August 2002
World Oil Market and Oil Price Chronologies: 1970 -
2001
This chronology was orginally published by the Department of Energy's Office
of the Strategic Petroleum Reserve, Analysis Division. Updates for 1995-2001 are
from the Energy Information Administration. Please click here for the latest
monthly chronology.
World Oil Price Chronology: 1970-April 2002
Click here (about 73K) to
download the world oil price data that was used to construct this chart. The
price data are in nominal terms, i.e., they are in "dollars-of-the-day" and have
not been adjusted for inflation.
- OPEC begins to assert power; raises tax rate & posted prices
- OPEC begins nationalization process; raises prices in response to falling
US dollar.
- Negotiations for gradual transfer of ownership of western assets in OPEC
countries
- Oil embargo begins (October 19-20, 1973)
- OPEC freezes posted prices; US begins mandatory oil allocation
- Oil embargo ends (March 18, 1974)
- Saudis increase tax rates and royalties
- US crude oil entitlements program begins
- OPEC announces 15% revenue increase effective October 1, 1975
- Official Saudi Light price held constant for 1976
- Iranian oil production hits a 27-year low
- OPEC decides on 14.5% price increase for 1979
- Iranian revolution; Shah deposed
- OPEC raises prices 14.5% on April 1, 1979
- US phased price decontrol begins
- OPEC raises prices 15%
- Iran takes hostages; President Carter halts imports from Iran; Iran
cancels US contracts; Non-OPEC output hits 17.0 million b/d
- Saudis raise marker crude price from 19$/bbl to 26$/bbl
- Windfall Profits Tax enacted
- Kuwait, Iran, and Libya production cuts drop OPEC oil production to 27
million b/d
- Saudi Light raised to $28/bbl
- Saudi Light raised to $34/bbl
- First major fighting in Iran-Iraq War
- President Reagan abolishes remaining price and allocation controls
- Spot prices dominate official OPEC prices
- US boycotts Libyan crude; OPEC plans 18 million b/d output
- Syria cuts off Iraqi pipeline
- Libya initiates discounts; Non-OPEC output reaches 20 million b/d; OPEC
output drops to 15 million b/d
- OPEC cuts prices by $5/bbl and agrees to 17.5 million b/d output
- Norway, United Kingdom, and Nigeria cut prices
- OPEC accord cuts Saudi Light price to $28/bbl
- OPEC output falls to 13.7 million b/d
- Saudis link to spot price and begin to raise output
- OPEC output reaches 18 million b/d
- Wide use of netback pricing
- Wide use of fixed prices
- Wide use of formula pricing
- OPEC/Non-OPEC meeting failure
- OPEC production accord; Fulmar/Brent production outages in the North Sea
- Exxon's Valdez tanker spills 11 million gallons of crude oil
- OPEC raises production ceiling to 19.5 million b/d
- Iraq invades Kuwait
- Operation Desert Storm begins; 17.3 million barrels of SPR crude oil sales
is awarded
- Persian Gulf war ends
- Dissolution of Soviet Union; Last Kuwaiti oil fire is extinguished on
November 6, 1991
- UN sanctions threatened against Libya
- Saudi Arabia agrees to support OPEC price increase
- OPEC production reaches 25.3 million b/d, the highest in over a decade
- Kuwait boosts production by 560,000 b/d in defiance of OPEC quota
- Nigerian oil workers' strike
- Extremely cold weather in the US and Europe
- U.S. launches cruise missile attacks into southern Iraq following an
Iraqi-supported invasion of Kurdish safe haven areas in northern Iraq.
- Iraq begins exporting oil under United Nations Security Council Resolution
986.
- Prices rise as Iraq's refusal to allow United Nations weapons inspectors
into "sensitive" sites raises tensions in the oil-rich Middle East.
- OPEC raises its production ceiling by 2.5 million barrels per day to 27.5
million barrels per day. This is the first increase in 4 years.
- World oil supply increases by 2.25 million barrels per day in 1997, the
largest annual increase since 1988.
- Oil prices continue to plummet as increased production from Iraq coincides
with no growth in Asian oil demand due to the Asian economic crisis and
increases in world oil inventories following two unusually warm winters.
- OPEC pledges additional production cuts for the third time since March
1998. Total pledged cuts amount to about 4.3 million barrels per day.
- Oil prices triple between January 1999 and September 2000 due to strong
world oil demand, OPEC oil production cutbacks, and other factors, including
weather and low oil stock levels.
- President Clinton authorizes the release of 30
million barrels of oil from the Strategic Petroleum Reserve (SPR) over 30 days
to bolster oil supplies, particularly heating oil in the Northeast.
- Oil prices fall due to weak world demand (largely as a result of
economic recession in the United States) and OPEC overproduction.
- Oil prices decline sharply following the September 11,
2001 terrorist attacks on the United States, largely on increased fears of a
sharper worldwide economic downturn (and therefore sharply lower oil
demand). Prices then increase on oil production cuts by OPEC
and non-OPEC at the beginning of 2002, plus unrest in the Middle
East and the possibility of renewed conflict with
Iraq.
Original
concept for the chart was by the Analysis Division in the Office of Management
Operations; Strategic Petroleum Reserve. Modified and updated by the Office of
Energy Markets and End Use in the Energy Information Administration.
Click on the hotlinks below to go to the chronology for a specific year:
| 1970 | 1971 | 1972 | 1973 | 1974 |
| 1975 | 1976 | 1977 | 1978 | 1979 |
| 1980 | 1981 | 1982 | 1983 | 1984 |
| 1985 | 1986 | 1987 | 1988 | 1989 |
| 1990 | 1991 | 1992 | 1993 | 1994 |
| 1995 | 1996 | 1997 | 1998 | 1999 |
| 2000 | 2001 |
- Jan 1
- U.S. Federal oil depletion allowance reduced from 27.5 to 22.0
percent.
- May 3
- TAP line from Saudi Arabia to the Mediterranean interrupted in Syria,
creating all-time tanker rate highs from June to December.
- Sep 4 - Oct 9
- Libya raises posted prices and increases tax rate from 50 percent to 55
percent. Iran and Kuwait follow in November.
- Dec 9-12
- OPEC meeting in Caracas establishes 55 percent as minimum tax rate and
demands that posted prices be changed to reflect changes in foreign exchange
rates.
- Jan 12
- Negotiations begin in Tehran between 6 Gulf producing countries and 22 oil
companies.
- Feb 3-4
- OPEC mandates "total embargo" against any company that rejects the 55
percent tax rate.
- Feb 14
- Tehran agreement signed. Companies accept 55 percent tax rate, immediate
increase in posted prices, and further successive increases.
- Feb 24
- Algeria nationalizes 51 percent of French oil concessions.
- Apr 2
- Libya concludes five weeks of negotiations with Western oil companies in
Tripoli on behalf of itself, Saudi Arabia, Algeria and Iraq. Agreement raises
posted prices of oil delivered to Mediterranean from $2.55 to $3.45 per
barrel; provides for a 2.5 percent annual price increase plus inflation
allowance; raises tax rate from a range of 50-58 percent to 60 percent of
posted price.
- Jul 31
- Venezuela's Hydrocarbons Reversion Law mandates gradual transfer to
government ownership of all "unexploited concession areas" by 1974 and "all
their residual assets" by 1983.
- Aug 15
- U.S. Government institutes Phase I price controls. Invoking the powers
granted to the president by the Economic Stabilization Act of 1970, President
Nixon orders 90-day nationwide freeze on all wages, prices, salaries and
rents.
- Sep 22
- OPEC directs members to negotiate price increases to offset the
devaluation of the U.S. dollar.
- Nov
- U.S. Phase II price controls begin. Plan is to allow for gradual 2-3
percent annual price increases, however, domestic petroleum prices remain at
Phase I levels.
- Dec 5
- Libya nationalizes British Petroleum concession.
- Jan 20
- Six exporting countries - Abu Dhabi, Iran, Iraq, Kuwait, Qatar and Saudi
Arabia - conclude ten days of meetings with Western oil companies. An
agreement is reached to raise the posted price of crude by 8.49 percent to
offset the loss in value of oil concessions attributable to the decline in
value of the U.S. dollar.
- Mar 11-12
- OPEC threatens "appropriate sanctions" against companies that "fail to
comply with . . . any action taken by a Member Country in accordance with
[OPEC] decisions."
- Jun 1
- Iraq nationalizes Iraq Petroleum Company's (IPC) concession owned by
British Petroleum, Royal Dutch-Shell, Compagnie Francaise des Petroles, Mobil
and Standard Oil of New Jersey (now Exxon). The concessions were valued at
over one billion dollars.
- Jun 9
- In a show of support for Iraq, OPEC moves to prevent companies whose
interests were nationalized in Iraq from increasing production elsewhere;
appoints mediators between Iraq and IPC.
- Sep 30
- Libya acquires a 50 percent interest in two ENI concessions.
- Oct 27
- OPEC approves plan providing for 25 percent government ownership of all
Western oil interests operating within Kuwait, Qatar, Abu Dhabi and Saudi
Arabia beginning on January 1, 1973, and rising to 51 percent by January 1,
1983. (Iraq declines to agree.) Agreements signed on December 21.
- Jan 11
- U.S. Phase III price controls begin. Allows for voluntary instead of
mandatory price control on all U.S. prices. This does not prevent a sharp rise
in heating oil prices caused by a severe winter and shortage of product.
- Jan 17
- President Nixon suspends mandatory oil import quota on No. 2 heating oil
through April 30.
- Jan 23
- Shah of Iran announces that the 1954 operating agreement between a
consortium of oil companies and Iran will not be renewed when it expires in
1979. The consortium was formed in 1954 as a means to settle a dispute between
a new ministry in Iran and the Anglo-Iranian Oil Company (AIOC). The
consortium included Standard Oil of New Jersey, Standard Oil of California,
SOCONY-Vacuum, the Texas Company, Gulf, Royal Dutch-Shell, the Compagnie
Francaise de Petroles, and the AIOC.
- Feb 28
- Iraq and IPC reach an agreement on compensation for nationalization.
- Mar
- Special Rule No. 1 reimposes mandatory (Phase II) price controls on the 23
largest oil companies. Smaller companies, representing 5 percent of the
market, enjoy uncontrolled prices.
- Mar 16
- Shah of Iran and Consortium members agree to nationalize all assets
immediately in return for an assured 20-year supply of Iranian oil.
- Mar 16-17
- OPEC discusses raising prices to offset decline of U.S. dollar value.
- Apr 1
- OPEC increases posted prices by 5.7 percent.
- Apr 18
- U.S. Government ends Mandatory Oil Import Program. Program, established in
1959 by President Eisenhower, had limited imports of crude and product east of
the Rocky Mountains to a percentage of domestic crude production.
- Jun 1
- Eight OPEC countries raise posted prices by 11.9 percent.
- Jun 11
- Libya nationalizes Bunker Hunt concession; Nigeria acquires 35 percent
participation in Shell-BP concession.
- Jun 14
- Nixon administration imposes 60-day economy-wide price freeze, superseding
Special Rule No. 1 for oil companies.
- Aug
- Libya nationalizes 51 percent of Occidental Petroleum concession and of
the Oasis consortium.
- Aug 17
- President Nixon's Cost of Living Council imposes two-tier price ceiling on
crude petroleum sales: production of "old" oil (that produced at or below 1972
levels from existing wells) to be sold at March 1973 prices plus 35 cents;
production of "new" oil (that produced above 1972 levels from existing wells
and oil produced from new wells) to be sold at uncontrolled prices.
- Sep 1
- Libya nationalizes 51 percent of nine other companies' concessions: Esso,
Libya/Sirte, Mobil, Shell, Gelensberg, Texaco, SoCal, Libyan-American (ARCO),
and Grace.
- Sep 5-9
- Conference of less developed countries approves forming "producers'
associations," calls for withdrawal of Israeli forces from occupied Arab
lands.
- Sep 15-16
- OPEC supports price hikes and designates six Gulf countries to negotiate
collectively with companies over prices. Other members to negotiate
individually.
- Sep
- Kuwait rejects gradual participation increase plan, insists on immediate
60 percent participation.
- Oct 6
- Beginning of fourth Arab-Israeli War.
- Oct 7
- Iraq nationalizes Exxon and Mobil shares in Basrah Petroleum Company
representing 23.75 percent equity in the company.
- Oct 8-10
- OPEC meets with oil companies to discuss revision of 1971 Tehran agreement
and oil prices. Negotiations fail.
- Oct 16
- The Gulf Six (Iran, Iraq, Abu Dhabi, Kuwait, Saudi Arabia and Qatar)
unilaterally raise the posted price of Saudi Light marker crude 17 percent
from $3.12 to $3.65 per barrel and announce production cuts.
- Oct 17
- OPEC oil ministers agree to use oil weapon in Arab-Israeli War, mandate
cut in exports, and recommend embargo against unfriendly states.
- Oct 19-20
- Saudi Arabia, Libya, and other Arab states proclaim an embargo on oil
exports to the United States.
- Oct 23-28
- Arab oil embargo extended to the Netherlands.
- Nov 5
- Arab producers announce 25 percent cut in production below September
levels. Further cuts of five percent are threatened.
- Nov 18
- Arab oil ministers cancel the scheduled 5 percent cut in production for
EEC.
- Nov 23
- Arab summit conference adopts open and secret resolutions on the use of
the oil weapon. Embargo extended to Portugal, Rhodesia, and South Africa.
- Nov 27
- President Nixon signs the Emergency Petroleum Allocation Act (EPAA).
Authorizes petroleum price, production, allocation and marketing controls.
- Dec 9
- Arab oil ministers announce a further production cut of 5 percent for
January for non-friendly countries.
- Dec 22-24
- OPEC Gulf Six decides to raise the posted price of marker crude from $5.12
to $11.65 per barrel effective January 1, 1974.
- Dec 25
- Arab oil ministers cancel January 5 percent production cut. Saudi Arabian
oil minister promises 10 percent OPEC production rise.
- Jan 7-9
- OPEC decides to freeze posted prices until April 1.
- Jan 29
- Kuwait announces 60 percent government participation in BP-Gulf
concession; Qatar follows on February 20.
- Feb 11
- Washington Energy Conference opens. Attended by 13 industrial and oil
producing nations. Called by U.S. to resolve the international energy problems
through economic cooperation among nations. Henry Kissinger unveils Nixon
Administration's seven-point "Project Independence" plan to make the U.S.
energy independent. Libya nationalizes three U.S. oil companies that had not
agreed to 51 percent nationalization in September.
