2000 world oil market chronology
Encyclopedia
- 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 computerComputerA computer is a programmable machine designed to sequentially and automatically carry out a sequence of arithmetic or logical operations. The particular sequence of operations can be changed readily, allowing the computer to solve more than one kind of problem...
s and embedded control systems to recognize the year 2000 could create serious problems. (DJ, WP) - January 26: The United NationsUnited NationsThe United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...
Security CouncilUnited Nations Security CouncilThe United Nations Security Council is one of the principal organs of the United Nations and is charged with the maintenance of international peace and security. Its powers, outlined in the United Nations Charter, include the establishment of peacekeeping operations, the establishment of...
reaches agreement on the appointment of Hans BlixHans Blixis a Swedish diplomat and politician for the Liberal People's Party. He was Swedish Minister for Foreign Affairs . Blix was also the head of the United Nations Monitoring, Verification and Inspection Commission from March 2000 to June 2003, when he was succeeded by Dimitris Perrikos...
of SwedenSwedenSweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
, the former head of the International Atomic Energy AgencyInternational Atomic Energy AgencyThe International Atomic Energy Agency is an international organization that seeks to promote the peaceful use of nuclear energy, and to inhibit its use for any military purpose, including nuclear weapons. The IAEA was established as an autonomous organization on 29 July 1957...
(IAEA), to lead the new United Nations weapons inspection organization for IraqIraqIraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....
. Iraq has indicated that it does not intend to accept the new Security Council resolution. (DJ) - February 2: The U.S. Federal Trade CommissionFederal Trade CommissionThe Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
(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 StatesUnited StatesThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
. (WSJ, WP) - February 9: The Federal Energy Regulatory CommissionFederal Energy Regulatory CommissionThe Federal Energy Regulatory Commission is the United States federal agency with jurisdiction over interstate electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates...
(FERC) issues a group of policy changes which extend the deregulation of the interstate natural gasNatural gasNatural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
pipelinePipeline transportPipeline transport is the transportation of goods through a pipe. Most commonly, liquids and gases are sent, but pneumatic tubes that transport solid capsules using compressed air are also used....
system begun under Order 636 in 1992. Among the changes is a lifting, for a trial period of 30 months, of the price ceilingPrice ceilingA price ceiling is a government-imposed limit on the price charged for a product. Governments intend price ceilings to protect consumers from conditions that could make necessary commodities unattainable. However, a price ceiling can cause problems if imposed for a long period without controlled...
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 AlaskaAlaskaAlaska is the largest state in the United States by area. It is situated in the northwest extremity of the North American continent, with Canada to the east, the Arctic Ocean to the north, and the Pacific Ocean to the west and south, with Russia further west across the Bering Strait...
. (WP, NYT) - March 7: New York Mercantile Exchange front-month West Texas Intermediate crude oil futures contractFutures contractIn finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
closes at $34.13 per barrel, the highest level in nine years. (WSJ) - March 15: Phillips PetroleumPhillips PetroleumPhillips Petroleum Company was founded in 1917 by L.E. Phillips and Frank Phillips, of Bartlesville, Oklahoma. Their younger brother Waite Phillips was the benefactor of Philmont Scout Ranch....
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 CommissionFederal Trade CommissionThe Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
(FTC) for the merger of Atlantic Richfield with BP Amoco. Earlier the same day, the FTC announced that it had suspended its antitrustAntitrustThe United States antitrust law is a body of laws that prohibits anti-competitive behavior and unfair business practices. Antitrust laws are intended to encourage competition in the marketplace. These competition laws make illegal certain practices deemed to hurt businesses or consumers or both,...
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 AdministrationPresidency of Bill ClintonThe United States Presidency of Bill Clinton, also known as the Clinton Administration, was the executive branch of the federal government of the United States from January 20, 1993 to January 20, 2001. Clinton was the first Democratic president since Franklin D. Roosevelt to win a second full term...
intends to push for a phase out of the use of methyl tertiary butyl ether (MTBE) as a gasolineGasolineGasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...
additiveGasoline additiveGasoline additives increase gasoline's octane rating or act as corrosion inhibitors or lubricants, thus allowing the use of higher compression ratios for greater efficiency and power, however some carry heavy environmental risks...
