Storage
EPA Boosts Amount of Ethanol in Gasoline Supply
WASHINGTON (AP) — The Obama administration is boosting the amount of corn-based ethanol and other renewable fuels in the U.S. gasoline supply despite sustained opposition by an unusual alliance of oil companies, environmentalists and some GOP presidential candidates. The Environmental Protection Agency (EPA) Monday issued a final rule designed to increase production of ethanol to be blended with gasoline through 2016, a decision that could reverberate in Iowa's crucial presidential caucuses.
Kinder Morgan, Brookfield Buying Majority Interest in NGPL
Kinder Morgan and Brookfield Infrastructure Partners agreed to jointly acquire, from Myria Holdings, the 53% equity interest in Natural Gas Pipeline Company of America (NGPL) not already owned by them for $242 million. KMI will pay $136 million and increase its ownership interest from 20% to 50%, while Brookfield will pay $106 million, increasing its ownership from 27% to 50%. The transaction values NGPL at a total enterprise value of $3.4 billion, including existing debt.
U.S. Oil, Natural Gas Reserves Both Increase in 2014
U.S. crude oil and lease condensate proved reserves increased by 9% to 39.9 billion barrels, and natural gas proved reserves increased by 10% to 389 Tcf in 2014, according to Energy Information Administration's (EIA) U.S. Crude Oil and Natural Gas Proved Reserves report. U.S. crude oil and lease condensate proved reserves reached the highest level since 1972, and natural gas proved reserves surpassed last year's record level.
Passenger Travel Accounts for Most of World Transportation Energy Use
The transportation of people and goods accounts for about 25% of all energy consumption in the world. Passenger transportation, in particular light-duty vehicles, accounts for most transportation energy consumption – light-duty vehicles alone consume more than all freight modes of transportation, such as heavy trucks, marine, and rail.
Energy Storage Tech Starting To Compete With Grid
Critics of renewable energy always cite the fact that the sun does not always shine and the wind does not always blow. As such, the intermittency of renewable energy needs to be backed up by baseload power, which would need to come from natural gas, coal, or nuclear power. The key to resolving the intermittency problem is energy storage, but batteries have thus far been too expensive to offer a viable solution. But that is quickly changing.
Joint Venture to Build NGL Processing Plant, Pipelines
Two Houston-based oil and gas companies have formed a $240 million joint venture to build a NGL processing plant and pipelines in La Salle County, TX on the western edge of the Eagle Ford Shale.
US to Cancel Lease on Land Sacred to Blackfoot Indian Tribes
BILLINGS, Mont. (AP) — The Interior Department plans to cancel a long-suspended oil and gas drilling lease near Glacier National Park that's on land considered sacred to the Blackfoot tribes of the U.S. and Canada, according to court documents filed Monday. Tribal leaders said such a move would make up for a wrong done to them in 1982, when the government issued the lease without consulting the tribes.
Numbers Show Oil Price Rebound Not Imminent, but Underway
Oil markets will remain depressed through the fourth quarter of this year as oil storage levels continue to rise around the world. The closely watched Energy Information Administration (EIA) figures detailing weekly gains in inventory levels in the United States are just one piece of the puzzle.
Despite Economy, Texas Prepares More Students for Oil Jobs
HOUSTON (AP) — The oil industry is mired in its latest bust, with thousands of jobs evaporating like flares flaming out over natural gas wells. But in Texas, education officials are preparing more young people for the oil patch, showing the state's unshakeable commitment to the energy sector despite the employment uncertainties.
Cyprus: Energy Deal Boosts Plans to Export Gas to Egypt
NICOSIA, Cyprus (AP) — A move by British oil and gas company BG International to buy a stake in Cyprus' offshore mineral deposits is an important step forward for the country's plans to supply Egypt with natural gas, the east Mediterranean island's energy minister said Monday. Yiorgos Lakkotrypis said U.S. company Noble Energy has cut a deal with BG International for a 35% stake in an area, or block, where a field estimated to contain more than 4 Tcf of gas has been found.
What Paris Attacks Mean for Commodities Prices
The Paris tragedy clearly showed the world that the war on terror has gone global. If that had not already been made clear by terror bombings in Baghdad, Beirut, and the Russian airliner in recent weeks, it was hammered home by Paris. Israeli media reports that no western intelligence picked up any signs of the attack plan. The grim message to the world: It could happen anywhere. For any that still needed to be convinced, the attack also revealed that the greatest threat to the west comes from radical Islam, not from Iran, Russia or China.
