ALBERT

Description: The Asia Pacific region consumes about 13million b/d with the U.S. West Coast and Japan accounting for 70%. While oil demand growth in general has not reached expectation, that for transportation fuels has increased considerably eg. jet fuels 6% pa, diesel 4% pa. Oil demand growth is linked to the economies of Asia's newly industrialised countries and Japan where growth has depended on successful export trade strategies. An 11 country survey has indicated that demand growth to 1990 could be as high as 9% pa. The balance between inter-regional production and imports, largely from the Middle East, is not likely to change drastically, and refining capacity is expected to remain in surplus.

Description: Porosity and permeability of Cretaceous to Oliogocene Pakawau and Kapuni Group sandstones in Taranaki Basin, New Zealand, have been extensively modified by burial diagenesis. Mechanical compaction and the precipitation of silica, carbonate and authigenic clays have caused marked deterioration of potential and actual reservoirs for hydrocarbons. Other authigenic minerals have had less effect. Secondary reservoir porosity and permeability have developed in significant volumes in sandstones at various places, at depths below about 2.5 km. They have formed by dissolution of detrital grains, authigenic cements and authigenic replacement minerals, and by fracturing of rock and grains. The most important process for commercial hydrocarbon accumulation in New Zealand is mesogenetic carbonate (particularly calcite) dissolution. As the most prospective source and reservoir rocks are low in the Cretaceous-Tertiary sequence, the depth of burial necessary for hydrocarbon generation means that most primary porosity has been lost and secondary porosity is essential for a commercial accumulation. Entrapment of hydrocarbons in reservoirs higher in the sequence probably also requires the development of secondary permeability to allow migration.

Description: This paper is an edited version of a paper presented to the New Zealand Oil Exploration Conference at Wairakei, New Zealand, 1–3 July, 1987. The paper is an overview of the New Zealand legal environment as it affects petroleum explorers and their operations in New Zealand. It includes a brief summary of the New Zealand legal system and identifies the business structures commonly used and recognised under New Zealand law. It continues with an outline of the significant legal requirements governing petroleum exploration, including the Petroleum Act and Regulations (rights and obligations of Licensees), environmental and conservation laws. Overseas Investment Act and Regulations, Commerce Act. Fair Trading Act. taxation aspects of operations in New Zealand, the no-fault Accident Compensation scheme and other operational requirements. The paper concludes with comment on government participation, current government policy, the legal and administrative framework in which that policy is implemented and some comment on prospects for the future.

Description: Taranaki Basin is a proven petroleum producing region, with commercial quantities of hydrocarbons from late Eocene paralic and terrestrial sands, and Miocene-latest Pliocene shelf sands. Other sediments with sub-commercial hydrocarbon accumulations, shows or potential reservoir features have also been encountered. The paralic and terrestrial sediments were deposited during periodic shoreline fluctuations in the Paleogene and were capped by transgressive terrigenous and carbonate muds. Other sand bodies, generally of bathyal and shelf setting and representing increasing regional tectonism, are found throughout the late Eocene to Pliocene sequence. Paleogeographic reconstructions depicting the maximum sand development during the Paelocene to Pliocene provide potential sandstone reservoir maps. These highlight onshore Taranaki and the Eocene paleoshoreline trend as areas of greatest prospectivity. Future activity should also consider the potential of the relatively unexplored late Cretaceous-Paleocene and Pliocene sandstone sequences.

