News
In the News: Phillips 66, Spectra Energy Bail Out Troubled DCP Midstream
Phillips 66 and Spectra Energy, 50/50 joint venture owners in DCP Midstream, LLC, have entered into a nonbinding letter of intent for contributing assets to strengthen DCP Midstream. This transaction is expected to provide DCP Midstream with a stronger balance sheet and increased financial flexibility, and positions DCP to grow through commodity price cycles.
Government: INGAA Concerned About EPA Proposed Methane Controls
The Interstate Natural Gas Association of America (INGAA) contends that the methane and volatile organic chemical (VOC) emission limits for transmission pipelines proposed by the EPA will in many instances be difficult to comply with. Don Santa, president and CEO of INGAA, said, "While we haven’t had a chance to review fully the 500-plus page proposal, INGAA is concerned that some aspects of the EPA’s methane proposal would be impossible to implement cost-effectively, and that the regulations, if implemented, could adversely affect the reliability of interstate natural gas pipelines."
Shale Gas Development in China Aided by Government Funds, Falling Well Cost
Decreases in the cost to drill shale gas wells and continued investment into domestic production have allowed China to increase its development of shale gas. Although reliance on natural gas imports has increased in the Chinese energy market, future shale gas production in China would help to meet natural gas demand as the country faces difficulties in developing other natural gas resources, including coalbed methane (CBM).
Can Brazils Oil Sector MakeTransformation Needed to Survive?
In July 2015, Brazil’s pre-salt production topped 1 MMbpd of oil equivalent. This is quite the milestone for a nation that is currently battling a severe political and economic crisis, and struggled to attract serious attention during its first pre-salt auction in 2013. But despite its troubles, Brazil is moving forward with its next oil and gas auction on Oct. 12. Optimism is important in times of crisis but how is Brazil’s energy sector really faring?
Debt Service Using Rising Share of U.S. Onshore Oil Producers Operating Cash Flow
Results from second-quarter 2015 financial statements of a number of U.S. companies with onshore oil operations suggest continued financial strain for some companies. Low oil prices have significantly reduced cash flow for U.S. oil producers, and to adjust to lower cash flows, companies have reduced capital expenditures and raised more cash from debt and equity.
Colorado's High Court to Decide if Cities Can Ban Fracking
DENVER (AP) — The Colorado Supreme Court agreed Monday to decide whether cities can ban hydraulic fracturing, stepping into a high-stakes battle over whether local governments can impose tougher oil and gas rules than the state. The court will hear cases from Longmont, where voters banned hydraulic fracturing in 2012, and Fort Collins, where voters approved a 5-year moratorium in 2013.
Judge Poised to Sign Off on Oil Train Disaster Settlement
PORTLAND, Maine (AP) — A $338 million settlement fund for victims of a fiery train derailment that claimed 47 lives in Quebec is poised for final approval, but payments could be held up by a legal challenge from one of Canada's largest railways. Canadian Pacific, which opposes the settlement fund, declined to contribute because it contends others were responsible for the tragedy. If the settlement is approved, Canadian Pacific would be left open to lawsuits while those the railroad considers to be responsible would be shielded from further legal battles by the agreement.
This Key OPEC Member Could Soon See Production Cuts
The business climate is only getting worse in Iraq for the handful of international oil companies operating in the war-torn country. The Iraqi oil ministry sent a letter to private oil companies operating in its energy sector that spending will likely be reduced in 2016. In Iraq, companies maintain and produce from oil fields and are reimbursed by the government. However, the collapse of oil prices has sapped the government of resources, and Baghdad has struggled to pay the money owed to companies.
Coroner: Bones at Refinery Site are Relatives from 1800s
MONACA, PA (AP) — Bones dug up last month by workers at the proposed site of a Shell Chemical refinery may belong to as many as eight relatives who owned the land in the 1800s, a coroner said on Wednesday. Descendants of those folks, including Jay Hoskinson, who has kept records of the Stone family, have helped Beaver County Coroner Teri Tatalovich-Rossi since the remains were found Aug. 6. Two skulls, several long bones, vertebrae and coffin nails were found along with a headstone for an Adam Stone, which described him as dying in his first year of life.
White House Opposes GOP Bill to Lift Oil Export Ban
WASHINGTON (AP) — The White House said Tuesday it opposes a House Republican bill to lift the four-decade-old ban on crude oil exports. A decision on whether to end the ban should be made by the Commerce Department, not Congress, White House press secretary Josh Earnest told reporters. Earnest also took a shot at House Majority Leader Kevin McCarthy and other Republicans pushing to end the oil export ban, which was imposed in the 1970s as the United States responded to an Arab oil embargo that sparked inflation and prompted long lines at gas stations.
