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Petroleum

Oil and Gas Industries Make Progress on Year 2000 Readiness

Strategic Insights

— 1 min read

The oil and gas industries are working diligently towards Year 2000 readiness, with a recent survey revealing that 86% of companies have made significant progress. The American Petroleum Institute and the Natural Gas Council conducted a survey among over 800 companies, showing that 19% have reached the final stage of the process, dubbed validation, and 75% expect to be ready by June 1999. All respondents aim to meet the December 1999 deadline. Despite these positive developments, concerns remain about the preparedness of all companies that supply the oil and gas sectors, with some companies struggling to share information due to legal restrictions.

Key Takeaways:

  • 86% of companies in the oil and gas industries have made significant progress towards Year 2000 readiness.
  • 19% of companies have reached the final stage of the process, dubbed validation, where systems are tested individually and as a unit.
  • 75% of respondents expect to be ready by June 1999, with all companies aiming to meet the December 1999 deadline.
  • Companies are conducting their communications efforts through the American Petroleum Institute and the Natural Gas Council, focusing on sharing information on technical issues, testing, and contingency planning.
  • There are concerns about the preparedness of all companies that supply the oil and gas sectors, with some companies struggling to share information due to legal restrictions.
  • The Senate Judiciary Committee is working on legislation to provide limited legal protection to companies that share information about the problem.

Statistics:

  • 800: Number of companies surveyed by the American Petroleum Institute and the Natural Gas Council.
  • 14%: Number of companies still planning their response to the Year 2000 problem.
  • 34%: Number of companies fixing their software.
  • 19%: Number of companies that have reached the final stage of the process, dubbed validation.
  • December 1999: Deadline for all companies to meet the Year 2000 readiness requirements.
  • 75%: Percentage of respondents expecting to be ready by June 1999.

Sources:

  • Industry survey released by the Federal Energy Regulatory Commission
  • Report by the North American Reliability Council
  • Presentation by John Koskenin, chairman of the President's Council on Year 2000 Conversion
  • The Energy Daily, Copyrighted 1998 by King Publishing Group

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