Description: The predominant hydrocarbons produced in the Taranaki Basin are gas condensates, although oil has been discovered at several widespread locations and therefore remains a priority exploration objective. Study of the oil geochemistry by means of bulk chemical characteristics, isotope and biomarker content improves our understanding of their source rocks and maturation histories. Results show that the oils and condensates throughout the region are similar in their bulk chemical character, source environment and levels of maturation suggesting a common source for all the hydrocarbons. The source environments as indicated by biomarkers were terrestrial fresh water swamps with low bacterial anoxic conditions. The primary plant material deposited was vascular plant debris, and onshore in northern Taranaki and in the Murchison Basin, angiosperm debris was an important additional component. These angiosperm indicators are absent from the West Coast and southeastern Taranaki oils and condenstates. The overall environment of the oil sources rocks is similar to that which formed the high volatile coals of the West Coast. These coals, on source rock analyses, also reveal a perhydrous character equivalent to the high hydrogen index normally associated with marine oil source rocks. Maturation levels of the oils, equivalent to a vitrinite reflectance level of Ro 1.0% are indicated by biomarkers. The highest maturation levels reached by drilling so far are 0.9%. suggesting that oil source rocks in Taranaki Basin are at or below the maximum drilled depth of 5.5 km. After generation, the oils of the West Coast were slightly biodegraded as suggested by their low paraffin wax content. However, valid biomarker interpretations for source and maturation conditions are still possible. The widespread occurrences of oil and the consistent nature of the detailed chemistry of the oils suggest that in addition to gas condensate there is a reasonable prospectivity for oil especially in and adjacent to the Central Graben are of the Taranaki Basin and in parts of the West Coast.

Description: The serious search for hydrocarbon resources in Africa dates back to the 1950s when the major suppliers were obligated to find other sources because home country reserves were being depleted and the political situation in the Middle East was increasingly unstable. Resultant activity in Africa increased reserves five-fold with Algeria, Nigeria, Libya and Angola accounting for 87% of the total. During this period each country increasingly exercised direct control of its reserves. Africa can be expected to keep its 9% share of world producion which is approximately 5.5mbd, a level that can be maintained with reasonable assurance until the year 2000. About 4mbd of this will be exported, principally to OECD countries. The development of further oil potential will rely heavily on foreign capital and technology. Its availabilty, in turn, will be influenced by oil requirements and oil politics.

Description: The Malaysian governments Four Fuel Energy Policy is concerned with security of supply and the need to meet economic development targets through greater use of natural gas, hydropower and with imported coal. Gas reserves are 52 trillion cu. ft. and hydropower potential 29,000MW. Coal is included because of the enormous supplies available worldwide. Indigenous natural gas consumption is expected to grow at 9% p.a. till the year 2000 and to account for 40% of the total energy consumption. The Peninsula Gas Utilisation project will reduce the use of oil in electricity generation, provide it for steel manufacture and deliver gas to the domestic market. Natural gas will be used increasingly in transportation and for petrochemicals, excess production is destined for export.

Description: Decontrol of natural gas prices created more competition at the wellhead and the need for greater flexibility in the transportation rules to allow sales directly to end users and distribution without middlemen. In 1987, the Commission issued Order No. 500 which would end the disputes that had arisen by addressing three concerns: take-or-pay, contract demand adjustments, and ‘grand fathering’. The first and the most important was dealt with by a flexible crediting mechanism, the second eliminated and the third of insufficient importance to change the rules. Other issues about natural gas trade of concern to the Commission include: Marketing affiliates which threatened monopolistic practices that have required procedures to eliminate prohibitive practices and to deal with complaints: Rate design, which is the principal role of the Commissions that is treated on an individual basis; Certificate Proceedings for new construction that involve solving issues of rates and environmental impact.

Description: Cenozoic deformation of the North Island was dominated by the “closure” of the Challenger Rift and the establishment of the presently active subduction system. The initiation of subduction-related volcanic chains and their subsequent migration influenced the source of clastic material deposited in the Neogene basins. Uplift patterns, shoreline and drainage configurations were governed by complex 3-D distortion of the transition between the Alpine Fault system in the south and the Hikurangi through subduction system in the north. Along the Pacific side of the island, in Northland, some “piggy back” basins were formed on allochthonous pockets of sediments involved in obduction of ocean floor rocks onto the North island. Clockwise rotation on the east coast region and alternate coupling and decoupling across the subduction thrust created short-lived forearc basins. Axial ranges, and derivation of gravels from them are younger than 1 m y B.P. A very young, still active cross structure due to oblique subduction led to the formation of South Taranaki Bight, caused differences in the width of the axial ranges along their length and may be the reason for the peculiar coastal indentation of Hawke Bay.