. The administration wants the United States CongressUnited States CongressThe United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
to pass legislationLegislationLegislation is law which has been promulgated by a legislature or other governing body, or the process of making it...
which would end the requirement for the use of MTBE in gasoline sold in some smogSmogSmog is a type of air pollution; the word "smog" is a portmanteau of smoke and fog. Modern smog is a type of air pollution derived from vehicular emission from internal combustion engines and industrial fumes that react in the atmosphere with sunlight to form secondary pollutants that also combine...
-prone urbanUrban areaAn urban area is characterized by higher population density and vast human features in comparison to areas surrounding it. Urban areas may be cities, towns or conurbations, but the term is not commonly extended to rural settlements such as villages and hamlets.Urban areas are created and further...
areas, and instead require nationwide use of ethanolEthanolEthanol, also called ethyl alcohol, pure alcohol, grain alcohol, or drinking alcohol, is a volatile, flammable, colorless liquid. It is a psychoactive drug and one of the oldest recreational drugs. Best known as the type of alcohol found in alcoholic beverages, it is also used in thermometers, as a...
. (DJ) - March 26: Vladimir PutinVladimir PutinVladimir Vladimirovich Putin served as the second President of the Russian Federation and is the current Prime Minister of Russia, as well as chairman of United Russia and Chairman of the Council of Ministers of the Union of Russia and Belarus. He became acting President on 31 December 1999, when...
is elected president of RussiaRussiaRussia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
on the first ballotBallotA ballot is a device used to record choices made by voters. Each voter uses one ballot, and ballots are not shared. In the simplest elections, a ballot may be a simple scrap of paper on which each voter writes in the name of a candidate, but governmental elections use pre-printed to protect the...
, winning 53 percent of the popular vote. Putin took office as acting president in December 1999 after the resignation of Boris YeltsinBoris YeltsinBoris Nikolayevich Yeltsin was the first President of the Russian Federation, serving from 1991 to 1999.Originally a supporter of Mikhail Gorbachev, Yeltsin emerged under the perestroika reforms as one of Gorbachev's most powerful political opponents. On 29 May 1990 he was elected the chairman of...
. (DJ) - March 28: After two days of meetings, OPECOPECOPEC is an intergovernmental organization of twelve developing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings...
oil ministers agree on an increase in oil production of 1.452 Moilbbl/d by its members, excluding IranIranIran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
and IraqIraqIraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....
. Iraq has not been subject to OPEC production agreements while under U.N. Security Council sanctionsEconomic sanctionsEconomic sanctions are domestic penalties applied by one country on another for a variety of reasons. Economic sanctions include, but are not limited to, tariffs, trade barriers, import duties, and import or export quotas...
. 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 Moilbbl/d increase in OPEC production targets, if Iran was included. Several major non-OPEC producers, including MexicoMexicoThe United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
and NorwayNorwayNorway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
, also have indicated an intention to raise production. (DJ) - April 12: Several Chief Executive OfficerChief executive officerA chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
s (CEOs) of major United States oil companies meet with senior Saudi Arabian officials to discuss possible investments in natural gasNatural gasNatural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
and petrochemicalPetrochemicalPetrochemicals are chemical products derived from petroleum. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewable sources such as corn or sugar cane....
projects. The firms represented at the meetings include ChevronChevron CorporationChevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...
, Conoco, ExxonMobilExxonMobilExxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...
, Marathon OilMarathon OilMarathon Oil Corporation is a United States-based oil and natural gas exploration and production company. Principal exploration activities are in the United States, Norway, Equatorial Guinea, Angola and Canada. Principal development activities are in the United States, the United Kingdom, Norway,...
