Gulf Oil returns to Houston, branding 50 stations

by Simone Sebastian

The Gulf Oil logo is coming to Houston, as the fuel supplier launches plans to rebrand 50 gasoline stations in the area, according to executives.

Gulf Oil, a Massachusetts-based fuel wholesaler, has contracted to rebrand 50 ExxonMobil service stations beginning mid- May. Gulf Oil is partnering with Petroleum Wholesale LP, a distributor based in The Woodlands, to supply the stations.

The move is part of Gulf Oil’s aggressive move to expand the brand’s presence across the country, said Rick Dery, senior vice president of sales and marketing.

The company’s logo had been absent from Texas for decades, but returned to the state last year when it branded five stations in Austin. The company was launched in 1901 in Beaumont.

“We are very excited about the re-emergence in the Houston market,” Dery said. “We are going to come back in a much more significant way. The excitement here is bursting.”

The company stores and  distributes branded fuels. It currently supplies 3,000 Gulf Oil and other stations, Dery said.

The Gulf Oil-Petroleum Wholesale partnership plans to brand at least 15 new fueling stations each year for the next decade, Dery said.

Gulf Oil is a  fuel retailer and distributor, without refining operations. The company is expanding its presence at a time when retailers with refineries  are struggling against stagnant fuel demand and competitive pressure.

“Margins have been tight with $4 gasoline and retail customers are becoming hyper sensitive to price,” Dery said. “It’ll get challenging for retail operators, the publicity for our industry isn’t the best.”

Source

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ENSCO Orders Drillship with Retractable Thrusters!?

By Rob Almeida On April 6, 2012

At first it looked like just another drillship order.

Samsung Heavy wins a $645 million order to build a DP3 drillship for ENSCO, however buried in the middle of the press release read:

New features on ENSCO DS-8 include retractable thrusters, enhanced safety and environmental features…

Wait…Retractable thrusters?!

I talked to ENSCO yesterday and they noted that this new feature was a Rolls-Royce design, and that by retracting the forward thrusters, it increased the efficiency of the vessel while in transit while also reducing the overall maintenance burden.

Most importantly however, this new feature will help to reduce down time.  At an average day rate of over a $500 thousand per day, any investment that can keep these rigs up and working longer is money well spent by the contractor and anyone who’s ever had to switch out a thruster knows that it’s not a snap of the fingers… it takes many costly hours and is, to be quite frank, a pain in the ass.

Besides having retractable thrusters, the ENSCO DS-8  has other unique features such as below-main-deck riser storage, triple fluid systems, offline conditioning capability and enhanced client and third-party facilities.

Storing upwards of 12,000 feet of 21″ heavy gauge steel riser on deck presents a significant vessel stability issue, not to mention all the associated drill pipe and casing.  Considering this rig may very well be destined for the arctic and the associated surface area of this pipe, this stability issue could be compounded significantly under ice-loading conditions.  Under these circumstances, storing the riser in a cargo hold below the main deck, is likely a smart move.

Consistent with the previous five Samsung ultra-deepwater drillships ordered since 2007, this new drillship is based on the proprietary Samsung GF12000 hull design measuring 755 feet in length and 125 feet in width. It will offer a payload in excess of 22,000 metric tons and a 1,250-ton hoisting system. The rig’s design and capabilities include numerous features that increase operating efficiency. Primary to these capabilities are enhanced and redundant offline tubular stand-building features and a 165-ton active heave compensating construction crane, allowing for the deployment of subsea production equipment without interference with ongoing drilling operations.

The rig, which will be initially outfitted for drilling in water depths of up to 10,000 feet, will be equipped with dynamic positioning in compliance with DPS-3 certification; six-5.5 megawatt thrusters for enhanced station-keeping; expanded drilling fluids capacity; a 15,000-psi subsea well control system with six rams, upgradable to seven rams and/or a second BOP stack; burner boom for well testing; and living quarters for up to 200 personnel.will be built to meet the demands of ultra-deepwater drilling in water depths of up to 12,000 feet and a total vertical drilling depth of 40,000 feet.

