSmith Consulting ServicesSOLOCO Dura-BaseSourdough Express . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A23Span-Alaska ConsolidatorsSpenard Builders SupplySTEELFABStorm Chasers Marine ServicesSunshine Custom Promotions . . . . . . . . . . . . . . . . . . . . . . . . A8Taiga VenturesTire Distribution SystemsTOTETotem Equipment & SupplyUdelhoven Oilfield Systems ServicesUmiat CommercialUnique Machine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A6Unitech of Alaska . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A8Univar USAUsibelliU.S. Bearings and DrivesVECOWeaver BrothersWelding ServicesWorksafeXTO Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A2

Steve ‘Frenchy’ LaPorte, HSET director

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By PAULA EASLEY

Nordic-CalistaServices

Nordic-Calista Services providesinnovative, reliable workover/drillingrigs designed for arctic conditions.Three rigs are currently working on theNorth Slope. The company strives tomaximize productivity and efficiencywhile promoting safety and environ-mentally conscious drill practices. Itsmulti-talented rig crews can run CTDunits and handle jointed pipe opera-tions as well.

Frenchy LaPorte joined Nordic fiveyears ago after spending 20-plus yearsin Alaska in cold region safety andenvironmental work. He appreciatesmanagement’s attention to employeeneeds and the pride employees have intheir work. The father of four girls and aboy, Frenchy and wife Cindy are devot-ed to helping less fortunate Mat Su-Valley-area youth make it in today’sworld. Give him a campfire with kidsaround it, and the tales will begin.

Raoul Stockler, rental operationsmanager

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Arctic Structures LLCRoughly 20 years ago Arctic

Structures began its rental fleet opera-tions by acquiring some trailers andremodeling them into offices. Since thenthe company has grown into Alaska’slargest modular rental fleet consisting ofhigh-quality units manufactured inAlaska (most within the last five years)that can withstand harsh weather con-ditions. In addition to being family-owned, the company qualifies as afemale business enterprise.

When family member Raoul Stocklerbegan cooking in remote camps forArctic Structures, she had no inkling shewould still be with the company 25years later. Raoul has handled manyjobs — whatever needed doing —including human resources managerand, now, rental operations manager.Excess energy is depleted running theSeward Mount Marathon Race andelsewhere, skiing, and hiking.All of the companies listed above advertise on a regular basis

with Petroleum News

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any thought of burying the hatchet andteaming up with Enbridge.

Apologizing to reporters for not beingmore available as the campaign withEnbridge to win hearts and sway mindshas gathered momentum, Kvisle took therare step of allowing reporters to ask theirquestions before analysts and gave themclose to an hour of his time.

He said TransCanada had not previous-ly been available because of its focus on“very complicated” discussions with sixgovernments (the United States, Canada,Alaska, Alberta, British Columbia and theYukon), three regulators (U.S. FederalEnergy Regulatory Commission, NationalEnergy Board and Northern PipelineAgency) and the North Slope producers(ExxonMobil, BP and ConocoPhillips) asit tried to “pull together the elements” ofone of North America’s most significantgas pipeline projects.

But TransCanada’s objective of “settingthe record straight” and dampening therow with Enbridge might have missed themark.

Headlines in Canadian newspapers onApril 8 blared anything but a “peace in ourtimes” message: “Alaska fight takes off —tug of war over Alaska pipeline;”“TransCanada turns up pipeline heat —jostles with Enbridge for Alaskan project;”“Pipeline battle escalates;” and “Pipelinebuilder battle heats up.”

If burnishing the corporate image wasthe purpose that too was sidetracked,through no fault of TransCanada.

The story was smothered by two muchlarger events — the funeral of Pope JohnPaul II and an ever-widening Canadianscandal over a diversion of public moneyto the federal Liberal Party that coulddoom the current government of PrimeMinister Paul Martin.

Producers can have Alaska Asked if there was any chance of

TransCanada agreeing on some partner-ship role with Enbridge, he had a one wordanswer: “Why?”

At the same time, he said TransCanadawas ready to let the producers’ apply theirknowledge and expertise in Alaskapipelines by building the pipeline insideAlaska “the way they want or with otherparties.”

Kvisle said TransCanada is “quite flex-ible” on how that portion would be builtand owned. “We’re willing to talk aboutany arrangement,” he said.

While TransCanada has drawn somecriticism for being inaccessible, Enbridgehas stepped up its public relations effort,including full page advertisements inmajor Canadian newspapers and lobbyingthe Canadian government to reopen com-petition for the Canadian portion of thepipeline.

In the process, there are indications thatEnbridge has caused second thoughts inthe federal cabinet over the legal standing of the Northern Pipeline Act, despite

Kvisle’s insistence that the 1978 legisla-tion is “Canadian law … has no expirydate and there is no reason it should be setaside.”

Kvisle said the act, reinforced by a sub-sequent Canada-U.S. treaty, provides a“clear and certain regulatory framework.”

Still no decision from Canadian government

Canada’s Natural Resources MinisterJohn Efford initially promised a govern-ment decision by early 2005. The deadlinethen moved to the end of March. Now gov-ernment spokesmen will only say “soonerrather than later.”

With the government apparently stalledat the crossroads, and industry speculationbuilding that Enbridge is on better termswith the North Slope producers thanTransCanada, Kvisle decided the time hadcome to speak out.

In addition to the April 7 conference,which gave reporters rather than analysts

the first chance to ask questions,TransCanada also entered the duelingnewspaper ads with its own full-pagespreads in national publications on April 8.

Through visual presentations andextensive briefing material, he laid outTransCanada’s 50-year record of buildingNorth America’s “largest, most sophisti-cated gas transmission company” thatmoves two-thirds of gas from the WesternCanada Sedimentary Basin and stretchesacross Canada, with major links to the U.S.Midwest and California.

“It would be different if we were somewing-nut company from Oklahoma” sud-denly offering a proposal to build apipeline from Alaska, he said.

Enbridge, predominantly a crude oilcarrier, entered the Alaska picture onlythree years ago, drawing an indirect com-ment from Kvisle that his company is no“Johnny come lately that has just shown upand decided to throw out a proposal for apipeline down the Alaska Highway. We

A22 PETROLEUM NEWS • WEEK OF APRIL 17, 2005

Arctic gas liquids a key bargaining chipTransCanada and Enbridge are both committed to ensuring that liquids from

Alaska gas will give fresh impetus to Alberta’s petrochemicals industry.Hal Kvisle, chief executive officer at TransCanada, says that so long as Alaska

gas is transported through his firm’s existing pipeline system it will be accessibleby liquids extraction plants near Calgary and at Empress in southeastern Alberta.

Empress already has spare capacity and more would be available if the “veryrich” Alaska gas displaced “very lean” Alberta gas, he said.

Steve Wuori, Enbridge’s chief financial officer, said the Enbridge plan for car-rying North Slope gas would, at a minimum, have a hub in Alberta, likely nearEdmonton, for use by petrochemical operations.

Expansion of chemical complexes in the Edmonton and Red Deer areas hasbeen stalled because of shrinking supplies and the rising cost of feedstock.

That has triggered a study of ways to exploit liquids from oil sands productionto support a C$5 billion project near Edmonton, while a task force from the petro-chemical industry and the Alberta government are working on the issue.

Alberta Energy Minister Greg Melchin told a conference in March that theprovince is determined to see Arctic gas become a source of chemical feedstockas part of its pledge to maintain a “vibrant” petrochemical industry and add valueto Alberta’s role as an extractor of resources.

However, he has no thought of compelling that to happen through regulatoryintervention.

“We just want to help ensure that we have the right structures in place thatwould make the best economic case for it to happen here in Alberta,” he toldreporters.

If the Alberta government works with the gas producers and the pipeline com-panies from the outset, it should be possible to “build a case” for liquids extrac-tion in the province, Melchin said.

Alberta is still reeling from losing a fight before the National Energy Board inthe 1990s to gain access to liquids on the Alliance pipeline from British Columbiato Chicago.

—GARY PARK

continued from page A1

TRANSCANADA

see TRANSCANADA page A23

Still, environmentalists complain oil drillingwill harm caribou, migratory birds and otherwildlife.

Noting near-record high oil prices, Pomboobserved that U.S. dependence on foreign oil hasmore than doubled in the past 30 years, climbingto 60 percent from 30 percent in the 1970s.

“It is a shame we have had to return to this sooften, but we do now have the best chance toopen ANWR since President Clinton vetoed thebill in 1995,” said U.S. Rep. Don Young, R-Alaska. “This is just the first step on the Houseside, but the 30-13 vote is the strongest supportwe have ever had. I believe we can keep this sup-port before the full House, and I think we arewell on our way to approving the opening ofANWR.” Not only will ANWR supply thenation with much-needed energy, its oil produc-tion also will make the country safer and createjobs across America, Young said.

Dependence on foreign oil an issue Pombo and Young said ANWR oil will help

reverse U.S. dependence on foreign oil and ful-fill a promise to Alaska Natives, who recognizethat revenues generated from the oil productionwill help impoverished rural villages escapeThird World living conditions.

The Resources Committee also overwhelm-ingly approved the Set America Free Act, whichproposes to entirely end America’s cross-Atlantic energy dependence by 2025. This titleestablishes a U.S. commission with 16 represen-tatives from Canada, Mexico and the UnitedStates to examine all of the continent’s resourcesand stop U.S. reliance on energy from roguenations.

The House Energy and CommerceCommittee also cleared its energy provisions bya 39-15 vote late April 13.

The Resources portion of the energy bill willnow join with the Energy and CommerceCommittee and Ways and Means Committee’sportions of the legislation for debate on theHouse floor.

The Domestic Energy Security Act mirrorsan energy bill the House passed nearly two yearsago, only to have it die in the Senate. A vote bythe full House is likely the week of April 18.

—ROSE RAGSDALE

continued from page A1

ANWRWESTERN CANADACoalbed methane, tight gas vitalto Western Canada production

Coalbed methane and tight gas could grow to almost one-fifth ofWestern Canada’s gas production over the next seven years, according toa study by Ziff Energy Group.

The Calgary-based firm expects that by 2012 the breakdown for theregion will be: New gas 42 percent, existing gas 40 percent, coalbedmethane 11 percent, solution gas 9 percent and tight gas 8 percent for atotal of 15 billion cubic feet per day (putting coalbed methane at about1.65 billion cubic feet per day). To achieve those volumes industry willneed well completions close to last year’s record of about 15,700.

The 15 bcf per day prediction reflects a downturn from today’s 16 bcf-17 bcf, but the Ziff study also has a high case target that could see vol-umes grow by 9 percent if the annual decline rate — currently about 15percent — varies by one or two basis points.

Spending on gas development as a proportion of capital budgetsshould grow from its current 60 percent to the 70-75 percent range by2012. The report puts Western Canada’s ultimate gas production at 335trillion cubic feet (43 percent of which has already been extracted).

At an annual rate of about 6 tcf, half of the Western CanadaSedimentary Basin’s potential will have been produced by 2012.

But the overall number could get a lift if coalbed methane and tight gasbecome more productive than anticipated.

—GARY PARK

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have been at this diligently for 25 years.”

Kvisle: Canadian tollswould be reduced

Kvisle repeatedly based his argument onthe Northern Pipeline Act, which he saidwas based on a competitive hearing in thelate 1970s.

The act has been used by the Canadiangovernment to approve construction ofpipeline legs from Alberta to the U.S.Midwest and California on the understand-ing that they would eventually carry Alaskagas and to approvefive expansions, hesaid.

In the process,Kvisle saidTransCanada andcompanies it hasacquired have spentmore than C$2 bil-lion — includinghundreds of millionsof dollars on techni-cal work in Alaska — developing the “pre-build.”

“We reject the suggestion that the pre-build is anything other than a pre-build”leading to a full-scale Alaska Highway line,he said.

In its pitch to the industry, TransCanadaestimates that Canadian gas producerswould save C$10 billion in tolls over 15years if 4.5 billion cubic feet per day ofAlaska gas can keep its pipelines operatingat capacity.

If gas from Canada and the UnitedStates can be flowed into a single system,TransCanada can deliver economies ofscale benefits to Canadian producers alongwith offering the cheapest structure to getNorth Slope gas to Lower 48 markets,Kvisle said.

“If we move more gas, everybody’s tollis less,” he said.

What has increasingly worriedTransCanada is the certainty that suppliesfrom existing Western Canadian sourceswill start to decline within three to fiveyears, eroding current production of 16.5bcf per day (already 1.5 bcf short of capac-ity).

But persuading the North Slope produc-ers to stick with TransCanada has become aformidable task.

Kvisle openly admitted it was “frustrat-ing to us not to be able to present a deal”with the producers, despite three years ofdiscussions.

He said the three companies are all con-cerned that a flood of liquefied natural gasinto North America or a move away fromgas by the power generation sector could“see a fairly rapid correction in gas pricesto (with a return to $2 per thousand cubicfeet) … that’s the central hang up.”

While the uncertainty persists, Kvislesaid the risk is that the United States couldchoose what he described as a “sub-optimalproject” to ship LNG from the North Slopethrough Valdez.

He said there is no way under theNorthern Pipeline Act that the producerscould build their own “top to bottom”pipeline.

Enbridge, producerswant a different project

Meanwhile, the producers and Enbridgestepped up their argument for a fresh startand a new round of regulatory hearingsbefore the National Energy Board andCanadian Environmental ProtectionAgency.

Steve Wuori, Enbridge’s chief financialofficer, and Ken MacDonald, vice presi-dent, Alaska-Canada gas lines at BP

Canada, said the project they favor is com-pletely different from what was approvedunder the act.

Wuori said the certificates granted in1978 required the project to be completedby 1985, implying that there was a sunsetclause.

Kvisle is just as emphatic that the legis-lation “has no expiry date,” while the lawremains valid despite changes to the designand size of the pipeline.

Nowhere is it stated that the “act shall betrashed in the event that all (of the original)conditions are not met exactly,” he said.

“The fundamental project remains thesame.”

While waiting for the Canadian govern-ment to make its decision, Kvisle said

Ottawa “absolutely has the right” to ordernew hearings, but added: “I don’t knowwhy they would do that” given the clearbenefits contained in the Northern PipelineAct.

Kvisle downplayed any suggestion that

the producers are more aligned withEnbridge than TransCanada.

“We do get significant support here inCalgary” from companies that “clearlyunderstand the logic of what we are pro-posing.” l

PETROLEUM NEWS • WEEK OF APRIL 17, 2005 A23

When will it be built and how much will it cost?Presented with those questions, TransCanada boss Hal Kvisle had these answers:• The Alaska Highway pipeline alone would cost $15 billion in 2012, half of that

spent in Alaska and half in Canada. But the project bill could climb to $20-$25 billion,if related infrastructure was factored in, such as liquids extraction facilities or newpipeline to Chicago or California.

• A “very aggressive” approach could see the pipeline completed by 2011-2012, buta more likely target is 2015-2016.

HAL KVISLE

continued from page A22

TRANSCANADA

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pay thickness alone.The Thunder Hawk prospect also hap-

pens to be located on the northeastern fringeof the BP-operated Thunder Horse field, thelargest discovery ever in the U.S. Gulf withestimated oil reserves of 1 billion barrels.Thunder Horse is scheduled to begin firstproduction this year with eventual peakrates of 250,000 barrels of oil per day and200 million cubic feet of natural gas per day.

One of BP’s Thunder Horse wells is saidto have encountered around 780 feet of netpay thickness.

“We are obviouslyencouraged by thethickness of the payintervals seen in this(Thunder Hawk) wellwhich confirms thelateral extent of thereservoir to the west,”said ClaiborneDeming, Murphy’schief executive offi-cer.

Still, with severalthousand more feet to drill before touchingdown at 28,216 feet, the No. 2 appraisalwell is poised to uncover yet more pay.

At least two untested objectives “We have at least two significant objec-

tives below us that haven’t been tested,”said Roger Jarvis, chief executive officer ofThunder Hawk partner SpinnakerExploration. “We are eager to resumedrilling to our deeper objectives once loopcurrents subside,” Murphy’s Deming added.

The No. 2 appraisal well, located in5,716 feet of water, is situated about onemile west of the initial discovery well andsidetrack that encountered about 300 feet ofpay thickness. The latest well was designedto test the far western portion of the ThunderHawk prospect, Murphy said. Prior to therecent discovery, the owners estimatedThunder Hawk’s recoverable reserves at 50million to 150 million barrels of oil equiva-lent. But the owners are not yet prepared toadjust estimates in light of their latest find.

“It’s a significant pay count in a very sig-nificant basin,” Spinnaker’s Jarvis said. “It’sat least as good as our expectations andmaybe better. But we wouldn’t consider thefield completely delineated at this point.”

Murphy holds a 37.5 percent stake inThunder Hawk, followed by DominionExploration and Spinnaker each with 25percent of the prospect, and Pioneer NaturalResources with a 12.5 percent stake.

Murphy’s volumes down for first quarter Meanwhile, Murphy said it expects its

net income for the 2005 first quarter to bebetween $1.10 and $1.15 per share, substan-tially below Thompson-First Call’s meanestimate of $1.34 per share.