- Feb 12-14
- Heads of state of Algeria, Egypt, Syria, and Saudi Arabia discuss oil
strategy in view of the progress in Arab-Israeli disengagement.
- Mar 18
- Arab oil ministers announce the end of the embargo against the United
States, all except Libya.
- May 18
- Nigeria announces 55 percent government participation in all
concessions.
- Jun 1-3
- Arab oil ministers decide to end most restrictions on exports of oil to
the United States but continue embargo against the Netherlands, Portugal,
South Africa, and Rhodesia.
- Jun 4
- Saudi Arabia announces that it will increase its participation in Aramco
to 60 percent. Abu Dhabi and Kuwait follow in September. Increases are
retroactive to January 1.
- Jun 13
- IMF establishes its "oil facility," a special fund for loans to nations
whose balance of payments have been severely affected by high oil prices.
- Jul 10-11
- OAPEC lifts the embargo against the Netherlands.
- Sep 6Saudi Arabia increases its buy-back price from 93 percent to
94.9 percent of posted price.
-
- Sep 13
- OPEC instructs its Secretary General to "carry out a study of supply and
demand in relation to possible production controls."
- Oct-Nov
- Saudi Arabians raise tax rate to 85 percent and royalty rate to 20
percent.
- Nov 15
- International Energy Agency formed in Paris within OECD framework. Saudi
Arabia, Qatar, and United Arab Emirates announce a slight reduction in posted
prices and tax rates.
- Dec
- U.S. Crude Oil Entitlements Program enacted, retroactive to November
1974.
- Dec 22
- Iraq announces plans to increase its production capacity to 3.5 MMB/D by
1975 and to 6 MMB/D by 1981.
- Jan 1
- U.S. Federal oil depletion allowance eliminated for large producers.
- Jan 13
- Business Week publishes Kissinger interview hinting at military action
against oil countries in case of "actual strangulation."
- Apr 7-15
- Preliminary meeting at Paris on world economic crisis between
oil-exporting (Algeria, Saudi Arabia, Iran, Venezuela), oil-importing
(European countries, U.S., Japan), and non-oil Third World countries (India,
Brazil, Zaire). Talks collapse after nations fail to decide whether agenda
should focus on oil/energy issues or have a broader economic scope.
- Apr 9
- Twenty-four OECD members sign an agreement to establish a $25 billion
lending facility to provide assistance to industrial nations hurt by high oil
prices.
- Jun 13
- World Bank establishes its "Third Window," a fund to make loans to
countries too rich to qualify for "soft" no-interest loans, but too distressed
to afford loans at the prevailing normal lending rates. Action represents
significant cooperation between oil-exporting and industrial nations.
- Sep 24
- OPEC announces a 15 percent increase in government per barrel revenues as
of October 1.
- Oct 28
- Venezuela and foreign oil companies agree on nationalization as of January
1, 1976.
- Dec 1
- Kuwait and Gulf and BP agree on terms of nationalization.
- Dec 9
- Iraq completes nationalization by taking over the BP, CFP, and Shell
shares of the Basrah Petroleum Company.
- Dec 22
- President Ford signs the Energy Policy and Conservation Act (EPCA)
effective February 1976. Authorizes the establishment of the Strategic
Petroleum Reserve (SPR), participation in International Energy Program, and
oil price regulation.
-
- Official price of Saudi Light remains at $12.37 per barrel throughout
1976.
- Feb
- EPCA 3-tier price regulation begins. Small changes in Entitlements
Program.
- April - May
- Lebanese civil war causes drop in Iraq exports through trans-Lebanon
pipelines to Mediterranean.
- May
- OPEC issues press release vowing to "take appropriate measures" to protect
OPEC interests in light of protectionist actions by certain countries.
- Sep 1
- U.S. stripper well oil prices decontrolled.
- Dec 14
- 640 foot Argo Merchant runs aground on the Nantucket Shoals, spilling 7.6
million gallons of No. 6 fuel oil.
- Dec
- Moderates and OPEC "hawks" disagree on how fast price should rise. Saudi
Arabia and United Arab Emirates increase prices by 5 percent, others by 10
percent.
- Jan
- OPEC goes to two-tier pricing (Saudi Arabia and United Arab Emirates use
$12.09 per barrel and other OPEC countries use $12.70per barrel).
- May
- Fifty percent of Saudi Arabia's 10 MMB/D production is halted briefly due
to fire damage to separation facility in Abqaiq field. Prices increase
slightly.
- Jul
- OPEC prices reunified at $12.70 per barrel as Saudi Arabia and UAE fall
into line, then official price rises to $13.66 per barrel.
- Oct 23
- Dry dock complex opens at Bahrain; only facility between Portugal and
Singapore capable of servicing VLCCs.
-
- Jan
- Student protests against government of Reza Pahlavi, Shah of Iran, begin,
touching off a wave of political unrest and violent clashes between police and
demonstrators. Throughout the year increasing anti-Shah activities are led by
Muslim fundamentalists seeking to establish a Muslim state.
- Mar
- Amoco Cadiz tanker runs aground off the coast of France, spilling 1.6
million barrels of crude oil. (Largest crude spill to date.)
- June
- Iran and Saudi Arabia block efforts of OPEC price hawks to fix the price
of OPEC oil in a currency more stable than the U.S. dollar. Say world economy
cannot support associated price increases. Are accused by hawks of being U.S.
agents.
- Sept
- Shah puts Iran under military rule. Muslim leader Noori arrested in
crackdown of opposition groups.
- Oct
- Iranian strikes; departure of foreign technicians.
- Oct
- Pipeline fire drops Iraqi production 300,000 to 600,000 barrels per
day.
- Nov
- Iranian oil production starts dropping.
- Dec
- Iranian production hits 1.5 MMB/D in mid-December; 500,000 on December 27,
a 27-year low. OPEC production rises 1.6 MMBD over two months due to increased
Saudi production.
- Dec 17
- OPEC decides on a 14.5 percent price increase for 1979, to be implemented
quarterly.
-
- Jan
- First emergency Crude Oil Buy-Sell Program allocations.
- Jan 16
- Shah leaves Iran on vacation, never to return. Bakhtiar government
established by the Shah to preside until unrest subsides.
- Jan 20
- Saudi Arabia announces drastic cut in first-quarter production. 9.5 MMBD
ceiling imposed. Although actual cuts never reach announced levels, spot
prices of Middle East light crudes rise 36 percent.
- Jan 20
- One million Iranians march in Teheran in a show of support for the exiled
Ayatollah Komeini, fundamental Muslim leader.
- Feb 12
- Bakhtiar resigns as prime minister of Iran after losing support of the
military.
- Mar 5
- Iran resumes petroleum exports.
- Spring
- Gasoline shortage/world oil glut.
- Mar 26
- OPEC makes full 14.5 percent price increase for 1979 effective on April 1.
Marker crude raised to $14.56 per barrel.
- May
- DOE announces $5 per barrel entitlement to importers of heating oil. Saudi
Arabia announces intention to increase direct sales and to sell less through
Aramco. Both announcements send prices higher.
- Jun 1
- Phased oil price decontrol begins. Involves gradual 28 month increase of
"old" oil price ceilings, and slower rate of increase of "new" oil price
ceilings.
- Jun 26-28
- OPEC raises prices average of 15 percent, effective July 1.
- Oct
- Buy-Sell Program sales average more than 400,000 B/D from October 1979
through March 1980 - highest level since February 1976, due to emergency
allocations.
- Oct
- Canada eliminates light crude oil exports to U.S. refiners, except for
those exports required by operational constraints of pipelines.
- Nov 4
- Iran takes western hostages.
- Nov 12
- Carter orders cessation of Iranian imports to U.S.
- Nov 15
- Iran cancels all contracts with U.S. oil companies.
- Dec 13
- Saudi Arabia raises marker crude price to $24 per barrel.
-
- Mar 1
- Windfall Profits Tax enacted.
- May
- Saudi Light raised to $28.00 per barrel, retroactive to April 1.
- Apr-Sep
- Buy-Sell Program allocations drop to average of 120,000 B/D for period
April to September 1980.
- Sep 17
- Iraq breaks 1975 treaty with Iran and proclaims sovereignty over Shatt
al-Arab waterway.
- Sep 23
- Iraq invades Iran. Mutual bombing of installations.
- Nov 10
- Iraq captures southern port of Khorramshahr.
- Nov 20-24
- U.N. gulf war mediator Olaf Palme makes first unsuccessful peace shuttle
between Tehran and Baghdad.
- Dec
- Collapse of OPEC's pricing structure. Saudis use $32 per barrel marker,
others use $36 per barrel benchmark.
-
- Saudis flood market with inexpensive oil in 1981, forcing unprecedented
price cuts by OPEC members. In October, all 13 OPEC members align on a
compromise $32 per barrel benchmark. Later, benchmark price is maintained, but
differentials are adjusted.
-
- Jan
- Iraq repels first major Iranian offensive.
- Jan 28
- President Reagan lifts remaining domestic petroleum price and allocation
controls originally scheduled to expire in September 1981.
- Apr
- After meetings in Baghdad and Teheran, attempts by nine Islamic Conference
leaders to mediate peace between Iraq and Iran fail.
- Aug
- Windfall profits tax reduced.
- Sep 27-28
- Iran defends its besieged port of Abadan, driving back Iraqi forces.
- Oct
- OPEC reaches an agreement to unify crude price at $32 per barrel through
1982 and sets an ultimate price ceiling of $38 per barrel.
- Nov 29
- Major Iranian offensive mounted on central front.
-
- Indications of a world oil glut lead to a rapid decline in world oil
prices early in 1982. OPEC appears to lose control over world oil prices.
- Mar
- Damascus closes Iraq's 400,000 bbl/d trans-Syrian oil export pipeline to
show support for Iran.
- Mar 11
- U.S. boycotts Libyan crude.
- May 24Iran recaptures Khorramshahr.
-
- Jun
- Iran demands $150 billion in war reparations; pledges war until Iraq's
Hussein stands trial.
- Jun 10
- Iraq declares unilateral cease-fire.
- Jul 13
- Iran launches first attack into Iraq.
-
- Oil glut takes hold. Demand falls as a result of conservation, use of
other fuels and recession. OPEC agrees to limit overall output to 17.5 MMB/D.
OPEC agrees to individual output quotas and cuts prices by $5 to $29 per
barrel.
-
- Apr
- Iraq increases missile attacks on Iran.
- Jul 20-30
- Iran moves into northern Iraq. Casualties top 13,800 in ten days.
- Jul 26
- U.S. threatens action to preserve navigation in Persian Gulf.
- Jul-Aug
- Heavy fighting and casualties in Iran-Iraq war.
- Oct
- Iran attacks northern Iraq, threatening Kirkuk pipeline.
-
- Feb-Mar
- Iran captures Najnoon Islands.
- Mar 27
- Beginning of "tanker war." Over the next nine months, 44 ships, including
Iranian, Iraqi, Saudi Arabian and Kuwaiti tankers, are attacked by Iraqi or
Iranian warplanes or damaged by mines.
- Mar-Jun
- Iran mobilizes 500,000 troops to southern front. No offensive
materializes.
- May 26
- President Reagan rules out U.S. military intervention.
- Jun
- Civilian target truce in Iran-Iraq war.
- Oct
- Norway and Britain cut prices in response to falling spot market. Nigeria
follows, renewing pressure on OPEC price cuts.
- Oct 17
- OPEC cuts production to 16 MMB/D, but agreement is negated by cheating and
price-discounting.
-
- Jan
- Nine OPEC members adjust prices to cut gap between light and heavy crudes
from $4 to $2.40 per barrel. Saudi light price cut one dollar to $28 per
barrel.
- Mar 11-19
- Iranian offensive; heavy casualties.
- May-Jun
- "Battle of the cities" - heavy bombing from both Iran and Iraq.
- Jun
- OPEC output falls to 20-year low of 13.7 MMB/D.
- Jun
- Iran begins hit-and-run raids on Iraq.
- Jul
- OPEC loses customers to cheaper North Sea oil. More OPEC price cuts.
- Aug
- Saudi Arabia links prices to spot market. Output rises from 2 MMB/D in
August to 5 MMB/D in early 1986.
- Aug 15
- First Iraqi air raid on Iran's main oil export terminal, Kharg Island.
- Nov 6
- Exploratory well in Ranger, Texas, blows out, spilling 150,000 BBLS of
crude oil.
- Dec
- OPEC output hits 18 MMB/D boosting a glut and triggering a price war.
-
- Average world oil prices fall by over 50 percent in 1986. There is wide
use of netback pricing in 1986.
-
- Feb 3-4
- OPEC fails to agree upon a production accord after a two-day meeting in
Vienna.
- Feb
- Iran captures southern Faw peninsula, starts northern offensive.
- May 7
- Iraq bombs Tehran refinery.
- Jun
- OPEC production-cut talks fail, ending in a tentative majority pact on an
average 1986 ceiling of 17.6 MMB/D.
- Jun 8
- Iraqi jets attack Assadabad satellite station.
- Jul
- Brent price dips under $9 per barrel. OPEC production rises to 20
MMB/D.
- Jul 27
- Iraqi jets attack central Iranian city of Arak. Iran threatens missile
attack of gulf states supporting Iraq.
- Aug 2
- Hussein offers peace in open letter to Iran.
- Aug 4
- Reports of probable OPEC agreement on output quotas sends oil prices
higher.
- Aug 12
- Iran fires missile at refinery near Baghdad. Iraq raids Iranian terminal
at Sirri Island severely disrupting Iranian exports.
- Dec 19
- OPEC reaches an accord that would cut production by seven percent for the
first six months of 1987 (from 17 MMB/D to 16 MMB/D) and would raise prices
immediately toward a target world oil price of $18 per barrel.
-
- Jan
- OPEC price accord begins to deteriorate.
- Feb
- OPEC majors stick to fixed prices.
- Jun-Aug
- Gulf war escalates.
- Dec
- OPEC meeting failure.
-
- Wide use of crude formula pricing in 1988.
- Feb
- OPEC price meeting set.
- Mar
- OPEC/Non-OPEC meeting failure.
- Jul
- Iran accepts cease fire.
- Oct 14
- Crude oil prices jump in anticipation of possible
production accord at Gulf Cooperation Council meeting set for October 16.
- Nov 28
- OPEC reaches production accord. Six-month agreement
to set production at 18.5 MMB/D. Although the recent OPEC quota had been 19.0
MMB/D, actual OPEC production had been closer to 21.0 MMB/D.
- Dec
- Fulmar/Brent outages.
