Pipeline
OPECs Newest Member Actually Likes Low Oil Prices
As expected, OPEC’s decision to stick to its ‘high’ production levels in its December 4th meeting in Vienna didn’t go down well with the markets as oil prices plunged after the announcement. It is also quite evident that there is now a growing resentment within OPEC as members like Venezuela, Libya, Algeria and Angola were hoping for a production cut, which could have helped their ailing economies.
Robot Works Below Iconic Scotland Street to Repair Pipeline
ULC Robotics, a leading robotics, energy services and research/development company focused on the energy and utility industries, deployed its Cast Iron Joint Sealing Robot (CISBOT) for the first time in Scotland on busy George Street in Edinburgh this past summer. Similar to Fifth Avenue in New York City, the visitors and high-end shop owners along George Street had minimal disturbance to their normal routines because CISBOT because is virtually invisible.
Editor's Notebook: Winners, Losers and Keystone XL Debacle
I have some final thoughts about the Keystone XL debacle, because that’s what it was. That project never should have been the line in the sand in the debate over climate change, because as we all know, any environmental effect would have been negligible at worst.
Oil Price-Dependent Alaska Looks at First Income Tax in Decades
JUNEAU, Alaska (AP) — Alaska Gov. Bill Walker has proposed instituting a personal income tax for the first time in 35 years as the oil-dependent state looks to plug a multibillion-dollar budget deficit amid chronically low prices. In laying out his budget plan Wednesday, Walker also proposed using the fund that provides annual checks to most Alaskans to generate a stream of cash to help finance state government. The plan would change how dividends are calculated and mean lower checks, at least initially — 2016 payouts would be about $1,000 less than this year's.
Oil Industry Cutting Again, But It Still Might Not Be Enough
Chevron announced on Dec. 10 its decision to slash capital expenditures even further for 2016, cutting spending down to $26.6 billion, or 24% below 2015 levels. "Our capital budget will enable us to complete and ramp-up projects under construction, fund high return, short-cycle investments, preserve options for viable long-cycle projects, and ensure safe, reliable operations," Chevron Chairman and CEO John Watson said in a statement. "Given the near-term price outlook, we are exercising discretion in pacing projects that have not reached final investment decision."
APGA Determined to Have Its Voice Heard on Capitol Hill
Leading a natural gas distribution company is always a challenge because there are few businesses that deal so directly with their customer base, be it residential, commercial or industrial, as well as safety regulators, equipment and service providers, not to mention the city council or utility board that approves rates.
Former Energy Secretary Says OPEC Evolving
As far as one-time Energy Secretary Spencer Abraham is concerned the rumors of OPEC’s demise have been greatly exaggerated. “People who say OPEC is dead are dead wrong. They are evolving,” Abraham told about 100 guests of The Economist’s World in 2016 Breakfast, held Wednesday in Houston. Abraham, who is also a former Republican senator from Michigan, said the energy industry is facing a starkly different set of circumstances now than when he served in the George W. Bush administration from 2001 until early 2005.
Judge Rejects Bid to Block Alberta Clipper Pipeline Upgrade
MINNEAPOLIS (AP) — A federal judge rejected the key parts of a lawsuit brought by tribal and environmental groups that sought to block a capacity expansion on the Alberta Clipper crude oil pipeline, saying the courts don't have the authority to intervene at this stage. U.S. District Judge Michael Davis concluded Wednesday that the letters the State Department sent to Canadian-based Enbridge Energy weren't the kinds of final decisions that courts have jurisdiction to review.
ARM Midstream Plans Infrastructure in Oklahomas Stack Play
Asset Risk Management’s wholly owned subsidiary. ARM Midstream, is partnering with Highbridge Principal Strategies, LLC to build a cryogenic processing plant, natural gas gathering system, and crude oil gathering system in Oklahoma's STACK play. Plans for the Kingfisher Midstream system include over 100 miles of low- and high-pressure gas gathering pipelines, over 15,000 hp of compression, and a new cryogenic processing facility with initial processing capacity of 60 MMcf/d.
EPA Proposes New Methane Regulations for Midstream Operations
The federal Environmental Protection Agency recently proposed new regulations for methane and volatile organic compound (VOC) emissions from the oil and gas sector that place time-consuming and expensive new requirements on midstream businesses. These regulations would not apply to pipelines, but would require ongoing emissions monitoring and equipment replacements at compressor stations and natural gas processing plants built, “modified,” or “reconstructed” after Sept. 18, 2015.