Kevin Bodenhamer Sets Lofty Standard for Engineers
What more can you say about Kevin Bodenhamer other than he has had a career that most people in the pipeline business can only dream of having. His professional accomplishments can fill a whole page so let’s start with the resume: • 1979-1993, engineer, supervising manager for Cities Service/Occidental Petroleum/Trident NGL. • 1993-1998, manager, Mid-America Pipeline Co. • 1998-2002, director, Williams Cos. • 2002-2013, vice president, senior vice president, Enterprise Products. • 2013-2015, vice president, chief engineer, Willbros Engineers Inc.
Pragmatic Approach to Understand Indian Natural Gas Market
A Pragmatic Approach to Understand Indian Natural Gas Market Historically, India has relied on coal to generate power, liquid fuels as feedstock and oil for its transport sector. But for environmental reasons India needs to focus on cleaner fuels. Natural gas has emerged as the fuel of choice for many industries in India owing to its environmental benefits and higher economic efficiency. However, India’s natural gas market is seeing a supply deficit due to its low domestic production.
Job Market, Automotive Sales Trends Point to Growing Gasoline Use
U.S. motor gasoline product supplied, a proxy for gasoline use in the United States, has been rising after reaching an 11-year low in 2012. Although lower gasoline prices have been an important factor in the increase in gasoline use so far in 2015, changes in the labor market and in the vehicle sales mix over the past few years also have contributed to the rise in gasoline use.
Building a Career Pipeline: New Generation of Industry Talent Awaits
As Mark Miller, a senior oil and natural gas executive with years of experience, was addressing a Baker Hostetler Shale Symposium in Houston in mid-2015 he could not resist the opportunity to talk about a favorite subject, “the transfer of knowledge to the next generation of workers” in the industry and an industry-backed program in Houston schools. It involves early energy education for high school students.
OPEC Winning Price War, According to IEA
Oil markets may not balance until late 2016, but supply is finally contracting in a big way. Early last week the EIA confirmed that U.S. oil production was down sharply since peaking in April at 9.6 MMbpd. The agency estimates that U.S. output fell by 140,000 barrels per day in August, a steeper decline than in previous months. In its latest weekly estimate (which is less accurate than monthly retrospective estimates), U.S. oil production is now down to just 9.1 MMbpd.
World News: Algeria Reforms Laws to Attract Foreign Investment
A Today in Energy brief from the U.S. Energy Information Administration said Algeria is reforming its laws to attract foreign investment in hydrocarbons. Algeria is the third-largest oil producer in Africa, after Nigeria and Angola, and the largest natural gas producer in Africa. However, production of both oil and natural gas has declined over the past decade.
With China Slowdown, Russia Looks to India
By now, the whole world knows that Russia has been trying to pivot toward China in the wake of the U.S. and EU sanctions that specifically targeted the Russian oil and gas industry. During a meeting of Russian President Putin and Chinese President Xi Jinping on Sept. 3 in Beijing, China’s CNPC and Russia’s Gazprom signed a memorandum of understanding for a third project that will be developed in the next five years. Although this seems to be a win- win situation for both nations, one has to consider the fact that there have been several delays in most of the previous China-Russia deals.
California Oil Bill Defeated at Least for Time Being
A landmark energy bill in California was watered down after facing significant opposition from the oil and gas industry. The California legislature was considering a bill that would have slashed the state’s petroleum use by 50% by 2030, but the Democrats decided to drop the provision in order to keep the larger bill alive. After seeing the bill pass the State Senate earlier this year, the legislation ran up against a deadline this week for the end of session. However, with strong opposition from the oil and gas industry, the State Assembly could not gather enough votes.
Crude Oil Swaps with Mexico Could Provide Economic, Environmental Benefits
U.S.-Mexico crude oil swaps approved last month by the U.S. Department of Commerce's Bureau of Industry and Security will likely involve exchanges of U.S. light sweet crude for Mexican heavy sour crude that is already being exported to the United States.
Ensuring Quality Contractor Workforce Through Standardized Training
At the first-of-its-kind Distribution Contractors Association/American Gas Association (DCA/AGA) Utility Contractor Workshop in Chicago, presenters and attendees were single-minded in their focus on one goal: to ensure the growing contractor workforce has the requisite knowledge to safely build the nation’s gas distribution infrastructure while expanding the contractor workforce to meet the needs of utility main replacement and expansion programs. With plans at many utilities to accelerate programs aimed at replacing aging pipeline systems, meeting this goal is more important than ever.
Editor's Notebook: Cheap Energy Brings Jobs Where There Were None
OK, I’m a sucker for natural gas. Maybe I’ve learned something these past 25 years that George Mitchell tried to explain: natural gas is the fuel of the future and can revitalize America. After I read this story off the Reuters news wire, can you blame me?
