Storage
Pipeline Expert Peter Lidiak Ready for New Challenge (1)
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.
Ohio Elections Chief Rules Against Fracking Proposals
COLUMBUS, Ohio (AP) — Ohio's elections chief has moved to invalidate ballot proposals in three counties related to fracking. Secretary of State Jon Husted (HYOO-sted) ruled Thursday on protests filed with his office that questioned the validity of county charter ballot proposals in Athens, Fulton and Medina (meh-DY'-nuh) counties. Husted upheld the protests invalidating the proposals and said they wouldn't appear on Nov. 3 ballots. He says in a statement that each proposal attempts to circumvent state law in a way that the courts have ruled violates the Ohio Constitution.
World News: China and Russia Begin Work On Power of Serbia Pipeline
Russia’s Gazprom and China National Petroleum Corporation (CNPC) have confirmed that construction is underway on the 4,000-km Power of Serbia Pipeline that will deliver up to 38 Bcma of gas to China. The first joint of pipe for the Chinese sector of the project was recently welded near the city of Heibe in the northern Heilongjiang Province bordering Russia, according to CNPC. Russia started building its section of the 2,500-mile eastern route last year. The pipeline is due to become fully operational in late 2017.
Nuclear Accord Could Boost Crude Oil Production from Iran
The P5+1 nations agreement with Iran on nuclear-related sanctions could result in relief for United States and European Union in the form of more oil production. If the agreement, which include some oil-related sanctions, it will put additional Iranian oil supplies on a global market that has already seen oil inventories rise significantly over the past year.
Analyst: China's Devalued Yuan Tied to Foreign Oil Consumption
Earlier this week, China surprisingly opted to devalue its currency, the yuan, forcing many in the oil and gas industry to ponder how the decision will affect their market. “In recent days, we’ve seen China look to devalue the yuan in hopes of gaining some ground as the U.S. dollar continues its upward move,” said Carl Larry, director of business development with consulting firm Frost & Sullivan. “The move has caused a bit of uneasiness in the marketplace and stock markets around the world are a bit shaky.”
Oil Price Slumps to Lowest Level Since March 2009
The price of U.S. crude oil has tumbled to its lowest level in more than six years. Benchmark U.S. crude fell $1.88, or 4%, to settle at $43.08 a barrel in New York on Tuesday, its lowest close since March of 2009. The latest slide came as OPEC said its production rose to a three-year high. China also devalued its currency, suggesting economic growth there was softer and could cause lower crude demand. U.S. crude has been declining since reaching a high this year of $61.43 on June 10.
Keystone XL Review Drags on 5 Times Longer than Average
WASHINGTON (AP) — For six and a half years, the White House has had a quick comeback to questions about its yet-to-be-announced decision on the proposed Keystone XL pipeline: Talk to the State Department.
BNSF Manager Named Inspector for ND Rail Safety Program
BISMARCK, N.D. (AP) — A longtime manager of a railroad responsible for some fiery oil train crashes in North Dakota has been hired as an inspector for the state's new rail safety program. Karl Carson, a 23-year employee of BNSF Railway and a manager for the railroad since 2004, starts the $90,000-a-year state job next week conducting track and worker safety inspections.
Pemex Awards Offshore Engineering Contracts to Wood Group
Wood Group has been awarded a three-year offshore engineering blanket order by Pemex for field development in Mexico’s Gulf of Mexico waters. The $28 million agreement encompasses deepwater and complex shallow water concept and basic engineering, and owner engineer services. Work will be performed by Wood Group Kenny and Wood Group Mustang and will include field development planning and engineering of topsides facilities, subsea umbilicals, risers and flowlines (SURF), and floating systems.
Key Issues Taken on at Pipeline Conference
Pipeline & Gas Journal’s 11th annual Pipeline Opportunities Conference brought in 400 attendees from throughout North America, all focused on getting the most up-to-date information regarding the oil and natural gas industry. In addition to a full day’s worth of conference presentations and roundtables, guests had ample time to network during the even held March 24 at the Royal Sonesta Hotel in Houston’s Galleria district.
NACE President Seeks to Diversify Services for Rapidly Growing Membership
Raised in Pittsburgh, Jim Feather, NACE International’s 2015 president, says he grew up “not only with the steel metallurgy industry in my blood but also in my nostrils.” And while Feather did work directly in the steel industry as a sophomore through a co-op program at Carnegie-Mellon University, even then he could see “the writing on the wall” concerning steel’s long-term future in the United States.
ROSEN Sponsors Roundtable on Linear Threats
The ROSEN Group brought key industry stakeholders together for a roundtable on the topic of “Linear Threats in Pipelines” on May 28. The event attracted over 100 attendees from throughout North America and Europe who were hosted at the ROSEN facility in Gahanna, OH. The roundtable began with an official welcome by ROSEN Executive Vice President Chris F. Yoxall, who emphasized the importance of “why we are here.” He addressed the goal and set the tone for the day – bringing together all stakeholders to collectively work on common topics of interest.
FERC Issues Pair of Oil Pipeline Audits
On June 17, the Federal Energy Regulatory Commission’s (FERC) Division of Audits and Accounting, Office of Enforcement (DAA), issued two audit reports involving oil pipelines, the Colonial Pipeline Company Docket No. FA14-4 and Enterprise Products Partners, L.P., Docket No. FA14-1. The Enterprise audit focused on Mid-American Pipeline Company, LLC (MAPL), a subsidiary of Enterprise. These reports are significant because they demonstrate that the FERC audit staff is taking a comprehensive look at oil pipeline accounting and rate issues along with enhanced scrutiny of affiliate issues.