Ensco Chairman, President and CEO Dan Rabun said:

An ongoing trend of new deepwater oil and gas discoveries around the globe is creating a high demand for equipment capable of tapping those resources. Our track record of leading safety and deepwater performance increasingly makes us the driller of choice for operators working in complex offshore fields. Our high-grading strategy will ensure that we continue to be equipped to respond to rising customer demand.” The latest EnergyPoint industry survey rates Ensco first in total customer satisfaction among offshore drillers overall and specifically in safety, health and environment performance as well as in deepwater drilling.

This addition to our fleet is in keeping with our strategy of standardization, which streamlines construction, operations, inventory management, training, regulatory compliance, repairs and maintenance,” Mr. Rabun pointed out. “We are very pleased to continue our successful newbuild drillship program with Samsung.

This vessel will be the sixth Samsung DP3 drillship in the Ensco fleet, extending the benefits of Ensco’s fleet standardization strategy. The contract also includes options for two additional drillships of the same design and is scheduled for delivery in the third quarter of 2014.

Ensco’s three active DP3 drillships are currently contracted into 2016 in the U.S. Gulf of Mexico, Brazil and West Africa. A fourth, ENSCO DS-6, is undergoing pre-commissioning modifications in preparation for its first well assignment under a five-year contract with BP. ENSCO DS-7 is scheduled for delivery in the second half of 2013.

Source

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Ensco in $645m drillship buy

Bill Lehane ,

05 April 2012 14:06 GMT

New York-listed Ensco has ordered another ultra-deepwater drillship from Samsung Heavy Industries at an estimated cost of $645 million, just days after inking a long-term deal with BP for another rig in the series.

The Ensco DS-8 will be the sixth Samsung DP3 drillship in the offshore driller’s fleet when it arrives in the third quarter of 2014.

Ensco has also secured an option to acquire a further two of the vessels.

The fifth rig, Ensco DS-7, is currently being built in South Korea with delivery slated for the second half of this year.

On Monday, BP hired the fourth drillship, the Ensco DS-6, on a five-year deal that will ultimately garner Ensco $1 billion at a dayrate of around $522,000.

Ensco said the latest order came in response to “the high level of customer demand driven by an ongoing trend of successful offshore discoveries”.

Like the previous five ordered since 2007, the new drillship will be equipped for ultra-deepwater drilling in water depths of up to 10,000 feet, extendable to 12,000, and a total vertical drilling depth of 40,000 feet.

Ensco’s three active DP3 drillships are currently contracted into 2016 in the US Gulf of Mexico, Brazil and West Africa.

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Gulf Oil History

1909-1919  When the company that was to be known as Gulf was born in 1901 with an oil discovery in Spindletop, Texas, the primary commercial fuel was coal. By 1903, the age of mechanization had arrived and it was now up to the petroleum industry to keep pace, for the age could not proceed without it. Gasoline development, into which Gulf invested millions of dollars, responded to advances in automotive technology to make the modern motorcar possible. Within a dozen years of Spindletop, Gulf scored notable firsts with the world’s first drive-in service station, complimentary Gulf road maps and over water drilling at Ferry Lake. In 1917, the Gulfstream went into World War I service, along with the rest of Gulf’s tanker fleet.

1920-1949  Gulfpride – the World’s Finest Motor Oil was manufactured and first marketed in 1928 and by the early Thirties, Gulf was a major U.S. corporation. In 1949, William Larimer Mellon, a founder and active head of Gulf for 45 years, died at 80, just 17 months after his retirement, as the company moved into eighth place among the largest manufacturing concerns in the United States

1950-1974  As Gulf entered its second half-century, the needs became more diverse and technologically ever more sophisticated. By 1960, it was clear that Gulf’s growth rate during the 1950s had been twice that of the United States as an economic entity. During the 1960s, Gulf mounted vigorous exploration, production and marketing programs including several new refineries, petrochemical and polyethylene plants, the construction of six mammoth tankers, a joint development with the Holiday Inns of America and the redesign of the Orange Disc to make it more clearly identifiable.

1975-1985  In 1975, Gulf was restructured into seven separate operating companies. By year’s end, the Company evaluated 48 of 82 Gulf of Mexico tracts acquired since 1972, resulting in seven major discoveries and nine less significant discoveries. Gulf ended its 75th year facing new patterns of relationships abroad, and prepared to devote increased attention to interests in the U.S. and Canada.