Description: Present-day producing hydrocarbon reservoirs in the Taranaki Basin occur in the Paleocene-Eocene Kapuni Group, both onshore and offshore. The Kapuni Group has been encountered only in drillholes, the top being at depths ranging from 2 to 4 km. It consists of fluvial, paralic, near-shore and shelf sediments, containing proven and prospective reservoir sandstones with variable grain-size, sorting, porosity and permeability. Compositionally, the sandstones are sub-feldsarenites to feldsarenites, derived from continental block source rocks. Diagenetic features adversely affecting reservoir quality are compaction, pressure solution, clay neoformation, quartz overgrowth and neoformation, and carbonate neoformation. Secondary porosity development enhances reservoir quality, through dissolution of earlier (corroding) carbonate cement, dissolution of calcic plagioclase. quartz dissolution, and grain fracturing. Intrastratal solution of heavy minerals suggests that the Kapuni Group sedimentary sequence had progressed into the thermobaric hydrogeological regime. Kaolinite is an early diagenetic clay mineral, while illite and chlorite are formed later (〉 3 km). Quartz overgrowth has only been observed in samples from deeper than 3 km. Carbonate cemented horizons, although of relatively limited occurrence, have been observed over the entire studied depth range. Good secondary porosity development, due to (probable) carobate-cement dissolution has been observed in the gas/condensate reservoir of the Maui Field, and in the Witiora Sandstone (base Kapuni Group) in Tane-1, indicating that potential reservoirs can exist at depths of at least 3.5 km.

Description: Weather and sea conditions offshore New Zealand are severe enough to be of concern for oil exploration or production, coastal engineering, and shipping; and there have been some bad experiences. Analysis of existing information will permit adequate predictions of likely conditions in most areas. To illustrate the type of data available, and its limitations, examples are presented from the the southern area of New Zealand. Ship report files, particularly those from oil rigs, give adequate indications of wind speed and direction, swell and sea height is reasonable if recalculated as combined wave height, swell directions are adequate, but many sea and swell periods are unreliable. Hinds derived from radar tracked balloons can be used to predict winds up to 250km offshore, which provides a large historical data base. Numerical model derived wave heights correctly indicate the pattern of wave height changes with time, but the amplitudes must be scaled for near site data.

Description: The western-most region of Taranaki Basin, the Western Platform, has a stratigraphy which permits subdivision into major seismic units. The reflectors separating these units are easily identifiable. Each of the units and reflectors has typical reflection characteristics which are often correlatable with the lithology of the unit. Lateral velocity variations, caused by lateral deposition and compaction variations in prograding sequences, area major problem in developing depth conversion models for this region. Analysis of travel time data from wells shows that velocity variations in both the Oligocene-Miocene and Pliocene-Pleistocene sequences are predictable from the thickness variations of the units (and hence from interval travel times). The imerval velocity variations of the Paleocene-Eocene transgressive sequence are dependent on the overburden history and lithology of the unit.

Description: Active exploration for petroleum in New Zealand is over 120 years old. While some sporadic, commercial production was obtained already in the earliest part of this century, exploration until 1920 was entirely guided by the occurrence of natural seepages. 1925–1944 was the first period of scientifically-oriented exploration, spurred particularly by the requirements of the second World War. In 1955 began the present period of more intensified prospecting, which in 1965 extended to New Zealand's very large ofshore area. The onshore Kapuni gas/condensate field was discovered in 1959, and the giant offshore Maui field in 1969. Production started in 1970 and 1979, respectively. Exploration enormously increased and expanded all over the country in the late 1960's and early 1970's, with concession holdings reaching a record high in 1970/71:131,673 km2 onshore and 1,003,669 km2 offshore. But a sharp decline followed in the mid-late 1970's, which was partly Government-induced and political, partly due to a prolonged lack of success. A change of Government policy in 1980 started a new cycle of intense exploration, with enthusiasm rapidly fuelled by a string of new, though small discoveries in Taranaki onshore, and, in 1986/87, by what is believed to be a large oil and gas discovery in Taranki offshore. Drilling activity has reached record levels over the last years, while exploration in general is branching out again to many other areas and basins, outside Taranaki. Total production in 1986 amounted to 4,546 million m3 of gas (plus 744 million m3 re-injected), 1.208 million m3 of condensate, 186,700 m3 of LPG and smaller amounts of natural gasoline and butane, and 0.501 million m3 of oil.

