News
Judge Bars Pipeline Surveyors from West Virginia Couple's Property
UNION, W.Va. (AP) — A judge has ruled the developer of a proposed natural gas pipeline can't survey a West Virginia couple's property without their permission. Monroe County Circuit Court Judge Robert Irons ruled Wednesday that Mountain Valley Pipeline failed to establish the project would provide sufficient public use to justify entering private property without an owner's permission. Irons issued an injunction sought by Bryan and Doris McCurdy of Greenville, multiple media outlets reported. The McCurdys were represented by lawyers from Appalachian Mountain Advocates.
Fire Sale on Stuff that Burns: Oil, Natural Gas, Coal Down
NEW YORK — These days it seems whatever can be burned to power a car, heat a home, make electricity or ship people and goods around the globe is being sold at bargain basement prices. Prices for coal, natural gas, oil and the fuels made from crude such as gasoline and diesel are all far less expensive than they have been in recent years.
In the News: NiSource, Columbia Pipeline Group Now Separate Companies
NiSource Inc. and Columbia Pipeline Group announced July 2 separation of the two companies was completed through a distribution of all the common stock of CPG held by NiSource to its shareholders. NiSource, based in Merrillville, IN, is one of the largest natural gas utility companies in the United States with over 3.5 million customers in seven states under the Columbia Gas and NIPSCO brands. The company also provides electric distribution, generation and transmission services for 500,000 NIPSCO customers in northern Indiana.
What's in Store for Halliburton-Baker Hughes Tie-Up?
Perhaps the biggest single change for the oil business since the start of the slump is Halliburton’s deal to buy Baker Hughes. The mega-merger would radically alter the oil field servicing industry leaving two giants competing and a couple of smaller firms vying to take BHI’s spot as the new number three.
Extended Slump in Oil Taking Toll on Industry, Economy
NEW YORK — As drivers, shippers and airlines continue to enjoy lower fuel prices, the oil industry is responding to much lower profits with sharp cuts in spending and employment that are hurting economic growth. Low oil and gas prices are good for the overall economy because they reduce costs for consumers and business. U.S. economic growth was higher in the second quarter, and economists say that was partly fueled by consumers spending some of their savings on gasoline at stores and restaurants.
Senate Panel Passes Bill Lifting Crude Oil Export Ban
WASHINGTON (AP) — A Senate panel has approved energy legislation that would lift the 40-year-old ban on crude oil exports and open some areas of the Outer Continental Shelf to oil and gas exploration. Republican Lisa Murkowski of Alaska, chairman of the panel, championed the plan to lift the restrictions. It passed by a party-line vote of 12-10. Murkowski said lifting the ban would turn the United States into an energy superpower. Democrat Maria Cantwell of Washington, who opposes lifting the ban, describes the votes as an important first step in a long journey.
Florida Fuel Connection to Invest in Petroleum Terminal
BATON ROUGE, La. (AP) — State officials say Florida Fuel Connection will make a $75 million capital investment to build a petroleum terminal and rail transportation facility in East Feliciana Parish, near the Mississippi River. Gov. Bobby Jindal and Florida Fuel Connection CEO John H. Armbrust announced the plans Tuesday. Jindal, in a news release, said the complex will provide a starting point for the shipment of fuel via rail to Florida, which lacks pipeline connections to regional oil refineries. The project will create 50 new direct jobs at an average annual salary of $70,000.
Begin Again: Keystone XL pipeline back before South Dakota regulators
PIERRE, S.D. (AP) — The Public Utilities Commission is considering whether to approve for the second time in just over five years construction of the South Dakota portion of the long-delayed Keystone XL oil pipeline. The hearing process started Monday. The state authorized TransCanada Corp.'s project in 2010, but permits must be revisited if construction doesn't start within four years. The commission is now considering the company's guarantee that it can complete the project while meeting the conditions of the 2010 approval. It's unlikely the panel will make a decision immediately.
Longtime P&GJ Columnist Carol Freedenthal Passes Away
Carol Freedenthal, a beloved member of <em>Pipeline & Gas Journal's</em> staff for 20 years, passed away Sunday. Memorial Service will be held at 2 p.m. Sunday in Houston. We miss you already, good friend. For the complete obituary, visit http://www.legacy.com/obituaries/houstonchronicle/obituary.aspx?pid=175342381.