1986-2009   In 1986 Cumberland Farms acquired the naming rights to the Gulf Oil brand from Chevron to be used in eleven northeast states.  But it wasn’t until 1993 that Gulf Oil Limited Partnership was formed after Cumberland Farms entered a joint venture with Catamount Petroleum LP.  In 2005, Cumberland acquired the company in full and brought in CEO Joe Petrowski, who charged the company with “reinventing” the brand.  Since then, a renewed commitment to the Gulf brand has been established with the introduction of new minimum standards and image requirements.

January 12, 2010 – Present  On January 12, 2010, Gulf Oil acquired all rights, title and interest to the “Gulf” brand in the U.S.  This acquisition enabled Gulf to expand its use of the Gulf brand throughout the U.S. for the first time since it acquired certain rights to the brand in 1986.  Under the leadership of Gulf Oil President and Chief Operating Officer Ron Sabia and Gulf Oil Senior Vice President and Chief Sales and Marketing Officer Rick Dery, thousands of service stations proudly fly the Gulf flag, carrying on the tradition of a quality product line and friendly service. Gulf Oil Limited Partnership, now based in Framingham, Massachusetts is a wholesaler of refined petroleum products. Gulf distributes motor fuels through a network of more than 2,000 Gulf branded gas stations and service stations, as well as heating oil, diesel fuel and kerosene.

Gulf Oil History.

UK: Ensco Ranks 1st Among Offshore Drillers by Costumer Satisfaction

Ensco plc once again received the first place ranking for total customer satisfaction among offshore drillers in the 2011 Oilfield Products & Services Customer Satisfaction Survey. Conducted by EnergyPoint Research, the annual survey is the industry benchmark for customer satisfaction in the global oilfield.

Ensco led all offshore drilling contractors in the survey, also receiving top honors in 12 of 16 additional categories including health, safety and environment; job quality; performance and reliability; technology; special drilling applications; non-vertical wells and shelf wells. Ensco also earned the top ranking among deepwater drillers and the top ranking by independent operators, and was rated first internationally, with top scores in both offshore Latin America/Mexico and in the North Sea.

Ensco Chairman, President and Chief Executive Officer Dan Rabun stated, “Our people around the globe work safely to exceed customer expectations every day. This recognition is a testament to every Ensco employee’s commitment to that goal. When we operate safely and efficiently, we create success for everyone involved – customers, employees and shareholders.

“We realize that today’s drilling environment is more complex,” he added. “The technological challenges are higher, there is greater public scrutiny, and customers are counting on us more than ever to deliver operational excellence. In this environment, being recognized for success takes on even more meaning.”

EnergyPoint’s research showed a rise in overall customer satisfaction across all industry segments, with the largest increases in onshore and offshore drilling contractor scores.

The independent survey was conducted as part of EnergyPoint Research’s 2011 industry-wide Oilfield Products & Services Survey, comprising thousands of in-depth evaluations performed over a 24-month period by qualified professionals at domestic and international customers of oilfield suppliers.

Source

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USA: Anadarko Contracts ENSCO 8506 Semi

Ensco plc has entered into a contract for ENSCO 8506 semisubmersible drilling rig with Anadarko Petroleum Corporation. The initial contract term is for two and one-half years in the U.S. Gulf of Mexico at a day rate of $530,000, plus cost adjustments. The contract adds more than $480 million to revenue backlog.

Delivery of ENSCO 8506 from Keppel FELS Limited shipyard in Singapore is scheduled for third quarter 2012 followed by contract commencement in fourth quarter 2012 once mobilization, sea trials and acceptance testing have been completed.

Chairman, President and Chief Executive Officer Dan Rabun was pleased with the contract, “We are very pleased that Anadarko has chosen to contract a third ENSCO 8500 Series® rig for its drilling programs. Anadarko was an early advocate of the ENSCO 8500 Series® design and contracted ENSCO 8500 back in 2005.”

ENSCO 8500 commenced operations in 2009, and soon thereafter, drilled Anadarko’s major Lucius Discovery in the U.S. Gulf of Mexico. In October 2011, Anadarko contracted ENSCO 8505 as part of a rig sharing agreement with Apache and Noble Energy. ENSCO 8505 is scheduled to commence operations in the second quarter of this year.