Saudi Arabia Maintained Crude Market Share in Asia in First Half of 2015
In the first half of 2015, Saudi Arabia exported on average 4.4 MMbpd of crude oil to seven major trading partners in Asia, making up more than half of Saudi Arabia's total crude oil exports over that period. Even as global crude oil prices fell in 2014 and 2015, Saudi Arabia increased production and kept its export levels high, enabling it to maintain its market share in these countries. However, long-term trends within Saudi Arabia's energy sector may reduce its global crude oil market share.
Phillips 66, Spectra Energy Plan to Strengthen DCP Midstream
Phillips 66 and Spectra Energy, 50/50 joint venture owners in DCP Midstream, have entered into a nonbinding letter of intent for contributing assets to strengthen DCP Midstream. The transaction is expected to provide DCP Midstream with a stronger balance sheet and increased financial flexibility, and positions DCP to grow through commodity price cycles.
Strategy Report Points to Improved Safety, Smart Pigs
With liquids pipeline incidents down by half since 1999, even as their use to transport crude oil pipeline has increased, there is little doubt among experts about what has led to this success on the safety front – preventive maintenance and integrity management programs.
From The Burnertip: Goodbye to a Colleague and Friend
“I want to tell you something,” he said to me on many occasions during the quarter-century of our relationship. “As long as I’ve been in this business, I’m still learning because there’s still so much I don’t know.” That was Carol Freedenthal, one of the smartest men I’ve ever known. So smart, in fact, that he was always the first to admit he still had so much to learn about a changing business in an even faster changing world. For someone like me, who would never know a tenth as much about the business as he did, those words taught me a lifelong lesson.
Canadas Oilfield Service Sector Battered by Low Prices
In some ways the numbers don’t look that bad. For a group of 25 diversified, publicly traded Canadian oilfield service (OFS) companies, combined revenue of nearly $9 billion in the first six months of 2015 was only 22.1% lower than $11.53 billion for the same period in 2014. With oil prices down 50 percent for the first half of 2015, a revenue decline of 22.1% looks misleadingly attractive.
Big Cities Scramble in Preparation for Possible Oil Train Disaster
PHILADELPHIA (AP) — They rumble past schools, homes and businesses in dozens of cities around the country — 100-car trains loaded with crude oil from the Upper Midwest. While railroads have long carried hazardous materials through congested urban areas, cities are now scrambling to formulate emergency plans and to train firefighters amid the latest safety threat: a fiftyfold increase in crude shipments that critics say has put millions of people living or working near the tracks at heightened risk of derailment, fire and explosion.
Enbridge Agrees to Keep Heavy Crude out of Michigan Pipeline
MACKINAW CITY, Mich. (AP) — A company that ships oil through the Great Lakes pledged Thursday to keep heavy crude out of a pipeline in northern Michigan. Enbridge Energy already doesn't transport heavy crude in the Straits of Mackinac. The deal signed with state officials preserves the status quo and requires a 180-day notice if changes are proposed.
In the News: Crude Oil Prices Poised to Drop Further
Since the oil price collapse, global oil production has risen, not fallen. Since the fateful Nov. 27, 2014 OPEC meeting, aggregate production from the U.S., Saudi Arabia, and Iraq is up 2 MMbop/d – far more than demand. November is also when the U.S. inadvertently became the swing oil producer. Prices have not yet fallen far enough or for long enough for an appreciable U.S. supply adjustment to occur. It may not be far off, especially if oil prices fall further with new Iranian supplies, says a study from IHS Energy that notes:
Shell President Says Exploratory Drilling off Alaska Going Well
ANCHORAGE, Alaska (AP) — The president of Shell Oil Co. said exploratory drilling off Alaska's northwest coast is going well despite stormy weather last week that caused the company to halt operations for a few days. And in an interview Tuesday with The Associated Press Marvin Odum said he expects further protests against the company's plans for Arctic drilling like the ones in Seattle and Portland where activists in kayaks tried to block Shell vessels.
- Texas Waha Hub Gas Prices Plunge to Record Lows, Hit Negative Territory
- Williams Seeks Emergency Certificate to Operate $1 Billion Mid-Atlantic Gas Pipeline After Court Reversal
- Texas Oil Pipelines Near Max Capacity, Threatening Future Export Limits
- Energy Transfer Subsidiary Selects KTJV for Lake Charles LNG Export Project
- FERC Sides with Williams in Texas-Louisiana Pipeline Dispute with Energy Transfer
- Saudi Arabia Looking to Expand Pipeline to Reduce Oil Exports via Gulf
- Report: Houston Region Poised to Become a Global Clean Hydrogen Hub
- Texas Startup Endeavors Again to Build First Major U.S. Oil Refinery Since 1977
- Alaska Greenlights Enstar’s $57 Million Pipeline to Boost LNG Imports
- Texas Waha Hub Gas Prices Plunge to Record Lows, Hit Negative Territory