Description: The petroleum industry requires long lead times to look for a petroleum prospect, drill it, evaluate it and ultimately produce from it. There is no way of substantially accelerating the process, particularly as new prospects are becoming increasingly hard to find. The world commercial and political climate are such that a) today's stock markets demand high and quick returns on investments. b) oil is temporarily abundant and low priced, and c) governments are reluctant to reduce taxes or improve incentives. This leaves the petroleum industry little option but to retrench, and as a result, exploration and synthetic fuels projects in importing countries are being cut. The vast majority of the world's conventional crude reserves lie within OPEC, mainly Saudi Arabia, and this proportion is increasing as importing countries deplete their own discovered reserves. Importing countries will again shortly have to pay whatever exporters demand for their crude and products. The lesson of earlier years has not been learned.

Description: TCPL has recently carried out ‘reconnaissance or exploration’ 3-D surveys, in three different blocks, each designed to solve a different type of problem. In each case a considerable improvement in data quality and the resulting structural/stratigraphic interpretation was achieved. The Kupe South structure is a wrench-induced feature cross-cut by numerous small-medium faults. Stratigraphic changes across the prospect produce a variable quality seismic event at the top reservoir level. The Pataka Prospect comprises a narrow horst block trend within the Oakura fault zone, offshore New Plymouth. Accurate determination of potential reserves required a reliable interpretation of the fault configuration, and the amount of displacement of the reservoir horizon by the critical faults. The Waitara Prospect is affected by a ‘no-data’ zone possibly associated with volcanics in the near surface. It was necessary to define the extent and nature of the no-data zone and to calculate the effect of the interpreted volcanics on the time structure map. Prior to the surveys we modelled the effects of such critical parameters as sail-line separation, final interpolation spacing and the dimensions of the 3-D grids using existing 2-D data. Good results were obtained with a wider line spacing than is strictly required for true 3-D. Whilst the Reconnaissance 3-D method has not removed all of the difficulties with interpretation, a considerable improvement was obtained in data quality and ease of interpretation.

Description: New Zealand's Energy Predicament — Setting for the New Zealand Oil Exploration Conference, Wairakei, N.Z., 1–3 July, 1987

Description: Over the last decade, environmental concerns have played an increasing role in energy decision making, from siting of new energy facilities to national policy changes, such as Sweden's decision to phase out nuclear power. Concern about atmospheric pollution from fossil fuel combustion, reflected in increasingly strict emission limits, has imposed additional costs and technical demands on coal-fired plants. Estimates from the Federal Republic of Germany, the USA and the OECD indicate that air pollution control can account for a third of the capital costs for a new coal-fired power plant. This article outlines the current status of regulations on air pollutant emissions from coal-fired plants, describes action being taken to meet regulations and its potential impacts on coal utilisation. The article focuses on sulphur dioxide and nitrogen oxides, which have seen major recent developments in regulations and control methods.

Description: In response to a directive from member countries in 1983, IEA Coal Research initiated a series of techno-economic studies designed to assess the future cost and availability of steam coal supplies for export from major existing and potential producing countries. As a means of setting this assessment work in a world context and to help explain why certain countries were selected for study and the order in which those studies have been carried out, the paper provides background information on world coal supply (4,400 Mt) and hard coal trade (330 Mt) for 1986. Since 1983 reports have been published on Colombia, United States, South Africa, Canada and the People's Republic of China; reports are currently in draft form for the Soviet Bloc and Australia; and studies are in progress for the Asia/Pacific Region and for Western Europe. The paper goes on to review the evolution of the study work, study methodology and typical report format. Generalised conclusions are drawn on coal supply categories, the economies of scale required to produce and deliver low value coal products, and the principal factors affecting coal pricing. More specific conclusions are then drawn for each country and finally the programme of future work in this field is indicated. The overall objective of this assessment work has now been geared towards producing integrated projections of world supply of all the principal coal products that are expected to be traded 15–20 years ahead and for those projections to be kept current and issued as annual reports.