For the 2005 first quarter, production andsales volumes are now estimated to haveaveraged 127,000 barrels of oil equivalentper day, Murphy said, adding that both pro-duction and sales volumes represent adecline from previous guidance, primarilydue to an extended turnaround at SyncrudeCanada Ltd., the leading oil sands miner.

Murphy is a partner in Syncrude, whichis capable of pumping about 250,000 barrelsof synthetic crude oil a day. But during thefirst three months of 2005, the facility hasaveraged just 155,000 barrels per day.

Dry hole charges for the 2005 first quar-ter should be about $52 million with world-wide exploration expense, including dryhole charges, running a hefty $71 million,Murphy added. Also, in its worldwidedownstream business, Murphy said itexpects a first-quarter loss of $5 million,mainly because of weakness in retail gaso-line margins in the United States. l

A24 PETROLEUM NEWS • WEEK OF APRIL 17, 2005

Thunder Hawk is in block 16 between 5500 and 6000 feet of water. Thunder Horse is in the same block, at 6000 feet.

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THUNDER HAWK

Roger Jarvis, chiefexecutive officer ofThunder Hawk part-ner SpinnakerExploration.

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FrontUpA Northern Air Cargo captaininspects the manifest for anupcoming 727 flight. See thecompany profile on page B2

ALASKA

CANADA

CONTINENTAL U.S.

Volume 10, No. 16April 2005

Providing information about companies that serve North America’s oil and gas industry

PHOTO COURTESY NORTHERN AIR CARGO

Northern Air Cargo2

Canspec12

Alaska Anvil13

Company News15

FEATURED COMPANIES

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B2 PETROLEUM NEWS • WEEK OF APRIL 17, 2005PETROLEUM DIRECTORY

Northern Air Cargo adds maintenance serviceto its large menu of transportation alternatives

Company provides regular cargo service for large, hazardous, or other unusual loads to destination across Bush Alaska

PETROLEUM DIRECTORY STAFF ne of the oldest and most trusted companies inAlaska’s aviation industry is opening a new chapterproviding maintenance service for turbine aircraftat Ted Stevens Anchorage International Airport.

Northern Air Cargo started the new business, NorthernAir Maintenance Services and landed a contract last Julyto take care of Boeing 737-200 aircraft. They also formedanother division to provide ground service.

“There’s a lot of potential for the repair station busi-ness here,” says Keven Schlosstein, vice president of cor-porate support services for the company. “We have a staffof quality airframe and power plant mechanics. At somepoint in the future, we may be looking for other opportu-nities to expand.

“We’re a new business unit within Northern Air Cargoand we’re looking to establish ourselves,” she continued.“Right now we are focused on a single customer —focused on excellent customer service.”

Top-notch experienceNorthern Air Cargo was in an excellent position to add

the new service, she notes, with nearly half a century ofexperience in Alaska aviation and more than a decade inthe turbine aircraft business since the company added 727cargo jets to its fleet in 1991.

The contract calls for Northern Air Aviation Services,a separate division of the new business unit within NAC,to take care of all the ramp operations that involve load-ing and unloading passengers and cargo, Schlosstein said.The new company, Northern Air Maintenance Services,operates as a Part 145 repair station under the rules of theFederal Aviation Administration.

“Our involvement is everything it takes to make sureour clients are fully satisfied with all of the services weprovide,” adds Nick Karnos, NAC’s account manager forAnchorage, Barrow and Prudhoe Bay.

Storied fleetNorthern Air Cargo started back in 1956 with a pair of

C-82 “Flying Boxcars” and a couple of dynamic leaders,Robert “Bobby” Sholton and Maurice Carlson. TheSholton family remains very active in the company’sexecutive ranks, with Rita Sholton serving as chairmanand CEO, Mary Sholton working as head of Northern Air

Fuel and Paul Sholton as corporate counsel and safetydirector.

The C-82s were workhorse aircraft that served thecompany until 1982, joined in 1969 by the DC-6 aircraftthat now form the bulk of the fleet. Northern Air Cargoowns more than a dozen, making it the largest operator ofthe big, graceful four-engine planes in the world.

“The fact is, the DC-6 aircraft that we fly — theymore or less fill the same niche that the DeHavillandBeaver floatplane fills in the floatplane market,” Karnossays. As long as NAC can keep the big birds flying, theyjust do the job better than anything else.

The DC-6 holds a cargo of up to 30,000 pounds andwith its high wings it is well-suited to the gravel airstrips

that serve much of rural Alaska and the remote siteswhere new mines and other resources are being devel-oped. NAC has been flying supplies to the new Pebblemine development near Iliamna, for example.

“Very few people in Alaska can take aircraft into theplaces where we take them,’ Karnos notes. “We’re capa-ble of landing these things in all sorts of places. We didsome on a frozen lake.”

Regular scheduled cargo service into a broad swath ofAlaska’s Bush, plus bypass mail service, provide thebiggest part of the revenue picture for Northern AirCargo, which transports around a hundred million poundsof cargo every year, Karnos said. NAC has scheduledservice to 16 Alaska airports from its hub in Anchorage.

In addition, NAC has a unique wrinkle with its“flagstop” service, which can be provided to more than40 additional Alaska communities. NAC can redirect a

regularly scheduled flight tomake an extra stop at theshipper’s destination foroversized freight or cargothat won’t fill an entirecharter flight. It’s cheaperthan charter service.

But “the charter work iswhat the company was orig-inally founded on, and it’s aspecialty item that continuesto this day,” Karnos says.

Trio of jetsAlong with the DC-6 air-

craft, Northern Air Cargohas three 727 freighters,with a capacity of 40,000pounds each. The jets allhave hush and gravel kits,allowing them to land onBush airstrips and in placeswhere noise is a problem.

“What works about the727 is that from Anchorage to all the points in our sys-tem, the distances are ideal for jets,” Karnos said. “Thedistances we are covering here are beyond most people’sgrasp.”

The company also has an ATR-42 aircraft, a turbopropplane made in Europe and used extensively in the Arctic,particularly in Canada. But Karnos says NAC isn’t plan-ning to pursue an earlier plan to expand its ATR fleet. The727s and DC-6 aircraft are just better for what the compa-ny needs, he said.

Oil industry connectionsNorthern Air Cargo generally can’t compete with truck

transport via the Dalton Highway for getting loads toPrudhoe Bay, but it retains its service there to keep theNAC flag flying with Alaska’s dominant industry.

“Prudhoe represents a five-percent type of thing,”Karnos estimates.

But road supply only goes so far on the North Slope,and NAC is providing the supply chain forConocoPhillips and Anadarko Petroleum for their Alpineproject, which gets many of its supplies by air.

“What you are seeing there is the model for futuredevelopment,” Karnos thinks. “As a lifelong Alaskan, andhaving been on the site up there — what I’ve seen is thecleanest impact development I’ve seen in my lifetimehere. I would expect to see much more of that in theArctic.”

With potential oil exploration in the Arctic NationalWildlife Refuge, as well as in roadless areas of theNational Petroleum Reserve-Alaska, there could well bemore oil industry business for NAC in the years to come.There may well be more developments that are similar toAlpine, keeping their impact low by using air freight for abigger part of the supply chain.

“Our business has grown with the state and with theevolving needs of our very diverse customer base,”Stephanie Holthaus told Petroleum News. “Northern AirCargo continues to address changes in the aviation indus-try and markets with new ideas for handling and movingcargo.”

Freight from all overTo serve its Alaska customers with a one-stop shop,

Northern Air Cargo set up a freight forwarding service afew years ago. NACLink works with other carriers tobring items from anywhere in the world to customers inrural Alaska.

“Their specialty is getting stuff from Houston toPrudhoe, for example,” Karnos says. “They make it easyfor people to do business with us.” Service can be priori-ty, with one- to two-day transit time from airport to air-port, general, economy or deferred service, with prices tomatch the urgency the customer needs.

Northern Air Cargo also provides a priority service onits regular Alaska flights, with a guarantee that the cargowill be on the next flight out. Priority cargo needs to beat the NAC terminal two hours before scheduled takeoff.

Nac-Pac is the company’s express package service,also with a next-flight guarantee if the package is readyat least 30 minutes before flight time. This service is lim-ited to items of less than 100 pounds or less than 100inches.

All these services are provided by a staff that hasgrown to roughly 275 employees around Alaska. It’s abig change from Northern Air Cargo’s roots way back in1956. l

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A Northern Air Cargo 727 is loaded at the Anchorage airport facility.

A Northern Air Cargo captain and loadmaster inside a cargo configured 727

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PETROLEUM NEWS • WEEK OF APRIL 17, 2005 B3PETROLEUM DIRECTORY

Companies involved in NorthAmerica’s oil and gas industry

AAeromapAeromedAES Lynx EnterprisesAgriumAir LiquideAir Logistics of AlaskaAlaska Airlines CargoAlaska AnvilAlaska CoverallAlaska DreamsAlaska Interstate ConstructionAlaska Marine LinesAlaska Railroad Corp.Alaska Rubber & SupplyAlaska SteelAlaska TelecomAlaska Tent & TarpAlaska TextilesAlaska USA Mortgage CompanyAlaska West ExpressAlaska’s PeopleAlliance, TheAlpine-MeadowAlyeska Prince HotelAmerican MarineArctic ControlsArctic Fire & SafetyArctic FoundationsArctic Slope Telephone Assoc. Co-opArctic StructuresArctic Wire Rope & SupplyASRC Energy Services

Engineering & TechnologyOperations & MaintenancePipeline Power &Communications

Avalon Development

B-FBadger ProductionsBaker HughesBroadway SignsBrooks Range SupplyCanspec GroupCapital Office SystemsCarlile Transportation ServicesCarolina MatChiulista Camp ServicesCN AquatrainColvilleConocoPhillips AlaskaConstruction Machinery IndustrialCoremongersCrowley AlaskaCruz ConstructionDowland - Bach Corp.Doyon DrillingDoyon LTDDoyon Universal ServicesDynamic Capital ManagementEngineered Fire and Safety

ENSR AlaskaEpoch Well ServicesESS/On-Site Camp ServicesEvergreen Helicopters of AlaskaFairweather Companies, TheFriends of Pets

G-MGene's ChryslerGreat Northern EngineeringGreat NorthwestHanover CanadaHawk Construction ConsultantsH.C. PriceHilton AnchorageHoladay-ParksHorizon Well Logging, Inc.Hotel Captain CookIdentity WearhouseIndustrial Project ServicesInspirationsJackovich Industrial

& Construction SupplyJudy Patrick PhotographyKenai AviationKenworth AlaskaKuukpik Arctic CateringKuukpik/VeritasKuukpik - LCMFLasser Inc.LCMFLCMF - Barrow Village Response Team

(VRT)Lynden Air CargoLynden Air FreightLynden Inc.Lynden InternationalLynden LogisticsLynden TransportMapmakers of AlaskaMarathon OilMarketing SolutionsMayflower CateringMEDC InternationalMI SwacoMichael Baker Jr.MWHMRO Sales

N-PNabors Alaska DrillingNabors IndustriesNANA/Colt EngineeringNANA Oilfield ServicesNatco CanadaNature Conservancy, TheNEI Fluid TechnologyNordic CalistaNorth Slope TelecomNorthern Air CargoNorthern Transportation Co.Northwestern Arctic Air

Offshore DiversOilfield ImprovementsOilfield TransportPacific Detroit Diesel-AllisonPacific Rim Institute

of Safety and Management(PRISM)

PanalpinaPDC/Harris GroupPeak Oilfield Service Co.PencoPerkins CoiePetroleum Equipment & ServicesPetrotechnical Resources of AlaskaPGS OnshorePrecision PowerPrudhoe Bay Shop & StoragePTI Travco Modular Structures

Q-Z

QUADCORAE SystemsRain for RentRanes & Shine WeldingRenew Air TaxiSalt + Light CreativeSchlumbergerSecurity AviationSeekins FordSmith Consulting ServicesSOLOCO Dura-BaseSourdough ExpressSpan-Alaska ConsolidatorsSpenard Builders SupplySTEELFABStorm Chasers Marine ServicesSunshine Custom PromotionsTaiga VenturesTire Distribution Systems (TDS)TOTETotem Equipment & SupplyUdelhoven Oilfield Systems ServicesUmiat CommercialUnique MachineUnitech of AlaskaUnivar USAUsibelliU.S. Bearings and DrivesVECOWelding Services

WorksafeXTO Energy

Page 28: l Thunder booms again - Petroleum News · page 15 Don’t count out Western Canada natural gas Vol. 10, No. 16 • North America’s source for oil and gas news Week of April 17,

B4 PETROLEUM NEWS • WEEK OF APRIL 17, 2005PETROLEUM DIRECTORY

Access Road/Work Surface

Carolina Mat Co.P.O. Box 339Plymouth, NC 27962Contact: Susan Harrison, ownerPhone: (252) 793-4045Fax: (252) 793-5187Email: [email protected]: www.carolinamat.comCompany established in 1985. Manufacture 3-plypatented, bolted, portable, reusable, solid oak con-struction mats. Guaranteed to hold up to 50 tons,the mats are interlocking and non-interlocking,countersunk or non-countersunk.

SOLOCO (Dura Base)207 Town Center Pky.Lafayette, LA 70506-7524Contact: Keith Pearson or Don CouvillonPhone: (337) 981-5058Fax: (337) 984-9241Email: [email protected] or [email protected] COMPOSITE MAT SYSTEM is the world’smost advanced solution for temporary surfacesincluding heavy-duty roads, turnarounds, work andstaging areas. It’s strength and durability allows youto work year-round in the harshest conditions.Installs and cleans up quickly. It’s a permanent solu-tion to your temporary road and work surface needs.

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.

Evergreen Helicopters of Alaska1936 Merrill Field DriveAnchorage, AK 99501Contact: Joy Journeay, marketing mgr.Phone: (907) 257-1519Fax: (907) 257-1535Email: [email protected]: Greg Thies, director, marketingPhone: (907) 257-1504Email: [email protected]: Christina Wallace, director, salesPhone: (907) 257-1513Email: [email protected] office: (907) 443-5334Airlines office: (907) 257-1500Website: evergreenaviation.comEvergreen’s diverse fleet has provided award-win-ning safety to Alaskans since 1960 in petroleumexploration & production, firefighting, forestry, con-struction, search & rescue, cargo transport, and utili-ty transmission.

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,mostly Cook 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 companiesincludes truckload and less-than-truckload highwayconnections, scheduled barges, intermodal bulkchemical hauls, scheduled and chartered airfreighters, domestic and international air forwardingand international sea forwarding 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 carrier

moving 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 avail-able for charters to remote sites and flag stops to 44additional communities.

Renew Air TaxiP.O. Box 61230Fairbanks, AK 99706Contact: Bob WenerPhone: (907) 457-7287Fax: (907) 457-7288Email: [email protected] site: www.RenewAir.comOther Office:Dillingham, AK 99576Phone: (907) 842-3440Turbine Otter air support for remote seismic explo-ration, mining and construction sites. Cargo, fuel andpassengers on wheels, wheel skis and amphibianfloats.

Security Aviation3600 W. International Airport Rd., Ste. 1Anchorage, AK 99502Contact: S. Joe KapperPhone: (907) 248-2677 – 24 hour serviceFax: (907) 248-6911Email: [email protected] site: www.securityaviation.bizAll twin engine turbine and piston fleet. Alaska,Canada, Lower 48. Crew changes, hot freight/HAZ-MAT, VIP tours, emergency response and aerial sur-veys. Approved by all oil and gas companies, AlyeskaPipeline Service Co., Dept. of Defense, Dept. ofInterior, Dept. of Transportation and the State ofAlaska.

Architecture

Kuukpik - LCMF139 E. 51st Ave.

Anchorage, AK 99503Contact: Richard Rearick, architectural mgr.Contact: Derek Howard, survey mgr.Contact: Wiley Wilhelm, engineering mgr.Phone: (907) 273-1830Fax: (907) 273-1831Email: [email protected] Offices:Barrow: (907) 852-8212Email: [email protected]: (907) 670-4739Email: [email protected] specialized architectural and engineeringdesign for all structures; water/sewer, fuel and trans-portation systems design; contractor support survey-ing and permitting for oil and gas development;dredging operations, remote site land and hydro-graphic surveying.

Arctic Engineering

ASRC Energy Services3900 C St., Ste. 701Anchorage, AK 99503Contact: Jack Laasch, exec. vp strategic dev. andexternal affairsPhone: (907) 339-6200Fax: (907) 339-6212Email: [email protected] site: www.asrcenergy.comOil and gas services, engineering, construction, oper-ations, maintenance, pipeline construction and main-tenance, project management, geological and geo-physical, drilling and completion engineering, wellstimulation, exploration services.