-
- Mar
- Exxon tanker Valdez runs aground, spilling 11 million
gallons of crude oil in the waters of Price William Sound. Oil prices react
upward to news of the spill and to potential shortages on the west coast cased
by refinery fires there.
- June
- OPEC raises their production ceiling to 19.5 MMB/D.
-
- Aug
- Iraq invades Kuwait. Crude and product prices soar
upward; exchange markets react wildly to any middle east news events; cash
markets dominate prices after trading hours; jet fuel prices rise to record
spreads over other products due to increase in defense demand. In late August,
OPEC president fails to revive floundering attempts to organize a formal OPEC
meeting to discuss crisis/production strategies. Informal meetings held in
Vienna result in record price falls.
-
- Conflicting reports of promises to increase OPEC
output to compensate for embargo of Iraq and Kuwait oil further compound
market uncertainties.
- Aug 2
- raq invades Kuwait.
-
- Bush orders troops to Saudi Arabia.
- Aug 27
- Market prices plunge as OPEC nears informal agreement
to increase output to cover 4 MMB/D shortfall due to invasion. Cash market
trading experiences abrupt decline.
- Sep 6
- U.S. citizen is shot in Kuwait. API reports 4.4 MMB
weekly draw in domestic crude stocks. Oil markets surge on aggressive U.S.
statements toward Iraq.
- Sep 21
- Reports that U.S refinery problems will lead to a
200,000 B/D loss in capacity and aggressive remarks by Saddam Hussein send
crude prices to new highs.
- Sep 24
- Iraq invades the French and Dutch missions in Kuwait;
French President Mitterand called the action a violation of international law;
a U.S. warship boards an Iraqi-flagged tanker bound for the port of Basrah.
- Sep 18
- Crude prices outpace increases in product prices and
there is talk of cutting refinery runs.
- Sep 20
- Poor refining margins.
- Sep 24
- Saddam Hussein states his willingness to strike first
and his intention to damage oil fields in the region if Iraq does strike.
- Oct 1
- Saddam Hussein says he may be willing to negotiate
the occupation of Kuwait and would consider foreign participation in
negotiations.
- Oct 3
- API reports a 9 MMB weekly U.S. crude inventory
draw.
- Oct. 9
- Fear of war and long-term supply disruptions as
Hussein threatens Israel.
- Oct 10
- API reports crude inventories dropped by more than 4
MMB in the last week.
- Oct 11
- Libya's Qadhafi says Israel must be eliminated, and
U.K. Foreign Secretary Hurd says force would be used if Iraq doesn't
withdrawal from Kuwait.
- Nov 5
- Reports of increasing Saudi production and lower
world demand.
- Nov 6
- Iran's oil-producing region suffers a serious
earthquake.
- Nov 7
- API reports 5 MMB U.S. crude inventory weekly
increase.
- Nov 8
- Unconfirmed rumors that Bush would announce an
airlift of supplies to U.S. embassy in Kuwait, which could ultimately trigger
a military clash.
- Nov 13
- Saudis ask U.S. for rights to bid on SPR crude.
- Nov 19
- Report that Iraq will bolster its forces in
Kuwait.
- Nov 20
- API reports crude inventory drop in U.S. of more than
4 MMB; Saddam Hussein announces plans to release German hostages; Soviet Union
shows reluctance to endorse the use of force against Iraq.
- Nov 21
- French President Mitterand voices support of a
proposed U.N. resolution that would authorize the use of force in the Persian
Gulf.
- Nov 26
- U.S. proposes addition to U.N. resolution that would
require Iraq's withdrawal from Kuwait by January 1.
- Nov 29
- U.N. Security Council approves U.S.-sponsored
resolution authorizing the use of force in the Persian Gulf if Iraq does not
withdrawal from Kuwait by Jan. 15, 1991.
- Nov 30
- President Bush offers to send Secretary of State
James Baker to Baghdad to meet with Hussein.
- Dec 4
- An Iraqi official reports that Iraq will withdraw if
it can retain control of the Rumailah field and keep Bubiyan and Werbah
islands; also says that demands that the Palestinian issue be treated
separately would not be surmountable.
- Dec 5
- Iraq announces willingness to speak with U.S. about
resolving the Persian Gulf crisis.
- Dec 13
- Secretary of State Baker questions Iraq's seriousness
about Middle East peace.
- Dec 18
- Bush reiterates his "no concessions" stance against
Iraq.
-
- Jan 4
- Reports Iraq will accept U.S. offer for talks in
Geneva.
- Jan 7
- Saddam Hussein prepares his troops for what he says
will be a long violent war against the U.S.
- Jan 9-14
- At Geneva talks, Baker says that "regrettably" Iraqi
Foreign Minister Aziz has indicated no softening in Iraq's position. Peace
talks break down, but there is still talk of a peaceful solution to the
crisis.
- Jan 15
- Report that Iraq has a new peace initiative.
- Jan 16
- U.S. begins air attack against Iraqi military
targets. President Bush directs drawdown of Strategic Petroleum Reserve (SPR).
U.S. Secretary of Energy James Watkins orders 33.75 MMB drawdown. Crude oil
prices drop $9-10 per barrel in one day after having risen $3-5 per barrel
during the first half of January.
- Jan 17
- Reports of early U.S. and allied success against
Iraqi forces; DOE issues SPR sales notice.
- Jan 18
- Iraqi Scud missiles land in Israel.
- Jan 22
- Kuwaiti oil facilities are destroyed by Iraq and more
Iraqi missile attacks on Saudi Arabia.
- Jan 30DOE selects 13
firms to purchase 17.3 MMB of SPR crude oil.
-
- Feb
- Surplus of unsold oil held by oil producers reaches
80-90 MMB.
- Feb 5
- First SPR oil delivered to commercial buyers.
- Feb 15
- Daily market volatility as Hussein mentions
withdrawal, but Bush calls his offer a "cruel hoax."
- Feb 26
- Signs of Iran crude now an option for U.S. refiners,
but no imports from Iran likely in near future.
- Feb 28
- War ends. U.N. troops move into Kuwait City. Saddam
Hussein orderstroops out of Kuwait. Iraqi soldiers ignite Kuwaiti oil fields
during their retreat.
- Mar 1
- News that Kuwait will need to import crude in the
short term.
- Mar 12
- OPEC announces production cut to 22.3 MMB/D.
- Mar 13
- API reports a 6 MMB weekly domestic crude inventory
draw; Saudi Arabia and Iran say OPEC production cuts will take effect April
1.
- Mar 19
- Gorbachev says the Soviet Union will cut its oil
exports by nearly half.
- Mar 25
- Nigerian crude becomes competitive in U.S. Gulf Coast
as Nigeria cuts crude prices.
- Apr 25
- Iraq expects to resume crude and product exports by
July.
- June 3
- Kuwait asks GCC members to produce 800,000 B/D of oil
on its behalf.
- Aug
- Unsuccessful coup attempt against Soviet President
Gorbachev has minimal effect on oil markets.
- Oct
- Soviet Union suspends petroleum product exports as
its fuel shortages grow. NYMEX futures price for WTI climbs nearly $2, ending
at $24 per barrel.
- Nov
- Last of Kuwait oil well fires extinguished by well
control teams.
- Nov
- U.S. Senate filibuster causes withdrawl of an Alaska
National Wildlife Refuge (ANWR) pro-leasing bill.
- Dec
- Soviet Union collapses as a series of events
precipitated by Ukrainian vote for independence leads to formation of
Commonwealth of Independent States (CIS).
-
- Jan
- Kuwait reports oil production of 400,000 B/D; insists
on restoration of its pre-invasion OPEC quota of 1.5 MMB/D.
- Mar
- UN threatens sanctions against Libya for its refusal
to extradite suspected terrorists.
- Mar
- CIS announces that 1991 crude exports dropped by
52%.
- May
- Saudi Arabia supports a crude oil price hike during a
late-month OPEC meeting. NYMEX Futures prices exceed $22 per barrel.
- Oct
- OPEC production reaches highest level in more than a
decade at 25.25 MMB/D.
- Dec
- U.S., Mexico, and Canada sign NAFTA multi-lateral
free trade agreement.
-
- July
- Oil prices plunge on speculation that Iraq will
accept U.N. missile test site inspections and receive approval to resume oil
exports.
- Nov
- Combination of OPEC overproduction, surging North Sea
output, and weak demand lowers the price of Brent to near $15 per barrel.
-
- Apr
- Oil Prices firm on strength of institutional shifting
of U.S. investment funds from equity and bond markets to cash and commodities.
- Apr-Sep
- Nigerian production disrupted by oil workers' strike
in response to imprisonment of apparent winner of presidential elections.
Sources include: Dallas Morning
News (DMN); Dow Jones (DJ); Energy Compass (EC); Financial Times (FT); New York
Times (NYT); Petroleum Intelligence Weekly (PIW); Platt's Oilgram News (PON);
Wall Street Journal (WSJ); Washington Post (WP); Washington Times (WT); and
Weekly Petroleum Argus (WPA).
- Jan. 14
- Mexico pledges profits from state-owned Pemex's
$7-billion-per-year oil revenues in an effort to secure U.S. congressional
approval of $40-billion worth of loan guarantees. Subsequently, President
Clinton approved a $20-billion U.S. aid package for Mexico. (DMN)
- Jan. 30
- Norway's Statoil announces that a newly-formed
consortium of 11 oil companies will develop a plan to supply Norwegian natural
gas to the European continent. Three Norwegian companies recently signed a
contract with Gaz de France to bring 1.4 trillion cubic feet of Norwegian gas
to France between 2001 and 2027. (DJ)
- Feb. 28
- The Pentagon announces that it monitored Iranian
installation of surface-to-air Hawk missiles in the Strait of Hormuz. The
Iranians also have taken possession of and fortified the nearby Abu Musa and
the Tunb Islands, which are claimed by both Iran and the United Arab Emirates
(UAE). (DJ)
- June 14
-
After OPEC's semi-annual meeting in Vienna, President Ida Bagus Sudjana
discloses the Organization's intention to roll over its present crude oil
production ceiling of 24.52 million barrels per day. The announcement is
followed by a trip to Norway by Saudi Arabian Oil Minister Hisham M. Nazer.
Upon arriving, the Saudi Minister asks Norwegian Minister of Industry and
Energy Jens Stoltenberg to restrain his country's oil production in the hopes
of stabilizing world oil prices. (FT, DJ)
- June 30
- Exxon signs a $15.2-billion deal to develop oil and
gas fields near Russia's Sakhalin Island. The Sakhalin I project will develop
the offshore Shayvo, Odoptu, and Arkutun-Dagi fields that together are
estimated to contain 2.5 billion barrels of crude oil and 15 trillion cubic
feet of natural gas. Exxon has a 30 percent stake in the project. (NYT, DJ)
- July 6
- Venezuela's Congress approves the country's first
investment law allowing for foreign participation in oil exploration and
production. The newly-passed "model agreement" authorizes the state-owned oil
company Petroleos de Venezuela S.A. (PDVSA) to offer 10 exploration blocks to
foreign investors. If oil is discovered, the government will maintain a
majority stake in any joint venture formed to develop the new fields. (FT, DJ)
- July 27
- Saudi Aramco awards the giant Shaybah oil field
development project to U.S.-based Parsons Corporation. The $2.5-billion
project will develop the 7-billion-barrel field, including the construction of
crude oil production facilities, gas-oil separation plants, and a 372-mile
pipeline. The Shaybah field is located on the Saudi-UAE border and is expected
to produce 500,000 barrels per day after it comes on line in 1999. (PON)
- July 28
- Norwegian Finance Minister Sigbjorn Johnsen says that
Norway should not lower its crude oil production in an attempt to boost world
oil prices. Norwegian Oil Minister Jens Stoltenberg believes production cuts
may be necessary if prices begin to fall. Minister Johnsen's remarks follow
last month's visit by Saudi Arabian Oil Minister Hisham M. Nazer, who asked
Minister Stoltenberg to cut Norway's crude oil production. (PON)
- Aug. 2
- Saudi Arabia's King Fahd issues a decree replacing
all members of the Council of Ministers who do not have blood ties so the
royal Family. While most of the Council's top positions are unaffected by the
reshuffling, Oil Minister Hisham Nazer is replaced with Ali bin Ibrahim
al-Naimi. (WSJ)
- Aug. 14
- Iran's official news agency, IRNA, reports that Iran
has been unable to sell 200,000 barrels per day of crude oil since the
imposition of a unilateral oil embargo by the U.S. Iran increasingly has sold
its crude oil on spot markets as opposed to long-term contracts. Larger
purchases by France, Spain, Italy, China, India, Pakistan, and Thailand have
failed to offset decreased demand by German and Japanese refiners. Before the
U.S. embargo was announced in April 1995, U.S. companies were buying between
400,000 and 450,000 barrels per day, down from roughly 600,000 barrels per day
in 1994. (PON)
- Aug. 28
- Kuwaiti Oil Minister Abdul Mohsen al-Medej announces
that his country will increase its oil production capacity to as much as 3.5
million barrels per day by 2005. (DJ)
- Sept. 13
- The Kuwaiti Oil Ministry states its intention to seek
a 200,000-barrel-per-day increase to its current 2-million-barrel-per-day
crude oil production quota at the November 1995 OPEC meeting in Vienna. The
announcement comes amidst growing non-OPEC oil production and weak oil prices.
(DJ)
- Nov. 22
- OPEC states that it will roll over its current oil
production quota of 25.42 million barrels per day. The roll-over was widely
anticipated because of slack world oil demand, rising non-OPEC production, and
weak prices. (DJ, PON)
- Nov. 29
- President Clinton approves legislation lifting a
22-year-old ban on exports of oil from the Alaskan North Slope (ANS). The ban
was imposed after the oil embargo by Arab oil producers in 1973. The lifting
of the ban opens up about one-quarter of U.S. crude oil production for export.
The ANS legislation also waives royalty payments on deep water oil and gas
leases in the Gulf of Mexico. (WP)
- Dec. 12
- Speaking in New York during a U.S. visit by Angolan
President Eduardo dos Santos, Joaquim David, president of the state-owned oil
company , Sonangol, states that Angola will increase its crude oil production
by 10 percent per year over the next five years, reaching 720,000 barrels per
day by the end of 1996 and 1 million barrels per day by 2001. The statement
comes amidst sporadic violence involving government forces and the rebel group
UNITA, less than a year after a peace accord was signed ending the country's
20-year-old civil war. At the end of 1995, Angola had raised its crude oil
production to 690,000 barrels per day. (PON, DJ)
Sources include: Dow Jones (DJ),
Financial Times (FT), New York Times (NYT), and Platt's Oilgram News (PON),
Washington Post (WP), and the Wall Street Journal (WSJ).