, Phillips PetroleumPhillips PetroleumPhillips Petroleum Company was founded in 1917 by L.E. Phillips and Frank Phillips, of Bartlesville, Oklahoma. Their younger brother Waite Phillips was the benefactor of Philmont Scout Ranch....
, and TexacoTexacoTexaco is the name of an American oil retail brand. Its flagship product is its fuel "Texaco with Techron". It also owns the Havoline motor oil brand....
. 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 CommissionFederal Trade CommissionThe Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
(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 fieldKashagan FieldKashagan Field is an offshore oil field located in Kazakhstan. The field is situated in the northern part of the Caspian Sea close to the Kazakhstan city of Atyrau. The field was discovered in 2000 and was one of the larger discoveries in that decade, it is estimated that the Kashagan Field has...
offshore from KazakhstanKazakhstanKazakhstan , officially the Republic of Kazakhstan, is a transcontinental country in Central Asia and Eastern Europe. Ranked as the ninth largest country in the world, it is also the world's largest landlocked country; its territory of is greater than Western Europe...
, with reserves reportedly greater than 8 Goilbbl. If these early reserve estimates prove correct, the additional production volumes could boost chances for construction of the proposed Baku-Tbilisi-Ceyhan pipelineBaku-Tbilisi-Ceyhan pipelineThe Baku–Tbilisi–Ceyhan pipeline is a long crude oil pipeline from the Azeri-Chirag-Guneshli oil field in the Caspian Sea to the Mediterranean Sea. It connects Baku, the capital of Azerbaijan; Tbilisi, the capital of Georgia; and Ceyhan, a port on the south-eastern Mediterranean coast of Turkey,...
. (WP, DJ) - May 17: The Environmental Protection AgencyUnited States Environmental Protection AgencyThe U.S. Environmental Protection Agency is an agency of the federal government of the United States charged with protecting human health and the environment, by writing and enforcing regulations based on laws passed by Congress...
(EPA) formally proposes a rule which, if finalized, would reduce allowable sulfurSulfurSulfur or sulphur is the chemical element with atomic number 16. In the periodic table it is represented by the symbol S. It is an abundant, multivalent non-metal. Under normal conditions, sulfur atoms form cyclic octatomic molecules with chemical formula S8. Elemental sulfur is a bright yellow...
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 AdministrationEnergy Information AdministrationThe U.S. Energy Information Administration is the statistical and analytical agency within the U.S. Department of Energy. EIA collects, analyzes, and disseminates independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and...
releases a study of oil reservesOil reservesThe total estimated amount of oil in an oil reservoir, including both producible and non-producible oil, is called oil in place. However, because of reservoir characteristics and limitations in petroleum extraction technologies, only a fraction of this oil can be brought to the surface, and it is...
in the Arctic National Wildlife RefugeArctic National Wildlife RefugeThe Arctic National Wildlife Refuge is a national wildlife refuge in northeastern Alaska, United States. It consists of in the Alaska North Slope region. It is the largest National Wildlife Refuge in the country, slightly larger than the Yukon Delta National Wildlife Refuge...
(ANWR), which currently is off-limits to oil explorationOil explorationHydrocarbon exploration is the search by petroleum geologists and geophysicists for hydrocarbon deposits beneath the Earth's surface, such as oil and natural gas...
. The study estimates that there are between 5.7 and 16 Goilbbl of recoverable oil in the ANWR. (WSJ) *June 6: The World BankWorld BankThe World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
executive boardBoard of directorsA board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
votes to approve a loanLoanA loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
of $193 million to support a project to build a crude oil pipeline from ChadChadChad , officially known as the Republic of Chad, is a landlocked country in Central Africa. It is bordered by Libya to the north, Sudan to the east, the Central African Republic to the south, Cameroon and Nigeria to the southwest, and Niger to the west...
to the coast of CameroonCameroonCameroon, officially the Republic of Cameroon , is a country in west Central Africa. It is bordered by Nigeria to the west; Chad to the northeast; the Central African Republic to the east; and Equatorial Guinea, Gabon, and the Republic of the Congo to the south. Cameroon's coastline lies on the...