Description: A number of coal gasifiers applicable to IGCC are under development or at the demonstration stage. These include moving bed, fluidised bed, entrained flow and molten bath types. The efficiency of an IGCC system increases as the temperature of the gas entering the turbine increases. Practical temperatures are currently limited by turbine blade materials and by the system used to clean the gas prior to entering the turbine. Work on hot gas cleaning systems, turbine blade materials and blade cooling techniques are under way. The main requirements of the gasification system are to provide a high temperature, high pressure gas with a minimum of impurities.

Description: The paper starts with a brief review of recent trends in the international coal market and an examination of the linkage between coal and oil prices. It is argued that while oil prices had a significant impact on coal prices in the 1973–87 period, future coal price trends will be driven more by demand and supply developments in the coal market itself. Taking thermal coal as an example, future demand and supply developments are examined. Demand and supply are brought together by using an aggregate world supply curve. The plausible range of prices for 2000 is determined by reading off the supply curve at the appropriate projected demand levels.

Description: Certainties and uncertainties in the issue of the greenhouse gases are discussed. It is an established fact that the concentrations of these trace gases — CO2 chlorofluorocarbons (CFC), methane, nitrous oxide and ozone — are increasing in the lower atmosphere as a result of human activities. The contribution of coal use to the greenhouse effect is about 15 to 20%. Future emissions of the greenhouse gases form one of the greatest sources of uncertainty. The potential for reducing emissions of the greenhouse gases is discussed. While steps are being taken to control CFC, the greenhouse gases with the greatest rate of increase, the scope for reducing CO2 emissions is limited. Climatic model results suggest that there will be a noticeable global warming in one or two decades with more uncertain regional changes. Observations are consistent with these results but there is as yet no conclusive causal link with increases in the greenhouse gases.

Description: Biomass for fuels and chemicals remains a potentially viable option and opportunities for commercialization should be pursued. In the US, apart from the possible use of agricultural wastes, energy plantations of hybrid poplar could produce biomass yields of exploitable proportions. The technologies and economics of biomass refining indicate that co-product credits are essential for commercial propositions. There are many processes using either enzymatic or acid hydrolysis for the conversion of wood cellulose with subsequent fermentation of the sugars to alcohol. There is also the possibility of producing other industrial chemicals such as acetic acid. The economics of biomass refining could hinge on the profitable sale of the lignin. The paper discusses the prospects for renewable energy availability from wood and agriultural wastes, sucrose, wood refining, biogas, biomass refining and fermentation products.

Description: Decline of world oil reserves and pollution problems from burning of fossil fuels and lead require that methods for safe alternate liquid fuels be developed. Ethanol is one of the most important alternate liquid fuels since it can be produced readily by fermentation of sugars. Wood and vegetable growth are excellent sources of sugars to support an ethanol fuel economy of significant proportions. Acid Catalysed Organosolv Saccharification (ACOS) is a new means for total biomass dissolution and recover of component sugars and lignin from wood. The process uses an acidified aqueous acetone solution for the high-temperature hydrolysis of biomass. Acetone provides an excellent reaction medium for dissolution of both sugars and lignins and through a transient derivatization of the sugars protects them from further reaction (dehydration) to furfurals and humic substances. Therefore, sugar and lignin recoveries are quantitative. The ACOS process is 700 times faster than the conventional weak acid hydrolysis processes and wood can be dissolved in 30 sec by this process. The lignin is recovered as a low molecular weight powder by-product. This process is applicable to both coniferous and deciduous woods and agricultural residues such as corn stover, straw and bagasse. In case of such residues the ethanol yield can be doubled (straw and corn stover) or tripled (bagasse) compared to what has been obtained from the grain and sugarcane juice so far. Hitherto these residues were merely discarded or burned.

Description: While Canada is likely to remain a net energy supplier in total over the next twenty years, the country will experience imbalances regionally and for particular types of energy that raise concerns about the security of Canadian energy supply. The options available to deal with these imbalances can be looked at from three perspectives: (i) economic criteria, including options for new sources of conventional oil and gas, synthetic oil supplies, substitution for oil, renewable energy, imports and new technologies; (ii) commercial criteria, encompassing various types of commercial risk (reserves estimates, scheduling, technology, market, fiscal, financial, and so on); and (iii) political criteria, including regional economic development objectives, energy development policies, environmental regulations, and security of energy supply. The pursuit of national economic priorities suggests that the least-cost alternatives be pursued first. Economic priorities may require an appropriate sharing of risks, if private risks associated with desired energy development are unacceptable to investors. Government objectives go well beyond concern of economic efficiency into areas of regional economic growth, diversification of supply sources and protection of the environment. An energy strategy will ultimately emerge from the balancing of all these considerations.