For a more detailed description of 1996 events go here.
- January 17
- Iraq agrees to talks concerning a U.N. plan to allow
for the Iraqi sale of $1 billion of oil for 90 days for a 180-day trial
period. Under U.N. Resolution 986, proceeds from the sale would be used for
humanitarian purposes. In the past, Iraq has opposed clauses 6 and 8b
contained in Resolution 986. Clause 6 stipulates that oil exports under this
plan must pass through the 1.6-million b/d Iraq-Turkey pipeline, which
currently is unusable because of sludge build-ups and pumping station damage.
By most estimates, the line would take a minimum of three months to repair.
Clause 8b states that part of the proceeds from the sales would be disbursed
under U.N. supervision to Kurdish provinces in northern Iraq. Negotiations
between Iraq and the United Nations are scheduled to begin February 6, 1996.
(FT, PON, DJ)
- January 30
- Vice Admiral Scott Redd, commander of the U.S. Fifth
Fleet based in the Persian Gulf, states that Iran test-fired a new anti-ship
missile near the Strait of Hormuz on January 6. The missile reportedly has a
range of 60 miles and is viewed as a threat to regional security by U.S. naval
forces operating in the area. Oil tankers carry about 15 million b/d through
the Strait. (DJ)
- April 24
- In New York, the United Nations and Iraq end a third
round of negotiations over Iraq's possible sale of $1 billion of oil for 90
days for a 180-day trial period. Under U.N. Resolution 986, proceeds from the
sale would be used for humanitarian purposes. While both sides have reached
agreement on most of the key issues, chief Iraqi negotiator Abdul Amir
al-Anbari says that the United States and the United Kingdom have
fundamentally altered the text of a proposed agreement which he had received
from the United Nations early in the third round. Al-Anbari states that the
changes have postponed any possible deal. The U.N.-Iraq talks are scheduled to
restart on May 10. (DJ)
- April 30
- In the United States, President Clinton approves the
sale of $227 million of crude oil from the Strategic Petroleum Reserve. At
current oil prices, roughly 12 million barrels would be sold. The Clinton
Administration hopes that the sale will lower gasoline prices in the United
States, which are at their highest levels in five years. (WSJ)
- May 20
- In New York, the United Nations and Iraq agree to
U.N. Resolution 986, which provides Iraq with the opportunity to sell $1
billion of oil for 90 days for a 180-day trial period. Under the resolution,
proceeds from the sale would be used for humanitarian purposes. The agreement
comes following months of heated negotiations. Iraqi oil exports are expected
to begin by the Fall of 1996, after a pumping station on the Iraq-Turkey
pipeline is repaired and U.N monitoring and aid distribution facilities are
put in place. Shortly after the agreement, the White House announces its
decision to allow U.S. oil companies to purchase Iraqi oil exports. (FT, PON, WSJ)
- June 11
- Exxon states that it will soon begin work on its
$15-billion Sakhalin I oil and natural gas development in Russia's Far East.
The Sakhalin I project will develop an estimated 5 billion barrels of oil and
15 trillion cubic feet (Tcf) of gas located in three offshore hydrocarbon
fields. The $300 million appraisal program will include drilling one
exploration well and conducting a 3-D seismic survey. The U.S. company says
that it will start working despite ongoing differences with the Russian
government over the country's new production sharing law, which is widely
viewed as not offering adequate legal protection for foreign investment in the
country's oil and gas sectors. (FT)
- June 20
- The Venezuelan Congress approves eight, multi-billion
dollar, profit-sharing deals which allow foreign oil companies to explore and
produce oil in Venezuela for the first time since the country's 1975
nationalization of the oil industry. The deals could boost Venezuela's current
oil production by 500,000 b/d by 2005. Foreign oil companies such as Amoco and
British Petroleum are expected to sign final deals with state-owned PdVSA
within 10 days and may begin working on their new acreage by the third quarter
of 1996. The eight blocks are estimated to hold between 7 to 11 billion
barrels of light crude oil reserves. (PON, DJ)
- July 7
- OPEC issues a resolution announcing Gabon's withdrawal
from the organization, effective January 1, 1995. Gabon had an OPEC quota of
287,000 b/d. (FT)
- July 18
- The United Nations formally approves an Iraqi aid
distribution plan, a major step forward in the direction of allowing Iraq to
sell oil under Resolution 986. (DJ)
- August 6
- President Clinton signs a new bill imposing sanctions
on non-U.S. companies which invest over $40 million a year in the energy
sectors of either Iran and Libya. Under the law, the President would be
required to impose at least two of the following sanctions: import and export
bans; lending embargoes from U.S. banks; a ban on U.S. procurement of goods
and services from sanctioned companies; and a denial of U.S export financing.
The European Union has stated its opposition to the U.S. law and threatened
retaliation. (FT)
- August 21
- In Venezuela, a subsidiary of state-owned Petroleos de
Venezuela (PdVSA), Corpoven, signs a memorandum of understanding (MOU) with
U.S.-based ARCO. The MOU provides for a $3.5-billion joint venture to develop
and upgrade roughly 200,000 b/d of crude oil from the country's 270-billion
Orinoco Heavy Oil Belt. The project will produce 9° API gravity crude oil in
the Hamaca region and upgrade it to 25° API for export to U.S. refineries. The
project will be implemented in three phases, the last of which will be
completed in 2006. Another PdVSA subsidiary, Maraven, recently signed another,
similar deal with Conoco. (PON, FT)
- September 5
- Following U.S. cruise missile strikes on military
facilities in southern Iraq, crude oil prices rise as the market speculates
when Iraq will begin exporting oil under U.N. Resolution 986. Benchmark Brent
Blend for October rises above $22/barrel amidst the uncertainty. The U.S.
attack follows an Iraqi-supported invasion of Kurdish safe haven areas in the
country's northern area. Subsequently, President Bill Clinton states that the
U.N. oil-for-food sale should be postponed indefinitely. (DJ)
- October 30
- Exxon confirms that it is in talks with state-owned
Qatar General Petroleum Corporation concerning the application of new
technology to convert natural gas to petroleum products. Exxon believes that
technology developed in a successful 200-b/d Anatural gas refinery project in
Texas would work in Qatar, where a proposed $1-billion plant would be able
produce between 50,000-100,000 b/d of middle distillate products. Under the
proposal, Qatar's 270-Tcf North field would supply between 0.5-1 Bcf/d of gas
for use as feedstock. In the past, technological barriers and high costs have
precluded the development of natural gas refineries. (WSJ)
- December 18
- During a press conference, Iranian Deputy Foreign
Minister Abbas Maleki states that Iran supports the free flow of oil through
the Strait of Hormuz, but reserves the option of closing off the shipping
route if it is threatened. Iran recently has admitted to deploying
anti-aircraft and anti-ship missiles on Abu Musa, an island strategically
located near the Strait of Hormuz's shipping lanes. (DJ)
- December 30
- The United Nations announces that a total of 21
contracts have been approved for the limited Iraqi oil sales under U.N.
Resolution 986. The approved contracts will allow for 43.68 million barrels of
oil to be exported in the first 90 days of the sale. At present, exports of
26.37 million barrels have been approved for the second 90-day period of the
sale, which allows Iraq to sell up to $1 billion worth of oil every 90 days
for an initial 6-month period. In mid-December 1996, Iraq restarted the
Kirkuk-Ceyhan pipeline, which is expected to carry up to 450,000 b/d of oil
under the sales agreements approved so far under U.N. Resolution 986. Iraq's
remaining oil exports will flow through the Mina al-Bakr terminal. (NYT, DJ)
Sources include: Dow Jones (DJ),
New York Times (NYT), and the Washington Post (WP).
For a more detailed description of 1997 events go here.
- February 5
- Japan's Ministry of Finance announces plans to cut
import tariffs on crude oil and most petroleum products from April 1, 1997, in
a phased process that will reduce the country's crude oil import tariff rate
to zero in April 2002. (DJ)
- February 24
- Qatar inaugurates the world's largest liquefied
natural gas (LNG) exporting facility and formally launches Qatar Liquefied Gas
Co., which will have total output capacity of 6 million tons per year of LNG.
The facilities are part of a new $7.2 billion industrial zone which also
includes a sea port with a capacity to handle 25-30 million tons of LNG
annually. Qatar plans to build more gas liquefaction plants in the area to
exploit its natural gas reserves of around 237 trillion cubic feet. (DJ)
- April 1
- A Shell spokesman confirms the company will declare
force majeure at its Nigerian Bonny terminal due to local protests which
disrupted 210,000 barrels per day of the company's oil production. Although
the protests have ended and production is returning to normal, the backlog is
temporarily delaying loadings by 3 days. (DJ)
- May 16
- A final agreement creating the Caspian Pipeline
Consortium (CPC) is signed by project participants: Russia (24 percent),
Kazakstan (19 percent), Chevron Corp. (15 percent), AO Lukoil/Arco Corp. (12.5
percent), Mobil Corp. (7.5 percent), AO Rosneft/Shell Corp. (7.5 percent),
Oman (7 percent), Agip SpA (2 percent), British Gas PLC (2 percent), Oryx
Corp. (1.75 percent), and Kazakstan Pipeline Ventures, a joint venture of
Kazakstan's state oil company and Amoco Corp. (1.75 percent). The Russian
government plans to transfer its stake to two Russian oil companies, AO Lukoil
and AO Rosneft. CPC plans to begin building a 932-mile pipeline to transport
crude oil from the Caspian region to Russia's Black Sea coast in 1998 and
begin shipping around 558,000 barrels per day of oil in 1999 (planned peak
capacity is 1.4 million barrels per day). (DJ)
- May 20
- President Clinton signs an executive order barring new
U.S. investment in Burma (also known as Myanmar), effective May 21 and
renewable annually. U.S. companies have invested about $250 million in Burma,
primarily in the oil and gas sector. The biggest U.S. investor is Unocal,
which is building (with France's Total) a $1.2 billion pipeline from Burma's
Yadana natural gas field to an electric power plant in Thailand. (DJ)
- June 4
- In a unanimous vote, the United Nations Security
Council renews for another 180-day period its "oilforfood"
initiative with Iraq. Under the resolution, Iraq may sell $2 billion worth of
oil to buy food, medicine and other necessities to alleviate civilian
suffering under the sanctions imposed when it invaded Kuwait in 1990. (WP)
- July 22
- The first shipments of oil produced from Kazakstan's
Tengiz field arrive at terminals on the Black Sea in Novorossiysk (Russia) and
Batumi (Georgia) for subsequent export through the Bosphoros Strait. Volumes
total between 100,000 and 150,000 barrels per day. (DJ)
- July 23
- The U.S. State Department rules that Turkey's August
1996 agreement to purchase $23 billion worth of natural gas from Iran over a
20-year period does not violate the Iran and Libya Sanctions Act. In a May
1997 memorandum of understanding with Iran and Turkmenistan, Turkey modified
the original arrangement so that the natural gas will be purchased from
Turkmenistan rather than Iran. (DJ)
- August 4
- In Colombia, Occidental Petroleum, a California-based
international oil company, and Ecopetrol, Colombia's national oil company,
declare force majeure on all oil exports from the
Cano Limon field. The declaration comes after a series of attacks dating back
to July 30 knocked out a major oil pipeline transporting oil from the field to
the Caribbean port of Covenas. The pipeline has been attacked 45 times this
year which is equal to the total number of attacks for 1996. Responsibility
for the attacks has not been determined, but leftist guerrillas from the
National Liberation Army are usually blamed for such attacks. The force majeure declaration does not apply to the oil
contained in the 2 million barrel storage facility at Covenas. (DJ)
- August 8
- The United Nations approves a sale-price formula for
Iraqi crude oil sales under the oil-for-food plan. The approval cleared the
way for Iraq to resume limited oil exports immediately through the Turkish
port of Ceyhan on the Mediterranean Sea and Iraq's Gulf port of Mina al-Bakr.
The United Nations will also begin reviewing contracts for Iraqi crude oil
purchases. Iraq has until September 5 to raise the $1.07 billion allowed under
the existing 90 day oil-for-food plan window. Iraqi officials state they will
boost exports to 2 million barrels per day to meet the sales target. However,
industry experts say that Iraq's export capacity is untested beyond 1.4
million barrel per day. (DJ)
- September 12
- The United Nations Security Council passes a
resolution that allows Iraq to reach the $2.14 billion oil sales limit under
its oil-for-food program by December 5. The current 6-month oil sales window,
running from June 8 to December 5, will be split into a 120-day segment and a
60-day segment instead of two 90-day segments. During each segment Iraq can
sell $1.07 billion worth of oil. The resolution should enable Iraq to make up
for lost revenues during a delay in the start of oil sales during the first
two months of the current six month sale period. (DJ)
- October 29
- Iraq's Revolution Command Council, the country's main
decision making body, announces that it will no longer allow U.S. citizens and
U.S. aircraft to serve with the United Nations (U.N.) arms inspection teams.
The council's statement gives U.S. citizens working with the inspection teams
one week to leave Iraq. Iraq has also asked the U.N. to stop flights by
American reconnaissance aircraft monitoring its compliance with U.N.
resolutions requiring the elimination of weapons of mass destruction. In
response to this statement, the U.N. Security Council unanimously approves a
statement condemning Iraq's threats to expel the Americans. (DJ)
- November 20
- Iraq's Revolution Command Council formally endorses an
agreement, arranged by Russia, that enables United Nation's (U.N.) weapons
inspection teams to resume operations in Iraq. The deal ends a three-week
standoff between the U.N. and Iraq that began in late October 1997 after Iraq
announced it would no longer allow U.S. citizens to serve on U.N. weapons'
inspection teams. (DJ)
- November 29
- For the first time in four years, OPEC agrees to an
increase in its production ceiling. OPEC has raised the ceiling to 27.5
million barrels per day for the first half of 1998, effective January 1, 1998.
The new ceiling represents a 10 percent increase over the current ceiling. The
new quotas are as follows: Saudi Arabia 8.76 million barrels per day (bbl/d),
Iran 3.942 million bbl/d, Iraq 1.314 million bbl/d, Venezuela 2.583 million
bbl/d, Nigeria 2.042 million bbl/d, Indonesia 1.456 million bbl/d, Kuwait 2.19
million bbl/d, Libya 1.522 million bbl/d, United Arab Emirates 2.366 million
bbl/d, Algeria 0.909 million bbl/d, and Qatar 0.414 million bbl/d. (NYT)
- December 4
- Iraq's United Nations (U.N.) Ambassador Nizar Hamdoon
warns that Iraq will not allow oil to flow during a third six-month phase of
the U.N.'s oil-for-food sale until the U.N. approves an aid distribution plan.