Last of seven

ENSCO 8506 is the final of seven rigs in the ENSCO 8500 Series®. For the first three quarters of 2011, these rigs that have operated in Asia, North America and South America achieved 97% utilization. Ensco is ranked #1 in overall customer satisfaction and #1 in deepwater drilling by EnergyPoint, an independent survey firm.

The proprietary design of the ENSCO 8500 includes a 35,000’ nominal rated drilling depth, 2 million pounds of hoisting capacity, 8,000 tons of variable deck load and an open layout well suited for subsea completion activities. Improved visibility from the open deck configuration also enhances safety.

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Magnolia Petroleum Company

The Magnolia Petroleum Company, founded as an unincorporated joint-stock association on April 24, 1911, was a consolidation of several earlier companies, the first of which, the J. S. Cullinan Company, began operating a refinery at Corsicana, Texas, on December 25, 1898. The Corsicana Petroleum Company, planned as a crude-oil producer for the Cullinan plant, was organized in 1899. The George A. Burts Refining Company, organized in 1901 to absorb much of the crude oil from the Spindletop oilfield, became the Security Oil Company. In 1909 both the Navarro Refining Company, successor to the Cullinan Company, and the Security Oil Company were purchased by the John Sealy Company, which in 1911 became the Magnolia Petroleum Company, with Sealy as president (see SEALY, JOHN HUTCHINGS).

The Magnolia Company was originally capitalized at $2,450,000–24,500 shares at $100 each. In 1925 the company purchased the Corsicana Petroleum Company. Capitalization was $185 million in 1925. As Magnolia Petroleum Company became increasingly important in the southwestern states, the Standard Oil Company of New York began acquiring some of its stock. In December 1925 all of the Magnolia stock was exchanged for Standard Oil Company of New York stock, and the Texas properties were transferred to Magnolia Petroleum Company, chartered under Texas law on November 21, 1925, as a corporation to replace the former joint-stock association. The Magnolia Pipe Line Company was organized in November 1925, as a transporting subsidiary of the petroleum company. In 1931, when the Standard Oil Company of New York and the Vacuum Oil Company merged to form Socony-Vacuum Oil Company, Magnolia became an affiliate of the new company.

In 1949 Magnolia had a capitalization of $125 million, all shares owned by Socony-Vacuum except for qualifying shares owned by members of Magnolia’s board of directors. Magnolia Pipe Line Company was capitalized at $16.5 million, its stock being owned by Magnolia Petroleum Company except for qualifying shares held by directors of the pipeline company. Gross fixed assets of the company on December 31, 1948, were nearly $700 million, including the assets of the pipeline company, which had 8,670 miles of pipeline extending into nine states. General offices were in Dallas in 1949, when the company had permits to do business in twenty states and had some 12,500 employees. The Magnolia Petroleum Company merged with Socony Mobil Oil Company on September 30, 1959. Its operations became part of Mobil Oil Company, which had been formed in March 1959 as an operating division of Socony Mobil, responsible for all operations except marine transportation in the United States and Canada. Magnolia Pipe Line Company was not absorbed into Mobil Oil Company but remained a common carrier affiliate of Socony Mobil.

BIBLIOGRAPHY:

John M. Duncan, An Eye-Opener: The Standard Oil-Magnolia Compromise: The Whole Cold Truth (San Antonio, 1915). History of Petroleum Engineering (Dallas: American Petroleum Institute, 1961).

J. L. Terrell and James A. Clark

Timeline of Texas History – Magnolia Petroleum Company

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• J Storm XVI Is 50th Jackup Commissioned At Bethlehem, Beaumont (mb50.wordpress.com)

J Storm XVI Is 50th Jackup Commissioned At Bethlehem, Beaumont

Southern Drilling Company, a wholly owned subsidiary of Marine Drilling Company, and Bethlehem Steel Corporation‘s Beaumont, Texas, shipyard, recently commissioned a 250-foot water depth mobile offshore drilling unit.

The rig was christened J Storm XVI by its sponsor Mrs. Jack K. Larsen, wife of the executive vice president of Mesa Petroleum Company. Senator John G. Tower, senior Senator from Texas, gave the keynote address at the ceremony. The multimillion-dollar rig has been under construction for nearly 10 months and, upon delivery, will begin drilling operations in the Gulf of Mexico for Mesa Petroleum Company.