Brazilian Oil Workers Go on a 24-hour Strike
SAO PAULO (AP) — Tens of thousands of workers at Brazil's state-owned Petrobras went on a nationwide 24-hour strike on Friday to protest the oil company's plans to sell $15.1 billion worth of assets by the end of next year to help pay off a debt of about $120 billion. Caroline Cavassa, a press officer for the National Oil Workers Federation, said 90% of the company's 86,000 workers joined the strike in 12 states. The strike took effect after midnight. Cavassa said the strike affects refineries and onshore and offshore operations. She did not provide details.
Congress No Longer Views Strategic Petroleum Reserve as Key to U.S. Security
The U.S. Strategic Petroleum Reserve (SPR), once seen as a cornerstone of America’s energy security, is losing its shine in Washington. The SPR was established in the aftermath of the 1973-1974 oil embargo, which led to high gasoline prices, fuel rationing, price controls, and long lines at gas stations. The U.S. government decided to stockpile oil in salt caverns in Texas and Louisiana, fuel that could be used in the event of a supply outage. Today, the SPR holds 695 MMbbls of oil.
Officials: Oil Train Didn't Speed Before Montana Derailment
BILLINGS, Mont. (AP) — A train that derailed and spilled 35,000 gallons of oil in northeastern Montana was traveling within authorized speed limits, federal officials said Monday as they continued to probe the accident's cause. The Burlington Northern Santa Fe Railway train loaded with crude from North Dakota was traveling 44 mph before Thursday's wreck, U.S. Federal Railroad Administration spokesman Matthew Lehner said. Officials have said the maximum authorized speed in the area is 45 mph.
Forget Media Hype: Oil Set To Rebound
Despite oil prices being somewhat depressed by the hype surrounding the Iran deal – which has repeatedly been debunked as not affecting supply until, at the earliest, the first quarter of next year – expect another large oil inventory draw to come. It starts with the API inventory figures published Tuesday followed by Wednesday’s EIA report, which I expect to not only show an inventory draw of over 4 MMbbls again but continued declines in production. This is, in part, tied to growing demand in the U.S., but there are several other reasons we should discuss.
Iran Looking to Bring 500,000 bpd Online Soon After Sanctions Lifted Probably 'Too Optimistic'
Oil Minister Bijan Namdar Zanganeh thinks Iran can manage to bring an additional 500,000 barrels online right after sanctions are removed. That is probably a bit too optimistic After months of speculation and anticipation, Iran and the P5+1 nationsreached a historic agreement on its nuclear program. The deal puts limits on Iran’s ability to develop nuclear weapons in exchange for sanctions relief. Here are a few of the key points: • Iran commits to reduce its uranium stockpile and number of centrifuges. • Enrichment is banned at certain nuclear facilities.
Rail Cars Leaking Crude After Train Derails in Montana
CULBERTSON, Mont. (AP) — More than 20 cars on an oil train derailed in rural northeastern Montana, and at least three of them were leaking crude, leading some homes to be evacuated, authorities said. There were no immediate reports of injury or fire, but of the 21 cars that derailed Thursday evening, only two remained upright, Roosevelt County Sheriff Jason Frederick said.
WPX Energy Acquires RKI Exploration for $2.35 Billion
TULSA, OK – WPX Energy, a domestic producer with operations in the western United States, announced a definitive merger agreement to acquire privately held RKI Exploration & Production for $2.35 billion plus the assumption of $400 million of debt. The majority of RKI’s leasehold is located in Loving County, TX and Eddy County, NM, where the company has four rigs deployed. RKI’s liquids-rich assets in the Permian Basin include: • 22,000 barrels a day production of energy equivalent, more than half of which is oil
Price Gregory President Discusses Accomplishments, Semi-Retirement
Price Gregory President Michael Langston recently announced his retirement after a 35-year career in the pipeline construction sector. Langston joined H.C. Price in 1981. Following a merger between H.C. Price and Gregory & Cook Construction, Price Gregory was formed. Price Gregory was later purchased by Quanta Services and Langston was named president of the company.
Fewer Passenger, Freight Rail Delays Attributed to Drilling Decline
BISMARCK, N.D. (AP) — Delays in Amtrak service and agricultural product shipping have eased across the Upper Midwest in part because weak oil prices have prompted a drilling slowdown in North Dakota, officials said. Along with recent track upgrades, a recently completed pipeline and a new North Dakota refinery also has resulted in fewer oil-laden trains, freeing up rail space and lessening the potential for another disastrous derailment, like the 2013 explosion in Quebec that killed 47 people, involving crude from western North Dakota's oil patch.
Summer Gasoline Prices Lowest in Years
The average retail price for motor gasoline this summer (April through September) is expected to be $2.67 per gallon, the lowest price (in real dollars, meaning adjusted for inflation) since 2009, based on projections in EIA's July Short-Term Energy Outlook (STEO). This decline is mainly the result of the projected 41% year-over-year decline in the average price of North Sea Brent crude oil.