. The countries will collect an estimated $2 billion in revenues from the project over a period of 25 years. (DJ) - June 8: The BrazilBrazilBrazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
ian 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 MexicoMexicoThe United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
sign a treaty resolving the issue of economic rights over the deepwater "doughnut hole" area in the Gulf of MexicoGulf of MexicoThe Gulf of Mexico is a partially landlocked ocean basin largely surrounded by the North American continent and the island of Cuba. It is bounded on the northeast, north and northwest by the Gulf Coast of the United States, on the southwest and south by Mexico, and on the southeast by Cuba. In...
between the two countries. The agreement is based on measuring distances from each country's coastCoastA coastline or seashore is the area where land meets the sea or ocean. A precise line that can be called a coastline cannot be determined due to the dynamic nature of tides. The term "coastal zone" can be used instead, which is a spatial zone where interaction of the sea and land processes occurs...
, 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 powerNuclear powerNuclear power is the use of sustained nuclear fission to generate heat and electricity. Nuclear power plants provide about 6% of the world's energy and 13–14% of the world's electricity, with the U.S., France, and Japan together accounting for about 50% of nuclear generated electricity...
. Nuclear power plants will be closed after a lifespan of 32 years. Nuclear power supplies about one-third of Germany's electricityElectricityElectricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...
, and the phaseout plan may complicate Germany's plans to reduce fossil fuelFossil fuelFossil fuels are fuels formed by natural processes such as anaerobic decomposition of buried dead organisms. The age of the organisms and their resulting fossil fuels is typically millions of years, and sometimes exceeds 650 million years...
consumption to curb greenhouse gasGreenhouse gasA greenhouse gas is a gas in an atmosphere that absorbs and emits radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect. The primary greenhouse gases in the Earth's atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone...
emissions. (DJ) - June 19: The Energy Information AdministrationEnergy Information AdministrationThe U.S. Energy Information Administration is the statistical and analytical agency within the U.S. Department of Energy. EIA collects, analyzes, and disseminates independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and...
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 ViennaViennaVienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
, agree to raise crude oil production quotaQuota shareA quota share is a specified number or percentage of the allotment as a whole , that is prescribed to each individual entity ....
s by a total of 708000 oilbbl/d. OPEC's total production quotaProduction quotaA production quota is a goal for the production of a good. It is typically set by a government or an organization, and can be applied to an individual worker, firm, industry or country. Quotas can be set high to encourage production, or can be used to limit production to control the supply of goods...
(excluding Iraq) will rise to 25.4 Moilbbl/d as of July 1, 2000. The next day, crude oil futuresFutures contractIn finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
rise, with the New York Mercantile ExchangeNew York Mercantile ExchangeThe New York Mercantile Exchange is the world's largest physical commodity futures exchange. It is located at One North End Avenue in the World Financial Center in the Battery Park City section of Manhattan, New York City...
(NYMEX) August West Texas Intermediate contract closing June 22 at $32.19. (DJ) - July 12: The KuwaitKuwaitThe State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...
i parliament ratifies a treaty with Saudi Arabia resolving competing claims to offshore mineral rightsMineral rights- Mineral estate :Ownership of mineral rights is an estate in real property. Technically it is known as a mineral estate and often referred to as mineral rights...
. The two countries will share revenues from the KhafjiKhafjiRas Al Khafji or Khafji is a town on the border between Saudi Arabia and Kuwait. It lies in what was before 1970 a neutral zone between Kuwait and Saudi Arabia...
, DorraDorraDorra is a village in Djibouti. It is located in the Tadjoura region.-External links:*...
, and Hout oil and gas fields. The treaty will allow the two governments to begin negotiations with IranIranIran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
to settle conflicting claims, which have again surfaced as Iran has begun drilling in the DorraDorraDorra is a village in Djibouti. It is located in the Tadjoura region.-External links:*...