James C. Storm has been a long-time customer of Bethlehem Steel Corporation’s shipyard at Beaumont.

Sherman C. Perry, general manager of the shipyard, said this commissioning marks a significant milestone in the history of the shipyard. It extends to 50 the number of jackup drilling units commissioned by the Beaumont yard since it built the first 100- foot water depth jackup in 1954. The commissioning also marks the fifth rig to be delivered this year by the yard, as well as the 87th offshore rig delivered by Bethlehem yards.

The J Storm XVI is a mat-supported jackup designed for deepwell drilling operations. On location, the rig will have a total variable drilling load capacity of 4.5 million pounds and handle hook or rotary, plus setback loads of 950,000 pounds.

The rig consists of a platform measuring 176 feet by 109 feet supported by three 12-foot-diameter columns fixed to a mat that is 210 feet by 170 feet. Outfitted with deepwell drilling equipment, the rig can operate in waters of up to 250 feet while experiencing forces resulting from 70-knot winds and 35-foot-high waves. The J Storm XVI contains onboard, air-conditioned living accommodations for 48 persons. This marks the 18th time that one of the 50 Beaumont rigs was commissioned for the James C. Storm interests.

The J Storm XVI is No. 18, and the J Storm XVII No. 19 is scheduled for commissioning and delivery later this year.

Mr. Storm’s dealings with the yard follow a direct line back to 1949. Then in November 1954, the Beaumont yard delivered the Mr. Gus, the first mobile drilling platform capable of operating in 100 feet of water.

Mr. Gus was built for the C.G. Glasscock Drilling Company; Mr. Storm became a partner in that company shortly after he joined it at the close of World War II. In 1957, the Beaumont yard delivered Mr. Gus II, the prototype of the mat-supported jackup rigs built at the yard today. It was the first mobile drilling unit that could drill in up to 150 feet of water. Mr. Storm was involved with that rig also. And Mr. Gus II, after 24 years of service, is still drilling for oil and natural gas. After the Glasscock interests disposed of their drilling rigs, Mr. Storm formed Storm Drilling Company for whom the Beaumont Yard built Stormdrill I, Stormdrill II, Stormdrill III, and Stormdrill IV. Another Storm company, Southern Marine Drilling Company, ordered Stormdrill V. Subsequently Storm Drilling Company was sold.

Mr. Storm then formed Marine Drilling Company and ordered J Storm I from the Beaumont shipyard. J Storm I was initially ordered with capability to operate in 225 feet of water. Mr. Storm asked if the columns could be strengthened and lengthened. The yard added 25 feet of capability, and the rig became the prototype for B e t h l e h e m ‘ s series of 250-foot jackup rigs.

He also ordered the first jackup drilling unit capable of working in up to 375 feet of water. The yard designed this platform to utilize telescoping legs so it would be manageable under tow to different locations, yet be able to work in deeper waters. This rig, J Storm VII, was delivered in 1976. Mr. Perry, general manager of the yard since June 1, 1978, reported that Beaumont has work for the next 1H years. “We have orders for 12 offshore mobile drilling units, which will take us into 1983, and negotiations are being conducted for additional contracts.” The general manager said that the yard has delivered four jackup drilling units thus far this year, and anticipates delivery of four or possibly five more by the end of the year.

That would match or nearly match 1980, when nine drilling units were delivered. For 1978 and 1979, the yard delivered five units each year.

Contracts on hand and the customers are: Marine Drilling Company, one unit in addition to the J Storm XVI; Houtech Energy, Inc., four units; O & U Drilling Co., Inc., one unit; Griffin-Alexander Drilling Co., three units; Teledyne Movible, one unit, and Alfa Drilling, one unit.

The yard presently has more than 2,300 employees at work on the drilling units with two shifts generally being worked, and can accommodate six units under construction simultaneously.

The shipyard’s principal products are offshore mobile drilling units, primarily jackups, and oil and gas production and storage facilities for offshore service. The Beaumont yard has built many ships and barges, principally for the petroleum industry, and can handle any repair, reconditioning, conversion or jumboizing of ships. It has a floating drydock with lifting capacity of 17,500 tons and extreme length of 648 feet. Its mobile floating crane has a capacity of 500 tons.

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