Storage
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.
ConocoPhillips Safely Delivers 1st Oil at Surmont 2
ConocoPhillips delivered first oil at its Surmont 2 in-situ oil sands facility in Canada, marking a significant milestone for the megaproject. Construction of the single-phase, steam-assisted gravity drainage (SAGD) project began in 2010. Earlier this year, the company announced first steam, which has heated the reservoir to a point at which the well pairs could be converted to a SAGD configuration, allowing the oil to flow. Production will ramp-up through 2017, adding about 118,000 bpd of gross capacity. Total gross capacity for Surmont 1 and 2 is expected to reach 150,000 Bpd.
Cost, Length of Exxon's Cleanup Still Unclear after Deal
TRENTON, N.J. (AP) — The $225 million settlement between ExxonMobil and New Jersey reached this week confirms the oil giant must clean up more than 1,500 contaminated properties from gas stations to refineries — but exactly how much they'll spend or how long it'll take remains murky.
Government: PHMSA Sets Standards for State Excavation Policies
House members of both parties drubbed the latest top PHMSA official to appear before Congress to answer questions about lagging pipeline safety rule implementation.
EIA Refines Method for Reporting Monthly Crude Oil Production
With the release of the Petroleum Supply Monthly (PSM), EIA is incorporating the first survey-based reporting of monthly crude oil production based on an expansion of its survey program earlier this year. The PSM includes EIA's first reporting of June crude oil production. EIA also begins using new survey data from multiple states and regions within the United States, and revises figures previously reported for January through May 2015.
Maersk to Develop Large North Sea Gas Find off British Coast
HELSINKI (AP) — Maersk Oil says it has permission from British authorities to develop a gas field off the British coast in the largest find in the North Sea in a decade. The Danish company said Monday the Culzean field, discovered in 2008, has an estimated 250 to 300 MMBBls of oil equivalent, or enough to produce about 5% of Britain's total gas demand at peak production in 2020-2021. Production is expected to start in 2019 and continue for at least 13 years. Maersk Oil, JX Nippon and BP (Britoil) are investing $4.5 billion in the development.
Why So Much Oil Price Volatility? Blame the Speculators
Oil prices crashed lonly to rebound at lightning speed. On Aug. 28, oil prices surged 10%, the largest one-day gain in seven years. So, what happens next for oil prices? On the face of it, the crash and massive rebound makes little sense, with many oil market analysts undoubtedly left shaking their heads.
JV Constructing Texas-to-Louisiana Crude Line
Phillips 66, Energy Transfer Partners and Sunoco Logistics Partners have formed a joint venture to build the Bayou Bridge pipeline that will deliver crude oil from the Phillips 66 and Sunoco Logistics terminals in Nederland, TX to Lake Charles, LA. The venture will also launch an expansion open season for service to the market hub in St. James, LA. Phillips 66 holds a 40% interest in the joint venture and Energy Transfer and Sunoco Logistics each hold a 30% interest. Sunoco Logistics will be the operator of the system.
Reduced offshore share in U.S. oil and natural gas production lowers risk from hurricanes
Offshore energy production in the Gulf of Mexico has experienced relatively minor disruptions because of tropical storms and hurricanes in recent years, and the National Oceanic and Atmospheric Administration (NOAA) has predicted a below-normal 2015 hurricane season in its updated Atlantic Hurricane Season Outlook, released on Aug. 6.
State Says Ohio Oil, Natural Gas Production at Historic High
COLUMBUS, Ohio (AP) — The state Department of Natural Resources says historic amounts of oil and natural gas are being produced by Ohio shale wells. Statistics released by the department Thursday show more than 10 MMbbls of oil and 405 Bcf of natural gas were produced during the second quarter of the year. The department says those amounts were more than in any previous three-month reporting period. During the same period in 2014, the state's wells produced about 4.4 MMbbls of oil and 156 Bcf of natural gas.
Ecuador's President Says Country Now Producing Oil at a Loss
QUITO, Ecuador (AP) — Ecuadoreans are already contending with a rumbling, ash-spewing volcano and rising living costs because they use the appreciating U.S. dollar as their currency. Now they've been told that Ecuador's oil — its principal export and a vital source of government funding — costs more to produce than it earns. President Rafael Correa explained on Tuesday, during a visit to areas threatened by the Cotopaxi volcano, that it costs the OPEC nation $39 to produce a barrel of oil for which it only receives $30.