ASRC Energy Services – Engineering andTechnology3900 C St.Anchorage, AK 99503Contact: John Lewis, vp operationsPhone: (907) 339-6200

SERVICES, EQUIPMENT & SUPPLIES

Access Road/Work Surface . . . . . . . . . . . . . . . . . . .B4Air Passenger/Charter & Support . . . . . . . . . . . . .B4Architecture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B4Arctic Engineering . . . . . . . . . . . . . . . . . . . . . . . . .B4Arctic Gear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B5Aviation Fuel Sales/Bulk Diesel . . . . . . . . . . . . . . .B5Bearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B5Buildings – Lease Space . . . . . . . . . . . . . . . . . . . . .B5Buildings – Modular . . . . . . . . . . . . . . . . . . . . . . . .B5Camps, Catering & Lodging . . . . . . . . . . . . . . . . . .B5Cellular Communications . . . . . . . . . . . . . . . . . . . .B5Chemicals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B5Chemical Analytical Lab . . . . . . . . . . . . . . . . . . . . .B5Civil & Hazardous Waste . . . . . . . . . . . . . . . . . . . .B5Commercial Diving . . . . . . . . . . . . . . . . . . . . . . . . .B6Communications . . . . . . . . . . . . . . . . . . . . . . . . . . .B6Computer Software . . . . . . . . . . . . . . . . . . . . . . . .B6Construction Equipment & Materials . . . . . . . . . .B6Construction Project Management . . . . . . . . . . . .B6Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B7Contractors - General . . . . . . . . . . . . . . . . . . . . . . .B7Contractors - Pipeline . . . . . . . . . . . . . . . . . . . . . .B7Control Systems . . . . . . . . . . . . . . . . . . . . . . . . . . .B7Corrosion Analysis . . . . . . . . . . . . . . . . . . . . . . . . .B7Drilling & Well Services . . . . . . . . . . . . . . . . . . . . .B7Drug Testing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B8Electrical . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B8Employee Services . . . . . . . . . . . . . . . . . . . . . . . . .B8Employment Services . . . . . . . . . . . . . . . . . . . . . . .B8Energy Services . . . . . . . . . . . . . . . . . . . . . . . . . . . .B8Engineering Services . . . . . . . . . . . . . . . . . . . . . . .B8Environmental Engineering & Consulting . . . . . .B9Environmental Response & Cleanup . . . . . . . . . .B10Environmental Supplies . . . . . . . . . . . . . . . . . . . .B10Equipment & Heavy Hauling . . . . . . . . . . . . . . . .B10Equipment Sales/Rental . . . . . . . . . . . . . . . . . . . .B10Expeditor/Clerk Services . . . . . . . . . . . . . . . . . . . .B11Fertilizer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B11Financial Services . . . . . . . . . . . . . . . . . . . . . . . . .B11Fire Protection . . . . . . . . . . . . . . . . . . . . . . . . . . .B11Freight/Shipping & Cargo . . . . . . . . . . . . . . . . . .B11Fueling Services . . . . . . . . . . . . . . . . . . . . . . . . . .B15General Oilfield Supplies . . . . . . . . . . . . . . . . . . .B15Geophysical & Geological Services . . . . . . . . . . .B15Health Care Professionals . . . . . . . . . . . . . . . . . .B15Helicopter Contract/Charter Services . . . . . . . . .B15Hoses, Hydraulic & Industrial . . . . . . . . . . . . . . . .B15Industrial Gases . . . . . . . . . . . . . . . . . . . . . . . . . .B15Industrial Parts & Supply . . . . . . . . . . . . . . . . . . .B15Inspection Services . . . . . . . . . . . . . . . . . . . . . . . .B15Instrumentation Systems . . . . . . . . . . . . . . . . . . .B16Laboratory Services . . . . . . . . . . . . . . . . . . . . . . .B16Legal Services . . . . . . . . . . . . . . . . . . . . . . . . . . . .B16Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B16

Machining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B17Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B17Management Consulting . . . . . . . . . . . . . . . . . . .B17Maps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B17Marine Propulsion . . . . . . . . . . . . . . . . . . . . . . . .B17Marine Services & Construction . . . . . . . . . . . . .B17Mat Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B17Mechanical & Electrical Inspection . . . . . . . . . . .B18Medical Facilities & Emergency Response . . . . .B18Medical Services . . . . . . . . . . . . . . . . . . . . . . . . . .B18Meetings & Conventions . . . . . . . . . . . . . . . . . . .B18Metal Distributors . . . . . . . . . . . . . . . . . . . . . . . .B18Movers/Relocation . . . . . . . . . . . . . . . . . . . . . . . .B18Mud & Mudlogging . . . . . . . . . . . . . . . . . . . . . . .B18Office Furniture . . . . . . . . . . . . . . . . . . . . . . . . . .B18Oilfield Services . . . . . . . . . . . . . . . . . . . . . . . . . .B18Photography . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B18Pipe, Fittings & Thread Technology . . . . . . . . . .B18Pipeline Maintenance . . . . . . . . . . . . . . . . . . . . .B18Plumbing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B18Power Generation . . . . . . . . . . . . . . . . . . . . . . . .B18Process Equipment . . . . . . . . . . . . . . . . . . . . . . . .B19Procurement Services . . . . . . . . . . . . . . . . . . . . . .B19Production Equipment . . . . . . . . . . . . . . . . . . . . .B19Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B19Recycling Waste Management . . . . . . . . . . . . . .B19Reporting Software . . . . . . . . . . . . . . . . . . . . . . .B20Restaurants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B20Rigging Supplies . . . . . . . . . . . . . . . . . . . . . . . . . .B20Right of Way Maintenance . . . . . . . . . . . . . . . . .B20Safety Equipment & Supplies . . . . . . . . . . . . . . .B20Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B20Seismic & Geophysical . . . . . . . . . . . . . . . . . . . . .B20Shops/Storage Space . . . . . . . . . . . . . . . . . . . . . .B20Soil Stabilization . . . . . . . . . . . . . . . . . . . . . . . . . .B20Space Design/Planning . . . . . . . . . . . . . . . . . . . . .B20Steel Fabrication . . . . . . . . . . . . . . . . . . . . . . . . . .B20Steel Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B21Surveying & Mapping . . . . . . . . . . . . . . . . . . . . .B21Tank Fabrication . . . . . . . . . . . . . . . . . . . . . . . . . .B21Telephone Equipment & Sales . . . . . . . . . . . . . . .B21Temporary Placement Services . . . . . . . . . . . . . .B21Tire Sales & Service . . . . . . . . . . . . . . . . . . . . . . . .B21Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B21Underwater NDT & Photography . . . . . . . . . . . .B21Underwater Welding . . . . . . . . . . . . . . . . . . . . . .B21Vehicle Repair . . . . . . . . . . . . . . . . . . . . . . . . . . . .B22Vehicle Sales/Rental . . . . . . . . . . . . . . . . . . . . . . .B22Welding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B22Weld Repairs/Manufacturing . . . . . . . . . . . . . . . .B22Wire Rope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B22

OIL COMPANIES

Operators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .B22

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PETROLEUM NEWS • WEEK OF APRIL 17, 2005 B5PETROLEUM DIRECTORY

Fax: (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.

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 specializ-ing in industrial power and petro-chemical engineering. Complete engi-neering services in mechanical, electri-cal, civil, structural, rotating equip-ment, and corrosion engineering.Consulting services in project design,preparation of project documents, bidassistance, project management, costestimating and inspection services.

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. PGSOnshore provides fully rubber trackedArctic geophysical crews to acquire thehighest density data with the softestenvironmental footprint on the NorthSlope.

Aviation Fuel Sales/Bulk Diesel

ColvillePouch 340012Prudhoe Bay, AK 99734Contact: Mike Kunkel/John Daly gen.mgrs., Craig Welch, mgr. special proj-ects Phone: (907) 659-3197Fax: (907) 659-3190Email: [email protected] A, Jet B, 100 LL, 24-hour service.Dispatch by phone.

NANA Oilfield Svc. (NOSI)Box 340112Prudhoe Bay, AK 99508Contact: Jim McGraw/Rick HofreiterPhone: (907) 659-2840Fax: (907) 659-2289Email:[email protected]/[email protected] site: www.nanaoilfield.comProvides support services to all majorcompanies active in oil exploration ordevelopment on Alaska’s North Slopein addition to service companies, con-tractors and government agencies withongoing activities in the Prudhoe Bayarea. Provide equipment and vehiclerental and operate the Chevron fueldistributorship in Deadhorse.

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) 646-1219National Call Center: 1-800-268-3768We 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 con-struction of fabric covered steel build-ings, a cost efficient building solutionfor many applications. We offer ourworldwide, longtime experience foryour future project.

Arctic Structures9312 Vanguard Dr., Ste. 200Anchorage, AK 99507Contact: Ray GipsonPhone: (907) 522-2425Fax: (907) 522-2426Email: [email protected], offices, classrooms, clinics, etc.– large inventory of modular buildingsfor rent/sale or custom build – MANU-FACTURED IN ALASKA. Supply/erectpre-engineered metal buildings.

PTI Travco Modular Structures1507 8 St.Nisku, Alberta, Canada T9E 7S7Contact: Stewart Orange, sales rep.Phone: (888) 387-2826Fax: (780) 955-8938E-mail: [email protected] Website: 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.

Sourdough ExpressP.O. Box 73398Fairbanks, AK 99709Contact: Jeff Gregory, presidentPhone: 907-452-1181Fax: 907-451-6188E-mail: [email protected] site: www.sourdoughexpress.comSourdough Express Inc. provides truck-ing services, full service moving andstorage services, and conex containersales and rentals.

Camps, Catering & Lodging

Alaska Tent & Tarp529 Front St.Fairbanks, AK 99701

Contact: Jim HaselbergerPhone: (907) 456-6328Fax: (907) 452-5260Email: [email protected] site: www.ptialaska.net/~aktent

Arctic Structures9312 Vanguard Dr., Ste. 200Anchorage, AK 99507Contact: Ray GipsonPhone: (907) 522-2425Fax: (907) 522-2426Email: [email protected], offices, classrooms, clinics, etc.– large inventory of modular buildingsfor rent/sale or custom build – MANU-FACTURED IN ALASKA. Supply/erectpre-engineered metal buildings.

Chiulista Camp Services/MayflowerCatering6613 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 housekeep-ing to your tastes, not ours.

Doyon Ltd.Doyon Universal Services101 W. Benson Blvd., Ste. 503Anchorage, AK 99503Contact: Mark Huber, general mgr.Phone: (907) 522-1300Fax: (907) 522-3531Website: www.doyon.comDoyon Universal Services providesremote site catering and camp servicesthroughout Alaska. They also providesecurity service for the Trans AlaskaPipeline and other prominent loca-tions.

ESS/On-Site Camp Svc.11419 Alaska Rd.Fort St. John, B.C. V1J 6N2 Can.Contact: Daryl RaynerPhone: (250) 785-0215Fax: (250) 785-0270Email: [email protected]: www.ess-global.comOn-Site Camp Services is a specializedcatering company experienced in allaspects of remote camp services.Camps from 10 to over 600 beds.

Kuukpik Arctic Catering5761 Silverado Way, Ste PAnchorage, AK 99518Contact: Rick MacMillanPhone: (907) 562-5588Fax: (907) 562-5898Email: [email protected]

PTI Group3051 Parsons Rd.Edmonton, AB, Canada T6N 1C8Phone: (800) 314-2695Fax: (780) 463-1015E-mail: [email protected] site: www.ptigroup.comPTI Group Inc. is the premium supplierof integrated remote site services.Offering full turnkey packages or indi-vidual services such as construction,catering and wastewater treatment,PTI delivers above and beyond clientexpectations.

Cellular Communications

ASTAC4300 B St., Ste. 501Anchorage, AK 99503Contact: David FauskePhone: (907) 563-3989Phone: 1-800-478-6409Fax: (907) 563-1932Email: [email protected] service cellular company providingcellular and wireless solutions, includ-ing equipment sales and service, wire-less Internet, maintenance and installa-

tion to the North Slope region ofAlaska.

Chemicals

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.

MI SWACO721 W. First Ave.Anchorage, AK 99501 &225 W. 92nd Ave.Anchorage, AK 99515Contact: Craig BieberPhone: (907) 274-5564Email: [email protected] [email protected] SWACO DSR combines Alaskaknow-how and global strength to pro-vide the oil industry with a full-servicedrilling partner

RAE Systems1339 Moffett Park Dr.Sunnyvale, CA 94089Contact: Amanda Leet, mktg.Phone: (408) 585-3522Fax: (408) 752-0724Email: [email protected] site: www.raesystems.comRAE Systems is manufacturer of rapid-ly-deployable, multi-sensor chemicaldetection monitors and networks forhomeland security and industrial appli-cations. RAE Systems offers a full lineof portable single-sensor chemical andradiation detection products.

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-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 through-out Alaska and Worldwide.

Univar USA590 E. 100th Ave.Anchorage, AK 990515Contact: Ken LambertsenPhone: (907) 344-7444Fax: (907) 522-1486Email: [email protected]

Notice to advertisersCompanies contracted to advertise in Petroleum News are invited to supply color or

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.

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B6 PETROLEUM NEWS • WEEK OF APRIL 17, 2005PETROLEUM DIRECTORY

Web 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.

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 owneddiving contractor specializing in sub-sea oilfield work on mooring systems,pipelines, platforms and docks in CookInlet, on the North Slope and inValdez.

Storm Chasers Marine Svc.P.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 sal-vage services.

Communications

Alaska Telecom6623 Brayton Dr.Anchorage, AK 99507Contact: Kevin GrayPhone: (907) 344-1223Fax: (907) 344-1612Email: [email protected] Office:713 Gaffney Rd.Fairbanks, AK 99701Contact: Becky CummingsPhone: (907) 456-1223Providing telecommunications supportto oil exploration and production com-panies and contractors. Satellite com-munications, voice, data, microwave,VHF/UHF radio, engineering and instal-lation.

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 mainte-nance, fiber optic cable installation.

ASTAC4300 B St., Ste. 501Anchorage, AK 99503Contact: David FauskePhone: (907) 563-3989Phone: 1-800-478-6409Fax: (907) 563-1932Email: [email protected] local and long distance serv-ice, Internet, maintenance and train-ing, consultation, installation, engi-neering, Centrex, custom calling fea-tures, digital cross connect service, anddigital data service to the North Sloperegion of Alaska.

Marketing Solutions3330 C. St., Ste. 101Anchorage, AK 99503Contact: Laurie Fagnani,president/ownerPhone: (907) 569-7070Fax: (907) 569-7090Email: [email protected] site: www.marketingsol.netMarketing Solutions is a full-serviceaward-winning advertising and publicrelations firm that promotes clients inthe industries statewide.

MEDC International5829 West Sam Houston Pkwy, North,Ste.1005Houston, TX 77041Contact: Phil Hausman, sales mgr. -AmericasPhone: (713) 937-9772Fax: (713) 937-9773Cell: (713) 410-1144Email: [email protected] Office: MEDC Ltd. – UKWeb site: www.medc.comMEDC design, manufacture and sell arange of UL/CSA/ATEX-NEC/IECapproved field devices for fire & gasand communications systems for use inpotentially explosive atmospheres.

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 thechallenges, delivering excellence.

North Slope Telecom2020 E. Dowling, Ste. 3Anchorage, AK 99507Contact: Bill Laxson, presidentPhone: (907) 562-4693Fax: (907) 562-0818Email: [email protected] site: www.nstiak.comTwenty years of arctic experience indesign and installation of microwave,satellite, fiber optic, radio, paging,telephone equipment and systems.Tower construction, inspection andmaintenance.

PTI Travco Modular Structures1507 8 St.Nisku, Alberta, Canada T9E 7S7Contact: Stewart Orange, sales rep.Phone: (888) 387-2826Fax: (780) 955-8938E-mail: [email protected] Website: 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.

Computer Software

Lasser Inc.3244 NW Grand Blvd.Oklahoma City, OK 73116Contact: Owen Lowe, sales/RichieWorthington, supportPhone: (405) 842-4010Fax: (405) 840-6092Email: [email protected] site: www.lasser.comLasser production data provides histor-ical oil and gas production on CD-ROMas well as digital and hard copy maps.

Construction Equipment & Materials

Alaska Dreams522 Goldstreak Rd.Fairbanks, AK 99712Contact: M. Huser, presidentPhone: (907) 455-7712Fax: (907) 455-7713Email: [email protected] an independent Rockford steelbuilding dealer we provide full service,industry leading hi-tech durable steelconstruction. The fully engineered andcomplete buildings guarantee fast andeconomical on site erection.

Brooks Range SupplyPouch 3400081 Old Spine RoadPrudhoe Bay, AK 99734Contact: Mike Kunkel/John Daly, gen.mgrs., Craig Welch, mgr. special. proj-ectsPhone: (907) 659-2550Toll Free: (866) 659-2550Fax: (907) 659-2650Email: [email protected] source on the Slope for safetysupplies, welding supplies, automotiveand truck parts, hardware, tools, steel,building materials, glass, propane,hydraulic hoses and fittings, paint and

chemicals. Napa and True ValueHardware distribution. Own PrudhoeBay General Store that carries varioussundries and is home to the PrudhoeBay Post Office.

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 rockproducts, site-work, petroleum indus-try construction, erosion control,underground utilities and reclamationservices.