Despite the warning, the U.N. Security Council approves a third six-month
phase following the end of the second six-month phase. Like the first two
phases, the third phase allows Iraq to sell up to $1.07 billion of oil in each
of two 90-day periods. However, the sales level may be increased by the
Security Council in January 1998 after U.N. Secretary-General Kofi Annan
reports on Iraq's needs. The next day Iraq stops pumping oil into the
Iraqi-Turkish pipeline at the end of the second six-month phase of the United
Nations (U.N.) oil-for-food program. (WP, NYT)
- December 11
- Delegates from 150 industrial nations attending a
United Nations climate conference in Kyoto, Japan reach agreement on a
protocol to control heat-trapping greenhouse gases. The protocol, if ratified,
would commit nations to roll back emissions of six greenhouse gases (carbon
dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and
sulphur hexafluoride) below 1990 levels. Under the protocol, the United States
would be required to reduce its greenhouse gas emissions by 7 percent below
1990 levels, while Europe and Japan would make cuts of 8 percent and 9
percent, respectively. Developing countries are exempt from the emissions
ceilings for the time being. (DJ)
Sources include: Dow Jones (DJ),
New York Times (NYT), Wall Street Journal (WSJ), and the Washington Post
(WP).
For a more detailed description of 1998 events go here.
- January 7
- Due to the continuing Asian economic crisis, South
Korea's refiners have reportedly cut operations to around 80 percent of
capacity. The refiners have also had difficulty securing crude oil supplies
for delivery in late January or February, which could cut operations to as low
as 70 percent-75 percent of capacity. (DJ)
- January 15
- Environmentalists hail the implementation of a 50-year
moratorium on mining and oil exploration in the Antarctic. A protocol for the
protection of the Antarctic was adopted by twenty-six countries in 1991, but
it could not be implemented until Japan's ratification cleared the way last
month. Antarctica contains 70 percent of the world's fresh water, and the
moratorium attempts to preserve the world's least polluted continent. (WP)
- February 5
- Following a ruling by a federal judge denying a
request from environmentalists and Native Americans seeking to block the sale
of the Elk Hills Naval Petroleum Reserve, the U.S. Department of Energy
formally transfers ownership of the reserve to Occidental Petroleum
Corporation. Occidental purchased a 78 percent interest in the field for $3.65
billion. Chevron Corporation currently holds the remaining 22 percent. Elk
Hills contains 450 million barrels of proven oil reserves; however, officials
from Occidental believe the reserve may contain one billion barrels of
recoverable reserves. (DJ)
- February 20
- The United Nations (U.N.) Security Council votes
unanimously to more than double the amount of oil Iraq can export under the
U.N. oil-for-food program. The Security Council's vote increases the amount
Iraq can export from $2.14 billion to $5.26 billion over six months. Iraq
maintains that it only has the capability to export up to $4 billion over a
six-month period. (DJ)
- March 31
- OPEC releases an official communique from its 104th
(extraordinary) meeting convened in Vienna, Austria, on March 30, 1998. The
communique states that member countries have agreed to voluntary cuts from
each country's current production levels in an attempt to boost oil prices.
OPEC has agreed to cuts totaling 1.245 million barrels per day effective April
1, 1998. The cuts, in barrels per day, break down as follows: Algeria 50,000;
Indonesia 70,000; Iran 140,000; Kuwait 125, 000; Libya 80,000; Nigeria
125,000; Qatar 30,000; Saudi Arabia 300,000; United Arab Emirates 125,000; and
Venezuela 200,000. In addition, non-OPEC oil-producing countries Mexico, Oman,
and Yemen have agreed to cut production by 100,000, 30,000, and 20,000 barrels
per day, respectively. Moreover, a third non-OPEC country, Norway, the world's
third largest oil exporter, has pledged to reduce its oil production by 3
percent, or approximately 100,000 barrels per day. However, Norway's cuts will
not take effect until mid-April 1998. (Cuts are from February production based
on secondary sources.) (DJ) (WSJ)(NYT)
- May 4
- The Atlantic Richfield Company (ARCO) announces that
it will acquire Union Texas Petroleum Holdings Incorporated, an independent
oil company based in Houston, Texas, for $2.47 billion. The acquisition will
add 140,000 barrels per day to ARCO's oil and natural gas production and
increase ARCO's total oil and gas reserves by 14 percent. The deal also helps
ARCO enter the Caspian Sea region, with ARCO gaining a 12.5 percent interest
in the Caspian Pipeline Consortium and a 5 percent interest in Kazakhstan's
Tengiz oil filed. ARCO also will gain additional interests in projects located
in the United Kingdom, Indonesia, Alaska, and Venezuela. (NYT) (WSJ)
- May 11
- India announces that it has conducted three
underground nuclear tests, the country's first since 1974. The tests were
conducted simultaneously 330 miles southwest of New Delhi, near the Pakistani
border. The Indian government indicates that the three tests included a
thermonuclear device, commonly known as a hydrogen bomb. Two days later, on
May 13, 1998, India announces that it has conducted two more underground
nuclear tests in the same desert range. (WP)
(DJ)
- June 19
- The United Nations (U.N.) Security Council unanimously
approves a resolution allowing Iraq to spend $300 million on spare parts for
its oil industry. The funding is intended to help Iraq increase oil exports
under the fourth phase of the U.N.'s oil-for-food program. The spare parts are
expected to expand Iraq's oil export capacity from 1.6 million barrels per day
to 1.8 million or 1.9 million barrels per day. (NYT)
(DJ)
- June 24
- OPEC agrees, at its 105th ministerial conference, to
another round of oil production cuts. In recent weeks oil prices have fallen
to their lowest levels in more than a decade. OPEC members have agreed to cut
production by 1.355 million barrels per day, effective July 1, 1998, bringing
the group's total reductions since March 1998 to 2.6 million barrels per day.
Together with promises from non-OPEC nations such as Russia, Oman, and Mexico,
world oil producers have pledged to cut world-wide production by approximately
3.1 million barrels per day. (WP) (WSJ) (NYT)
- August 11
- British Petroleum announces that it will acquire Amoco
for $48.2 billion in stock. If the merger is approved by regulators and
shareholders of both companies, it will be the largest oil industry merger and
the largest foreign take-over of a U.S. company to date. The company will be
known as BP Amoco, and it will be the world's third-largest multinational oil
company in terms of net income behind Exxon and Royal Dutch/Shell Group. (NYT) (WSJ) (WP)
- October 1
- South Korea's oil refining sector fully deregulates,
allowing for 100 percent foreign investment. Originally, South Korea had
expected to fully deregulate its refining industry by January 1999, but it
decided to move up the date in order to help reform its economy. (DJ)
- October 7
- European Union (EU) nations approve an accord in which
European car makers will voluntarily agree to cut carbon dioxide emissions 25
percent by 2008. EU officials say they will seek similar deals with automakers
in Asia and North America. (WP)
- October 28
- Japan's Nippon Oil Company, the country's second
largest petroleum distributor and Mitsubishi Oil Company, the sixth-ranking
company in the industry, agree to merge as of April 1, 1999. The combined
company will be the largest oil distributor in Japan. (WSJ)
- December 2
- Exxon Corporation agrees to buy Mobil Corporation for
approximately $75.4 billion, which will make the company the largest
corporation in the U.S. The companies say they expect to cut about 9,000 jobs
from their combined worldwide workforce of 122,700 and to close offices,
saving $730 million. The merger comes in the context of low oil prices, which
have hurt profits at many oil companies. (DJ)
- December 23
- The Colombian government says it will allow gasoline
and diesel prices to float with international oil prices starting January 1,
1999. The move will end a system of artificial price fixing which has cost the
government more than $3.2 billion in subsidies over the past five years. (DJ)
Sources include: Dow Jones (DJ),
New York Times (NYT), Wall Street Journal (WSJ), and the Washington Post
(WP).
For a more detailed description of 1999 events go here.
- January 1
- British Petroleum Company and Amoco Corporation
complete their $53 billion merger. Chicago-based Amoco is the United States'
fifth-largest oil company with roughly 9,300 gasoline stations. London-based
British Petroleum, the world's third largest oil company, sells its products
through a network of about 17,900 stations. (DJ)
- February 4
- Italy's ENI SpA and Russia's RAO Gazprom, the world's
largest natural gas producer, agree to build a natural gas pipeline from
Russia to Turkey at a cost of nearly $3 billion. Each project partner will
hold a 50 percent stake in the project. The proposed pipeline, called the Blue
Stream project, is expensive by industry standards partly because it would run
at great depth under the waters of the Black Sea. (Asian WSJ)
- February 10
- U.S. Energy Secretary Bill Richardson visits Saudi
Arabia to discuss potential U.S. investment in the Kingdom's oil and gas
sectors. Following his visit, Richardson says the Saudis are primarily
interested in foreign investment in the natural gas sector and in the oil
refining and marketing sectors, rather than in the upstream crude oil sector.
Secretary Richardson's visit comes several months after a September 1998
meeting between several U.S. oil companies, Saudi Crown Prince Abdullah and
Saudi Oil Minister Ali Naimi, in which Abdullah requested proposals from the
companies on the development of Saudi oil reserves. (DJ, WSJ)
- March 23
- In an effort to raise oil prices, which fell sharply
in late 1997 and stayed low through 1998 and into early 1999, OPEC and
non-OPEC countries agree to cut oil output by a combined 2.104 million barrels
per day, effective April 1, 1999, for one year. OPEC members have pledged to
cut 1.716 million barrels per day, while several non-OPEC countries have
pledged total reductions of 388,000 barrels per day. During 1998, due mainly
to low oil prices, OPEC crude oil export revenues fell 30 percent (to $100
billion) from the previous year. (DJ, NYT)
- March 31
- Arco agrees to be acquired by BP Amoco PLC for $26.6
billion in stock. If approved, the merger will create the largest oil producer
in the United States and one of the largest energy companies in the world. The
deal marks the fourth largest oil company merger since the onset of low oil
prices in late 1997. (DJ), (WSJ)
- April 5
- Following the arrival in the Netherlands of two
Libyan suspects in the 1988 bombing of Pan American Flight 103 that killed 270
people, United Nations sanctions against Libya are suspended. The sanctions,
imposed on March 31, 1992, initially included a ban on the sale of equipment
for refining and transporting oil, but excluded oil production equipment.
Sanctions were then expanded on November 11, 1993, to include a freeze on
Libya's overseas assets, excluding revenue from oil, natural gas, or
agricultural products. (DJ)
- April 15
- The U.S. Department of Energy (DOE) announces that it
will begin taking oil deliveries within the next few days under its plan to
add 28 million barrels of oil to the U.S. Government's Strategic Petroleum
Reserve (SPR) from federal oil royalty payments. In Phase 1 of the plan, the
SPR is expected to acquire about 43,000 barrels per day over the next 3 months
from oil companies operating in the Gulf of Mexico. Although about 50 percent
of the oil supplied in Phase 1 will be imported, domestic producers would
still benefit from the entire acquisition since the oil market is
international and fungible, according to a DOE official. Under Phase 2 of the
program, the DOE expects to acquire about 100,000 barrels per day of royalty
oil over a 6-month period. (DJ)
- April 17
- An oil pipeline that transports oil from Baku,
Azerbaijan, to Suspa, Georgia, is officially opened. This is the second
pipeline dedicated to exporting Caspian Sea oil, but the first built since the
Soviet Union disbanded in 1991. The other Caspian Sea oil pipeline, which runs
through the Russian breakaway republic of Chechnya to the Russian port of
Novorossisk, is often shut down. The new pipeline to Georgia has a capacity of
100,000 barrels per day. (DJ)
- April 28
- The U.S. Department of Treasury's Office of Foreign
Asset Control (OFAC), notifies Mobil that it has turned down Mobil's request
for a license to swap crude oil it produces in Turkmenistan in exchange for
Iranian oil. Mobil had hoped to be allowed to ship oil produced in
Turkmenistan to northern Iranian oil refineries, while Iran, in turn, would
provide Iranian oil from Iran's Persian Gulf export terminals to Mobil for
shipment to global markets as payment. OFAC is responsible for enforcing U.S.
unilateral sanctions against foreign countries. As a result of OFAC's denial
of a swap arrangement with Iran, Mobil will have to continue exporting its
Turkmenistan oil production across the Caspian Sea by barge to Azerbaijan,
where it is then carried by rail or pipeline to Black Sea ports. (DJ, WP)
- May 1
- U.S. President Clinton unveils a plan to apply the
same standard for tailpipe emissions to cars, light-duty trucks, and most
sport utility vehicles (SUVs). Based on current nitrogen oxides (NOx) emission levels, the proposed plan would result
in a 77 percent reduction for cars and a 95 percent reduction for light-duty
trucks and SUVs. The new standards would be phased in from the 2004 to 2007
model years. At the same time, the Environmental Protection Agency (EPA)
proposes a rule that would require refiners to reduce gasoline sulfur content
from a current average of nearly 330 parts per million (ppm) to 30 ppm. The
new sulfur standard is being proposed in conjunction with the new tailpipe
emission proposal since sulfur impedes catalytic converter efficiency, thus
making it more difficult to reduce tailpipe emissions without reducing sulfur
content in gasoline. Oil industry representatives have vowed to protest the
proposed rule, claiming that it will cost refiners $3 billion to $6 billion.