Description: This paper focuses on changing energy use and changing analysis of energy use in Canada from the point of view of policy analysis. End-use efficiency for energy has been improving in Canada, though by less than in other countries. However, conventional forecasts of energy use tend to ignore the implications of those gains, and they are therefore either misleading or unduly constraining for purposes of policy development. An alternative approach, which uses a method of analysis called backcasting rather than forecasting, is preferable for policy purposes. A backcasting analysis for Canada shows that significant cuts in absolute energy use are both technically and economically feasible. More broadly, this feasibility analysis demonstrates that there is no specific amount ot type of energy that is “required” for a given GNP nor is there a “base case” for energy use that is anything more than an analytical construct. Rather, there are lots of options, and different scenarios that will get us from one to another. To a very real extent, a developed country gets the level and character of energy use that it chooses.

Description: The New Zealand Synthetic Fuels Corporation Limited (Synfuel) began operation of its Gas to Gasoline plant in October 1985. The Plant has since successfully demonstrated the technology and engineering upon which the project was based. The process by which natural gas is first synthesised to methanol and then subsequently convened to a premium gasoline blend stock is outlined. Operational history since startup is described with particular emphasis on natural gas quality and its effect both operationally and commercially on the Synfuel Plant. Future options for optimisation of the Plant's feedstock are discussed.

Description: As government control has lessened, refiners are dealing with a market driven industry which will result in refineries offering gasoline of a higher octane rating. 89 octane was regarded as a target for 1992, but that level might prove non-competitive because some majors are already marketing 93 octane premium gasoline. (It is reasonable to expect that automobile manufacturers will react by offering higher perfomance engines). On a basis of a 1% annual growth rate in gasoline demand for the higher octane fuels, US refiners surplus gasoline supply capability will be exhausted in 1990. This projected shortfall is not likely to be alleviated through imports. US refiners should have good opportunity to plan for changes in an orderly manner and for stable profits.

Description: Prospects for the European gas markets are excellent because North Sea reserves are extensive, the distance to markets small and the latent domestic demand to replace uneconomic coal gas. Nevertheless, expansion in the gas trade has been modest because the industry has not been sufficiently assertive to dispel misconceptions about the adequecy of supply and to deal with pressures from competing energy interests. Increasing rivalry between suppliers can only lead to greater sales effort and the creation of demand, particularly for non-traditional end-users. Expansion of European gas markets could be drastically increased through greater efforts by the Soviet Union to export. This could only happen with price competitiveness that would significantly expand gas markets. There is every reason to expect that the natural gas share of the European energy market would continue to grow until it was the single most important component of western Europe's supply of energy.

Description: The characteristics of good energy company borrowers are strong management, integrity, diversification, flexibility, a sound financial basis and business acumen. Acceptable reasons for borrowing include requirements for working capital, plant expansion, modernisation, oil and gas field development and the manufacturing of oil tools and related products. Security for loans is based on the company's reserves, the duration of the debt and priority over other indebtedness. Most loans are evaluated on the grounds of general corporate credit, that is, the overall credit standing of the borrower.

Description: This paper presents the results of an organic geochemical biomarker study of the oil and the coals at different depths in the Maui-4 oil exploration well. The n-alkane distribution suggests that the oil is progressively generated in the coals with increasing depth from about 6800', but significant generation does not lake place until about 10600'. Although at 12770' the lighter oil fraction is released, the majority of the oil is largely retained in the coal matrix. It is only in the deepest 12780' coal that the maturity parameters derived from the sterane and hopane biomarkers approach those in the produced oil. It is therefore likely that the probable source rock for the Maui-4 oil is even deeper. Extrapolation of these biomarker parameters suggests the oil is sourced by the Pakawau coals or possibly the associated shales between 13000–13500'.