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 GulfPersian GulfThe Persian Gulf, in Southwest Asia, is an extension of the Indian Ocean located between Iran and the Arabian Peninsula.The Persian Gulf was the focus of the 1980–1988 Iran-Iraq War, in which each side attacked the other's oil tankers...
. The project will take five years to become operational, and will eventually produce 530 Mcuft of gas per day. (DJ) - July 30: Venezuelan President Hugo Chávez 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 Chávez meets with Iraqi President Saddam HusseinSaddam HusseinSaddam Hussein Abd al-Majid al-Tikriti was the fifth President of Iraq, serving in this capacity from 16 July 1979 until 9 April 2003...
in BaghdadBaghdadBaghdad is the capital of Iraq, as well as the coterminous Baghdad Governorate. The population of Baghdad in 2011 is approximately 7,216,040...
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 AdministrationEnergy Information AdministrationThe U.S. Energy Information Administration is the statistical and analytical agency within the U.S. Department of Energy. EIA collects, analyzes, and disseminates independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and...
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 EnergyUnited States Department of EnergyThe United States Department of Energy is a Cabinet-level department of the United States government concerned with the United States' policies regarding energy and safety in handling nuclear material...
awards contracts to create a two-million-barrel reserve of heating oilHeating oilHeating oil, or oil heat, is a low viscosity, flammable liquid petroleum product used as a fuel for furnaces or boilers in buildings. Home heating oil is often abbreviated as HHO...
. The oil will be stored in privately owned facilities in WoodbridgeWoodbridge Township, New Jersey-Communities:Many distinct communities exist within Woodbridge Township. Several of these communities have their own ZIP codes, and many are listed by the United States Census Bureau as census-designated places, but they are all unincorporated areas and neighborhoods within the Township that,...
, New JerseyNew JerseyNew Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
, and New Haven, ConnecticutConnecticutConnecticut is a state in the New England region of the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and the state of New York to the west and the south .Connecticut is named for the Connecticut River, the major U.S. river that approximately...
. (DJ) - September 8: TruckTruckA truck or lorry is a motor vehicle designed to transport cargo. Trucks vary greatly in size, power, and configuration, with the smallest being mechanically similar to an automobile...
drivers in BritainUnited KingdomThe United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
begin a blockadeBlockadeA blockade is an effort to cut off food, supplies, war material or communications from a particular area by force, either in part or totally. A blockade should not be confused with an embargo or sanctions, which are legal barriers to trade, and is distinct from a siege in that a blockade is usually...
of oil refineries to protestProtestA protest is an expression of objection, by words or by actions, to particular events, policies or situations. Protests can take many different forms, from individual statements to mass demonstrations...
high fuel prices. The blockade follows a similar protest in FranceFranceThe French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
. (DJ) - September 10: At a meeting in ViennaViennaVienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
, OPEC agrees to raise production quotas by 800000 oilbbl/d (to 26.2 Moilbbl/d, 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 ExchangeNew York Mercantile ExchangeThe New York Mercantile Exchange is the world's largest physical commodity futures exchange. It is located at One North End Avenue in the World Financial Center in the Battery Park City section of Manhattan, New York City...
(NYMEX), after trading as high as $37.80 during the day's trading session. The price spike comes amid an increase in tensions between IraqIraqIraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....
and KuwaitKuwaitThe State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...
. This level sets a new ten-year high for NYMEX crude oil. (DJ) - September 22: U.S. President Bill ClintonBill ClintonWilliam Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
authorizes the release of 30 Moilbbl of oil from the Strategic Petroleum ReserveStrategic Petroleum ReserveThe Strategic Petroleum Reserve is an emergency fuel storage of oil maintained by the United States Department of Energy.- United States :The US SPR is the largest emergency supply in the world with the current capacity to hold up to ....