P&GJs Midyear International Pipeline Report
<em>P&GJ’s</em> 2015 international pipeline survey indicates 70,308 miles of pipeline are in various stages of construction or planned. Of these, 32,013 miles account for projects in the planning and engineering phase, while 38,295 miles are in various stages of construction.
California Oil Spill May Have Been Far Larger than Projected
LOS ANGELES (AP) — An oil spill from a ruptured pipeline near Santa Barbara, California, that fouled beaches for miles may have been far larger in volume than earlier projected. Plains All American Pipeline had estimated the May 19 spill at up to 101,000 gallons. But in documents released Wednesday, the Texas-based company said alternate calculations found the spill might have been up to 143,000 gallons. The company is continuing its analysis and the figures are preliminary.
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.
New Ethane Blending Facility Provides Flexibility for Natural Gas vs. Ethane Spreads
Enterprise Product Partners’ recently opened Ethane Blending Facility in Natchitoches, LA provides an unprecedented option for U.S. Northeast ethane rejection by blending ethane moved on the company’s 125,000 bpd ATEX pipeline into the U.S. Gulf Coast natural gas stream.
ExxonMobil Expanding Crude Processing Capacity at Beaumont Refinery
ExxonMobil will add flexibility to process light crudes at its Beaumont refinery, increasing production capacity by about 20,000 bpd. This expansion will further strengthen ExxonMobil’s integrated downstream portfolio in Southeast Texas. The refinery can currently process 365,000 bpd and produce 2.8 billion gallons of gasoline each year. ExxonMobil said its decision to increase production at the Beaumont facility was based on the abundant supply and low cost of U.S. light crude produced from shale.
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.
Oil Sands: Is Utah the New Alberta?
Think oil sands and Alberta comes to mind. Don’t tell that to Canadian oilmen in Utah, though, who expect to begin production at the first commercial oil sands mine in the United States by year’s end. On June 24, U.S. Oil Sands Inc., based in Calgary, got approval from the Utah Department of Natural Resources’ Division of Oil, Gas and Mining for changes to the PR Spring project being built about 200 miles southeast of Salt Lake City. The company has agreed to submit a plan by Nov. 1 for monitoring the quality of air and water at the project.
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.
Extension for Proposed CO-OK Pipeline Announced
The Saddlehorn Pipeline Company added a 50-mile extension to its planned 550-mile pipeline to transport various grades of crude oil from the DJ Basin, and potentially the broader Rocky Mountain and Bakken area resource plays, to storage facilities in Cushing, OK owned by Magellan Midstream Partners and Plains All American Pipeline, L.P.
Opposing Sides Face Off at Keystone XL Pipeline Hearing
PIERRE, S.D. (AP) — Opposing sides in the debate over the Keystone XL oil pipeline faced off Monday in front of the state regulatory panel that is considering for the second time in just over five years whether to approve the construction of the South Dakota portion of the long-delayed project.
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.
Revolution Pipeline Expansion Planned in Western PA
Dallas-based Energy Transfer Partners plans a $1.5 billion expansion of natural gas pipeline operations in western Pennsylvania. The 440 MMcf/d capacity project will support long-term midstream agreements with EdgeMarc Energy. EdgeMarc has drilled over 20 wells and has over 25,000 acres under lease in Butler County. As part of the deal, Energy Transfer is acquiring EdgeMarc’s Constellation pipeline in Butler County.
ONEOK Enters Permian-to-Mexico Pipeline Venture
ONEOK Partners has entered into a 50-50 joint venture with a subsidiary of Fermaca Infrastructure, a Mexico City-based natural gas infrastructure company, to construct a pipeline that would transport natural gas from the Permian Basin in West Texas to Mexico. The $450 million Roadrunner Gas Transmission pipeline project extends from ONEOK Partners’ ONEOK WesTex Transmission natural gas pipeline system at Coyanosa, TX, west to a new international border-crossing connection at the U.S.-Mexico border near San Elizario, TX, where it will connect with Fermaca’s Tarahumara Gas Pipeline.
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.
ExxonMobil Could Turn Guyana into Major Oil Producer
Not typically thought of when considering major oil exporters, one small country holds significant potential to join the ranks of some of South America’s much larger oil producing powers. Guyana, located along the northern coast of South America, is not an oil producer of any significance. But that could change if the large reserves of oil and gas located offshore are successfully produced.
Russia Says Shale Will Affect Oil Prices More Than Irans Return
While many observers believe the deal Iran struck with six world powers over its nuclear program may depress oil prices even further, Russia’s energy minister says the cost of producing shale oil is likely to have an even bigger impact on the world market. Iran’s deputy oil minister, Mansour Moazami, said his country’s crude exports would nearly double eventually from 1.2 MMbpd to 2.3 MMbpd once the sanctions are lifted, and Tehran has urged fellow OPEC members to adjust their output accordingly in order to keep prices stable.
Alpha Crude Connector Begins Building Delaware Basin Pipeline
Alpha Crude Connector started construction of its 400-mile Alpha Crude Connector The crude oil pipeline would serve Lea and Eddy counties, NM and Culberson, Loving, Reeves and Winkler counties, TX. The system will have 100,000 bpd capacity for oil from over 250 lease tank batteries, other local pipeline systems, and truck terminals in the Northern Delaware Basin. Construction is scheduled to be completed in November.
- 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