The EPA estimates that the cost of compliance for both the automobile and oil
industries will be between $3.4 billion and $4.4 billion. (DJ)
- May 10
- The Board of Argentine oil company YPF unanimously
approved a $13.4 billion offer from Repsol, a Spanish company. Repsol, which
already owns 14.99 percent of YPF, made an all cash offer to purchase the
remaining 85.01 percent last month. The Board recommended to all shareholders
to accept the Repsol offer. Two Argentine provinces, which own about five
percent of YPF's shares, remain concerned about Repsol's intentions for their
regions. (WSJ)
- May 12
- The Caspian Pipeline Consortium (CPC) begins
construction of a 981-mile pipeline that will carry crude oil from the Caspian
Sea to the Russian port of Novorossisk for export to foreign markets. The
pipeline's planned capacity is about 1.3 million barrels per day, and the CPC
is expecting to load the first tanker in mid-2001. (DJ)
- May 17
- The Environmental Protection Agency (EPA) states that
it will not change its "Tier Two Plan" to cut gasoline sulfur content and
tailpipe emissions, in response to a recent appellate court ruling that the
EPA had overstepped its mandate in implementing some provisions of the Clean
Air Act. Beginning in 2004, the Tier Two Plan would require refiners to cut
gasoline sulfur content to an average of 30 parts per million, down more than
90 percent from the current national average. (DJ)
- May 27
- Exxon and Mobil shareholders approve an $81.2 billion
merger, in which Exxon will issue 1.32 shares for each share of Mobil's
approximately 780.2 million shares outstanding. The merger still must receive
regulatory approval from the U.S. government and the European Union. The
chairmen of both companies state that they expect regulatory approvals to be
obtained by the end of the third quarter of 1999. (DJ)
- June 1
- Sudan starts pumping oil through its pipeline linking
the Heglig oil field in Western Kordofan province to Port Sudan on the Red
Sea. The pipeline has a capacity of 250,000 barrels per day, and was financed
by a consortium of Chinese, Malaysian, Canadian, and Sudanese firms. (DJ)
- August 9
- The United States Department of Commerce dismisses a
petition filed by Save Domestic Oil, Inc. under anti-dumping statutes. The
petition alleged that Saudi Arabia, Venezuela, Mexico, and Iraq had sold crude
oil to the United States at artificially low prices. The decision was based on
the Department of Commerce's determination that "opposition to the petitions
exceeded support." Majority support is defined as petitioner representation of
at least 25 percent of the domestic industry and support from at least 50
percent of the industry expressing an opinion. Support from a majority in the
affected industry is necessary under the law for Commerce to commence a formal
investigation of an anti-dumping complaint. (DJ, WP,
NYT)
- September 14
- French oil companies Total Fina and Elf Aquitaine
agree to merge, after a lengthy takeover battle, in a deal which will form the
world's fourth largest oil company. The deal will give Elf Aquitaine
shareholders 19 shares of Total Fina for every 13 shares of Elf Aquitaine.
According to Total Fina's management, the merger will result in annual cost
savings for the combined firm of $1.56 billion. (WP,
WSJ)
- September 22
- OPEC, at a meeting of its member states' oil
ministers, decides to maintain current production cuts until March 2000,
despite the fact the crude oil prices have doubled since early 1999. In
another development, OPEC announces that its current Secretary General,
Nigerian Rilwanu Lukman, will stay in office until March 2000. The
announcement follows a vigorously contested race to succeed Lukman in the
post, in which OPEC's three largest members, Saudi Arabia, Iran, and Iraq, had
fielded candidates. (DJ)
- September 28
- Iranian Oil Minister Bijan Zanganeh announces that
the National Iranian Oil Company has discovered a new oilfield, Azadegan, with
26 billion barrels of crude oil in Khuzestan province. The discovery is the
largest new find in Iran in the last three decades. Zanganeh expects the field
to produce between 300,000 and 400,000 barrels per day of crude oil three to
four years after development begins next year. (DJ)
- September 30
- Japan suffers a serious nuclear accident at a uranium
processing plant in Tokaimura, in which radiation is released after an
apparent uncontrolled nuclear chain reaction. Three workers at the plant,
operated by JCO, Inc., are injured. Japanese authorities issue a warning
instructing 310,000 people in neighboring communities to stay indoors. (DJ, WSJ)
- October 4
- The United Nations Security Council agrees to raise
the monetary ceiling on Iraqi oil sales to $8.3 billion from $5.26 billion,
guaranteeing the continuation of Iraqi production until the November 20 end
date for the current six month extension of the "oil-for-food" program. The
move is a one time adjustment, and does not bind the Security Council to
continue a higher ceiling if the program is renewed for another six month
term. The increase reflects the difference between previous monetary ceilings
and actual Iraqi sales during previous phases of the program. (DJ)
- November 18
- The heads of state of Turkey, Azerbaijan, and Georgia
sign an agreement to build a pipeline for the export of crude oil from the
Caspian Basin. The 1,080-mile pipeline will begin at the Azerbaijani capital,
Baku, and run through Georgia and Turkey to the Turkish port of Ceyhan. The
project is expected to cost $2.4 billion, and the government of Turkey has
offered guarantees that the cost of the Turkish segment of the pipeline will
not exceed $1.4 billion. The signing ceremony took place during a visit to
Istanbul by U.S. President Clinton for a summit of the Organization for
Cooperation and Security in Europe (OSCE). (WP,
NYT)
- November 30
- The Federal Trade Commission (FTC) grants approval
for the proposed merger between oil giants Exxon and Mobil. The $80 billion
merger was approved by the FTC after the firms agreed to the largest
divestiture of assets ever involved in a merger. The companies will sell over
2,400 retail outlets, mostly in the Northeast, Texas, and California, and a
refinery in California. (DJ)
- December 10
- The California Air Resources Board approves a
regulatory change that will halve the amount of sulfur allowed in gasoline
sold in California from 30 parts per million to 15 parts per million, starting
in 2003. The California limit would be half the national limit under a new
rule proposed by the Environmental Protection Agency. The current federal
sulfur limit for gasoline is 330 parts per million. (WSJ)
- December 21
- The Export-Import Bank drops a proposed $500 million
loan to Russia's Tyumen Oil after Secretary of State Madeleine Albright
exercises her statutory authority to block the transaction. The loan had been
controversial in part because of Tyumen Oil's dispute with BP Amoco over the
bankruptcy of Russian oil firm Sidanko, in which BP Amoco owns a major stake.
BP Amoco and Tyumen Oil later settled the dispute on December 23. (DJ)
- December 31
- The Panama Canal Zone reverts to Panamanian
sovereignty at noon, after nearly a century of American control. More than a
half-million barrels of crude oil and petroleum products transit the Canal
each day. (DJ)
- December 31
- After nearly two years of construction, ExxonMobil
completes the Sable Offshore Energy Project, a $2 billion project to bring
natural gas from fields offshore Nova Scotia to the northeastern United
States. The fields are estimated to contain 3.5 trillion cubic feet of natural
gas. (DJ)
- December 31
- Russian President Boris Yeltsin makes a surprise
announcement that he is resigning immediately. Vladimir Putin becomes Acting
President, and presidential elections will be held within 90 days, with a date
to be set by the State Duma. Russia is the largest exporter of energy in the
world. (DJ)
Sources include: Dow Jones (DJ),
New York Times (NYT), Wall Street Journal (WSJ), and the Washington Post
(WP).
For a more detailed description of 2000 events go here.
- January 7
- Energy companies and countries around the world
report that they have passed into the year 2000 without significant problems
from the "Y2K Bug." There was concern that the inability of some computers and
embedded control systems to recognize the year 2000 could create serious
problems. (DJ, WP)
- January 26
- The United Nations Security Council reaches agreement
on the appointment of Hans Blix of Sweden, the former head of the
International Atomic Energy Agency (IAEA), to lead the new United Nations
weapons inspection organization for Iraq. Iraq has indicated that it does not
intend to accept the new Security Council resolution. (DJ)
- February 2
- The Federal Trade Commission (FTC) acts to block the
proposed merger between BP Amoco and Atlantic Richfield, saying the merger
would unduly restrict competition along the West coast of the United States.
(WSJ, WP)
- February 9
- The Federal Energy Regulatory Commission (FERC)
issues a group of policy changes which extend the deregulation of the
interstate natural gas pipeline system begun under Order 636 in 1992. Among
the changes is a lifting, for a trial period of 30 months, of the price
ceiling on secondary market exchanges of short-term gas pipeline capacity.
FERC's lifting of the ceiling is meant in part to encourage gas shippers to
use longer-term contracts which would promote market stability. (DJ)
- March 6
- The United States Supreme Court overturns the State
of Washington's law establishing state regulation of oil tankers, ruling
unanimously that federal laws take precedence. The attempt to impose tougher
regulatory standards came in the wake of the 1989 Exxon Valdez disaster in
Alaska. (WP, NYT)
- March 7
- New York Mercantile Exchange front-month West Texas
Intermediate crude oil futures contract closes at $34.13 per barrel, the
highest level in nine years. (WSJ)
- March 15
- Phillips Petroleum announces that it has agreed to
purchase Atlantic Richfield's assets in Alaska for $6.5 billion. The sale is
being made in an effort to secure approval from the Federal Trade Commission
(FTC) for the merger of Atlantic Richfield with BP Amoco. Earlier the same
day, the FTC announced that it had suspended its antitrust lawsuit seeking to
block the merger, citing progress in talks with the companies involved. (DJ, NYT, WSJ)
- March 20
- EPA Administrator Carol Browner announces that the
Clinton Administration intends to push for a phase out of the use of methyl
tertiary butyl ether (MTBE) as a gasoline additive. The administration wants
Congress to pass legislation which would end the requirement for the use of
MTBE in gasoline sold in some smog-prone urban areas, and instead require
nationwide use of ethanol. (DJ)
- March 26
- Vladimir Putin is elected president of Russia on the
first ballot, winning 53 percent of the popular vote. Putin took office as
acting president in December 1999 after the resignation of Boris Yeltsin. (DJ)
- March 28
- After two days of meetings, OPEC oil
ministers agree on an increase in oil production of 1.452 million barrels
per day by its members, excluding Iran and Iraq. Iraq, has not been subject to
OPEC production agreements while under U.N. Security Council sanctions. Iran,
though not formally signing on to the agreement, stated its intention to raise
its production in order to avoid loss of its market share. This would
represent about a 1.7 million barrel per day increase in OPEC production
targets, if Iran was included. Several major non-OPEC producers, including
Mexico and Norway, also have indicated an intention to raise production. (DJ)
- April 12
- Several Chief Executive Officers (CEOs) of major
United States oil companies meet with senior Saudi Arabian officials to
discuss possible investments in natural gas and petrochemical projects. The
firms represented at the meetings include Chevron, Conoco, ExxonMobil,
Marathon Oil, Phillips Petroleum, and Texaco. The Saudi government announces,
in conjunction with the meetings, a package of legal changes that will make
Saudi Arabia more open to foreign investors. Complete foreign ownership will
be allowed for some types of projects, and the maximum corporate tax rate for
foreign enterprises will be reduced to 15 percent. (WP)
- April 14
- BP Amoco receives approval from the Federal Trade
Commission (FTC) for its $28 billion takeover of Atlantic Richfield
Corporation (ARCO). As part of the approval, ARCO has agreed to sell its crude
oil production operations in Alaska to Phillips Petroleum in a deal valued at
$6.5 billion. (WP, WSJ)
- May 16
- Several sources, including the Washington Post,
report a major oil find at the Kashagan field offshore from Kazakhstan, with
reserves reportedly greater than 8 billion barrels. If these early reserve
estimates prove correct, the additional production volumes could boost chances
for construction of the proposed Baku-Ceyhan pipeline. (WP, DJ)
- May 17
- The Environmental Protection Agency (EPA) formally
proposes a rule which, if finalized, would reduce allowable sulfur levels in
diesel fuel by 97 percent over the next five years. The move is opposed by
major refiners. (DJ)
- May 17
- The Energy Information Administration releases a
study of oil reserves in the Arctic National Wildlife Refuge (ANWR), which
currently is off-limits to oil exploration. The study estimates that there are
between 5.7 and 16 billion barrels of recoverable oil in the ANWR. (WSJ)
- June 6
- The World Bank executive board votes to approve a
loan of $193 million to support a project to build a crude oil pipeline from
Chad to the coast of Cameroon. The countries will collect an estimated $2
billion in revenues from the project over a period of 25 years. (DJ)
- June 8
- The Brazilian government conducts an auction of oil
exploration and production concessions covering a total of 21 blocks, both
onshore and offshore. The auction represents an important step in the opening
of Brazil's oil industry to international competition and investment. (NYT)
- June 9
- The United States and Mexico sign a treaty resolving
the issue of economic rights over the deepwater "doughnut hole" area in the
Gulf of Mexico between the two countries. The agreement is based on measuring
distances from each country's coast, and gives the United States rights to 38
percent of the area. (DJ)
- June 15
- The German government announces an agreement with
utilities for the complete phaseout of nuclear power. Nuclear power plants
will be closed after a lifespan of 32 years. Nuclear power supplies about
one-third of Germany's electricity, and the phaseout plan may complicate
Germany's plans to reduce fossil fuel consumption to curb greenhouse gas
emissions. (DJ)
- June 19
- The Energy Information Administration reports a
one-week rise of five cents in the average price of regular gasoline, to
$1.681. This is the seventh straight week of increasing prices. Gasoline
prices in the Midwest are the nation's highest, at $1.874. (DJ)
- June 21
- OPEC oil ministers, meeting in Vienna, agree to raise
crude oil production quotas by a total of 708,000 barrels per day. OPEC's
total production quota (excluding Iraq) will rise to 25.4 million barrels per
day as of July 1, 2000. The next day, crude oil futures rise, with the New
York Mercantile Exchange (NYMEX) August West Texas Intermediate contract
closing June 22 at $32.19. (DJ)
- July 12
- The Kuwaiti parliament ratifies a treaty with Saudi
Arabia resolving competing claims to offshore mineral rights. The two
countries will share revenues from the Khafji, Dorra, and Hout oil and gas
fields. The treaty will allow the two governments to begin negotiations with
Iran to settle conflicting claims, which have again surfaced as Iran has begun
drilling in the Dorra offshore gas field. (DJ)
- July 27
- Italy's ENI signs a deal with Iran worth $3.8 billion
for the development of the country's South Pars gas field in the Persian Gulf.