Oil Prices Seen Staying Low Next Year as Demand Weakens
PARIS (AP) — The head of the International Energy Agency expects oil prices to remain low next year as demand weakens and supply remains high. The price of oil fell this week to its lowest since early 2009, when the global economy was deep in crisis. The U.S. benchmark recovered 1.6% at $38.08 on Wednesday. Fatih Birol, executive director of the IEA, which represents oil-consuming nations, told a news conference on the sidelines of the U.N. climate conference in Paris, said, "When we look at 2016, I see very few reasons why we can see growth in the prices."
Companies Asking Oklahoma Judge to Toss Earthquake Lawsuit
TULSA, Okla. (AP) — Two energy companies are asking a judge to throw out a lawsuit by an Oklahoma woman who claims she was injured in an earthquake caused by the injection of wastewater deep into the ground — a method used for decades by the industry to dispose of the chemical-laced byproduct of oil and gas production.
New Legislation Affects U.S. Strategic Petroleum Reserve
Two recently enacted laws authorize significant sales of crude oil from the Strategic Petroleum Reserve (SPR) over the next decade. The Bipartisan Budget Act authorizes the sale of 58 MMbbls of SPR oil from 2018 to 2025 for deficit reduction purposes and an estimated 40 to 50 MMbbls of oil in the fiscal period 2017-2020 for SPR modernization.
Los Angeles Sues Gas Company over 6-Week-Old Leak (1)
LOS ANGELES (AP) — The Los Angeles city attorney sued the Southern California Gas Co. on Monday over a 6-week-old natural gas leak that has sparked complaints of illness and forced hundreds of families out of a San Fernando Valley neighborhood. The Superior Court lawsuit alleges unfair competition and creation of a public nuisance.
Marathon Abandons $270 Million Ultra-Deepwater Project
Marathon Oil announced on Dec. 2 its decision to abandon a key deep-water oil project in the Gulf of Mexico. The well that Marathon had been drilling had already caused the company some problems. Drilling the well took seven months, and mechanical problems delayed the project’s completion. Marathon said last week that upon completing the project, drilled at 34,600 feet, that it had plugged the well and released its rig. Marathon says that it has no further plans for the block.
Cured-in-Place Liner Research Demonstrates Long-Term Viability
<strong></strong>Cured-in-place liners (CIPL) have been installed on cast-iron and steel pipelines in natural gas distribution systems in Europe, Japan and North America over the last few decades. CIPL have been used because of their rehabilitative and renewal qualities in contrast to the higher costs, construction risks and public inconvenience associated with conventional pipeline replacement methods, particularly in congested and difficult to access areas such as river and road crossings or urban areas.
What's New: December 2015
<p><strong>Inline Services</strong></p> <p>Inline’s polyurethane spheres are ideal for removing liquids from wet gas systems, product separation, hydrostatic line testing and wax control in crude oil pipelines. Our spheres are manufactured of high quality polyurethane for lasting service in the worst conditions. Inflatable spheres, 12-inch and larger are designed with two filling holes to ensure complete removal of the air inside the sphere. Spheres can also be manufactured out of medium and hard-density foam, coated in various polyurethane coatings and even equipped with brushes. www.inlineservices.com</p>
Enlink Midstream Agrees to Acquire Tall Oak Subsidiaries
A subsidiary of EnLink Midstream signed definitive agreements to acquire subsidiaries of Tall Oak Midstream for $1.55 billion. Tall Oak assets serve gathering and processing needs in the growing STACK and Central Northern Oklahoma Woodford plays in Oklahoma. Separately, a subsidiary of Devon Energy agreed to acquire Felix Energy for $1.9 billion, which holds acreage dedicated to the Tall Oak system.
Improving Lost and Unaccounted for Levels by Embracing Innovation
Across many industries, companies showing a reluctance to embrace new technology are in danger of losing any competitive edge. In the oil and gas industry, where even the smallest error can have a major long-term effect, embracing innovation in the form of data analytics has become a necessity for companies striving to reach the highest levels.
Pipeline Rush in Upper Midwest: Gas to Replace Coal
Nine- and even 12-figure numbers don’t phase Paul Copello, a petroleum engineer and president of IIR Energy, a capital projects tracking company that globally compiles and analyzes information for over 95,000 energy projects worldwide, collectively representing potential capital investment of $13.7 trillion. Among those projects, the natural gas pipeline sector is one of the surest bets for consistent increased capital spending, Copello told an energy meeting in Chicago last September.
Oil Sands Producers Can Live with Albertas New Carbon Taxes
If business is good at anything, it is pragmatism. Take a hostile takeover for example. After weeks or months of trading insults and accusations in and out of the media, a deal is struck and the warring CEO’s shake hands and call the final deal a stroke of genius. Whatever they may really feel, they put the past behind them and move forward, ostensibly in the best interests of shareholders. After all, it’s just business.
Montney shale patch flying below the radar
You really know business is tough when success is measured by suffering less than others. But so it goes as the North American oilpatch enters its second year of a precipitous downturn caused by OPEC deciding to no longer support global oil prices by restraining production at its Nov. 27, 2014 meeting.