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 30years of experience, we're experts onarctic conditions and extreme weather.

Spenard Builders Supply4412 Lois DriveAnchorage, AK 99517Contact: Sean LangtonPhone: (907) 563-3141Fax: (907) 261-9140Email: [email protected] is Alaska’s largest source of build-ing materials with 14 locationsthroughout the state. Specialized oil-field support provided through ourCommercial Sales division.

Construction ProjectManagement

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 anddesign services including constructionmanagement for petro-chemical andheavy industrial client projects.

Doyon Ltd.Doyon Universal Services101 W. Benson Blvd., Ste. 503Anchorage, AK 99503Contact: Mark Huber, general mgr.Phone: (907) 522-1300Fax: (907) 522-3531Website: www.doyon.comDoyon Universal Services providesremote site catering and camp services

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PETROLEUM NEWS • WEEK OF APRIL 17, 2005 B7PETROLEUM DIRECTORY

throughout Alaska. They also providesecurity service for the Trans AlaskaPipeline and other prominent loca-tions.

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 specializ-ing in industrial power and petro-chemical engineering. Complete engi-neering services in mechanical, electri-cal, civil, structural, rotating equip-ment, and corrosion engineering.Consulting services in project design,preparation of project documents, bidassistance, project management, costestimating and inspection services.

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 rockproducts, site-work, petroleum indus-try construction, erosion control,underground utilities and reclamationservices.

Hawk Construction 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. Servicesinclude strategic planning, full serviceproject management team consult-ing/outsourcing, supplemental profes-sionals, professionals, managementconsulting services.

H.C. Price Co.301 W. Northern Lights Blvd., Ste. 300Anchorage, AK 99503Contact: David MatthewsPhone: (907) 278-4400Fax: (907) 278-3255E-Mail: [email protected] Offices:Dallas, TXNisku, Alberta, CanadaEPC contractor performing oil fieldsupport, pipeline construction andother heavy industrial projectsstatewide.

Lounsbury and Associates723 W. 6th Ave.Anchorage, AK 99501Contact: Craig L. Savage, presidentE-mail: [email protected]: Jim Sawhill, vpEmail: [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 (computerized

maintenance management), managedoperation and maintenance,training/competency services, andother related 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.

Consulting

Kuukpik/Veritas2000 E. 88th Ave.Anchorage, AK 99507Contact: Jeff HastingsPhone: (907) 276-6037Fax: (907) 279-5740Email: [email protected]

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 equipmentcoupled with exceptional performance.

Alaska Telecom6623 Brayton Dr.Anchorage, AK 99507Contact: Kevin GrayPhone: (907) 344-1223Fax: (907) 344-1612Email: [email protected] Office:713 Gaffney Rd.Fairbanks, AK 99701Contact: Becky CummingsPhone: (907) 456-1223Providing telecommunications supportto oil exploration and production com-panies and contractors. Satellite com-munications, voice, data, microwave,VHF/UHF radio, engineering and instal-lation.

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.

Arctic Structures9312 Vanguard Dr., Ste. 200Anchorage, AK 99507Contact: Ray GipsonPhone: (907) 522-2425Fax: (907) 522-2426Email: [email protected], offices, classrooms, clinics, etc.– large inventory of modular buildingsfor rent/sale or custom build – MANU-FACTURED IN ALASKA. Supply/erectpre-engineered metal buildings.

ASRC Energy Services3900 C St., Ste. 701Anchorage, AK 99503Contact: Jack Laasch, exec. vp strategicdev. and external affairs

Phone: (907) 339-6200Fax: (907) 339-6212Email: [email protected] site: www.asrcenergy.comOil and gas services, engineering, con-struction, operations, maintenance,pipeline construction and mainte-nance, project management, geologi-cal and geophysical, drilling and com-pletion engineering, well stimulation,exploration 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 con-struction, operations and maintenance,module fabrication and assembly, proj-ect management and non-destructivetesting.

Cruz ConstructionHC04 Box 9323Palmer, AK 99645Contact: Dave or Dana CruzPhone: (907) 746-3144Fax: (907) 746-5557Email: [email protected] contractor specializing inheavy civil construction, horizontaldirection drilling for utilities. Ice roadand ice bridge construction through-out Alaska in support of resourcedevelopment.

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 rockproducts, site-work, petroleum indus-try construction, erosion control,underground utilities and reclamationservices.

H.C. Price Co.301 W. Northern Lights Blvd., Ste. 300Anchorage, AK 99503Contact: David MatthewsPhone: (907) 278-4400Fax: (907) 278-3255E-Mail: [email protected] Offices:Dallas, TXNisku, Alberta, CanadaEPC contractor performing oil fieldsupport, pipeline construction andother heavy industrial projectsstatewide.

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 through-out Alaska and Worldwide.

Peak Oilfield Service Co.2525 C St., Ste. 201Anchorage, AK 99503Contact: Ben ClevelandPhone: (907) 263-7000Fax: (907) 263-7070E-Mail: [email protected]: 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.

Welding ServicesP.O. Box 7248Nikiski, AK 99635Mile 20.5 Kenai Spur Hwy.North Kenai, AKContact: Keith T. RahamPhone: (907) 776-8279Fax: (907) 776-8279Cell Phone: (907) 252-5466General Contractor #27005. Oilfieldand general welding fabrication andrepair services including aluminum,stainless steel and carbon steel.

Contractors — Pipeline

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 mainte-nance, fiber optic cable installation.

Peak Oilfield Service Co.2525 C St., Ste. 201Anchorage, AK 99503Contact: Ben ClevelandPhone: (907) 263-7000Fax: (907) 263-7070E-Mail: [email protected]: 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.has been highly successful as manufac-turer representatives for the state ofAlaska in the Process Control andInstrumentation field. Selling equip-ment to the oil and gas markets, min-ing and water wastewater/municipalmarkets.

Dowland-Bach6130 Tuttle Pl.P.O. Box 230126Anchorage, AK 99523Contact: Lynn Johnson, presidentPhone: (907) 562-5818Fax: (907) 563-4721Email: [email protected] site: www.dowlandbach.com

North Slope Telecom2020 E. Dowling, Ste. 3Anchorage, AK 99507Contact: Bill Laxson, presidentPhone: (907) 562-4693Fax: (907) 562-0818Email: [email protected] site: www.nstiak.comDesign, installation and maintenanceof SCADA, CATV, surveillance, powergeneration and remote communicationsystems. Twenty years of arctic experi-ence.

Corrosion Analysis

Canspec Group7911 King St.Anchorage, AK 99518Contact: Kim HarkerPhone: (907) 569-5000Fax: (907) 569-5005Email: [email protected] our materials engineeringand inspection expertise, Canspec, hasbeen integrally involved in the detec-tion, assessment and disposition of cor-rosion anomalies for over threedecades.

Drilling & Well Services

ASRC Energy Services –Engineering and Technology3900 C St.Anchorage, AK 99503Contact: John Lewis, vp operationsPhone: (907) 339-6200Fax: (907) 339-6212

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B8 PETROLEUM NEWS • WEEK OF APRIL 17, 2005PETROLEUM DIRECTORYEmail: [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: Mel Rixse, AK mgr.Phone: (907) 223-3605Cell Phone: (907) 250-6420Fax: (907) 267-6623Email: [email protected] site: www.bakerhughes.comBaker Hughes Inteq delivers advanceddrilling technologies and services thatdeliver efficiency and precise wellplacement. Major capabilities includedirectional drilling, measurement-while-drilling (MWD), logging-while-drilling (LWD), drilling fluids, and well-site information management services.

Doyon Ltd.Doyon Drilling, Inc.101 W. Benson Blvd., Ste. 503Anchorage, AK 99503Contact: Ron WilsonPhone: (907) 563-5530Fax: (907) 561-8986Email: [email protected] site: www.doyon.comDoyon Drilling, a leader in Arcticdrilling, provides drilling and casingservices on Alaska’s North Slope.

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 oper-ational services to the exploration andproduction sectors of the petroleumindustry.

Horizon Well Logging700 W. 58th St., EAnchorage, AK 99518Contact: Bernie Leas, AK oper. mgr.Phone: (907) 563-7002Fax: (907) 563-7005E-mail: [email protected] office711 St. Andrews WayLompoc, CA 93436Phone: (805) 733-0972Website: www.horizon-well-logging.comExpert geological mudlogging service.Our Data Hub system provides theinterface between drilling technologyand all the people who need to knowwhat’s happening on the rig and in theground.

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 drillingpartner

Nabors Alaska Drilling2525 C St., Ste. 200Anchorage, AK 99503Contact: Leslie AdamsPhone: (907) 263-6000Fax: (907) 563-3734Email: [email protected]

Nabors Industries515 W. Greens Rd., Ste. 1200Houston, TX 77067Contact: Debbie Quick, corp. dev.Phone: (281) 775-8570Fax: (281) 775-8195Email: [email protected] site: www.nabors.comNabors operates a large, high-qualityand diverse fleet of land and offshore

rigs in the significant oil, gas and geot-hermal markets worldwide. Other sup-port services include well-servicing,marine transportation, manufacturingand logistics, and rig instrumentation.

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 productiv-ity and efficiency while promotingsafety and environmentally-consciousdrill practices.

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 meetyour requirements.

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 han-dling and Top Drive drilling equip-ment. 24 hour 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, workingtogether to offer exploration and pro-duction solutions for the life of oil andgas reservoirs.

Unique Machinea subsidiary of Sumitomo Corp.5839 Old Seward HwyAnchorage, AK 99518Contact: Pat Hanley, gen. mgr.Phone: (907) 563-3012Fax: (907) 562-1376Email: [email protected] site: www.uniquemachineinc.comThe design, development, manufactureand distribution of oilfield construc-tion, mining, fishing and governmentparts to industry quality standards.

Drug Testing

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 ifthey are using drugs or alcohol.Worksafe Drug Testing increases pro-ductivity, reduces liability with fewerinjuries and accidents and providesinsurance cost savings.

Electrical

Dowland-Bach6130 Tuttle Pl.Anchorage, AK 99507Contact: Lynn JohnsonPhone: (907) 562-5818Fax: (907) 563-4721Web site: www.dowlandbach.comIndustrial control and panel fabrication

Precision Power5801 Silverado WayAnchorage, AK 99518Contact: John Cameron, gen. mgr.Phone: (907) 561-7797Fax: (907) 561-7799Email: [email protected] site: www.precisionpowerllc.comOther officeAuburn, WA (253) 887-9596Deadhorse, AK (907) 670-5519Premier source for custom manufac-tured generators, power plants, UPSSystems, DC Power Systems: Sales,Service, Rental. Parts for Waukesha,Mitsubishi, John Deere, Generac, MQPower & Energys-Eltek

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

Hawk Construction 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. Servicesinclude strategic planning, full serviceproject management team consult-ing/outsourcing, supplemental profes-sionals, professionals, managementconsulting services.

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 ifthey are using drugs or alcohol.Worksafe Drug Testing increases pro-ductivity, reduces liability with fewerinjuries and accidents and providesinsurance cost savings.

Employment Services

Alaska’s People670 West Fireweed Lane, Ste. 112Anchorage, AK 99503Contact: Lonnie Jackson, directorPhone: (907) 265-5901Fax: (907) 274-6134Email: [email protected] site: www.alaskaspeople.comAlaska’s People is the NativeEmployment Specialist statewide. Wehave placed thousands of nativeAlaskans and American Indians into alllevels of employment from entry toexecutive.

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 mainte-nance, project management, geologi-cal and geophysical, drilling and com-pletion engineering, well stimulation,exploration services.

ASRC Energy Services – Operationsand Maintenance3900 C St.Anchorage, AK 99503

Contact: Mark Nelson, exec. vpPhone: (907) 339-6200Fax: (907) 339-6212Email: [email protected] site: www.asrcenergy.comOil and gas services, industrial con-struction, operations and maintenance,module fabrication and assembly, proj-ect management and non-destructivetesting.

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, andother related energy services.

Engineering 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 anddesign services including constructionmanagement for petro-chemical andheavy industrial client projects.

Alaska Telecom6623 Brayton Dr.Anchorage, AK 99507Contact: Kevin GrayPhone: (907) 344-1223Fax: (907) 344-1612Email: [email protected] Office:713 Gaffney Rd.Fairbanks, AK 99701Contact: Becky CummingsPhone: (907) 456-1223Providing telecommunications supportto oil exploration and production com-panies and contractors. Satellite com-munications, voice, data, microwave,VHF/UHF radio, engineering and instal-lation.

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.We offer permitting and compliance,strategic planning, incident investiga-tions, crisis management services.

Canspec Group7911 King St.Anchorage, AK 99518Contact: Kim HarkerPhone: (907) 569-5000Fax: (907) 569-5005Email: [email protected]’s metallurgical, materials andchemical engineers have been provid-ing solutions to material engineeringrequirements for over three decades.The finest analytical equipment sup-ports our team.

Engineered Fire & Safety3138 Commercial Dr.Anchorage, AK 99501Contact: Don Maupin, gen. mgr.Phone: (907) 274-7973 ext. 123

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Fax: (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 certifi-cations 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 con-sulting 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 oper-ational 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.comAnchorage office: 561-0200Kenai office: 283-5199Great Northern Engineering (GNE) is afull-service engineering firm specializ-ing in industrial power and petro-chemical engineering. Complete engi-neering services in mechanical, electri-cal, civil, structural, rotating equip-ment, and corrosion engineering.

Consulting services in project design,preparation of project documents, bidassistance, project management, costestimating and inspection services.

Kuukpik - LCMF139 E. 51st Ave.Anchorage, AK 99503Contact: Richard Rearick, architecturalmgr.Contact: Derek Howard, survey mgr.Contact: Wiley Wilhelm, engineeringmgr.Phone: (907) 273-1830Fax: (907) 273-1831Email: [email protected] Offices:Barrow: (907) 852-8212Email: [email protected]: (907) 670-4739Email: [email protected] specialized architectural andengineering 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 GroupP.O. Box 850, Stn. TCalgary, Alberta T2H2H3Contact: Kevin Baird, bus. dev. mgr.Phone: (403) 203-2103Fax: (403) 236-0488E-mail: [email protected]: www.natcogroup.comNatco Group engineers, designs andmanufactures process, wellhead andwater treatment equipment and sys-tems used in the production of oil andgas 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.pdcharrisgroup.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 possessa diverse array of technical capabilitiesto provide our clients with a full spec-trum of geoscience and engineeringconsulting 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

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 anddesign services including constructionmanagement for petro-chemical andheavy industrial 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.We offer permitting and compliance,strategic planning, incident investiga-tions, crisis 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 con-sulting firm with more than 70 officesworldwide providing environmentalplanning, assessment, permitting, com-pliance management and contamina-tion cleanup.

MWH1835 S. Bragaw St., Ste. 350Anchorage, AK 99508Contact: Brett JokelaPhone: (907) 248-8883Fax: (907) 248-8884Email: [email protected] engineers, scientists, and construc-

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B10 PETROLEUM NEWS • WEEK OF APRIL 17, 2005PETROLEUM DIRECTORYtors of MWH provide innovative proj-ects and solutions for clients through-out Alaska and Worldwide.

Pacific Environmental (PENCO)6000 A St.Anchorage, AK 99518Contact: Tom Ulrich, reg. mgr.American Maine 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.Asbestos and lead abatement.Petroleum vessel services and bulk fueloil facility and storage tank mainte-nance, management 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.pdcharrisgroup.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 han-dling and Top Drive drilling equip-ment. 24 hour 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 equipmentcoupled 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 con-sulting 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] site: www.grtnw.comSpecializing in cold weather and heavycivil construction, gravel and rockproducts, site-work, petroleum indus-try construction, erosion control,underground utilities and reclamationservices.

LCMFBarrow Village Response Team(VRT)P.O. Box 955Barrow, AK 99723

Contact: Charlie HopsonPhone: (907) 852-8212Fax: (907) 852- 8212Hotline: (907) 367-3272Email: [email protected]: www.lcmf.comBarrow VRT provides certified spillresponse and cleanup personnel withinthe North Slope Borough. Responderstrained through affiliation with AlaskaClean Seas and Alaska Chadux.

Pacific Environmental (PENCO)6000 A St.Anchorage, AK 99518Contact: Tom Ulrich, reg. mgr.American Maine 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.Asbestos and lead abatement.Petroleum vessel services and bulk fueloil facility and storage tank mainte-nance, management 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.American Maine 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.Asbestos and lead abatement.Petroleum vessel services and bulk fueloil facility and storage tank mainte-nance, management and operations.

PTI Group3051 Parsons Rd.Edmonton, AB, Canada T6N 1C8Phone: (800) 314-2695Fax: (780) 463-1015E-mail: [email protected] site: www.ptigroup.comPTI Group Inc. is the premium supplierof integrated remote site services.Offering full turnkey packages or indi-vidual services such as construction,catering and wastewater treatment,PTI delivers above and beyond clientexpectations.