Manslaughter Charges Filed in 2012 Black Elk Platform Blast
NEW ORLEANS (AP) — A federal grand jury indicted two companies on involuntary manslaughter charges and three people face charges in a deadly 2012 explosion on an oil production platform in the Gulf of Mexico, the Justice Department said Thursday. The explosion and fire started during welding work on a platform owned by Black Elk Energy Offshore Operations LLC, killing three workers and injuring several others. In lawsuits and a federal report, the company and its contractors have been accused of failing to follow proper safety practices and rushing work.
TransCanadas New Contracts Lead to $570 Million NGTL System Expansion
In the aftermath of the Keystone XL decision, TransCanada announced its subsidiary, NOVA Gas Transmission (NGTL) has signed contracts for 2.7 Bcf/d of new firm natural gas transportation service that will require a $570 million system expansion for 2018. Significant growth in unconventional natural gas supplies in northwestern Alberta and northeastern British Columbia are the primary driver for these new contracts, coupled with continued growth in market demand, the company said.
Pilgrim Pipeline Submits Use and Occupancy Permit Application in New York
Pilgrim Pipeline Holdings announced it has filed a use and occupancy permit application in New York to construct the Pilgrim Pipeline. The proposed 178-mile pipeline project consists of two separate, parallel underground lines running between supply and distribution terminals in Albany and Linden, New Jersey.
EPA Intends Tougher Downwind Air-Pollution Rule in 23 States
WASHINGTON (AP) — The Environmental Protection Agency proposed tougher new limits on Tuesday on smokestack emissions from nearly two dozen states that burden downwind areas with air pollution from power plants they can't control. At the same time, the EPA moved to remove two states — South Carolina and Florida — from the "good neighbor" rules, saying they don't contribute significant amounts of smog to other states. The EPA proposal came as Republicans in Congress moved to block President Barack Obama's plan to force steep cuts in greenhouse gas emissions from U.S. power plants.
Why French Military Action In Syria Doesnt Affect Oil Prices
The horrific attacks in Paris prompted a swift response from French President Francois Hollande, as he dispatched an aircraft carrier to the Eastern Mediterranean a day after airstrikes hit the key city ISIS stronghold of Raqqa. The United States responded with airstrikes on Monday, November 16, targeting hundreds of trucks that the U.S. military believes are used for smuggling oil. <em>The New York Times </em>reported that 116 trucks were destroyed in American airstrikes by A-10 planes and AC-130 gunships in eastern Syria.
New Classifications of Natural Gas Storage Regions Begin this Week
Natural gas storage levels have been high recently, reaching a record 3,978 Tcf as of Nov. 6. In an effort to better illustrate regional storage trends, EIA will publish weekly data divided into five regions, rather than the current three, beginning with the Nov. 19 report.
Iran to Boost Oil Exports after Sanctions Lifted
TEHRAN, Iran (AP) — Iran says it will export an additional 500,000 bpd in a bid to reclaim its market share after sanctions are lifted under a landmark nuclear deal. Oil Minister Bijan Zanganeh told reporters the increase is part of Iran's plan to double its crude oil exports as sanctions are lifted, which officials expect to happen in early 2016. OPEC member Iran currently exports 1.3 MMbpd and hopes to get back to its pre-sanctions level of 2.2 MMbpd, last reached in 2012.
Statoil Pulling Out of Alaska
Statoil is optimizing its exploration portfolio for long-term value and has decided to exit Alaska following recent exploration results in neighboring leases. The decision means the company will exit 16 Statoil-operated leases, and its stake in 50 leases operated by ConocoPhillips, all in the Chukchi Sea. The leases were awarded in the 2008 lease sale in Alaska and expire in 2020. The leases are seen by the company as no longercompetitive within the company’s global portfolio. The office in Anchorage will be closed as well.
Enlink Midstream Gains Full Ownership of Permian Basin Processing Plant
EnLink Midstream Partners announced its subsidiary has acquired full ownership in the Deadwood natural gas processing facility with the acquisition of an Apache Corporation subsidiary's 50% ownership interest. The facility is located in Glasscock County in the Texas Permian Basin and comes at an accretive cost of about $40 million. Pursuant to a 2011 agreement, EnLink and Apache jointly funded the development of a newly build processing facility in which each company held a 50% undivided ownership interest.