Natural Gas Surpasses Coal as Biggest US Electricity Source
Natural gas overtook coal as the top source of U.S. electric power generation for the first time ever earlier this spring, a milestone that has been in the making for years as the price of gas slides and new regulations make coal more risky for power generators. About 31% of electric power generation in April came from natural gas, and 30% from coal, according to a recently released report from the research company SNL Energy, which used data from the U.S. Energy Department. Nuclear power came in third at 20%.
California Gas Prices May Top $4 a Gallon Despite National Downward Trend
CAMARILLO, Calif. (AP) — While gas prices nationwide are on a downward trend, California is experiencing a spike that could see prices top $4 a gallon before easing again, according to analysts. A shortage in oil and other components used in refining California's unique blend of less-polluting gas was one of the reasons for the price jump, industry analyst Trilby Lundberg said. A slowdown in imported crude and a refinery shutdown in Torrance also caused wholesale prices to skyrocket, experts said.
World News: Report Outlines Climate Framework, Spending
Development of a clear climate framework and a global emissions target is essential if $48-53 trillion for a new sustainable energy infrastructure is to be delivered, according to a new report from the World Energy Council. The findings are discussed in the fifth edition of the energy leaders’ dialogue series, the World Energy Trilemma Report, ‘Priority actions on climate change and how to balance the energy trilemma,’ released by the World Energy Council and project partner Oliver Wyman, along with the Global Risk Centre of its parent Marsh & McLennan Companies.
SGA Chairman Says Bring on the Challenges
For every opportunity in the natural gas business there is an equal challenge, and conversely, every challenge can be turned into an opportunity. That’s the nature of the gas business today, but as any industry observer will tell you, that’s been the nature of the beast for the last 15 years.
Petrobras Scandal Could Force Dramatic Policy Changes in Brazil
Brazil’s Petrobras is staggering under the weight of its debt, the corruption scandal is not yet over, and it was recently forced to slash spending and dramatically lower its production target for 2020.
NY Farmers' Group Proposes Gas Well Fracking Using Propane
ALBANY, N.Y. (AP) — A group of five farm families is seeking a state permit for a natural gas well using gelled propane instead of water for fracking, thus avoiding New York's ban on high-volume hydraulic fracturing. The Snyder Farm Group is seeking to develop a 53-acre natural gas well in the Tioga County town of Barton, near the Pennsylvania border. A permit application is in the preliminary stage before the Department of Environmental Conservation, a lawyer who represents the company seeking the permit said Thursday.
A Call for Crude Oil Exports and Pipelines
The U.S. shale revolution has created jobs, improved the balance of trade, spurred billions of dollars of foreign and domestic investment, reduced carbon emissions and lowered oil and gas prices. From the shale gas fields in Williamsport to the refineries around Philadelphia, new energy technologies have had a profound local impact. This revolution could do even more if the U.S. allowed crude oil exports and expanded its pipeline system.
Carbon Emission Regulations Could Jeopardize LNG Projects
Natural gas is increasingly being viewed as one of the most important sources of fuel in the coming decades. That is why Royal Dutch Shell, an oil major, made a huge bet onLNG when it decided to purchase BG Group, which has major holdings in LNG projects in Australia and East Africa.
Declining Rig Count in U.S. Tight Formations
The count for both horizontal and vertical rigs in U.S tight formations has declining drastically from October 2014. This article discuss the declining rig count in the seven major Energy Information Administration (EIA) U.S. oil and natural gas regions.
Summer Gas Prices in the Northeast: Why So Low? Why So Unpredictable?
As summer approaches, there are two things to know about natural gas prices in the New York/New England area. First, it is a difficult time to predict gas price movements in the Northeast. But in general, prices are down – and are likely to stay that way for this summer. It’s hard to predict prices because there are a lot of new and unpredictable supply-and-demand dynamics across the country that are particularly pronounced in the Northeast. For instance, the explosion of shale gas production in the Marcellus and Utica shale regions.
Canadas Carbon Emissions Rules Spark Hope for Keystone
TransCanada Corp. has written to U.S. Secretary of State John Kerry arguing that new Canadian rules on emissions should persuade him to approve the construction of the much-delayed Keystone XL pipeline. The proposed $6.4 billion project would carry an estimated 830,000 bpd of Canadian crude oil per from Hardisty, Alberta, to Steele City, NE, then link up with Keystone’s existing line, which would take the oil on the final leg to the Texas coast of the Gulf of Mexico.
- 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