Rain for Rent43784 Kenai Spur Hwy.Kenai, AK 99611Contact: Randy Harris, branch mgr.Phone: (907) 283-4487Fax: (907) 283-4528Email: [email protected] site: www.rainforrent.comOther Office:1642 Bannister Dr.Anchorage, AK 99508Phone: (907) 440-2299Rain for Rent combines rental tanks,pipe, and filtration systems for solu-tions to temporary liquid-handlingneeds. We offer engineering and on-site personnel – 24/7, 365 days a year.

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 areas

include sorbents, geotextile, contain-ment berms, drums and ice melt.

Equipment & Heavy Hauling

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 equipmentcoupled 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 serv-ice, multi-modal, transportation andlogistics company.

Crowley Alaska2525 C St., Ste. 303Anchorage, AK 99503Contact: Craig TorngaPhone: (907) 278-4978Fax: (907) 257-2828Email: [email protected] transportation throughoutAlaska. North Slope heavy haulingwith CATCO 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.

SOLOCO (Dura Base)207 Town Center Pky.Lafayette, LA 70506-7524Contact: Keith Pearson or DonCouvillonPhone: (337) 981-5058Fax: (337) 984-9241Email: [email protected] [email protected] COMPOSITE MAT SYSTEMis the world’s most advanced solutionfor temporary surfaces includingheavy-duty roads, turnarounds, workand staging areas. It’s strength anddurability allows you to work year-round in the harshest conditions.Installs and cleans up quickly. It’s a per-manent solution to your temporaryroad and work surface needs.

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.

Equipment Sales/Rental

Air Liquide6415 Arctic Blvd.Anchorage, AK 99518Contact: Brian Benson, tech sales repPhone: (907) 273-9762Fax: (907) 561-8364Email: [email protected] Liquide is the dealer and warrantystation for Lincoln, Miller, Milwaukee,Victor and most other welding equip-ment manufacturers

Arctic Wire Rope & Supply6407 Arctic Spur Rd.Anchorage, AK 99518Contact: Jill ReevesPhone: (907) 562-0707Fax: (907) 562-2426

Email: [email protected] site: www.arcticwirerope.comArctic Wire Rope & Supply is Alaska’slargest and most complete rigging sup-ply source. We specialize in customsling fabrication (wire rope, web,chain, and polyester round.)

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 leadingprovider of natural gas compressionservices and equipment in Canada. Wemaintain an 85,000 horsepower rentalcompression fleet in Canada and over3.6 million horsepower rental fleetworldwide. Hanover custom designsproduction equipment in accordancewith customer’s specifications usingstrict internal engineering standards.We have the capability to provideprocess, mechanical and instrumentdesign engineering for any productionequipment project worldwide.

H.C. Price Co.301 W. Northern Lights Blvd., Ste. 300Anchorage, AK 99503Contact: David MatthewsPhone: (907) 278-4400Fax: (907) 278-3255E-Mail: [email protected] Offices:Dallas, TXNisku, Alberta, CanadaEPC contractor performing oil fieldsupport, pipeline construction andother heavy industrial projectsstatewide.

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 –Anchorage and Fairbanks. New andused truck sales, parts and service.

NANA Oilfield Svc. (NOSI)Box 340112Prudhoe Bay, AK 99508Contact: Jim McGraw/Rick HofreiterPhone: (907) 659-2840Fax: (907) 659-2289Email:[email protected]/[email protected] site: www.nanaoilfield.comProvides support services to all majorcompanies active in oil exploration ordevelopment on Alaska’s North Slopein addition to service companies, con-tractors and government agencies withongoing activities in the Prudhoe Bayarea. Provide equipment and vehiclerental and operate the Chevron fueldistributorship in Deadhorse.

NEI Fluid Technology3408 Arctic Blvd.Anchorage, AK 99503Contact: Kathryn Russell, presidentPhone: (907) 561-4820Fax: (907) 562-2316Email: [email protected] Suppliers 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 recoveryand recycling equipment.

Pacific Detroit Diesel-Allison8001 Petersburg St.Anchorage, AK 99507Contact: Sales, Service & PartsPhone: (907) 522-3434Fax: (907) 522-1198Web site: www.pacificdda.com

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PETROLEUM NEWS • WEEK OF APRIL 17, 2005 B11PETROLEUM DIRECTORY

Other office:3177 N. Van Horn Rd.Fairbanks, AK 99709Phone: (907) 479-1235Fax: (907) 479-1237We are distributors for Detroit Diesel,Allison and Kohler. We have servedAlaska for over 30 years with qualityproducts for the petroleum industry.

Peak Oilfield Service Co.2525 C St., Ste. 201Anchorage, AK 99503Contact: Ben ClevelandPhone: (907) 263-7000Fax: (907) 263-7070E-Mail: [email protected]: www.peakalaska.comAlaska based general contractors.

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 meetyour requirements. for Alaska oilindustry.

Precision Power5801 Silverado WayAnchorage, AK 99518Contact: John Cameron, gen. mgr.Phone: (907) 561-7797Fax: (907) 561-7799Email: [email protected] site: www.precisionpowerllc.comOther officeAuburn, WA (253) 887-9596Deadhorse, AK (907) 670-5519Premier source for custom manufac-tured generators, power plants, UPSSystems, DC Power Systems: Sales,Service, Rental. Parts for Waukesha,Mitsubishi, John Deere, Generac, MQPower & Energys-Eltek

PTI Travco Modular Structures1507 8 St.Nisku, Alberta, Canada T9E 7S7Contact: Stewart Orange, sales rep.Phone: (888) 387-2826Fax: (780) 955-8938E-mail: [email protected] Website: 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.

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.

Rain for Rent43784 Kenai Spur Hwy.Kenai, AK 99611Contact: Randy Harris, branch mgr.Phone: (907) 283-4487Fax: (907) 283-4528Email: [email protected] site: www.rainforrent.comOther Office:1642 Bannister Dr.Anchorage, AK 99508Phone: (907) 440-2299Rain for Rent combines rental tanks,pipe, and filtration systems for solu-tions to temporary liquid-handlingneeds. We offer engineering and on-site personnel – 24/7, 365 days a year.

Totem Equipment & Supply2536 Commercial Dr.Anchorage, AK 99501Contact: Mike Huston, vpPhone: (907) 276-2858Fax: (907) 258-4623Email: [email protected]

Web site: www.toteminc.comTotem Equipment & Supply Inc. locallyowned and operated since 1961.Supplies light, medium and heavyequipment. Specializing in temporaryand permanent heating solutions.

Expeditor/Clerk Services

Chiulista Camp Services/MayflowerCatering6613 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 housekeep-ing to your tastes, not ours.

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

Alaska USA Mortgage471 W. 36th Ave., Ste. 100Anchorage, AK 99503Contact: Mary Jo PippinPhone: (907) 261-3455Fax: (907) 929-6784Email: m.pippin@alaskausamortageWe offer competitive rates and excep-tional service for financing primaryhome, 2nd home/vacation homeinvestment properties.

Dynamic Capital Management471 W. 36th Ave., Ste. 201Anchorage, AK 99503Contact: David GottsteinPhone: (907) 562-6374Toll free: (800) 280-3962 (DYNA)Fax: (907) 563-9502Alaska money management firm,offering experienced professionaljudgement, leading edge technology,and customized portfolios. Individualand corporate clients.

Fire Protection

MEDC International5829 West Sam Houston Pkwy, North,Ste.1005

Houston, TX 77041Contact: Phil Hausman, sales mgr. -AmericasPhone: (713) 937-9772Fax: (713) 937-9773Cell: (713) 410-1144Email: [email protected] Office: MEDC Ltd. – UKWeb site: www.medc.comMEDC design, manufacture and sell arange of UL/CSA/ATEX-NEC/IECapproved field devices for fire & gasand communications systems for use inpotentially explosive 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 servic-es.

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 Railroad Corp.P.O. Box 107500Anchorage, AK 99510Contact: Katie Bender, Marketing andLogistics TechnicianPhone: (907) 265-2485Fax: (907) 265-2597Email: [email protected] Alaska Railroad Corporation offersreal estate, passenger and freight serv-ices – including complete services tomove your freight between Alaska, theLower 48 and Canada.

Brooks Range SupplyPouch 3400081 Old Spine RoadPrudhoe Bay, AK 99734Contact: Mike Kunkel/John Daly, gen.mgrs., Craig Welch, mgr. special. proj-ectsPhone: (907) 659-2550Toll Free: (866) 659-2550Fax: (907) 659-2650Email: [email protected] and delivery of hardwareand more throughout oilfield andNorth Slope villages. Open 24 hours,365 days a year.

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 serv-ice, multi-modal, transportation andlogistics company.

Crowley Alaska2525 C St., Ste. 303Anchorage, AK 99503Contact: Craig TorngaPhone: (907) 278-4978Fax: (907) 257-2828Email: [email protected] transportation throughoutAlaska. North Slope heavy haulingwith CATCO all-terrain vehicles.

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 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 Lyndencompanies includes truckload and less-than-truckload highway connections,scheduled barges, intermodal bulkchemical hauls, scheduled and char-tered air freighters, domestic and

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B12 PETROLEUM NEWS • WEEK OF APRIL 17, 2005PETROLEUM DIRECTORY

Keen eye for spotting flaws — before failureCanspec’s advanced inspection technology puts the company at the forefront of materials testing field, and wins major BP contract

PETROLEUM DIRECTORY STAFFanspec Group Inc. is a relative new-comer to Alaska, but the company isalready looking to expand beyond itsinitial role helping BP keep its

Prudhoe Bay facilities in top shape by test-ing the pipes, tanks and other componentsthat keep the oil flowing.

“One big contract brought us here,” saysKim Harker, managing director of Alaskaoperations for Canspec. “There’s other busi-ness here in the state. We feel we can bringtechnological depth that will be a help toindustry here. We expect to have moreclients, large and small, in the years ahead.”

Already, the company is starting tobranch out.

“We have a project with Unocal in CookInlet,” Harker told Petroleum News. “Webrought in Nelson Perrin, a nondestructivetesting specialist recently to develop busi-ness outside the BP contract. He’s beengoing through the hoops since he arrived.We’ve hired and trained some people. We’rejust starting down in Kenai.”

In Alaska, oil and gas will be the mainfocus, according to Harker, but there areother industries where Canspec could helpcompanies in the state, and there’s already abit of a foothold.

“Our sister companies in Vancouver(Canada) and Seattle have been working inthe power and aviation sectors here inAlaska for several years.”

Known in industryWhile Canspec isn’t well known to the

general public, it’s among the world leadersin the field of materials testing and engi-neering. The company is part of theRockwood Group, which also includesSperry Rail Services and LongviewInspection.

That’s why BP turned to Canspec whenPrudhoe Bay managers were looking for an experienced,well-managed supplier of inspection services.

“They were looking for somebody who had a verystrong reputation in the business,” Harker says. “We arethe largest in this industry in North America. We can bringa lot to the table in terms of personnel, technology andexpertise.

“This is our business,” he continues. “We’re not a man-power supply operation. We partner very strongly with theowners. We tend to have very long-term relationships withour clients.”

Canadian rootsCanspec has operated in Canada’s oil fields, as well as

other areas of Canadian industry, for decades. The compa-ny is used to dealing with work sites in remote locations,tough environments, and harsh winters.

“Our big clients in Canada include Syncrude. We’vebeen at Syncrude for at least 20 years,” Harker notes. “Wealso have longstanding relationships with Canada’s largest

pipeline transmission companies such as Enbridge,TransCanada and Duke Energy.”

Outside the oil industry, Canspec has worked exten-sively in the power generation sector including nuclearplants as well as hydroelectric and thermal power plants.

“We operate in the power generation, pulp and paper,aerospace, mining and the marine industries,” Harker says.“But oil and gas is the largest single percentage of ourbusiness.”

Canspec was founded in Canada more than 30 yearsago, and continues to be led by the founder, Ken

Stankievech. He is currently the pres-ident and CEO of the NorthAmerican NDT and engineeringoperations.

Major step in AlaskaPrudhoe Bay’s sprawling opera-

tions require a company able to sup-port the dynamic requirement for alarge highly technical manpower sup-port team and that’s what Canspechad to do when BP invited the com-pany to assist with their inspectionrequirements at the huge field.

Presently Canspec has more than100 people working on its NorthSlope operations, with more than 50personnel on the job site at any giventime.

Harker arrived last August to hirea team and set up the centralizedadministration functions in Alaska,

moving these activities from Edmonton, Canada. This wasone of many local commitments by Canspec to invest inthe future of Alaska.

Canspec first responded to BP’s call for the PrudhoeBay challenge in September of 2002, and worked on amonth-to-month basis for more than a year, earning thecompany’s trust. The two companies signed a three-yeardeal in January of 2004.

Prudhoe Bay challengeThe complex facilities at Prudhoe Bay

are a challenge for all the engineers andtechnicians who strive every day to keepoperations working in a harsh environment.

As Harker observes, “the facility wassupposed to have a 25-year lifespan, andnow we’re looking at 40 more years.”

Inspection methods have improved overthat time, and Canspec has led the way withadvanced tools and techniques that assist inthe detection of corrosion and wear beforethey become a serious problem.

While Canspec has brought in someexpertise from outside Alaska, “the majorityof our staff are resident in Alaska,” Harkersaid. “All of the trainees we have hired —probably about 15 now — are Alaska resi-dents.” To encourage the development ofinspectors for the industry, Canspec hassponsored a scholarship in the NDTTechnology program at the University ofAlaska Anchorage, as part of its commit-ment to Alaska industry.

Advanced technologiesCanspec has the technology and expert-

ise to test materials on site at the NorthSlope, using digital radiography, as well asnormal X-ray and ultrasonic tools that canidentify potential flaws. This process iscalled “nondestructive testing,” since it pro-vides important test results while notdestroying the original part being tested.

“We are leaders in the use of digital radi-ography throughout our industry. It has allkinds of advantages in terms of costs andhigher quality images —in addition you cancreate digital images for historical archivingand for instantaneous reporting purposes,”Harker said.

“This is an example of Canspec’s abilityto invest in the latest technology to providethe highest quality solutions for our clients,”

he said. In addition to these tools, which can cost hundredsof thousands of dollars, Canspec has invested heavily invery expensive automated ultrasonic scanning equipmentfor corrosion monitoring. Another of Canspec’s strengthsis the depth of professional engineering provided by thecompany, which includes corrosion, welding, chemicaland metallurgical engineering services for all industries.

The company has a very specialized group of morethan 60 engineers located throughout the organization.Several have specialized doctorates in advanced areas ofmaterials engineering and testing. The company is present-ly recruiting from the local universities and other areas ofthe world to hire full-time corrosion specialists for Alaska.

The company has developed some of its own special-ized tools for corrosion assessments, including anadvanced laser technique used for external corrosion eval-uations and measurements.

Broad expertiseIn addition to testing a customer’s existing equipment

on site, Canspec can help clients choose the right compo-nents before construction begins.

“We can help develop the right specifications and helpour clients choose the right materials for a project,whether it’s a piece of pipe, storage tank, high pressureboilers, a bridge girder, or whatever. We can test it tomake sure the product meets the current codes and regula-tor’s specifications,” Harker said.

Beyond that, Canspec can send its people out sleuthingif something does fail.

“We do a lot of forensic work to determine the cause offailures, whether explosions, fires, corrosion, cracking, orother reasons.

“We do inspections for heavy industry, on theme parkrides, ski lifts, aircraft, and a wide range of equipment.Our job is to ensure that it can be operated safely and is fitfor the purpose for which it was designed and built.”

In the end, it’s seasoned workers that make the job gowell, Harker said.

“There are a number of specialized technologies— anda lot of experience — involved in this work.”l

C

BP turned to Canspec when Prudhoe Bay managers were looking for an experienced,well-managed supplier of inspection services.

Canspec has the technology and expertise to test materials on site at the North Slope, using digi-tal radiography, as well as normal X-ray and ultrasonic tools that can identify potential flaws.

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PETROLEUM NEWS • WEEK OF APRIL 17, 2005 B13PETROLEUM DIRECTORY

The ‘One Anvil Concept’ keeps Alaska Anvilmeeting high standards

BY JESSICA HESSPetroleum Directory Contributing Writer

hen selecting a jewel from the mostdurable of all minerals — the dia-mond — four Cs determine thequality of the gem. But clarity,

color, carat, and cut don’t shed much illu-mination on the company behind the prod-uct. When it comes to precious resourcesof another sort — petroleum and naturalgas — a service company can be measuredby its consistency, cost-effectiveness,client-focused practices and capacity forexcellence. Alaska Anvil excels in each ofthese four Cs and more.

ConsistencyThe Anchorage-based company is a

wholly owned subsidiary of Anvil Corp., aheavy industrial design and engineeringcorporation with offices throughout theWestern United States. Whether a serviceor product comes from Anvil Corp. officesin California, Montana, Anchorage or else-where, and whether it was produced years ago or cur-rently, it will be consistent across the board in its specifi-cations, methodology, procedures, and standards. Nomatter where you go, there is “One Anvil.”