The project will take five years to become operational, and will eventually
produce 530 million cubic feet of gas per day. (DJ)
- July 30
- Venezuelan President Hugo Chavez wins reelection with
60% of the popular vote. His Patriotic Pole party also wins a controlling
majority in the country's new unicameral legislature. (DJ)
- August 10
- Venezuelan President Hugo Chavez meets with Iraqi
President Saddam Hussein in Baghdad as part of a tour of OPEC member
states. Chavez is the first head of state to visit Saddam Hussein
since the 1990 Iraqi invasion of Kuwait. (NYT, WP)
- August 23
- The Energy Information Administration reports that
crude oil stock levels in the United States have fallen to their lowest level
since 1976. Crude oil for October delivery closes at $32.02 on the New York
Mercantile Exchange (NYMEX), up 80 cents. (DJ)
- August 30
- The Department of Energy awards contracts to create a
two-million-barrel reserve of heating oil. The oil will be stored in privately
owned facilities in Woodbridge, New Jersey, and New Haven, Connecticut. (DJ)
- September 8
- Truck drivers in Britain begin a blockade of oil
refineries to protest high fuel prices. The blockade follows a similar protest
in France. (DJ)
- September 10
- At a meeting in Vienna, OPEC agrees to raise
production quotas by 800,000 barrels per day (to 26.2 million barrels per day,
not counting Iraq) in an attempt to push crude oil prices back under $28 per
barrel. The quota increases become effective October 1. (DJ)
- September 20
- Oil prices close at $37.20 on the New York Mercantile
Exchange (NYMEX), after trading as high as $37.80 during the day's trading
session. The price spike comes amid an increase in tensions between Iraq and
Kuwait. This level sets a new ten-year high for NYMEX crude oil. (DJ)
- September 22
- President Clinton authorizes the release of 30
million barrels of oil from the Strategic Petroleum Reserve (SPR) over 30 days
to bolster oil supplies, particularly heating oil in the Northeast. The
release will take the form of a "swap," in which crude oil volumes drawn from
the SPR will be replaced by the recipients at a later date. Crude oil for
November delivery falls four percent, to $32.68, on the New York Mercantile
Exchange (NYMEX). (DJ)
- September 26
- A summit of OPEC heads of government opens in
Caracas, Venezuela. The summit is only the second OPEC meeting held at that
level. The summit ends on a conciliatory note, with the communique calling for
increased dialogue between OPEC and consuming nations. (DJ)
- September 28
- The United Nations Compensation Commission, which
handles claims for reparations arising from Iraq's 1990 invasion of Kuwait,
approves by consensus a $15.9 billion claim by Kuwait for compensation for
lost oil production and damage to oil reserves and equipment. The proportion
of revenues from Iraqi oil sales under the "oil for food" program which are
used for payment of claims is reduced from 30 percent to 25 percent. Iraq
condemns the decision, but states that it will not call a halt to oil exports,
as had earlier been feared. (DJ)
- October 12
- Oil prices rise sharply on news of a terrorist attack
on an American warship, the USS Cole, in the Yemeni port of Aden, as well as
escalating violence between Palestinians and Israeli security forces. November
crude oil on the New York Mercantile Exchange (NYMEX) rises $2.81 to close at
$36.06 per barrel. Prices for Henry Hub natural gas hit a record high of $5.78
per million British thermal units (BTU) before falling back slightly to close
at $5.63 per million BTU. (WSJ)
- October 15
- Chevron agrees to purchase Texaco for $35.1 billion
in stock. The deal would create the fourth largest oil and gas company in the
world, and follows a general trend toward consolidation among the major oil
companies over the last two years. Analysts expect the merger, like other
recent mergers, to face intensive antitrust scrutiny, especially as a combined
ChevronTexaco would have a heavy share of both refining capacity and retail
outlets on the west coast of the United States. (WSJ)
- October 30
- The president OPEC, Venezuelan oil minister Ali
Rodriguez, announces that the cartel will raise production quotas by 500,000
barrels per day, beginning November 1st. OPEC's action comes as a result of
its "price band" mechanism, which triggers an increase in production quotas
when the price of the OPEC Basket of crude oils closes over $28 per barrel for
twenty consecutive trading days. Many analysts voice doubt as to whether the
OPEC quota increase will lead to an actual increase in production of that
magnitude, given the lack of spare production capacity of most OPEC members.
(DJ, WP, WSJ)
- October 31
- The United Nations Sanctions Committee approves an
Iraqi request to be paid in Euros, rather than United States dollars, for oil
exported under the "oil for food" program, which is part of the sanctions
regime stemming from Iraq's 1990 invasion of Kuwait. (DJ)
- November 3
- Russia's Lukoil announces that it will purchase Getty
Petroleum Marketing of the United States for $71 million. Lukoil eventually
intends to switch Getty's 1,300 retail outlets in the Northeastern and Middle
Atlantic states to the Lukoil brand name. The purchase represents the first
takeover of a publicly traded American company by a Russian firm. (DJ)
- November 12
- OPEC oil ministers, meeting in Vienna, announce a
decision to put any further production increases on hold until their next
meeting scheduled for January 17, 2001. The move effectively ends OPEC's
"price band" mechanism, which called for automatic increases in production
quotas of 500,000 barrels per day when the price of the OPEC Basket of crude
oils remained over $28 per barrel for 20 consecutive trading days. OPEC also
selects the Venezuelan oil minister, Ali Rodriguez, as its new Secretary
General. He will formally take over from Nigeria's Rilwanu Lukman on January
1, 2001. (NYT, WSJ)
- November 16
- Iraq's State Oil Marketing Organization (SOMO)
demands that companies lifting cargoes of Iraqi crude oil begin paying a fifty
cent per barrel surcharge starting on December 1, 2000. The surcharge would be
paid directly to the Iraqi government rather than being channeled into the
account administered by the United Nations under the "oil for food" program,
and would constitute clear violation of sanctions. The Iraqi move leads to
concerns over a possible Iraqi cutoff of oil supplies beginning December 1. (DJ)
- November 26
- The sixth Conference of Parties (COP-6) of the Kyoto
Protocol in The Hague ends without an agreement between member states on
implementing cuts in emissions of greenhouse gases. One of the main issues
under negotiation at the conference was the possibility that member states
could claim credit for "carbon sinks," forests and farmland which absorb
carbon dioxide, as part of their overall commitment to reducing carbon dioxide
emissions. Another main issue was "emissions trading," which would allow
member states to purchase "emissions credits" from other member states whose
carbon dioxide emissions were below their targets. (WP, WSJ, NYT)
- December 1
- Vicente Fox is inaugurated as Mexico's president.
Ernesto Martens takes office as the new Minister of Petroleum. (DJ)
- December 4
- California utilities are forced to cut off
electricity supplies to some "interruptable" customers due to a supply
shortage. California has suffered shortages and high wholesale electricity
prices since May 2000. The immediate shortage stems, in part, from a reduction
in electricity imports from the Pacific Northwest as a result of cold weather
in the area. Other problems include: gas supply problems, low availability of
hydroelectric and nuclear generating capacity, and high power demand. (DJ)
- December 5
- The United Nations Security Council approves a six
month extension to the Iraq "oil for food" program. (DJ)
- December 16
- Ukraine permanently shuts down the last reactor at
its Chernobyl nuclear power plant, which gained notoriety for a major accident
and radiation leak in 1986. The facility will still be the location of a major
cleanup effort, as Ukraine tries to contain continuing radiation leakage from
the containment structures around the reactors damaged in the accident. (DJ)
- December 21
- The Environmental Protection Agency (EPA) announces
new regulations which will drastically reduce the allowable sulfur content in
diesel fuel in the United States. The new diesel sulfur standard will be 15
parts per million (PPM). Oil industry trade groups have opposed the new
standard. (DJ)
- December 27
- Natural gas prices in the United States surge above
$10 per million British Thermal Units (BTUs) first time ever in response to
cold weather and stockdraws reported by the American Gas Association (AGA).
Henry Hub natural gas closes at $9.978, after falling slightly from its
intraday peak price. (DJ)
- December 27
- Venezuelan President Hugo Chavez appoints Alvaro
Silva Calderon to replace Ali Rodriguez as Minister of Petroleum. Calderon had
previously served as a deputy minister. Rodriguez had recently been chosen as
the new OPEC Secretary General. Both will assume their new posts effective
January 5, 2001. (DJ)
- December 31
- Saudi oil minister Ali Naimi says that OPEC will
cut production when ministers meet in Vienna on January 17, 2001. Oil prices
have fallen sharply in recent weeks, with the OPEC basket reaching $21.50 per
barrel on December 25th, down one-third from highs reached in October 2000.
Despite the recent decline, average oil prices for 2000 were the highest (not
adjusted for inflation) in seventeen years. (DJ)
Sources include: Associated
Press (AP), Dow Jones (DJ), Los Angeles Times (LAT), New York Times (NYT), Oil
Daily (OD), USA Today (USAT), Wall Street Journal (WSJ), Washington Post (WP),
World Markets Online (WMO).
For a more detailed description of 2001 events go here.
-
- January 10
- The White House announces that President Clinton
will not designate the Arctic National Wildlife Refuge (ANWR) as a national
monument prior to his departure from office. Environmentalist groups had
been pressing for national monument status for the ANWR to prevent oil
drilling. (DJ)
- January 17
- OPEC agrees, at a meeting of ministers in Vienna,
to reduce members' production quotas by 1.5 million barrels per day. The
move comes in response to OPEC members' concerns about declining prices.
Analysts expect the actual production cuts to total somewhat less than 1.5
million barrels per day, as some OPEC members had quotas above their actual
production capacity. (NYT, WP)
- January 20
- George W. Bush is sworn into office as the
President of the United States. Later in the day, the Senate votes to
confirm Spencer Abraham as the new Secretary of Energy. (WP)
- February 20
- The United States Supreme Court declines to
consider an appeal by five major oil companies against Unocal's patent on
production of cleaner "reformulated" gasoline sold in California, allowing a
lower court ruling in favor of Unocal to stand. The ruling may eventually
have effects beyond the California market, as tighter environmental
standards for fuels take effect across much of the country.(DJ, WSJ)
- February 28
- The Environmental Protection Agency (EPA) announces
that it intends to proceed with implementation of tighter restrictions on
sulfur content in diesel fuel, which were proposed by the Clinton
administration. The rule, which will require a reduction of 97% in sulfur
content by 2006, has been opposed by many in the refining industry. (DJ)
- March 4
- Tests in recent days confirm the world's largest
oil find in three decades in the Kashagan field in the Caspian Sea. Kashagan
is a single reservoir at least 25 miles across, and two-and-a-half times the
size of the nearby Tengiz field. (WSJ)
- March 6
- United States Secretary of Energy Spencer Abraham
formally establishes the Northeast Home Heating Oil Reserve, a two million
barrel government-owned reserve to be used in emergency circumstances. (US Department of Energy)
- March 15
- The world's largest oil rig, located 80 miles
offshore Brazil and operated by the Brazilian state oil company Petrobras,
suffers three explosions. This one platform accounted for more than 5% of
Petrobras' total production. On March 20 Petrobras' Platform-36 sinks with
400,000 gallons of fuel and crude oil aboard. (WSJ)
- March 17
- OPEC (Organization of Petroleum Exporting
Countries) decides to cut output by 4% or 1 million barrels per day,
effective April 1. The cut is aimed at preventing a price collapse in a time
of weakening demand. (NYT)
- March 26
- Kazakhstan's Prime Minister opens an oil pipeline
from the giant Tengiz field to the Russian port of Novorossiisk on Monday,
giving the Central Asian producer its first direct link to international
markets. The 900-mile pipeline will carry 600,000 barrels of oil per day by
the end of the year, and eventually 1.5 million barrels per day. (NYT)
- April 17
- A letter from U.S. Department of the Interior
Secretary Gale Norton to Florida Governor Jeb Bush is released, stating that
the Bush administration has decided to go ahead with plans to auction six
million acres of potentially oil-and-gas-rich seabed in the Gulf of Mexico.
The U.S. Department of the Interior estimates that the area contains 396
million barrels of oil and 2.9 trillion cubic feet of natural gas. (USAT)
- April 30
- U.S. Vice-President Dick Cheney previews the
administration's energy plan in a speech in Toronto, Canada. Cheney, stating
that conservation alone cannot solve America's energy needs, calls for
increased domestic production of fossil fuels and increased usage of nuclear
power to meet America's energy demand. He also calls for construction of new
coal and gas power plants, as well as upgrading and expanding of the
country's transmission grid. (WSJ, USAT)
- May 17
- President Bush issues the administration's new
energy policy. Among the plan's 105 specific recommendations are calls for
reduced regulations to encourage more oil, gas, and nuclear production, tax
incentives to boost coal output, and other tax incentives to promote
conservation and alternative fuels. The plan also calls for increasing
energy assistance to low-income households and for making the electricity
grid more interconnected, both domestically and with Mexico and Canada. (LAT, WP, WSJ)
- May 18
- Saudi Arabia selects the eight foreign companies to
take part in its "Gas Initiative," three core venture gas projects that have
an anticipated worth of $25 billion. They are: Core Venture 1: ExxonMobil
(lead), Shell, BP, and Phillips; Venture 2: ExxonMobil (lead), Occidental
and Enron (a joint bid); Venture 3: Shell (lead), TotalFinaElf, and Conoco.
The Gas Initiative is the first major reopening of Saudi Arabia's upstream
hydrocarbon sector since nationalization in the 1970s. (WMO)
- May 21
- The Enron Corporation's power generating venture in
India, the Dabhol Power Company, serves formal notice that it will terminate
its power supply contract and pull out. The $2.9 billion Dabhol project
represents the single largest foreign investment in India. The gas-fired
plant already had a generating capacity of 740 megawatts and another 1,444
megawatts was scheduled to go on line in June. (WSJ)
- May 29
- Natural gas futures plunge 6% to a 10-month low on
speculation that growing U.S. inventories will help power plants meet summer
demand for air-conditioning. The price for June delivery fell 23.5 cents, to
$3.738 per million British thermal units on the New York Mercantile Exchange
(NYMEX). Natural gas prices had reached a high of $10.10 per million Btu on
December 27, 2000, but then fell sharply beginning in late January 2001. (LAT)
- June 3
- Iraq announces that it will halt crude oil exports
in response to a United Nations Security Council resolution, approved May
31, that extends the oil-for-food program by only one month, instead of the
normal six-month period. The oil-for-food program affects revenues from
Iraqi sales of about 2.1 million barrels per day. However, it has been
reported Iraq will continue to sell several hundred thousand barrels per day
to its neighbors through sales that are outside of the oil-for-food program.
OPEC announces that, if need be, it will make up for lost Iraqi production.