(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 summitSummit (meeting)A summit meeting is a meeting of heads of state or government, usually with considerable media exposure, tight security and a prearranged agenda.Notable summit meetings include those of Franklin D...
of OPEC heads of government opens in CaracasCaracasCaracas , officially Santiago de León de Caracas, is the capital and largest city of Venezuela; natives or residents are known as Caraquenians in English . It is located in the northern part of the country, following the contours of the narrow Caracas Valley on the Venezuelan coastal mountain range...
, VenezuelaVenezuelaVenezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
. 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 CommissionUnited Nations Compensation CommissionThe United Nations Compensation Commission was created in 1991 as a subsidiary organ of the United Nations Security Council. Its mandate is to process claims and pay compensation for losses and damage suffered as a direct result of Iraq's 1990-1991 invasion and occupation of Kuwait...
, which handles claims for reparations arising from Iraq's 1990 invasion of KuwaitKuwaitThe State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...
, 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 warshipWarshipA warship is a ship that is built and primarily intended for combat. Warships are usually built in a completely different way from merchant ships. As well as being armed, warships are designed to withstand damage and are usually faster and more maneuvrable than merchant ships...
, the USS ColeUSS Cole (DDG-67)The second USS Cole is an Arleigh Burke-class Aegis-equipped guided missile destroyer homeported in NS Norfolk, Virginia. The Cole is named in honor of Marine Sergeant Darrell S. Cole, a machine-gunner killed in action on Iwo Jima on 19 February 1945, during World War II...
, in the YemenYemenThe Republic of Yemen , commonly known as Yemen , is a country located in the Middle East, occupying the southwestern to southern end of the Arabian Peninsula. It is bordered by Saudi Arabia to the north, the Red Sea to the west, and Oman to the east....
i portPortA port is a location on a coast or shore containing one or more harbors where ships can dock and transfer people or cargo to or from land....
of AdenAdenAden is a seaport city in Yemen, located by the eastern approach to the Red Sea , some 170 kilometres east of Bab-el-Mandeb. Its population is approximately 800,000. Aden's ancient, natural harbour lies in the crater of an extinct volcano which now forms a peninsula, joined to the mainland by a...
, as well as escalating violence between Palestinians and Israeli security forces. November crude oil on the New York Mercantile ExchangeNew York Mercantile ExchangeThe New York Mercantile Exchange is the world's largest physical commodity futures exchange. It is located at One North End Avenue in the World Financial Center in the Battery Park City section of Manhattan, New York City...
(NYMEX) rises $2.81 to close at $36.06 per barrel. Prices for Henry HubHenry Hub]The Henry hub is the pricing point for natural gas futures contracts traded on the New York Mercantile Exchange . It is a point on the natural gas pipeline system in Erath, Louisiana...
natural gasNatural gasNatural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
hit a record high of $5.78 per million British thermal unitBritish thermal unitThe British thermal unit is a traditional unit of energy equal to about 1055 joules. It is approximately the amount of energy needed to heat of water, which is exactly one tenth of a UK gallon or about 0.1198 US gallons, from 39°F to 40°F...
s (BTU) before falling back slightly to close at $5.63 per million BTU. (WSJ) - October 15: ChevronChevron CorporationChevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...
agrees to purchase TexacoTexacoTexaco is the name of an American oil retail brand. Its flagship product is its fuel "Texaco with Techron". It also owns the Havoline motor oil brand....
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 antitrustAntitrustThe United States antitrust law is a body of laws that prohibits anti-competitive behavior and unfair business practices. Antitrust laws are intended to encourage competition in the marketplace. These competition laws make illegal certain practices deemed to hurt businesses or consumers or both,...
scrutiny, especially as a combined ChevronTexaco would have a heavy share of both refining capacity and retailRetailRetail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
outlets on the west coast of the United States. (WSJ) - October 30: The president OPEC, Venezuelan oil minister Ali RodriguezAlí RodríguezAlí Rodríguez Araque is a Venezuelan politician, lawyer, and diplomat.- Biography :He is the leader of the party Patria Para Todos and has occupied various positions in the government of President Hugo Chávez, such as oil advisor, General Secretary of OPEC, President of Petróleos de Venezuela ,...