3 Contract Workers Injured after Pipeline Ruptures in Gulf
NEW ORLEANS (AP) — Three workers were injured after a natural gas pipeline ruptured in the Gulf of Mexico about 25 miles south of Marsh Island. Petty Officer Ryan Tippets said the rupture caused the pipeline to catch fire. He said the injured crew members were taken to a hospital in Houma, LA with minor injuries. He said the Coast Guard received notification of the rupture at about 8:30 p.m. Wednesday.
Settlement Reached in Lawsuit over Decade-Old Gulf Oil Leak
NEW ORLEANS (AP) — Environmental groups and a New Orleans energy company have reached a settlement agreement in a lawsuit stemming from the company's failed efforts to stop a decade-old, slow-motion oil spill in the Gulf of Mexico.
Some Small But Welcome Relief For WTI
BP’s Whiting refinery, the largest refinery in the Midwest, made a quicker-than-expected return to action this week. BP released a statement saying that the large crude distillation tower that went offline and caused gasoline prices to spike in the Midwest has “safely restarted,” and that output would ramp up over time.
US Crude Flirts with Close of Under $40 a barrel
NEW YORK (AP) — Oil prices are continuing to slide on fears of a slowdown in the world economy, with U.S. crude on pace to close at under $40 a barrel for the first time since the days of the global economic crisis. Already trading around six-year lows on a prolonged slump, U.S. crude fell $1.48, or 3.7%, to $38.97 per barrel Monday afternoon. Earlier it dropped to $37.75. Oil hadn't closed below $40 a barrel since February 2009, although it briefly traded below that level on Friday.
First US Tar Sands Mine Set to Open for Business
BOOK CLIFFS, Utah (AP) — A Canadian company is about to embark on something never before done commercially in the United States: digging sticky, black, tar-soaked sand from the ground and extracting the petroleum. The impending opening of the nation's first tar sands mine has become another front in the battle across the West between preservationists and the energy industry. U.S. Oil Sands has invested nearly $100 million over the last decade to acquire rights to about 50 square miles, obtain permits and develop what it says is a brand-new, non-toxic method of separating out the oil.
Oil Markets Coming to Grips with Prices Remaining 'Lower for Longer'
“Lower for longer” is on everyone’s lips in the oil industry. A survey by the <em>Wall Street Journal</em> of investment banks found a growing consensus that oil prices not only won’t rebound soon, but could remain at today’s low levels through much of next year. The average of the 10 oil price forecasts surveyed by <em>WSJ</em> predicted that oil prices would not rise above $70 per barrel until late next year, with WTI averaging just $63.40 for 2016.
Are Big Oils Dividends Sustainable?
Most investors have been attracted to the oil and energy industry due to its history of paying out large dividends. Blue Chip oil stocks have been known to possess management teams that are financially prudent, and shareholder friendly. This is why companies such as Chevron, ConocoPhillips, and ExxonMobil, have garnered much attention in the investment community. But, due to the large decline in the oil price, most investors are now wondering whether or not these dividends are sustainable.
US Oil, Natural Gas rig Count Stands at 885
HOUSTON (AP) — Oilfield services company Baker Hughes Inc. said the number of rigs exploring for oil and natural gas in the United States this week increased by one to 885. Houston-based Baker Hughes said Friday 674 rigs were seeking oil and 211 explored for natural gas. A year ago, 1,896 rigs were active. Among major oil- and gas-producing states, North Dakota and Oklahoma each gained three rigs and Alaska, California, Kansas and Wyoming each gained one. Texas lost six rigs, Pennsylvania declined by two and Colorado, Louisiana and West Virginia each lost one.
NAPCA Workshop Looks at Changing Energy Environment
</em>NAPCA held its annual one-day workshop Thursday in Houston as the industry struggles to find solutions amid market conditions that can be characterized as anything but certain. As one speaker, Dolty Cheramie, president of Pipe Exchange, put it, ““No CEO or anyone else has one single minute of experience in the market we are in today.” During his presentation, “A Look at the Oilpatch,” Cheramie didn’t pull any punches in what he saw a rough sledding for at least the next couple of years.
Low Oil Prices Could Break The 'Fragile 5' Producing Nations
Persistently low oil prices have already inflicted economic pain on oil-producing countries. But with crude sticking near six-year lows, the risk of political turmoil is starting to rise. There are several countries in which the risks are the greatest – Algeria, Iraq, Libya, Nigeria, and Venezuela – and RBC Capital Markets has labeled them the “Fragile Five.”