Oil prices do not change greatly in response to either announcement. (NYT)
- June 5
- OPEC ministers agree to leave the cartel's oil
production quotas unchanged for at least a month, until a scheduled
emergency meeting July 3. OPEC had been expected to leave the quotas
unchanged until September, but Iraq's suspension of oil exports on June 3
created uncertainty.(LAT)
- June 7
- BP announces that it will build a new $600-million
platform offshore Trinidad that is expected to double the company's
production of natural gas there by 2004. BP currently produces one billion
cubic feet per day in Trinidad. (DJ)
- June 11
- Saudi Arabia announces that it has seized
ownership, effective June 7, of the 1.6-million barrel-per-day IPSA pipeline
that had carried Iraqi crude oil to the Saudi Red Sea port of Mu'jiz prior
to Iraq's invasion of Kuwait. The seizure includes pumping stations, storage
tanks, and the maritime terminal. Saudi Arabia claims that the asset was
confiscated as a result of aggressive Iraqi actions. Iraq insists that it
still owns the pipeline. (DJ)
- June 15
- ExxonMobil and Qatar Petroleum sign a letter of
intent for a natural gas to liquids (GTL) project that would be the largest
in the world. The plant would have a production capacity of 80,000 to 90,000
barrels per day, and would use about 640 million to 720 million cubic feet
of natural gas per day as feedstock. The project is expected to cost between
$1.6 billion and $1.8 billion to construct. (OD)
- June 30
- ENI of Italy signs a $550 million contract to
develop Iran's Darquain (Darkhovin) field, with expected production of
160,000 barrels per day. This deal may be seen as a test of the U.S.
government's resolve to enforce sanctions against foreign companies
investing in Iran's energy sector. (LAT)
- July 2
- U.S. Secretary of the Interior Gale A. Norton
states that the Bush Administration will seek to let oil companies drill on
about 1.5 million acres of the Gulf of Mexico out of the 6 million
originally under consideration. This removes acreage closest to the shores
of Alabama and Florida. (NYT)
- July 2
- The United Nations (U.N.) Security Council, facing
an almost certain Russian veto, agrees to postpone indefinitely a vote on
the U.S.-led "smart sanctions" package for Iraq, despite support by the four
other council members. Instead, it will extend, most likely through the end
of the year, the program that allows Iraq to export oil and import food and
other commodities under U.N. supervision (WSJ)
- July 3
- At a meeting of its oil ministers, OPEC agrees to
maintain current production quotas. Ministers indicate that, if Iraqi oil
returns to the market, they may cut production in response to maintain their
desired level of prices. (WP)
- July 5
- Australia and East Timor sign an agreement to share
royalties from oil and natural gas production in the Timor Sea, which
separates the two countries. The deal supercedes the former agreement
between Australia and Indonesia that divided royalties 50-50, with a new
arrangement of 90% for East Timor and 10% for Australia. This agreement
clears the way for $7.25 billion in proposed energy projects for the area
and further downstream projects for Australia. (WSJ)
- July 10
- Amerada Hess agrees to acquire Triton Energy for
$2.7 billion in cash. Both companies' boards have approved the transaction.
Triton Energy is an international exploration and production company with
major oil and natural gas assets in West Africa and Latin America. Triton's
total proved reserves are estimated at 293.5 million barrels of oil
equivalent. Amerada Hess' total proved reserves are estimated at 1.1 billion
barrels of oil equivalent. (DJ)
- July 11
- Iraq resumes oil exports, ending a 5-week halt in
protest of a U.S. and British-sponsored United Nations (U.N.) Security
Council resolution that would have overhauled U.N. sanctions, after this
resolution did not come to a vote (see July 2). The oil-for-food program
will be extended for five months. (NYT)
- July 24
- An Iranian warship in the Caspian Sea threatens a
BP oil exploration ship off the coast of Azerbaijan. This prompts BP to
suspend exploration in the area. The two vessels were in the Araz-Alov-Sharg
field 90 miles southeast of Baku. Iran claims the field is in Iranian
waters. Caspian Sea region countries have been unable to agree on a division
of the Sea. (NYT)
- July 25
- Faced with declining oil prices, OPEC ministers
agree to cut crude oil production quotas by about 4%, or one million barrels
per day. The cut will take effect September 1, and is aimed at maintaining
the price of the OPEC basket of crude oils at around $25 per barrel. Crude
oil futures for September delivery climbed 47 cents per barrel, to $26.78,
on the New York Mercantile Exchange (NYMEX) after the announcement. (DJ)
- July 26
- Former Indonesian President Abdurrahman Wahid
leaves the presidential palace and the country, ending a 2-day standoff and
clearing the way for his successor, Megawati Sukarnoputri, the former
vice-president, to take over. The National Assembly had voted on July 23 to
remove Wahid from office and install Sukarnoputri in the presidency. (AP)
- August 3
- U.S. President George Bush signs into law the Iran
and Libya Sanctions Act (ILSA) Extension Act of 2001. This Act provides for
a 5-year extension of ILSA with amendments that affect certain of the
investment provisions. ILSA sanctions foreign companies that provide new
investments of over $40 million for the development of petroleum resources
in Iran or Libya, or that violate existing United Nations prohibitions
against trade with Libya. The law allows the president to waive sanctions
against a foreign company if doing so is deemed to be in the U.S. national
interest. U.S. companies are prohibited by U.S. law from engaging in any
commercial or financial transactions with Iran or Libya. (NYT)
- August 10
- The United States and Great Britain reject a
proposal by United Nations Secretary General Kofi Annan to permit the Iraqi
government to use $1 billion per year to fund infrastructure improvements
and to increase oil production capacity. It has been suggested that without
infrastructure investment, Iraq's production could fall significantly over
the next few years. (WMO)
- September 7
- The U.S. Federal Trade Commission approves
Chevron's bid to buy Texaco. Texaco must sell its Equilon Enterprises and
Motiva Enterprises units in order to complete the $39-billion deal. The new
company, ChevronTexaco, will have a market value of over $100 billion,
assets of $83 billion, net proven reserves of 11.5 billion barrels of oil
equivalent (boe), and daily production of 2.7 million boe.(DJ)
- September 11
- The largest terrorist attack in world history
occurs as 2 hijacked airplanes crash into the twin towers of the World Trade
Center in New York City, one hijacked plane crashes into the U.S. Department
of Defense's Pentagon headquarters, and another hijacked plane crashes into
a rural part of Pennsylvania. The World Trade Center is destroyed, and the
Pentagon is heavily damaged. Thousands of people die and economic damage is
estimated to be in the billions. Aviation is halted in the United States and
all major trading markets (including energy) are closed for the remainder of
the week. The U.S. government blames the attack on Osama Bin Laden's
terrorist network (NYT)
- September 13
- Relative calm returns to world oil markets as U.S.
retail gasoline prices return to normal levels and Brent crude oil futures
fall back to $28.02 per barrel for October delivery after spiking to above
$31.00 in the aftermath of the September 11 attacks. Also, energy trading by
Houston energy companies resumes and limited commercial aviation starts. (WMO)
- September 17
- Major trading markets in the United States,
including the New York Stock Exchange and the New York Mercantile Exchange
(NYMEX), reopen for the first time since September 11. (NYT)
- September 24
- Crude oil and petroleum products futures fall to
their lowest levels in nearly two years amid fears that a recession will
reduce energy demand. At the New York Mercantile Exchange (NYMEX), crude oil
set for October delivery falls $3.96 to $22.01 per barrel, and crude oil for
November delivery falls $3.82 to $22.44 per barrel. Over the past six
trading sessions crude oil and gasoline futures have fallen more than 26%
and heating oil futures have fallen nearly 29%. (NYT, DJ)
- September 27
- At its two-day meeting in Vienna, OPEC decides to
keep its production quotas unchanged at 23.2 million barrels per day,
despite crude oil being at its lowest price levels since 1999. (NYT)
- October 7
- Crude oil resumes flowing through the trans-Alaska
pipeline after workers welded shut a bullet hole that caused 260,000 gallons
of oil to spill out. The pipeline, which carries about 17% of the United
States' oil production, had been shut down on October 4 after being pierced
with a bullet in an apparent act of criminal mischief. (DJ)
- October 15
- The first tanker loading of the new $2.5-billion
Kazakh-Russia Pipeline takes place. This is a trial run that informally
inaugurates the pipeline. Initial capacity of the pipeline is expected to be
28.2 million metric tons per year (around 560,000 barrels per day). The
Caspian Pipeline Consortium (CPC), led by ChevronTexaco, runs the pipeline.
(Reuters)
- October 16
- The U.S. Coast Guard lifts a ban on liquefied
natural gas (LNG) tankers entering Boston Harbor to makes deliveries to
Distrigas' Everett LNG terminal that had been imposed on September 26 in
response to the terrorist attacks of September 11. LNG regasified at the
Everett terminal normally provides 15%-20% of the natural gas that heats
homes and businesses in New England, with the percentage rising to 35% on
the coldest days. On October 26, the Mayor of Boston asks a federal court to
prevent tankers from entering because he claims there are inadequate
disaster response plans. (Reuters)
- October 18
- Crude Oil for November delivery falls to its lowest
level since August 1999 on the New York Mercantile Exchange (NYMEX). Light,
sweet crude falls 50 cents per barrel to settle at $21.31 per barrel. Brent
crude for December delivery closed at $20.36 at London's International
Petroleum Exchange (IPE), down 37 cents per barrel. Poor economic prospects
in the next few months, and OPEC's inability to respond so far are seen as
factors contributing to the sliding prices of crude oil. (OD)
- October 29
- ExxonMobil announces that a consortium it leads
will spend $4 billion over 5 years to develop large offshore oil and natural
gas fields in Russia's far eastern Sakhalin region. The fields are estimated
to contain 2.3 billion barrels of oil and 17 trillion cubic feet of natural
gas. ExxonMobil will be the operator and own a 30% interest in the fields.
Sakhalin Oil and Gas Development of Japan will own 30%, ONGC Videsh of India
20%, Sakhalinmorneftegas-Shelf of Russia 11.5%, and RN-Astra of Russia 8.5%.
The total investment could grow to $12 billion over the 30-40 year project
life. This is the single largest foreign investment in Russia, as Russia
continues to undertake market reforms. (WSJ,
NYT)
- November 6
- Crude oil for December delivery on the New York
Mercantile Exchange (NYMEX) falls to a two-year low after OPEC members warn
that a downward price spiral could occur if major non-OPEC oil exporters do
not reduce oil production. The NYMEX price settles at $19.92 per barrel,
down 10 cents per barrel from the low of November 5, and the first time it
has been under $20 per barrel since mid-1999. (NYT)
- November 9
- Enron, the world's largest electricity and natural
gas trading company, agrees to an all-stock takeover by former competitor
Dynegy. ChevronTexaco, a 27% stakeholder in Dynegy, will immediately inject
$1.5 billion cash into Enron, and an additional $1 billion into the combined
entity. The merged company will be called Dynegy Inc., and Dynegy executives
will occupy all top positions. The deal is expected to take at least six
months to close. (Note: On November 28, 2001, Dynegy withdraws from the
merger deal) (WMO)
- November 10
- An agreement is reached at talks in Marrakech,
Morocco, on rules for implementation of the Kyoto climate change treaty.
Rules for joint implementation projects, the Clean Development Mechanism,
and funding for less developed countries are elaborated. The United States
does not participate actively in negotiations or agree to the rules. (OD)
- November 13
- U.S. President George Bush orders that the
Strategic Petroleum Reserve be filled to capacity over the next few years.
The reserve has a capacity of about 700 million barrels of oil, and now
contains about 545 million barrels of oil. The Strategic Petroleum Reserve
is intended, in the short run, to smooth out price spikes and shortages
caused by a supply disruption. (Reuters)
- November 14
- At its meeting in Vienna, Austria, OPEC announces
that it intends to cut its crude oil output quotas by 1.5 million barrels
per day effective January 1, but only if non-OPEC producers cut their output
by 500,000 barrels per day as well. The production cuts are an effort to
steady or raise world oil prices, which have fallen markedly since
September. (DJ)
- November 18
- Phillips Petroleum and Conoco agree to merge into a
new company to be called ConocoPhillips, which would be the third-largest
oil and natural gas company in the United States, and the sixth-largest in
the world, in terms of production. The company also would be the largest
gasoline retailer in the United States and the fifth-largest refiner in the
world. Combined total reserves of the new company would be 8.7 billion
barrels of oil equivalent, and production would be 1.7 million barrels of
oil equivalent per day. The new company expects to be able to compete more
effectively with its larger rivals and to achieve significant cost savings.
The new company will be based in Houston, Texas. (NYT)
- November 29
- The United Nations Security Council unanimously
approves a resolution extending the Oil-for-Food program in Iraq for another
six-month period. This resolution allows Iraq to sell unlimited quantities
of oil on the condition that the proceeds are used to buy food, medicine,
and other humanitarian goods, and to pay war reparations. This resolution
also calls on members of the Security Council to agree by May 31, 2002, on a
list of "dual use" items that would require United Nations approval before
Iraq could import them through the program. (DJ,
WP)
- December 2
- Enron files for Chapter 11 bankruptcy in the
Southern District of New York for 14 affiliated entities, including Enron,
Enron North America, Enron Energy Services, Enron Transportation Services,
Enron Broadband Services, and Enron Metals & Commodity Corporation.
Enron was formerly the world's largest electricity and natural gas trading
company, and the seventh-largest publicly-traded energy company in the
world. Enron also files a $10 billion lawsuit against Dynegy, alleging
breach of contract, in connection with Dynegy's November 28 termination of
its proposed merger with Enron. (DJ)
- December 26
- Crude oil prices on the New York Mercantile
Exchange (NYMEX) record one of their largest one-day jumps of the year as
traders become convinced that OPEC will follow through on production cuts.
Prices per barrel for February delivery settle at $20.27 per barrel, an
increase of $1.65, or 8.4% higher than the December 21 closing price (the
last day of trading before the holiday weekend). Also contributing to the
price increase was the return of cold weather to the northeastern United
States and forecasts that show that the cold weather pattern may continue.
Nevertheless, prices are still considerably lower than one year ago. (NYT)
- December 28
- OPEC oil ministers meeting in Cairo agree to reduce
their crude oil output quotas by a combined 1.5 million barrels per day
(about 6.5%) for a six-month period beginning January 1, 2002. OPEC
ministers also announce that they will meet again in March. OPEC received
commitments for 462,500 barrels per day of the 500,000 barrels per day in
cuts that it had requested from non-OPEC exporters, close enough to the
target for OPEC to go ahead and implement its concomitant cuts. This month,
Russia announced an export cut of 150,000 barrels per day on December 5.
Oman announced a cut of 25,000 barrels per day on December 11, and raised it
to 40,000 barrels per day on December 20. Angola announced a cut of 22,500
barrels per day on December 14. Norway announced a cut of 150,000 barrels
per day on December 17. Mexico had already announced an export cut of
100,000 barrels per day in November. (DJ,
Reuters)
If you liked
this Country Analysis Brief or any of our many other Country Analysis Briefs,
you can be automatically notified via e-mail of updates. Simply click here, select the mailing list you would like to join,
click on the "Join" button at the bottom of the screen and fill in the
requested information. You will then be notified within an hour of any updates
to our Country Analysis Briefs.
Return to Country Analysis Briefs home page
-
-
File last modified: August 22, 2002
Contact:
Lowell Feld lowell.feld@eia.doe.gov Phone: (202)586-9502 Fax:
(202)586-9753
-
- URL: http://www.eia.doe.gov/cabs/chron.html
-
If you are having
technical problems with this site, please contact the EIA Webmaster at wmaster@eia.doe.gov
|