, announces that the cartel will raise production quotas by 500000 oilbbl/d, beginning November 1. 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 sanctionsEconomic sanctionsEconomic sanctions are domestic penalties applied by one country on another for a variety of reasons. Economic sanctions include, but are not limited to, tariffs, trade barriers, import duties, and import or export quotas...
regime stemming from Iraq's 1990 invasion of Kuwait. (DJ) - November 3: RussiaRussiaRussia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
's LukoilLUKoilLukoil/LUKoil ; ) is Russia's second largest oil company and its second largest producer of oil. In 2009, the company produced 97.615 million tons of oil; ....
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 500000 oilbbl/d 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 RodriguezAlí RodríguezAlí Rodríguez Araque is a Venezuelan politician, lawyer, and diplomat.- Biography :He is the leader of the party Patria Para Todos and has occupied various positions in the government of President Hugo Chávez, such as oil advisor, General Secretary of OPEC, President of Petróleos de Venezuela ,...
, as its new Secretary General. He will formally take over from Nigeria's Rilwanu LukmanRilwanu LukmanRilwanu Lukman is a Nigerian engineer who held several ministerial positions in the Nigerian Federal government before becoming Secretary General of OPEC from 1 January 1995 to 31 December 2000...
on January 1, 2001. (NYT, WSJ) *November 16: Iraq's State Oil Marketing Organization (SOMOSOMOState Oil Marketing Organization is an Iraqi National Company responsible for marketing Iraq's oil. It is headquartered in Baghdad, Iraq....
) demands that companies lifting cargoes of Iraqi crude oil begin paying a fifty cent per barrel surchargeSurchargeA surcharge may mean:*an extra fee added onto another fee or charge** Fuel surcharge, sky freight charges which represents additions due to jet fuel prices.** Bunker adjustment factor, sea freight charges which represents additions due to oil prices....
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 NationsUnited NationsThe United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...
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 ProtocolKyoto ProtocolThe Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change , aimed at fighting global warming...
in The HagueThe HagueThe Hague is the capital city of the province of South Holland in the Netherlands. With a population of 500,000 inhabitants , it is the third largest city of the Netherlands, after Amsterdam and Rotterdam...
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 dioxideCarbon dioxideCarbon dioxide is a naturally occurring chemical compound composed of two oxygen atoms covalently bonded to a single carbon atom...
, 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 FoxVicente FoxVicente Fox Quesada is a Mexican former politician who served as President of Mexico from 1 December 2000 to 30 November 2006 and currently serves as co-President of the Centrist Democrat International, an international organization of Christian democratic political parties.Fox was elected...
is inaugurated as MexicoMexicoThe United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
's president. Ernesto MartensErnesto MartensErnesto Martens Rebolledo is a Mexican chemical engineer, who has occupied several high-profile business positions and was Secretary of Energy during Vicente Fox's government....
takes office as the new Minister of Petroleum. (DJ) - December 4: CaliforniaCaliforniaCalifornia is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
utilities are forced to cut off electricityElectricityElectricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...
supplies to some "interruptible" 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 weatherWeatherWeather is the state of the atmosphere, to the degree that it is hot or cold, wet or dry, calm or stormy, clear or cloudy. Most weather phenomena occur in the troposphere, just below the stratosphere. Weather refers, generally, to day-to-day temperature and precipitation activity, whereas climate...
in the area. Other problems include: gas supply problems, low availability of hydroelectric and nuclearNuclear powerNuclear power is the use of sustained nuclear fission to generate heat and electricity. Nuclear power plants provide about 6% of the world's energy and 13–14% of the world's electricity, with the U.S., France, and Japan together accounting for about 50% of nuclear generated electricity...