Additionally, the safety record this company main-tains has stayed astoundingly consistent for more than 4million man hours. That’s how much work has been putin at Anvil Corp. without any lost-time incidents. FrankWeiss, the president and general manager of AlaskaAnvil, clarifies how it is that such a record can be main-tained. He says about safety that “at Anvil it’s a cultureand each employee is instilled with the knowledge thatit’s their behavior that is either safe or unsafe.”

Cost-effectivenessWhen it comes

down to dollars andcents, maintainingunwavering stan-dards in productsand behavior createsimpressive benefits.“When we havestandard methodsand procedures weare more efficient inthe way we conductour business andexecute the develop-ment of the productswe deliver to aclient,” Weissasserts. “And whenwe’re more efficientand effective in ourexecution, the cost toour clients is, ofcourse, reduced.They get a betterproduct and theycome to expect thesame standard. Thatleads to a lot of ourrepeat business.”

Being an employ-ee-owned companyalso factors in heavi-ly with cost effec-tiveness.Approximately 60percent of the com-pany’s stock is owned by employees, the very peoplewho directly influence whether the stock increases ordecreases in value. With such a vested interest, employ-ees assure that Alaska Anvil’s projects are completedefficiently and well.

Client-focused practicesBecause a consistent and cost-effective product isn’t

always enough, Alaska Anvil has the next base coveredalso. Indeed, this may be the most important characteris-tic offered — a focus on the client’s needs.

Weiss has worked for Anvil Corp. since 1986 andcame to Alaska to rejuvenate and lead the Alaska Anviloffice in 1988. His experience in the industry has givenhim perspective on how to leverage a client’s require-ments. He points out that “each client is alittle different. Our job is to come up on thelearning curve of the way they execute theirprojects, and then bring our knowledge ofproject execution to help them put out aproject that’s cost-effective and timely.”

A large investment goes into working atthe level of client needs. “Ittakes a lot of time to foster,develop, and internalize thatlearning curve,” Weiss explains.“It’s a lot easier to keep a satis-fied client than it is to go out andfind a new one. We work hard toprovide client satisfaction.”

That’s especially true as theindustry shifts its focus andrequirements. “The one thingwe’re assured of is that we workin a dynamic environment wheretechnology and facility require-ments change from month tomonth and year to year,” Weissacknowledges. Alaska Anvil hasreflected the needs of its clientsand anticipates doing so throughany changes and developmentsthat lie ahead.

Alaska Anvil has establisheda company-client interface thatallows for clear communicationthroughout the entire process ofbringing a project to fruition.Each client is linked to a clientsponsor — a member of uppermanagement who is responsiblefor follow-up and feedback toensure client satisfaction. AsWeiss detailed, “a client sponsorallows the client’s counterpart to our projectengineers or program manager to go aroundthem and go directly to upper management.They can ask the client sponsor to step inand help resolve any issues that might be

standing in the way of successfully completingthe project.”

The client sponsor is also charged with the contractualissues of a project, relieving weight otherwise laid on theprogram managers and project engineers. This permitsthose who work in the execution of a project to focus onother elements, such as work breakdown structure,schedule, cost and quality, without becoming boggeddown in contract terminology, for instance.

Large clients with several projectsorchestrated through Alaska Anvil areassigned a program manager, who admin-isters the whole suite of client needs on alevel that permits a big-picture view and acareful watch on quality standards. MikeDavenport and Ron Piltz, program man-agers for Alyeska Pipeline Service Co.and Flint Hills Refinery, respectively, aremen with “technical competence, the abil-ity to scope out projects, to developschedules, and to effectively communi-cate the requirements to those that areworking the projects,” Weiss asserts.“They can work in an efficient manner.”

Capacity for excellence Davenport, Piltz, and Weiss stress that

all Anvil employees give Alaska Anvil itscapacity for excellence. There are peoplewith such strengths throughout AnvilCorp., whether they be at the corporateoffice in Bellingham, Wash., or any otherlocation. Weiss emphasizes that these

remote partners increase Alaska Anvil’scapacity to get a job done right. When a project is biggerthan the Anchorage office can handle alone, “we’re ableto expand and bring cost-effective support — it’s anotherelement of the One Anvil Concept.”

A few other Cs contribute to the makeup of this com-pany’s excellence — conscientious philosophies, com-

munity involvement,and commitment.

The company’sconscientious envi-ronmental philosophyregulates design stan-dards. “We want todo everything in ourcapacity to ensurethat through second-ary containment andthe way the facilitiesare designed that theimpact on the envi-ronment is as mini-mal as possible.”Weiss continues, “wedo that by minimizingfacility footprint, byensuring that we havedouble-lined tanks,and by a number ofdifferent ways thatengineering helpsensure that we havecontainment and con-trol of potentiallyhazardous substancesthat could bereleased.”

Community is acentral element inAlaska Anvil’s busi-ness concept. AnvilCorp. establishesoffices in communi-ties where itsemployee ownerswant to live and get

involved. It’s an important element of employing peoplewho are long-term and committed to an organization,according to Weiss. Alaska Anvil’s community partici-pation includes support of United Way and the coachingand funding of youth sports. The company also worksclosely with the University of Alaska system andCharter College to bring new employees and interns onboard.

Lastly, Weiss knows that clients are central to thecompany’s success and an indicator of Anvil’s commit-ment. He states that “the clients have been wonderful.They’ve been great to work with and our presence withthem is a testimony to our commitment and ability toleverage each other. We’re very appreciative of that.”l

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Frank Weiss, president and general manager of Alaska Anvil, has a long and varied historyin the oil and gas industry. With a primary background in heavy production in the Gulf, hejoined Anvil Corp in 1986 and was chosen to spearhead the expansion of the Alaska Anviloffice in 1988. His broad perspective gives him the ability to run a company that knows howto leverage a client’s requirements.

Flint Hills Resources’ program manager, RonPiltz, has been a member of the Alaska Anvilteam since 1989. Piltz is a registered structuralengineer in the State of Alaska. He overseesthe operations and maintenance program andsmall capital projects for Flint Hills. Among themore recent and current projects are terminaloffloading pump modifications and rail spurexpansions at the Anchorage terminal, and railexpansion projects at the North Pole refinery.

Mike Davenport, who has been with AlaskaAnvil since 2001, manages the program of engi-neering services Anvil provides to AlyeskaPipeline Service Company. Recent and currentprojects along the pipeline and at the ValdezMarine Terminal include VMT firewater reconfig-uration, DRA facilities upgrades, local fiber opticnetwork installations, a telecom integration proj-ect, and several pump station isolation projects.Davenport is a registered control systems engi-neer with an electrical engineering degree.

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B14 PETROLEUM NEWS • WEEK OF APRIL 17, 2005PETROLEUM DIRECTORYinternational air forwarding and inter-national sea forwarding 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) 874-5167Fax: (867) 874-5179Email: [email protected] site: www.ntcl.com Marine transportation along theMcKenzie River to the Beaufort Seaand Alaska’s North Slope.

Panalpina4305 W. International Airport Rd.Anchorage, AK 99502Contact: John Hodel, branch mgr.Phone: (907) 245-8008Fax: (907) 245-8018E-mail: [email protected] and domestic freight for-warding and logistics services.Integrated solutions for supply chainmanagement. Specialists in oil andenergy projects.

Renew Air TaxiP.O. Box 61230Fairbanks, AK 99706Contact: Bob WenerPhone: (907) 457-7287Fax: (907) 457-7288Email: [email protected] site: www.RenewAir.comOther Office:Dillingham, AK 99576Phone: (907) 842-3440Turbine Otter air support for remoteseismic exploration, mining and con-struction sites. Cargo, fuel and passen-gers on wheels, wheel skis andamphibian floats.

Sourdough ExpressP.O. Box 73398Fairbanks, AK 99709Contact: Jeff Gregory, presidentPhone: 907-452-1181Fax: 907-451-6188E-mail: [email protected] site: www.sourdoughexpress.comSourdough Express Inc. provides truck-ing services, full service moving andstorage services, and conex containersales and rentals.

Span Alaska Consolidators8130 S. 216th St.Kent, WA 98032Contact: Tom Landry, executive v. p.Phone: (800) 257-7726Phone: (907) 349-3606 (Anchorage)Fax: (253) 395-7986E-mail: [email protected]: www.spanalaska.comAn Alaskan freight consolidator/for-warder serving all of Alaska with time-ly and friendly service. Inbound servicefrom the Lower 48 to Alaska.“Promises Made, Promises Delivered.”

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: Mike Kunkel/John Daly gen.mgrs., Craig Welch, mgr. special proj-ects Phone: (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 Rubber & Supply5811 Old Seward Hwy.Anchorage, AK 99518Contact: Janeece Higgins, general mgr.Phone: (907) 562-2200Fax: (907) 561-7600Email: [email protected] site: www.alaskarubber.comWholesale and retail of industrial andhydraulic hose and fittings. All applica-tions and styles available. Conveyorbelting, sheet rubber, v-belts, pumps,Kamloks and much more.

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 industrialfabric 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] Suppliers 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 recoveryand recycling equipment.

Geophysical & GeologicalServices

ASRC Energy Services –Engineering and 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.

CoreMongers6212 Magnaview Dr.Eagle River, AK 99577Contact: Clifton M. PoseyPhone: (907) 317-2361Web site: CoreMongers.comCoreMongers specializes in high reso-lution core photography and otherwhole core services including core slab-bing and core plugging. CoreMongersis based locally in Anchorage.

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 con-sulting firm with more than 70 officesworldwide providing environmentalplanning, assessment, permitting, com-pliance management and contamina-tion cleanup.

ESS/On-Site Camp Svc.11419 Alaska Rd.Fort St. John, B.C. V1J 6N2 Can.Contact: Daryl RaynerPhone: (250) 785-0215Fax: (250) 785-0270Email: [email protected]: www.ess-global.comOn-Site Camp Services is a specializedcatering company experienced in allaspects of remote camp services.Camps from 10 to over 600 beds.

Horizon Well Logging700 W. 58th St., EAnchorage, AK 99518Contact: Bernie Leas, AK oper. mgr.Phone: (907) 563-7002Fax: (907) 563-7005

E-mail: [email protected] office711 St. Andrews WayLompoc, CA 93436Phone: (805) 733-0972Website: www.horizon-well-logging.comExpert geological mudlogging servicewith independent, insightful observersat the wellsite. Versatile and innova-tive log formats, digital and graphicdata, and communications.

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 possessa diverse array of technical capabilitiesto provide our clients with a full spec-trum of geoscience and engineeringconsulting 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. PGSOnshore provides fully rubber trackedArctic geophysical crews to acquire thehighest density data with the softestenvironmental footprint on the NorthSlope.

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, workingtogether to offer exploration and pro-duction solutions for the life of oil andgas reservoirs.

Smith Consulting Services16467 Noble Point DriveAnchorage, AK 99516Contact: Larry SmithPhone: (907) 345-3250Fax: (907) 345-3250Email: [email protected]

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NAC 727 with ground services equipment at Anchorage facility

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PETROLEUM NEWS • WEEK OF APRIL 17, 2005 B15PETROLEUM DIRECTORY

Providing geophysical consulting serv-ices including seismic acquisition plan-ning and field QC as well as interpreta-tion, mapping and GIS data integra-tion using Kingdom Suite and ArcGISsoftware.

Health Care Professionals

Aeromed International4700 Business Park Blvd., Ste. E25Anchorage, AK 99503Contact: Brooks Wall, directorPhone: (907) 677-7501Fax: (907) 677-7502Email: [email protected] site: www.aeromed.comAeromed International is an all jet crit-ical care 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 thefifth floor of the hotel. Patricia Main, acertified massage therapist, owns andoperates the service. The staff has spe-cialized training in Swedish, deep tis-sue, injury treatment and trigger pointmassage.

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 ifthey are using drugs or alcohol.Worksafe Drug Testing increases pro-ductivity, reduces liability with fewerinjuries and accidents and providesinsurance cost savings.

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 servic-es.

Evergreen Helicopters of Alaska1936 Merrill Field DriveAnchorage, AK 99501Contact: Joy Journeay, marketing mgr.Phone: (907) 257-1519Fax: (907) 257-1535Email: [email protected]: Greg Thies, director, market-ingPhone: (907) 257-1504Email: [email protected]: Christina Wallace, director,salesPhone: (907) 257-1513Email: [email protected] office: (907) 443-5334Airlines office: (907) 257-1500Website: 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.

Hoses, Hydraulic & Industrial

Alaska Rubber & Supply5811 Old Seward Hwy.Anchorage, AK 99518Contact: Janeece Higgins, general mgr.Phone: (907) 562-2200Fax: (907) 561-7600Email: [email protected]

Web site: www.alaskarubber.comWholesale and retail of industrial andhydraulic hose and fittings. All applica-tions and styles available. Conveyorbelting, sheet rubber, v-belts, pumps,Kamloks and much more.

Industrial Gases

Air Liquide6415 Arctic Blvd.Anchorage, AK 99518Contact: Brian Benson, tech sales repPhone: (907) 273-9762Fax: (907) 561-8364Email: [email protected] Liquide is your local manufacturerand supplier of industrial, medical, andscientific gas in Alaska. We also supplybulk gases and dry ice statewide.

ColvillePouch 340012Prudhoe Bay, AK 99734Contact: Mike Kunkel/John Daly gen.mgrs., Craig Welch, mgr. special proj-ects Phone: (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

Air Liquide6415 Arctic Blvd.Anchorage, AK 99518Contact: Brian Benson, tech sales repPhone: (907) 273-9762Fax: (907) 561-8364Email: [email protected] Liquide is the dealer and warrantystation for Lincoln, Miller, Milwaukee,Victor and most other welding equip-ment manufacturers

Alaska Rubber & Supply5811 Old Seward Hwy.Anchorage, AK 99518Contact: Janeece Higgins, general mgr.Phone: (907) 562-2200Fax: (907) 561-7600Email: [email protected] site: www.alaskarubber.comWholesale and retail of industrial andhydraulic hose and fittings. All applica-tions and styles available. Conveyorbelting, sheet rubber, v-belts, pumps,Kamloks and much more.

Brooks Range SupplyPouch 3400081 Old Spine RoadPrudhoe Bay, AK 99734Contact: Mike Kunkel/John Daly, gen.mgrs., Craig Welch, mgr. special. proj-ectsPhone: (907) 659-2550Toll Free: (866) 659-2550Fax: (907) 659-2650Email: [email protected] source on the Slope for safetysupplies, welding supplies, automotiveand truck parts, hardware, tools, steel,building materials, glass, propane,hydraulic hoses and fittings, paint andchemicals. Napa and True ValueHardware distribution. Own PrudhoeBay General Store that carries varioussundries and is home to the PrudhoeBay Post Office.

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 proprietaryconnections.

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.com

U.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

Canspec Group7911 King St.

Anchorage, AK 99518Contact: Kim HarkerPhone: (907) 569-5000Fax: (907) 569-5005Email: [email protected] North America’s largest and mostcomprehensive NDT service supplier,Canspec provides quality, cost effectiveinspection solutions to your industry.

Engineered Fire & Safety

COMPANY NEWSRAE Systems to address firefighters

RAE Systems Inc. is presenting its range of tools to firefighters with a booth atthe Fire Department Instructors’ Conference in Indianapolis April 14-16.

The Sunnyvale, Calif., company has developed sensing, data analysis and deci-sion support tools for workers responding to hazardous materials accidents andpotential terrorist events. RAE Systems will be demonstrating products includingPlumeRAE, HazRAE, AreaRAE, and GammaRAE II at the gathering.

PlumeRAE, for example, provides decision support information needed by civilauthorities to protect nearby populations after the release of toxic materials, whileHazRAE runs on handheld wireless devices and contains search identifiers andother facts on more than 91,000 chemicals, bioterror agents, and other hazards.

PGS completes 2D seismic workoffshore Tunisia

PGS has finished 2D seismic acquisition on a huge area offshore Tunisia. Thework involved 2,000 line-kilometers of 2D, tying in the relevant wells in the area.The new data will aid in geological analysis of the region for a new 3D survey.

The survey covered about 25,000 square kilometers, or 6.2 million acres thatwill be subject for licensing to oil and gas companies next year, the company saidMarch 31. The area is crossed by a fold thrust belt that links the North AfricanAtlas and Sicilian Appennine. That belt includes the big Val D’Agri, Lina, Vegaand Gagliano fields in Italy.

Petroleum Geo-Services ASA is principally involved in providing geophysicalservices worldwide and floating production services in the North Sea. The com-pany has its headquarters in Oslo, Norway, and offices with 3,400 workers in 22countries. It began trading on the New York Stock Exchange in December underthe symbol PGS.

RAE Systems provides wing tankentry monitors

RAE Systems Inc. has shipped 280 kits to the U.S. military for mechanics whoservice airplane wing tanks. It’s part of a five-year contract that calls for the com-pany to ship at least 150 of the kits each year.

The RAE product is customized for entering and servicing aircraft wing tanks.Its alarms, gas measurement scales and calibration gases are specially tailored foruse in environments containing jet fuel vapors.

The kit uses photoionization detectors instead of traditional Wheatstone bridgeLEL, lower explosive limit, sensors for measuring jet fuel vapors, although theRAE package includes the traditional LEL sensor, plus an oxygen sensor.

