Pipeline
Crestwood Equity Completes Open Season on Pipeline Expansion
Crestwood Equity Partners completed a non-binding open season on Dec. 7 seeking shipper support for the Delaware Takeaway crude pipeline system (Delta), a 164-mile crude and condensate pipeline header system originating at a Crestwood terminal to be built north of Pecos, TX. The pipeline would have potential downstream connections to multiple downstream interconnects that will provide shippers access to end markets including El Paso, Midland, Cushing, Houston and Corpus Christi.
Los Angeles Sues Gas Company over 6-Week-Old Leak
LOS ANGELES (AP) — The Los Angeles city attorney has sued the Southern California Gas Co. 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.
Dont Expect Crude Exodus Because Export Ban Ending
Congress is on the verge of passing a major budget deal that includes some of the largest changes to energy policy in some years. Tucked into the budget bill is a repeal on the ban on crude oil exports from the United States, a highly sought after goal on behalf of the oil and gas industry. In exchange for lifting the export ban, Republicans agreed to extend tax credits for wind and solar for five years.
Mexico Oil Sector Sees Most Successful Auction So Far
MEXICO CITY (AP) — Mexico's third auction to open oil and gas blocks to private investment was the most successful yet, with all 25 blocks drawing bids Tuesday. Officials awarded exploration and production rights to mostly Mexican companies, as well as one Canadian firm plus consortiums involving U.S. and Dutch investments. No major multinational oil companies participated in the bidding.
AP Analysis: Why US Will Export Oil for 1st Time in Decades
NEW YORK — The United States, seemingly awash in crude oil after an energy boom sent thousands of workers scurrying to the plains of Texas and North Dakota, will begin exporting oil for the first time since the 1973 oil embargo. The lifting of the embargo is part of a spending deal expected to be pushed through the House and Senate by the end of the week. Here's a brief look at why the ban was in place, and the reasons why that ban is now being lifted after four decades.
Industry Cooperation Key to Improving Infrastructure Pipeline Safety
Several years ago after the collapse of a bridge in the Minneapolis-St. Paul area, a cartoon was published showing two people standing on a sidewalk acknowledging the news and bemoaning what else could go wrong. Shown only as can best be done in cartoons, was a mish-mash of pipes underneath their very feet totally out of sight, in various contortions and in varying levels of disrepair and decay.
Steel vs. Plastic Pipe: Some Thoughts to Consider
With oil prices hovering near $50 a barrel for the first time since the crash of 2008, oil and gas producers are watching to see if this is a temporary blip from the $80-100 range or closer to a “new normal” in which prices stay below $60. For some, this price uncertainty has meant scaling back production, exploration and drilling with the looming possibility of halting some activities all together.
Fuel Thefts from Mexican Pipelines Rise 55% Despite Pemex Efforts
MEXICO CITY (AP) — Authorities say illegal taps drilled into government pipelines by fuel thieves have risen by about 55% this year, reaching almost 500 per month. Fuel theft is skyrocketing despite efforts by the Pemex oil company to make it less attractive, by shipping fuel that lacks final additives through some pipelines. According to government figures made public Monday, 3,286 clandestine taps were found in the first 11 months of 2014, compared to 5,091 in the same period of 2015. The thefts averaged 497 taps in the last five months of 2015.
Bourdon Named Chairman of American Midstream
Lynn L. Bourdon III was appointed as chairman, president and CEO of American Midstream Partners LP, the company said Dec. 14. Steve Bergstrom retired from those positions, effective Dec. 10, the company added. Bergstrom will continue serving as a director on the board of directors. Most recently, Bourdon was president and CEO of Enable Midstream Partners LP. Prior to that, he was group senior vice president of NGL and natural gas marketing, petrochemical, refined products and marine services at Enterprise Products Partners LP.
Company Plans Gravel Island to Extract Arctic Offshore Oil
ANCHORAGE, Alaska (AP) — Arctic offshore drilling by Royal Dutch Shell PLC drew protests on two continents this year, but a more modest proposal for extracting petroleum where polar bears roam has moved forward with much less attention. While Shell proposed exploratory wells in the Chukchi Sea about 80 miles off Alaska's northwest coast, a Texas oil company wants to build a gravel island as a platform for five or more extraction wells that could tap oil 6 miles from shore in the Beaufort Sea.
Deliveries to Sabine Indicate Train 1 Commissioning Well Underway
The first substantial deliveries of 46 MMcf to Sabine Pass LNG took place Dec. 10 from Creole Trail’s Creole Trail-SPLIQ-D meter location. This increase in deliveries came from a 33.6 MMcf receipt off of the TETCO pipeline. The point has an operational capacity of 1.7 Bcf. Nominations at this point were first seen Oct 1; since then it has averaged 2.74 MMcf/d. This correlated with consistent flaring activity seen by Genscape’s proprietary monitors.
Countries Added to Shale Oil, Natural Gas Resource Assessment
EIA continues to expand its assessment of technically recoverable shale oil and shale natural gas resources around the world. The addition of four countries – Chad, Kazakhstan, Oman, and the United Arab Emirates (UAE) – to a previous assessment covering 42 countries has resulted in a 13% increase in the global assessed total resource estimate for shale oil and a 4% increase for shale gas.
Accidental Partnership: From Potential Pipeline to Joint Venture Litigation
The briefing is now complete in a closely watched appeal of a landmark judgment issued last year in Energy Transfer Partners, L.P. v. Enterprise Products Partners L.P., in which a Texas jury concluded that, notwithstanding express contractual language disclaiming the formation of a partnership in connection with preliminary exploration of an oil pipeline project, the conduct of the parties could – and did in fact – establish a legally binding partnership.
Ultrasonic Cleaning Technology Helps SoCalGas Achieve Greater Efficiency
High-powered engines require high-powered cleaning to maintain operating efficiency and productivity. One natural gas facility is realizing significant time savings, seeing greater equipment efficiency and extending the life of its 100-year-old equipment, saving millions of dollars in the process.
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.
- 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. 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
- Another Major U.S. Oil Refinery Shutting Down as Lyondell Confirms Houston Closure
- Chevron CEO Wirth Under Fire as Hess Deal Delay Drags Down Stock Performance