World News: Cross-border Project Expected to Produce 40,000 Bopd
Chevron Corporation’s subsidiary, Chevron Overseas (Congo) Limited, has begun oil and gas production from the Lianzi Field, located in a unitized offshore zone between the Republic of Congo and the Republic of Angola. Located 65 miles offshore in 3,000 feet of water, Lianzi is Chevron’s first operated asset in the Congo and the first cross-border oil development project offshore Central Africa. The project is expected to produce an average of 40,000 bopd.
Report: Oil Bust Kills 19 Million Barrels Per Day of Future Oil Production
The collapse in oil prices have led to severe cuts in spending and investment from oil producers, and a new report by Tudor, Pickering, Holt & Co. finds the combined cuts will lead to a daily 19 million barrels of potential future oil production taken off the table. The report said oil companies have either canceled or suspended final investment decisions on 150 oil projects, which account for about 125 billion barrels of oil.
Turkey May Speed Up Building Pipeline for Azerbaijani Gas
BAKU, Azerbaijan (AP) — Turkey and Azerbaijan say they may speed up building a new natural gas pipeline, a statement that comes amid Turkey's bitter rift with Russia. Turkish Prime Minister Ahmet Davutoglu said Thursday after talks in Baku with Azerbaijan's President Ilham Aliyev that the TANAP gas project could be completed before its original target, 2018. Aliyev said it would also serve to export Azerbaijan's gas further on to Europe.
Start-Up Oilfield Services Firm Rubicon Nets $300 Million Equity Line
Rubicon Oilfield International, a start-up oilfield services company, announced Warburg Pincus, a global private equity firm, agreed to a line-of-equity investment of up to $300 million in the company. Houston-based Rubicon’s strategy is to build a global enterprise in the oilfield products and equipment sector through acquisitions and organic re-investment. The company said it will acquire, integrate and enhance small and medium-sized businesses in the upstream oilfield technology sector, focusing on proprietary downhole tools, products and technologies.
House Backs Sweeping Energy Bill to Boost Oil, Natural Gas
WASHINGTON (AP) — Defying a White House veto threat, the Republican-controlled House on Thursday approved a sweeping bill to boost U.S. energy production, lift a four-decade ban on crude oil exports and modernize the aging electric grid. The first major energy legislation in nearly a decade, the bill would also speed natural gas exports and hasten approval of natural gas pipelines across public lands. It also would advance cross-border projects such as the Keystone XL oil pipeline, which lingered for more than seven years before being rejected last month by President Barack Obama.
TGP Seeks FERC Approval to Upgrade NED Capacity
Tennessee Gas Pipeline, a Kinder Morgan company, filed with FERC to increase capacity of the proposed Northeast Energy Direct (NED) project to 1.2 Bcf/d, an increase from 1 Bcf/d as submitted in earlier documents. TGP plans several route modifications on both the mainline and delivery laterals. The anticipated in-service date for the NED project remains Nov. 1, 2018.
Manslaughter Charges Dropped for BP Supervisors in Oil Spill
NEW ORLEANS (AP) — The Justice Department launched a sweeping and costly criminal investigation after BP's rig explosion in the Gulf of Mexico killed 11 workers and caused the nation's worst offshore oil disaster. For roughly two years, a task force of FBI agents and prosecutors occupied an entire floor of a high-rise building across from the federal courthouse in New Orleans.
Data Shows Most Crude Produced in Lower 48 Light Oils
U.S. Energy Information Administration (EIA) data show that for the first nine months of 2015, most (50.8%) of the crude oil produced in the Lower 48 states were light oils with an API gravity above 40 degrees. The largest share of production was in the 40.1 to 45 degree API gravity range.
- Williams' $1 Billion Gas Pipeline Blocked by U.S. Appeals Court, Derailing Five-State Project
- Texas Waha Hub Gas Prices Plunge to Record Lows, Hit Negative Territory
- Williams Begins Louisiana Pipeline Construction Despite Ongoing Legal Dispute with Energy Transfer
- U.S. Buys Nearly 5 Million Barrels of Oil for Emergency Stockpile
- U.S. Appeals Court Strikes Down Controversial Biden Pipeline Safety Rules
- Report: Houston Region Poised to Become a Global Clean Hydrogen Hub
- Exxon Mobil to Start Gas Reserve Seismic Surveys in Greece
- LaPorte, Texas, Issues Shelter in Place After Altivia Plant Leaks Toxic Gas
- Texas Startup Endeavors Again to Build First Major U.S. Oil Refinery Since 1977
- Mid-Year Global Forecast: Midstream Responding to Demand from LNG Projects
