Storage
Iran Prepares Oil Sector for Life after Sanctions
Iran says it is ready to offer more than 50 projects for energy exploration and production to investors so that it can return quickly to the global oil market as soon as it is free from Western sanctions. Seyed Mehdi Hosseini, the chief negotiator for Iran’s Oil Contracts Restructuring Committee, said Iran will introduce the contracts in Tehran in November and at an energy conference in London next February. He made the announcement on Oct. 6 at the Oil and Money conference in Britain’s capital.
Far More than Money at Stake
How do you measure the cost of a pipeline spill? The answer: you can’t. That’s what the upper management of Plains All-American Pipeline is learning these days. It’s been a bad year for the Houston-based outfit that, through a series of acquisitions, has quickly become one of the nation’s largest independent midstream operators with over 18,000 miles of oil products pipelines.
Mastering Inspection of Challenging Pipelines
Pipelines are a valuable asset and need protection. In order to achieve this, a modern pipeline integrity management program usually includes regular inspections followed by integrity assessment, and if required, repair and rehabilitation measures.
Where do Oil Majors Really Stand on Climate Change?
Oil majors have been present in the renewable energy space for years. But with momentum building around the Paris COP21 climate talks at the end of the year, their focus has changed. Traditional energy players are positioning themselves in the debate on carbon pricing and emissions reductions, rather than wind and solar. Greater engagement by oil companies should be welcomed as cooperation between the public and private sectors will be critical to moving the conversation forward both in Paris and beyond.
Egypt Gas Find Sparks Panic in Israel about Israeli Reserves
Italian major Eni, on Aug. 30, announced the discovery of a supergiant gas field in the Mediterranean Sea off the coast of Egypt. The Zohr field is estimated to hold 30 Tcf of natural gas (5.5 Bbbls oil equivalent), though Eni believes more could be found. As it stands, the potential reserves represent the largest discovery in Egypt and the Mediterranean, topping Israel’s 16-Tcf Leviathan field.
House OKs Lifting 40-year-old US Ban on Oil Exports
WASHINGTON (AP) — Defying a White House veto threat, the Republican-controlled House on Friday approved a bill to lift a 40-year-old U.S. ban on crude oil exports. The House approved the bill on a 261-159 vote. Supporters said an ongoing boom in oil and gas drilling has made the 1970s-era restrictions obsolete. Lifting the export ban would lower prices at the pump, create jobs and boost the economy, said House Speaker John Boehner.
Mastering Inspection of Challenging Pipelines (1)
Pipelines are a valuable asset and need protection. In order to achieve this, a modern pipeline integrity management program usually includes regular inspections followed by integrity assessment, and if required, repair and rehabilitation measures.
Keystone XL Developer Seeks Different Approval for Route
LINCOLN, Neb. (AP) — TransCanada is taking steps to circumvent one of the major roadblocks in Nebraska to the building of the Keystone XL pipeline. But in seeking approval Monday for the same contentious route through the state, the company could create another round of lengthy delays in an already drawn-out process.
Study: No Fracking Bonanza for California's Monterey Shale
SAN FRANCISCO (AP) — A U.S. Geological Survey report out Tuesday downgrades the fracking potential of California's vast Monterey Shale oil deposits. The study is the latest to lower a 2011 federal energy estimate that billed the Monterey Shale as a game-changer for U.S. oil, with what was then estimated at 13.7 Bbbls of recoverable oil overall. Instead, the U.S. Geological Survey's (USGS) new study said, the most oil-rich portion of the giant shale formation holds just 21 MMbbls of oil that can be recovered by intensive methods, such as hydraulic fracturing, better-known as fracking.
Oil Traders Finally Get some Bullish News
Crude prices are off to a good start this week, jumping by more than 2% on Oct. 5 following several pieces of bullish news. First, Baker Hughes reported a sharp contraction in the rig count last Friday, with oil rigs falling by 26, the largest decline in months. Oil and gas rigs are now down by more than 1,100 since October 2014.
NGPL, Cheniere Agree on Gas Transportation to Corpus Christi Liquefaction Project
Natural Gas Pipeline Company of America (NGPL) has an agreement with Corpus Christi Liquefaction, a subsidiary of Cheniere Energy, Inc., to provide the Corpus Christi Liquefaction Project with 385,000 dekatherms per day of southbound natural gas transportation capacity on NGPL’s expanded Gulf Coast mainline system for a 20-year term.
North Dakota Taxable Sales Plummet as Rig Count Faulters
BISMARCK, N.D. (AP) — North Dakota's taxable sales and purchases dropped more than 16% during April, May and June compared to the same quarter a year ago because of a decline in activity in the western oil patch. It is only the second such quarterly decline since 2009, but officials say they're not surprised nor too concerned given the tremendous growth in taxable sales and purchases the state has experienced in recent years.
Tall Oak Expands Processing Capacity in Oklahomas Stack Play
Tall Oak Midstream has secured a long-term, fee-based natural gas gathering and processing agreement with one of the largest acreage holders and natural gas producers in the Midcontinent’s Stack play. The company has dedicated production from all existing and future wells drilled on 40,000 net acres located in Oklahoma’s Kingfisher and Blaine counties. The associated production will be gathered and processed at Tall Oak’s Chisholm Processing Complex now being constructed in Kingfisher County.