Oil Lease Sale Western Gulf's Lowest Ever in Bids, Money
NEW ORLEANS (AP) — The smallest oil lease sale ever in the western Gulf of Mexico and one of the smallest in the entire Gulf brought only five bidders Wednesday, with low oil prices limiting interest in the prospects. Most seats in a Superdome meeting room were empty as a federal energy official read the 33 bids for tracts off the Texas coast. Each tract drew a single bid, for a total of $22.7 million. Not all bids wind up as leases: over the years, nearly 3% of all bids have been rejected or withdrawn.
Today's the Day: Oil Lease Sale Starts for Tracts Off of Texas Coast
NEW ORLEANS (AP) — The federal government today will offer 21.9 million acres off the Texas coast to oil and gas developers, though low oil prices are likely to limit interest. The last two comparable lease sales in the western Gulf of Mexico brought $109.1 million last year and $100.1 million in 2012. A March 18 sale in the far more popular central Gulf of Mexico brought the lowest number of bids since 1986. Officials said low oil prices were the reason. Since then, the price of U.S. crude has dropped $1.44 a barrel.
EIA Lowers Crude Oil Price Forecast Through 2016
Amid high uncertainty in the global oil market, EIA has lowered crude oil price forecasts in the Short-Term Energy Outlook (STEO), expecting West Texas Intermediate (WTI) crude oil prices to average $49 per barrel (/b)in 2015 and $54/b in 2016, $6/b and $8/b lower than forecast in last month's STEO, respectively. Concerns over the pace of economic growth in emerging markets, slowing supply growth, increases in global liquids inventories and the possibility of increasing volumes of Iranian crude oil entering the market contributed to the changed forecast.
Powder River Crude Gathering System Begins Operations
Outrigger Energy began operating its crude oil gathering system in the Powder River Basin of Wyoming. The company has received a long-term dedication from Devon Energy Corporation covering leasehold acres located in Campbell, Converse, and Johnson Counties.
Local Fracking Bans Could Go Before Colorado High Court Soon
DENVER (AP) — Colorado's battle over who should regulate fracking could be on the fast track to the state Supreme Court. The Colorado Court of Appeals on Monday asked to bow out of lawsuits over Longmont's ban on fracking and a 5-year-moratorium in Fort Collins. The move would allow the Supreme Court to take the cases immediately, without waiting for the appeals court to hear arguments and make rulings. The higher court hasn't said if it will take the cases.
Feds Allow Shell to Drill for Oil in Arctic Ocean off Alaska
ANCHORAGE, Alaska (AP) — The federal government on Monday gave Royal Dutch Shell the final permit it needs to drill for oil in the Arctic Ocean off Alaska's northwest coast for the first time in more than two decades. The Bureau of Safety and Environmental Enforcement announced that it approved the permit to drill below the ocean floor after the oil giant brought in a required piece of equipment to stop a possible well blowout.
Buzz on Drones: Theyre Coming to the Energy Sector
Few trends have been bigger or more exciting to watch in the last decade than the rise of drones. From serious applications like warfare to more quirky ones like pizza delivery, the world is still clearly just starting to figure out how drones can profitably be used. That background makes the recent chatter about the opportunity for drone use in commercial oil and gas applications an extremely interesting trend to watch.
Pipeline Expert Peter Lidiak Ready for New Challenge
At the American Petroleum Institute’s spring pipeline conference in Savannah, GA one bit of news in particular grabbed attendees’ attention when it was announced that Pipeline Director Peter T. Lidiak was leaving his post after serving as API’s go-to pipeline executive since 2005. Lidiak, who joined API in 2000, is one of the nation’s leading experts on crude oil pipelines, testifying before countless congressional and agency hearings in Washington, D.C. and having a hand in practically any issue involving pipelines.
- Phillips 66 to Shut LA Oil Refinery, Ending Major Gasoline Output Amid Supply Concerns
- FERC Sides with Williams in Texas-Louisiana Pipeline Dispute with Energy Transfer
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- Malaysia’s Oil Exports to China Surge Amid Broader Import Decline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Marathon Oil to Lay Off Over 500 Texas Workers Ahead of ConocoPhillips Merger
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