Description: Recent revisions to the paleontologic dating and lithologic correlation of the late Cretaceous and Cenozoic sediments in many wells have improved the chronostratigraphic framework for the Taranaki Basin. When combined with detailed seismic mapping and results of a study of basement trends, refinements to the timing of major structural and sedimentary events in the basin's history can be made. A resultant series of paleogeographic maps is presented. The Taranaki Basin has developed primarily within an extensional tectonic regime, with a compressional overprint occurring variously in places from early Miocene to Pliocene. An overall transgressive sedimentary cycle existed from the late Cretaceous to early Miocene. Thereafter a generally regressive trend has continued to the present day. Subsidence patterns were broadly similar across the basin until the late Miocene, whereupon tectonic controls on basin morphology and sedimentation became more diverse.

Description: Of the 5 largest basins, with over 20,000 km and 4 km plus of sediments, only one (Taranaki) has seen more than reconnaissance exploration. The other basins have barely been scratched, with results that in all cases remain inconclusive. There is a wide potential still untested in New Zealand. Two examples are presented: The Wanganui Basin, where the older part of the sequence has never been drilled. Wells were located on buried hills with older sediments onlapping along flanks. There are extensive updip wedgeouts and potential for structural-stratigraphic trap combinations. Aspects of source rock and flushing, while initially thought of as downgrading prospects, may look more favourable upon proper evaluation. East Coast Basin. With very thick. Cretaceous-Tertiary sediments, multiple deformation, local unconformities and facies changes, this is one of the more exiting basins, measuring 40,000-50,000 km2 on and offshore. Oil and gas generation is widespread, source rocks being of Paleocene and Cretaceous age. Potential reservoirs are Cretaceous and Miocene sandstones and Oligocene and Pliocene limestones, the latter of excellent qualities. Lower Tertiary, undercompacted and gas-charged mudstones may be an additional target for gas production. Shale diapirism has contributed widely to structural trap formation. Since 1960, only 14 wells have been drilled, of which I offshore. This amounts to 0.3 wells per 1,000 km2, or 0.6 m/km2.

Description: This paper examines the role of environmental risk in the Interior Department's Outer Continental Shelf (OCS) acreage offering decision process and the oil industry's bidding decision. Following a brief discussion of the OCS leasing process, a conceptual model for understanding the decisions proposed. The associated equations are econometrically estimated for both Interior und the oil industry using data from the 1979 North Atlantic Georges Bank Sale. By estimating decision equations as a function of environmental risk, cost of extraction, and expected hydrocarbon potential, the trade off between these parameters is revealed. Two important results are obtained. First is that in the Norht Atlantic study case, the acreage of interest to industry was largely a subset of the acreage Interior was willing to offer. This implies that industry was generally more conservative with respect to environmental risk than Interior. Second, the industry trade off between expected hydrocarbons and risk of a potential oil spill reaching shore was considerable. Over $1 million worth of additional expected hydrocarbons was needed to induce a bid if the risk of a spill hitting shore increased about 7%

Description: Domestic and export sales of gas had risen to 25,800 million cu. metres by 1986. Prices appear to have settled near $Can 1.75 MMbtu after deregulation. The pipeline system now in place allows adequate transmission to most regions of Canada and into the U.S. Deregulation has seen a marked increase in sales, sometimes in circumstances where there is fierce competition from alternative energy sources such as from electricity in Quebec. The number of shippers active in inter-provincial markets has increased. Exports to the U.S. have grown despite shrinking gas consumption. Sales in the future will be even more competitive but the prospects of expanded sales to the U.S. North East and Midwest are excellent. Prices will continue to be influenced by those for crude oil

Description: Kuwait, in nationalising our production of oil, formed the Kuwait Petroleum Corporation (KPC) to operate as an integrated oil company with satelite specialised companies. Since its formation in 1980, KPC, like other suppliers, has had to cope with soft markets, low prices and the consequent reduced revenues and limitation on development. KPC's goals have been to both stabilise and maximise revenues and diversify its source. This has been facilitated through the use of the expertise in the public companies under its control. As a result KPC has invested US $4.5 billion in upgrading projects, acquired technology through purchasing Santa Fe International and entered downstream marketing successfully in Europe.