US, States Finalize $20 Billion Settlement with BP over Gulf Oil Spill
WASHINGTON (AP) — The Justice Department and five states have finalized a settlement worth more than $20 billion arising from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, federal officials announced Monday. The deal resolves all civil claims against BP and ends five years of legal fighting over the nearly 134 million-gallon spill. It requires the company to commit to a widespread cleanup project in the Gulf Coast area aimed at restoring wildlife, habitat, water quality and recreation.
World News: Polarled to Take Norwegian Gas Infrastructure Across the Arctic Circle
Work has begun on the Polarled project – the first pipeline crossing the Arctic Circle – for a consortium of Statoil-led companies. The 482-km, 36-inch pipeline will run from Nyhamna in western Norway to the Aasta Hansteen field, creating a new "gas highway" from the Norwegian Sea to Europe. The world’s largest pipelaying vessel, Solitaire from Allseas, is carrying out the job, In July, Pipelines International reported work was advancing with crews working around the clock.
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.
Feds: Proposed Pipeline Rules could Have Prevented Accidents
BILLINGS, Mont. (AP) — New federal rules proposed for pipelines that carry oil and other hazardous liquids could have prevented more than 200 accidents since 2010, including a Michigan rupture that ranks as the costliest onshore spill in U.S. history, federal officials said. The U.S. Transportation Department proposal announced Thursday covers more than 200,000 miles of hazardous liquids pipelines that crisscross the nation — a network that expanded rapidly over the past decade as domestic oil production increased.
Phillips 66, partners begin open season on Bayou Bridge Pipeline
Bayou Bridge Pipeline (BBP) launched a binding expansion open season to assess additional interest in service from Nederland, TX to refining markets in Louisiana. Bayou Bridge is jointly owned by subsidiaries of Phillips 66, Energy Transfer Partners, and Sunoco Logistics Partners.
New Pipeline Safety Rule Pending after Increase in Accidents
BILLINGS, Mont. (AP) — A long-delayed rule to strengthen safety requirements for pipelines that move oil and other hazardous liquids will be unveiled this month following a recent surge in accidents, the U.S. government's pipeline safety administrator said. More than five years in the making, the rule will determine if extra safety measures that are required in environmentally sensitive and populated areas should be expanded to new locations.
EIA Finds U.S. Propane Inventories Reach All-Time High
U.S. inventories of propane and propylene reached 97.7 million barrels as of September 11, the highest level in the 22 years that EIA has collected weekly propane inventory statistics. In the first six months of 2015, U.S. propane and propylene inventories were 24.3 million barrels higher on average compared to the same period in 2014. In the past year, nearly all of the increase in inventories occurred in the Gulf Coast region (PADD3).
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.
Does OPEC Have An Ace Up Its Sleeve?
OPEC has been the most talked about organization in the oil and gas circuit in the last year as the cartel pursues market share, and any move by OPEC comes under intense scrutiny and analysis. Back in June 2015, it was reported that Indonesia, which was previously a member of OPEC, was looking to re-join the cartel as soon as possible. And now, it is confirmed that the most populous country in Southeast Asia will indeed be rejoining the cartel.
Key House Panel Votes to Lift 40-Year-Old US Ban on Oil Exports
WASHINGTON (AP) — A key House committee endorsed a bill Thursday to lift the four-decade-old ban on crude oil exports, setting up a likely vote by the full House on a bill President Barack Obama opposes. The House Energy and Commerce Committee approved the legislation, 31-19, with three Democrats joining 28 Republicans to back the bill. The White House opposes the bill, arguing that a decision on whether to end the ban should be made by the Commerce Department, not Congress.
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.
Interior Dept.: High-Risk Oil, Gas Wells Checks Lack Funding for Inspections
WASHINGTON (AP) — The U.S. Bureau of Land Management lacks sufficient resources to inspect high-risk oil and gas wells on federal land as a drilling boom continues in Wyoming, Colorado and other states, Interior Secretary Sally Jewell said Tuesday. The Obama administration has proposed a fee on oil and gas drillers that would allow the land management agency to hire more than 60 inspectors, but the proposal has not gained traction in Congress.
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.
Feds Cite Poor record-keeping in 2013 West Coast Oil Spill
LOS ANGELES (AP) — The pipeline company responsible for an oil spill that blackened California beaches kept shoddy records on emergency training and how it would protect pristine coastline in the event of a break, federal regulators said Friday. The Pipeline and Hazardous Materials Safety Administration (PHMSA) proposed six violations from inspections begun in 2013 — about 20 months before the May pipeline rupture near Santa Barbara — but imposed no fines.
- Keystone Oil Pipeline Resumes Operations After Temporary Shutdown
- Freeport LNG Plant Runs Near Zero Consumption for Fifth Day
- Biden Administration Buys Oil for Emergency Reserve Above Target Price
- Mexico Seizes Air Liquide's Hydrogen Plant at Pemex Refinery
- Enbridge to Invest $500 Million in Pipeline Assets, Including Expansion of 850-Mile Gray Oak Pipeline
- Enbridge Receives Approval to Begin Service on Louisiana Venice Gas Pipeline Project
- U.S. to Acquire 3 Million Barrels of Oil for Emergency Reserve in September
- AG&P LNG Acquires 49% Stake in Vietnam's Cai Mep LNG Terminal
- BP's Carbon Emissions Increase in 2023, Ending Decline Since 2019
- Texas Sues EPA Over Methane Emission Rules for Oil and Gas Sector