“This contract further extends our growing role in military aviation workersafety, and builds on our previous successes in providing Wingtank Entry Kits tothe U.S. military,” said Robert I. Chen, CEO of RAE Systems, in a March 14statement.

RAE Systems is based in Sunnyvale, Calif. More information on the entry kitsor other products is available at www.RAESystems.com.

Kuwaiti firm upgrades seismic contractwith WesternGeco

Kuwait Oil Co. has upgraded its seismic service contract with WesternGeco to theQ-Land technology.

With the change, 3D seismic will use a 30,000-channel Q-Land system instead ofthe 6,000-channel conventional recording system, WesternGeco said March 13.

The decision came after a successful Q-Reservoir pilot study last year, the com-pany said.

“The Q-Reservoir pilot data at the Minagish field has demonstrated the potentialof this new technology,” said Khaled Al-Sumaiti, executive managing director,exploration and production development, for the Kuwaiti company, in a statementwith the WesternGeco announcement.

Two areas will be surveyed under the new system, with the process expected totake about seven months. The first survey began last November and involves 750square kilometers, or about 185,000 acres, targeting the Jurassic reservoirs in north-ern Kuwait.

The second survey involves about 150 square kilometers, or 37,000 acres, in theBurgan field, the second-largest onshore oil field in the world. This is a pilot programseeking better resolution of the Wara-Burgan sand/shale sequence, which hasn’t beenaccomplished with existing 2D and 3D data.

WesternGeco says the Q technology is the most advanced acquisition and pro-cessing suite in the world. It is used for enhanced reservoir location, description andmanagement. More information is available at http://www.westerngeco.com/con-tent/services/q_technology.

WesternGeco is a joint venture of Schlumberger and Baker Hughes.

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3138 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 certifi-cations and panel fabrication.

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.has been highly successful as manufac-turer representatives for the state ofAlaska in the Process Control andInstrumentation field. Selling equip-ment to the oil and gas markets, min-ing and water wastewater/municipalmarkets.

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 digitaldrilling instrumentation system thatmonitors all drill floor and mud systemparameters. Critical data is displayedand archieved on workstations locatedat key points on the rig.

RAE Systems1339 Moffett Park Dr.Sunnyvale, CA 94089Contact: Amanda Leet, mktg.Phone: (408) 585-3522Fax: (408) 752-0724Email: [email protected] site: www.raesystems.comRAE Systems is manufacturer of rapid-ly-deployable, multi-sensor chemicaldetection monitors and networks forhomeland security and industrial appli-cations. RAE Systems offers a full lineof portable single-sensor chemical and

radiation detection products.

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

CoreMongers6212 Magnaview Dr.Eagle River, AK 99577Contact: Clifton M. PoseyPhone: (907) 317-2361Web site: CoreMongers.comCoreMongers specializes in high reso-lution core photography and otherwhole core services including core slab-bing and core plugging. CoreMongersis based locally in Anchorage.

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, wetlandspermits, NEPA, and other environmen-tal and natural resources issues.

Lodging

Alyeska Prince HotelP.O. Box 249Girdwood, AK 99587Contact: Kathryn Stone, sales mgr.Phone: (907) 754-2213Fax: (907) 754-2290Email: [email protected]: www.AlyeskaResort.comAlyeska Prince Hotel contains over30,000 sq. feet of event space suitedfor 20-450 people. It is a premiere des-tination for meetings and conventions.Our managers will assist you in creat-ing the ideal meeting for your group.

Hilton Anchorage Hotel500 West Third Ave.Anchorage, AK 99501

Contact: Karen BoshellPhone: (907) 272-7411Phone: 1-800-445-8667Fax: (907) 265-7042Website: www.anchorage.hilton.comAt the Hilton, guests discover unex-pected luxury. We are just steps awayfrom shopping, day tours, fishing andthe convention center. The Hilton’s 600guest rooms and suites, three restau-rants, indoor pool, and native art col-lection will make your stay complete.

Hotel Captain Cook4th & K St.Anchorage, AK 995Phone: (907) 276-6000Website: www.captaincook.comAlaska’s only member of PreferredHotels and Resorts Worldwide. 547rooms including 96 suites, three restau-rants and a coffee bar. Located indowntown Anchorage.

Logistics

Alaska Railroad Corp.P.O. Box 107500Anchorage, AK 99510Contact: Katie Bender, Marketing andLogistics TechnicianPhone: (907) 265-2485Fax: (907) 265-2597Email: [email protected] Alaska Railroad Corporation offersreal estate, passenger and freight serv-ices – including complete services tomove your freight between Alaska, theLower 48 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 serv-ice, multi-modal, transportation andlogistics 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-ter-rain vehicles on North Slope.

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 oper-ational 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 Lyndencompanies includes truckload and less-than-truckload highway connections,scheduled barges, intermodal bulkchemical hauls, scheduled and char-tered air freighters, domestic andinternational air forwarding and inter-national sea forwarding 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 yourlocation, you will receive service that isguaranteed to meet your require-ments. From Anchorage to Siberia,from shipping to communications, youreceive service from the experts thathave ‘Been There, 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 Seaand Alaska’s North Slope.

Panalpina4305 W. International Airport Rd.

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Anchorage, AK 99502Contact: John Hodel, branch mgr.Phone: (907) 245-8008Fax: (907) 245-8018E-mail: [email protected] and domestic freight for-warding and logistics services.Integrated solutions for supply chainmanagement. Specialists in oil andenergy 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) 395-7986E-mail: [email protected]: www.spanalaska.comAn Alaskan freight consolidator/for-warder serving all of Alaska with time-ly and friendly service. Inbound servicefrom the Lower 48 to Alaska.“Promises Made, Promises Delivered.”

Machining

Unique Machinea subsidiary of Sumitomo Corp.5839 Old Seward HwyAnchorage, AK 99518Contact: Pat Hanley, gen. mgr.Phone: (907) 563-3012Fax: (907) 562-1376Email: [email protected] site: www.uniquemachineinc.comThe design, development, manufactureand distribution of oilfield construc-tion, mining, fishing and governmentparts to 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 industrialfabric 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.has been highly successful as manufac-turer representatives for the state ofAlaska in the Process Control andInstrumentation field. Selling equip-ment to the oil and gas markets, min-ing and water wastewater/municipalmarkets.

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 con-struction, operations and maintenance,module fabrication and assembly, proj-ect management and non-destructivetesting.

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 certifi-cations 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) 335-2782

We 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 valvelubricants and sealants (Chemola).

Management Consultant

Hawk Construction 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. Servicesinclude strategic planning, full serviceproject management team consult-ing/outsourcing, supplemental profes-sionals, professionals, managementconsulting services.

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

Marketing Solutions3330 C. St., Ste. 101Anchorage, AK 99503Contact: Laurie Fagnani,president/ownerPhone: (907) 569-7070Fax: (907) 569-7090Email: [email protected] site: www.marketingsol.netMarketing Solutions a full-serviceaward-winning advertising and publicrelations firm also designs and pro-duces full-scale custom maps.

Smith Consulting Services16467 Noble Point Drive

Anchorage, AK 99516Contact: Larry SmithPhone: (907) 345-3250Fax: (907) 345-3250Email: [email protected] geophysical consulting serv-ices including seismic acquisition plan-ning and field QC as well as interpreta-tion, mapping and GIS data integra-tion using Kingdom Suite and ArcGISsoftware.

Marine Propulsion

Pacific Detroit Diesel-Allison8001 Petersburg St.Anchorage, AK 99507Contact: Sales, Service & PartsPhone: (907) 522-3434Fax: (907) 522-1198Web site: www.pacificdda.comOther office:3177 N. Van Horn Rd.Fairbanks, AK 99709Phone: (907) 479-1235Fax: (907) 479-1237We are distributors for Detroit Diesel,Allison and Kohler. We have servedAlaska for over 30 years with qualityproducts for the petroleum industry.

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 owneddiving contractor specializing in sub-sea oilfield work on mooring systems,pipelines, platforms and docks in CookInlet, on the North Slope and inValdez.

Peak Oilfield Service Co.2525 C St., Ste. 201Anchorage, AK 99503

Contact: Ben ClevelandPhone: (907) 263-7000Fax: (907) 263-7070E-Mail: [email protected]: www.peakalaska.comAlaska based general contractors.

Storm Chasers Marine Svc.P.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 sal-vage services.

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 enclo-sures or helicopter landing platforms.

Carolina Mat Co.P.O. Box 339Plymouth, NC 27962Contact: Susan Harrison, ownerPhone: (252) 793-4045Fax: (252) 793-5187Email: [email protected]: www.carolinamat.comCompany established in 1985.Manufacture 3-ply patented, bolted,portable, reusable, solid oak construc-tion mats. Guaranteed to hold up to50 tons, the mats are interlocking andnon-interlocking, countersunk or non-countersunk.

SOLOCO (Dura Base)207 Town Center Pky.Lafayette, LA 70506-7524Contact: Keith Pearson or DonCouvillonPhone: (337) 981-5058Fax: (337) 984-9241Email: [email protected] [email protected] COMPOSITE MAT SYSTEMis the world’s most advanced solutionfor temporary surfaces includingheavy-duty roads, turnarounds, workand staging areas. It’s strength anddurability allows you to work year-round in the harshest conditions.Installs and cleans up quickly. It’s a per-manent solution to your temporary

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road and work surface needs.

Mechanical & ElectricalInspection

Udelhoven Oilfiystem 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.

Medical Facilities & EmergencyResponse

Aeromed International4700 Business Park Blvd., Ste. E25Anchorage, AK 99503Contact: Brooks Wall, directorPhone: (907) 677-7501Fax: (907) 677-7502Email: [email protected] site: www.aeromed.comAeromed International is an all jet crit-ical care air ambulance fleet based inAnchorage. Medical crews are certifiedFlight Nurses and certified FlightParamedics.

Medical Services

Aeromed International4700 Business Park Blvd., Ste. E25Anchorage, AK 99503Contact: Brooks Wall, directorPhone: (907) 677-7501Fax: (907) 677-7502Email: [email protected] site: www.aeromed.comAeromed International is an all jet crit-ical care air ambulance fleet based inAnchorage. Medical crews are certifiedFlight Nurses and certified FlightParamedics.

Kuukpik Arctic Catering5761 Silverado Way, Ste PAnchorage, AK 99518Contact: Rick MacMillanPhone: (907) 562-5588Fax: (907) 562-5898Email: [email protected]

Meetings & Conventions

Alyeska Prince HotelP.O. Box 249Girdwood, AK 99587Contact: Kathryn Stone, sales mgr.Phone: (907) 754-2213Fax: (907) 754-2290Email: [email protected]: www.AlyeskaResort.comAlyeska Prince Hotel contains over30,000 sq. feet of event space suitedfor 20-450 people. It is a premiere des-tination for meetings and conventions.Our managers will assist you in creat-ing the ideal meeting for your group.

Hilton Anchorage Hotel500 West Third Ave.Anchorage, AK 99501Contact: Karen BoshellPhone: (907) 272-7411Phone: 1-800-445-8667Fax: (907) 265-7042Website: www.anchorage.hilton.comAt the Hilton, guests discover unex-pected luxury. We are just steps awayfrom shopping, day tours, fishing andthe convention center. The Hilton’s 600guest rooms and suites, three restau-rants, indoor pool, and native art col-lection will make your stay complete.

Hotel Captain Cook4th & K St.Anchorage, AK 995Phone: (907) 276-6000Website: www.captaincook.comAlaska’s only member of PreferredHotels and Resorts Worldwide. 547rooms including 96 suites, three restau-

rants and a coffee bar. Located indowntown Anchorage.

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 distribu-tor. Complete processing capabilities,statewide service. Specializing in lowtemperature steel.

Movers/Relocation

Capital Office Systems1120 E, 35th Ave.Anchorage, AK 99508Contact: Leslye Langla, managingdirect.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 dealerfor Alaska.

Sourdough ExpressP.O. Box 73398Fairbanks, AK 99709Contact: Jeff Gregory, presidentPhone: 907-452-1181Fax: 907-451-6188E-mail: [email protected] 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 inAlaska. Our DML 2000 software assimi-lates a comprehensive database ofgeological and drilling informationwith presentations available in a vari-ety of hardcopy and digital formats.

Horizon Well Logging700 W. 58th St., EAnchorage, AK 99518Contact: Bernie Leas, AK oper. mgr.Phone: (907) 563-7002Fax: (907) 563-7005E-mail: [email protected] office711 St. Andrews WayLompoc, CA 93436Phone: (805) 733-0972Website: www.horizon-well-logging.comMudlogging service with expert geolo-gists, reliable equipment and innova-tive software. Logs, digital and graphicdata, and communications to suit yourneeds. Cost effective wellsite data solu-tions.

Office Furniture

Capital Office Systems1120 E, 35th Ave.Anchorage, AK 99508Contact: Leslye Langla, managingdirect.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 dealerfor Alaska.

Oilfield Services

NANA Oilfield Svc. (NOSI)Box 340112Prudhoe Bay, AK 99508Contact: Jim McGraw/Rick HofreiterPhone: (907) 659-2840Fax: (907) 659-2289Email:[email protected]/[email protected] site: www.nanaoilfield.comProvides support services to all majorcompanies active in oil exploration ordevelopment on Alaska’s North Slopein addition to service companies, con-tractors and government agencies withongoing activities in the Prudhoe Bayarea. Provide equipment and vehiclerental and operate the Chevron fueldistributorship in Deadhorse.

Rain for Rent43784 Kenai Spur Hwy.Kenai, AK 99611Contact: Randy Harris, branch mgr.Phone: (907) 283-4487Fax: (907) 283-4528Email: [email protected] site: www.rainforrent.comOther Office:1642 Bannister Dr.Anchorage, AK 99508Phone: (907) 440-2299Rain for Rent combines rental tanks,pipe, and filtration systems for solu-tions to temporary liquid-handlingneeds. We offer engineering and on-site personnel – 24/7, 365 days a year.

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.

CoreMongers6212 Magnaview Dr.Eagle River, AK 99577Contact: Clifton M. PoseyPhone: (907) 317-2361Web site: CoreMongers.comCoreMongers specializes in high reso-lution core photography and otherwhole core services including core slab-bing and core plugging. CoreMongersis based locally in Anchorage.

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 & ThreadTechnology

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 meetyour requirements.

Unique Machinea subsidiary of Sumitomo Corp.5839 Old Seward HwyAnchorage, AK 99518Contact: Pat Hanley, gen. mgr.

Phone: (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 proprietaryconnections.

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 mainte-nance, fiber optic cable installation.

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 owneddiving contractor specializing in sub-sea oilfield work on mooring systems,pipelines, platforms and docks in CookInlet, on the North Slope and inValdez.

Peak Oilfield Service Co.2525 C St., Ste. 201Anchorage, AK 99503Contact: Ben ClevelandPhone: (907) 263-7000Fax: (907) 263-7070E-Mail: [email protected]: 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.

Power Generation

Pacific Detroit Diesel-Allison8001 Petersburg St.Anchorage, AK 99507Contact: Sales, Service & PartsPhone: (907) 522-3434

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Fax: (907) 522-1198Web site: www.pacificdda.comOther office:3177 N. Van Horn Rd.Fairbanks, AK 99709Phone: (907) 479-1235Fax: (907) 479-1237We are distributors for Detroit Diesel,Allison and Kohler. We have servedAlaska for over 30 years with qualityproducts for the petroleum industry.

Precision Power5801 Silverado WayAnchorage, AK 99518Contact: John Cameron, gen. mgr.Phone: (907) 561-7797Fax: (907) 561-7799Email: [email protected] site: www.precisionpowerllc.comOther officeAuburn, WA (253) 887-9596Deadhorse, AK (907) 670-5519Premier source for custom manufac-tured generators, power plants, UPSSystems, DC Power Systems: Sales,Service, Rental. Parts for Waukesha,Mitsubishi, John Deere, Generac, MQPower & Energys-Eltek

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 leadingprovider of natural gas compressionservices and equipment in Canada. Wemaintain an 85,000 horsepower rentalcompression fleet in Canada and over3.6 million horsepower rental fleetworldwide. Hanover custom designsproduction equipment in accordancewith customer’s specifications usingstrict internal engineering standards.We have the capability to provideprocess, mechanical and instrumentdesign engineering for any productionequipment project worldwide.

Natco GroupP.O. Box 850, Stn. TCalgary, Alberta T2H2H3Contact: Kevin Baird, bus. dev. mgr.Phone: (403) 203-2103Fax: (403) 236-0488E-mail: [email protected]: www.natcogroup.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 anddesign services including constructionmanagement for petro-chemical andheavy industrial 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 yourlocation, you will receive service that isguaranteed to meet your require-ments. From Anchorage to Siberia,from shipping to communications, youreceive service from the experts thathave ‘Been There, 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.