generating capacity, and high power demand. (DJ) - December 5: The United Nations Security CouncilUnited Nations Security CouncilThe United Nations Security Council is one of the principal organs of the United Nations and is charged with the maintenance of international peace and security. Its powers, outlined in the United Nations Charter, include the establishment of peacekeeping operations, the establishment of...
approves a six-month extension to the Iraq "oil for food" program. (DJ) - December 16: UkraineUkraineUkraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
permanently shuts down the last reactorNuclear reactorA nuclear reactor is a device to initiate and control a sustained nuclear chain reaction. Most commonly they are used for generating electricity and for the propulsion of ships. Usually heat from nuclear fission is passed to a working fluid , which runs through turbines that power either ship's...
at its ChernobylChernobylChernobyl or Chornobyl is an abandoned city in northern Ukraine, in Kiev Oblast, near the border with Belarus. The city had been the administrative centre of the Chernobyl Raion since 1932....
nuclear power plant, which gained notoriety for a major accident and radiationRadiationIn physics, radiation is a process in which energetic particles or energetic waves travel through a medium or space. There are two distinct types of radiation; ionizing and non-ionizing...
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 AgencyUnited States Environmental Protection AgencyThe U.S. Environmental Protection Agency is an agency of the federal government of the United States charged with protecting human health and the environment, by writing and enforcing regulations based on laws passed by Congress...
(EPA) announces new regulations which will drastically reduce the allowable sulfurSulfurSulfur or sulphur is the chemical element with atomic number 16. In the periodic table it is represented by the symbol S. It is an abundant, multivalent non-metal. Under normal conditions, sulfur atoms form cyclic octatomic molecules with chemical formula S8. Elemental sulfur is a bright yellow...
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 gasNatural gasNatural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
prices in the United States surge above $10 per million British Thermal Units (BTUs) for the first time ever in response to cold weather and stockdraws reported by the American Gas AssociationAmerican Gas AssociationThe American Gas Association , founded in 1918, is an American trade organization representing natural gas supply companies and others with an interest in the manufacturing of gas appliances as well as the production of gas...
(AGA). Henry HubHenry Hub]The Henry hub is the pricing point for natural gas futures contracts traded on the New York Mercantile Exchange . It is a point on the natural gas pipeline system in Erath, Louisiana...
natural gas closes at $9.978, after falling slightly from its intraday peak price. (DJ) - December 27: Venezuelan President Hugo ChávezHugo ChávezHugo Rafael Chávez Frías is the 56th and current President of Venezuela, having held that position since 1999. He was formerly the leader of the Fifth Republic Movement political party from its foundation in 1997 until 2007, when he became the leader of the United Socialist Party of Venezuela...
appoints Alvaro Silva Calderon to replace Ali RodriguezAlí RodríguezAlí Rodríguez Araque is a Venezuelan politician, lawyer, and diplomat.- Biography :He is the leader of the party Patria Para Todos and has occupied various positions in the government of President Hugo Chávez, such as oil advisor, General Secretary of OPEC, President of Petróleos de Venezuela ,...
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 ViennaViennaVienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
on January 17, 2001. Oil prices have fallen sharply in recent weeks, with the OPEC basket reaching $21.50 per barrel on December 25, 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
- Energy Information Administration: Chronology of World Oil Market Events
- Commodity Research Bureau. The CRB Commodity Yearbook 2000, 2000.
Other sources include: Dow Jones (DJ), New York Times (NYT), Wall Street Journal (WSJ), and the Washington Post (WP).
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1999 world oil market chronology
1999 world oil market chronology
Sources include: Dow Jones , New York Times , Wall Street Journal , and the Washington Post .*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...
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Chronology of world oil market events (1970-2005)
Chronology of world oil market events (1970-2005)
-1970:*January 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....
| width="30%" align="center" | Following year:
2001 world oil market chronology
2001 world oil market chronology
Sources include: Dow Jones , New York Times , Wall Street Journal , and the Washington Post .January 10 The White House announces that President Clinton will not designate the Arctic National Wildlife Refuge as a national monument prior to his departure from office...
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