Retrofitting Customized Valves, Actuators for Pipeline Monitoring Stations
Oil and gas engineers face a major problem in accurately and reliably measuring and monitoring the various fluids that are introduced into oil pipelines from well site pumping stations. A thorough understanding of both the oil separation process and the properties of valves and actuators is required to correctly specify a system that will sufficiently measure and monitor these various types of fluids. Also, the conditions downstream from each well are different, requiring valves and actuators to be highly customized to their specific role in the process.
IEA Sees No Oil Price Rebound for Years But ...
Oil prices are likely to stay below $80 per barrel for another five years, according to a closely watched energy report. The International Energy Agency released its 2015 <em>World Energy Outlook</em>, with predictions for energy markets out to 2040. Although there are no shortage of caveats, the IEA projects that oil prices will only rebound slowly and intermittently, and the supply overhang will slowly ease through the rest of the decade. In its “central” scenario, it sees oil prices rebalancing in 2020 at $80 bbl, with increases in the years following.
Getting Basics of Construction Productivity Right
The U.S. midstream oil and gas construction industry has experienced tremendous growth over the past decade, forcing industry stakeholders from across the nation to work together under extreme environmental conditions, compressed project schedules, persistent labor fluctuations and ongoing cost pressures.
As Total US Crude Imports Fall, Canadas Import Supply Share Rises
Although overall U.S. crude oil imports have been declining since 2005, crude oil imports from Canada have been increasing. As of August, Canada provided 45% of all crude oil imports to the United States, almost three times as much as all Persian Gulf countries combined.
Technip Awarded Contract Hydrogen Plant in Montana
Technip was awarded a contract by CHS Inc. to provide technology as well as engineering, procurement and construction for a 40,000-normal-cubic-meter-per-hour grassroots hydrogen plant at the CHS Refinery in Laurel, MT. The plant is part of ongoing upgrades to boost efficiency, increase diesel production and process additional crudes at its refinery.
Oil Market Uncertainties, Growing Natural Gas Production Projected in 2016
The <em>Pipeline & Gas Journal 35th Annual 500 Report</em> is the industry’s most comprehensive listing of U.S. energy pipeline systems. As in past years, the report ranks gas distribution, liquids and gas transmission systems. Gas transmission companies are listed by total miles of pipe. Gas distribution operators by number of customers and liquids pipelines by total crude oil and products delivered.
Ending Ban on Oil Exports Looms as Biggest Hurdle for Oil Industry
As President Obama smugly twiddles his thumbs and decides when he’ll put Keystone out of its misery, sides are being taken, mostly along political lines, in the real debate that will decide the fate of the domestic oil industry: ending the outdated 1975 ban on crude oil exports. Obama, of course, sees no need to lift the ban, though he says he might reconsider IF the oil industry gives up its tax breaks. As one expected, Hillary Clinton, presumptive Democratic nominee for president, also opposes ending the ban.
Ozark Pipeline Upgrade Planned Beneath Mississippi River
Canadian company Enbridge will make $17.3 million in improvements to its Ozark Pipeline along a 4,000-foot segment that runs beneath the Mississippi River into north St. Louis. The work is scheduled for completion in 2016. Crews will bore under the river, welding 22-inch steel pipe together on the Missouri side, before pulling it through a new tunnel. The 435-mile Ozark Pipeline carries up to 215,000 bpd of oil from Oklahoma through Missouri, en route to the Wood River, IL refinery, Enbridge said.
Anadarko Withdraws Rejected Apache Takeover Bid
Anadarko Petroleum Corporation today announced it withdrew its offer to buy rival oil company Apache in what would have been the biggest takeover of a U.S. crude producer this year. The proposed all-stock transaction, which included a modest premium, was based on public information and Apache's historic financial and operating under-performance, according to Anadarko President and CEO Al Walker. The transaction offered shareholders of both companies numerous value-creation opportunities.
Appalachian Midstream Operators Face Myriad of Challenges
This has been a busy year of new challenges and issues facing the Appalachian oil and gas industry as rig count in the Appalachian Basin and elsewhere is down substantially compared to the previous two years. A significant challenge ahead for shale developers in a lower price environment is to continue to be active in finding land, drilling wells and getting the natural resource to market. This article concerns our most recent report, published in May, on the issues and challenges facing midstream operators in the Appalachian Basin.
- 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