Production Equipment

Oilfield Improvements1902 North Yellowood Ave.Broken Arrow, OK 74145Contact: Hughes Coston SRPhone: (918) 250-5584Phone: (800) 537-9327Fax: (918) 250-4666Email: [email protected]: www.rodguides.comSucker rod guides – The Ultra Flowfield installed guide, The Wheeled RodGuide

Real Estate

Alaska Railroad Corp.P.O. Box 107500Anchorage, AK 99510Contact: Katie Bender, Marketing andLogistics TechnicianPhone: (907) 265-2485Fax: (907) 265-2597

Email: [email protected] Alaska Railroad Corporation offersreal estate, passenger and freight serv-ices – including complete services tomove your freight between Alaska, theLower 48 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: Mike Kunkel/John Daly gen.mgrs., Craig Welch, mgr. special proj-ects Phone: (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] Suppliers 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 recoveryand recycling equipment.

Pacific Environmental (PENCO)6000 A St.Anchorage, AK 99518Contact: Tom Ulrich, reg. mgr.American Maine 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.Asbestos and lead abatement.Petroleum vessel services and bulk fueloil facility and storage tank mainte-nance, management and operations.

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B20 PETROLEUM NEWS • WEEK OF APRIL 17, 2005PETROLEUM DIRECTORYQuadco6116 Nielson WayAnchorage, AK 99518Contact: David Baggett, VP, AlaskamanagerPhone: (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 han-dling and Top Drive drilling equip-ment. 24 hour 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 toursheet for morning reports and payrollreporting.

Restaurants

Alyeska Prince HotelP.O. Box 249Girdwood, AK 99587Contact: Kathryn Stone, sales mgr.Phone: (907) 754-2213Fax: (907) 754-2290Email: [email protected]: www.AlyeskaResort.comAlyeska Prince Hotel contains over30,000 sq. feet of event space suitedfor 20-450 people. It is a premiere des-tination for meetings and conventions.Our managers will assist you in creat-ing the ideal meeting for your group.

Hotel Captain Cook4th & K St.Anchorage, AK 995Phone: (907) 276-6000

Website: www.captaincook.comAlaska’s only member of PreferredHotels and Resorts Worldwide. 547rooms including 96 suites, three restau-rants and a coffee bar. Located indowntown Anchorage.

Rigging Supplies

Arctic Wire Rope & Supply6407 Arctic Spur Rd.Anchorage, AK 99518Contact: Jill ReevesPhone: (907) 562-0707Fax: (907) 562-2426Email: [email protected] site: www.arcticwirerope.comArctic Wire Rope & Supply is Alaska’slargest and most complete rigging sup-ply source. We specialize in customsling fabrication (wire rope, web,chain, and polyester round.)

Right of Way Maintenance

Carolina Mat Co.P.O. Box 339Plymouth, NC 27962Contact: Susan Harrison, ownerPhone: (252) 793-4045Fax: (252) 793-5187Email: [email protected]: www.carolinamat.comCompany established in 1985.Manufacture 3-ply patented, bolted,portable, reusable, solid oak construc-tion mats. Guaranteed to hold up to 50tons, the mats are interlocking andnon-interlocking, countersunk or non-countersunk.

Cruz ConstructionHC04 Box 9323Palmer, AK 99645Contact: Dave or Dana CruzPhone: (907) 746-3144Fax: (907) 746-5557Email: [email protected] contractor specializing inheavy civil construction, horizontaldirection drilling for utilities. Ice roadand ice bridge construction through-out Alaska in support of resourcedevelopment.

Safety Equipment & Supplies

Arctic Wire Rope & Supply6407 Arctic Spur Rd.Anchorage, AK 99518Contact: Jill ReevesPhone: (907) 562-0707Fax: (907) 562-2426Email: [email protected] site: www.arcticwirerope.comArctic Wire Rope & Supply is Alaska’slargest and most complete rigging sup-ply source. We specialize in customsling fabrication (wire rope, web,chain, and polyester round.)

Brooks Range SupplyPouch 3400081 Old Spine RoadPrudhoe Bay, AK 99734Contact: Mike Kunkel/John Daly, gen.mgrs., Craig Welch, mgr. special. proj-ectsPhone: (907) 659-2550Toll Free: (866) 659-2550Fax: (907) 659-2650Email: [email protected] source on the Slope for safetysupplies, welding supplies, automotiveand truck parts, hardware, tools, steel,building materials, glass, propane,hydraulic hoses and fittings, paint andchemicals. Napa and True ValueHardware distribution. Own PrudhoeBay General Store that carries varioussundries and is home to the PrudhoeBay Post Office.

Jackovich Industrial & Construction SupplyFairbanks: 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 Arcticconditions and extreme weather.

MEDC International5829 West Sam Houston Pkwy, North,Ste.1005Houston, TX 77041Contact: Phil Hausman, sales mgr. -AmericasPhone: (713) 937-9772Fax: (713) 937-9773Cell: (713) 410-1144Email: [email protected] Office: MEDC Ltd. – UKWeb site: www.medc.comMEDC design, manufacture and sell arange of UL/CSA/ATEX-NEC/IECapproved field devices for fire & gasand communications systems for use inpotentially explosive atmospheres.

RAE Systems1339 Moffett Park Dr.Sunnyvale, CA 94089Contact: Amanda Leet, mktg.Phone: (408) 585-3522Fax: (408) 752-0724Email: [email protected] site: www.raesystems.comRAE Systems is manufacturer of rapid-ly-deployable, multi-sensor chemicaldetection monitors and networks forhomeland security and industrial appli-cations. RAE Systems offers a full lineof portable single-sensor chemical andradiation detection products.

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.

Security

Kuukpik Arctic Catering5761 Silverado Way, Ste PAnchorage, AK 99518Contact: Rick MacMillanPhone: (907) 562-5588Fax: (907) 562-5898Email: [email protected]

Seismic & Geophysical

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. PGSOnshore provides fully rubber trackedArctic geophysical crews to acquire thehighest density data with the softestenvironmental footprint on the NorthSlope.

Smith Consulting Services16467 Noble Point DriveAnchorage, AK 99516Contact: Larry SmithPhone: (907) 345-3250Fax: (907) 345-3250Email: [email protected] geophysical consulting servic-es including seismic acquisition plan-ning and field QC as well as interpreta-tion, mapping and GIS data integrationusing Kingdom Suite and ArcGIS soft-ware.

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, managingdirect.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 dealerfor Alaska.

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]

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PETROLEUM NEWS • WEEK OF APRIL 17, 2005 B21PETROLEUM DIRECTORY

Fairbanks 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.

Holaday – Parks, Inc.1820 Marika St.Fairbanks, AK 99709Contact: Jerry Freel, vp ops. AKPhone: (907) 452-7151Fax: (907) 452-3800Email: [email protected] site: www.holaday-parks.comHoladay-Parks is a sheet metal fabrica-tion that involves welding. We also doheating ventilation and air condition-ing.

Peak Oilfield Service Co.2525 C St., Ste. 201Anchorage, AK 99503Contact: Ben ClevelandPhone: (907) 263-7000Fax: (907) 263-7070E-Mail: [email protected]: www.peakalaska.comAlaska based general contractors.

Ranes & Shine Welding6111 Quinhagak St.Anchorage, AK 99507Contact: Tom Ranes, ownerContact: Mike Prince, shop fore.Phone: (907) 868-5079Fax: (907) 868-5087Email: [email protected] site: ranesandshine.comWe are a custom welding and fabrica-tion shop with a 20’ brake, 13 1/2’shear, computerized plasma table andmobile welding trucks.

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.

Welding ServicesP.O. Box 7248Nikiski, AK 99635Mile 20.5 Kenai Spur Hwy.North Kenai, AKContact: Keith T. RahamPhone: (907) 776-8279Fax: (907) 776-8279Cell Phone: (907) 252-5466General Contractor #27005. Oilfieldand general welding fabrication andrepair services including aluminum,stainless steel and carbon steel.

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 distribu-tor. Complete processing capabilities,statewide service. Specializing in lowtemperature steel.

ColvillePouch 340012Prudhoe Bay, AK 99734Contact: Mike Kunkel/John Daly gen.mgrs., Craig Welch, mgr. special proj-ects Phone: (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.

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: Derek Howard, survey mgr.Contact: Wiley Wilhelm, engineeringmgr.Phone: (907) 273-1830Fax: (907) 273-1831Email: [email protected] Offices:Barrow: (907) 852-8212Email: [email protected]: (907) 670-4739Email: [email protected] contractor project supportsurveyors; remote site land and hydro-graphic surveys for government andprivate; oil and gas development sur-veying, mapping, and permitting.

Lounsbury and Associates723 W. 6th Ave.Anchorage, AK 99501Contact: Craig L. Savage, presidentE-mail: [email protected]: Jim Sawhill, vpEmail: [email protected]: (907) 272-5451Fax: (907) 272-9065

Toll 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 Seaand Alaska’s North Slope.

Telephone Equipment & Sales

ASTAC4300 B St., Ste. 501Anchorage, AK 99503Contact: David FauskePhone: (907) 563-3989Phone: 1-800-478-6409Fax: (907) 563-1932Email: [email protected] local and long distance serv-ice, Internet, maintenance and train-ing, consultation, installation, engi-neering, Centrex, custom calling fea-tures, digital cross connect service, anddigital data service to the North Sloperegion of Alaska.

North Slope Telecom2020 E. Dowling, Ste. 3Anchorage, AK 99507Contact: Bill Laxson, presidentPhone: (907) 562-4693Fax: (907) 562-0818Email: [email protected] site: www.nstiak.comDesign, installation and maintenanceof telephone, cable plant, fiber optics,data network, VOIP, paging and cellu-lar systems. Twenty years of arcticexperience.

Temporary Placement Services

Alaska’s People670 West Fireweed Lane, Ste. 112Anchorage, AK 99503Contact: Lonnie Jackson, directorPhone: (907) 265-5901Fax: (907) 274-6134Email: [email protected] site: www.alaskaspeople.comAlaska’s People is the NativeEmployment Specialist statewide. Wehave placed thousands of nativeAlaskans and American Indians into alllevels of employment from entry toexecutive.

Chiulista Camp Services/MayflowerCatering6613 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 housekeep-ing to your tastes, not ours.

Tire Sales & Service

TDSTire Distribution Systems1150 E. International Airport Rd.Anchorage, AK 99518Contact: Mike Weitz, mgr.Phone: (907) 562-2010Fax: (907) 563-7097Email: [email protected] Office:3601 S. CushmanFairbanks, AK 99701Sales and service of passenger, truck, ortires and retreading of tires.

Training

Pacific Rim Institute of Safety &Management (PRISM)P.O. Box 3670Kenai, AK 99611

Contact: David C. Burnett, programmgr.Phone: (907) 283-3054Fax: (907) 283-1853Email: [email protected] site: www.AAICorp.comProviding a full spectrum of compli-ance based training for workers in thefield of health, safety and emergencyresponse, all in one location. Basic rig-ging, forklift and manlift operations,confined space rescue, hazardousmaterials, maritime (BST, STCW certi-fied), industrial fire fighting (NFPA600).

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 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 owneddiving contractor specializing in sub-sea oilfield work on mooring systems,pipelines, platforms and docks in CookInlet, on the North Slope and inValdez.

Storm Chasers Marine Svc.P.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 sal-vage services.

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 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 owneddiving contractor specializing in sub-sea oilfield work on mooring systems,pipelines, platforms and docks in CookInlet, on the North Slope and inValdez.

Storm Chasers Marine Svc.P.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 sal-vage services.

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B22 PETROLEUM NEWS • WEEK OF APRIL 17, 2005PETROLEUM DIRECTORYVehicle 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 –Anchorage and Fairbanks. New andused 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 andservice support in Fairbanks andPrudhoe 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 andservice support in Fairbanks andPrudhoe Bay.

Welding

Holaday – Parks, Inc.1820 Marika St.Fairbanks, AK 99709Contact: Jerry Freel, vp ops. AKPhone: (907) 452-7151Fax: (907) 452-3800Email: [email protected]

Web site: www.holaday-parks.comHoladay-Parks is a sheet metal fabrica-tion that involves welding. We also doheating ventilation and air condition-ing.

Ranes & Shine Welding6111 Quinhagak St.Anchorage, AK 99507Contact: Tom Ranes, ownerContact: Mike Prince, shop fore.Phone: (907) 868-5079Fax: (907) 868-5087Email: [email protected] site: ranesandshine.comWe are a custom welding and fabrica-tion shop with a 20’ brake, 13 1/2’shear, computerized plasma table andmobile welding trucks.

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.

Welding ServicesP.O. Box 7248Nikiski, AK 99635Mile 20.5 Kenai Spur Hwy.North Kenai, AKContact: Keith T. RahamPhone: (907) 776-8279Fax: (907) 776-8279Cell Phone: (907) 252-5466General Contractor #27005. Oilfieldand general welding fabrication andrepair services including aluminum,stainless steel and carbon steel.

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]

Web site: www.hanover-canada.comHanover Canada is the leadingprovider of natural gas compressionservices and equipment in Canada. Wemaintain an 85,000 horsepower rentalcompression fleet in Canada and over3.6 million horsepower rental fleetworldwide. Hanover custom designsproduction equipment in accordancewith customer’s specifications usingstrict internal engineering standards.We have the capability to provideprocess, mechanical and instrumentdesign engineering for any productionequipment project worldwide.

Holaday – Parks, Inc.1820 Marika St.Fairbanks, AK 99709Contact: Jerry Freel, vp ops. AKPhone: (907) 452-7151Fax: (907) 452-3800Email: [email protected] site: www.holaday-parks.comHoladay-Parks is a sheet metal fabrica-tion that involves welding. We also doheating ventilation and air condition-ing.

Natco GroupP.O. Box 850, Stn. TCalgary, Alberta T2H2H3Contact: Kevin Baird, bus. dev. mgr.Phone: (403) 203-2103Fax: (403) 236-0488E-mail: [email protected]: www.natcogroup.comNatco Group engineers, designs andmanufactures process, wellhead andwater treatment equipment and sys-tems used in the production of oil andgas worldwide.

Peak Oilfield Service Co.2525 C St., Ste. 201Anchorage, AK 99503Contact: Ben ClevelandPhone: (907) 263-7000Fax: (907) 263-7070E-Mail: [email protected]: www.peakalaska.comAlaska based general contractors.

Ranes & Shine Welding6111 Quinhagak St.Anchorage, AK 99507Contact: Tom Ranes, ownerContact: Mike Prince, shop fore.Phone: (907) 868-5079Fax: (907) 868-5087Email: [email protected] site: ranesandshine.com

We are a custom welding and fabrica-tion shop with a 20’ brake, 13 1/2’shear, computerized plasma table andmobile welding trucks.

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 Machinea subsidiary of Sumitomo Corp.5839 Old Seward HwyAnchorage, AK 99518Contact: Pat Hanley, gen. mgr.Phone: (907) 563-3012Fax: (907) 562-1376Email: [email protected] site: www.uniquemachineinc.comThe design, development, manufactureand distribution of oilfield construc-tion, mining, fishing and governmentparts to industry quality standards.

Welding ServicesP.O. Box 7248Nikiski, AK 99635Mile 20.5 Kenai Spur Hwy.North Kenai, AKContact: Keith T. RahamPhone: (907) 776-8279Fax: (907) 776-8279Cell Phone: (907) 252-5466General Contractor #27005. Oilfieldand general welding fabrication andrepair services including aluminum,stainless steel and carbon steel.

Wire Rope

Arctic Wire Rope & Supply6407 Arctic Spur Rd.Anchorage, AK 99518Contact: Jill ReevesPhone: (907) 562-0707Fax: (907) 562-2426Email: [email protected] site: www.arcticwirerope.comArctic Wire Rope & Supply is Alaska’slargest and most complete rigging sup-ply source. We specialize in customsling fabrication (wire rope, web,chain, and polyester round.)

OIL COMPANIES

Operators

ConocoPhillips Alaska700 G St.P.O. Box 100360Anchorage, AK 99510-0360Contact: Jim Bowles, 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

XTO Energy810 Houston St.Fort Worth, TX 76102Contact: Vaughn O. Vennerberg, IIPhone: (817 870-2800Fax: (817) 870-0379Other Office:52260 Shell Rd.Kenai, AK 99611Contact: Scott Griffith, mgr. envir.,health, safety & training (EHST)XTO Energy, established in 1986, isengaged in the acquisition and devel-opment of quality, long-lived produc-ing oil and gas properties and explo-ration for oil and gas.

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Page 48: l Thunder booms again - Petroleum News · page 15 Don’t count out Western Canada natural gas Vol. 10, No. 16 • North America’s source for oil and gas news Week of April 17,

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At left, Inspection methods have improved over that time, and Canspec has led theway with advanced tools and techniques that assist in the detection of corrosion andwear before they become a serious problem. Above, a Northern Air Cargo 727 jet isloaded in Kotzebue, Alaska.

The complex facilities at Prudhoe Bay are a challenge for all the Canspec engineers and technicians whostrive every day to keep operations working in a harsh environment.

A Northern Air Cargo DC-6 sits on the tarmac

A Northern Air Cargo 727 is unloaded in Kotzebue, Alaska.