Pipeline
What's New: December 2015
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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.
In the News: Duke Energy to Acquire Piedmont Natural Gas for $6.7 Billion
Duke Energy Corp. announced Oct. 26 it will acquire Piedmont Natural Gas Co. Inc. for $4.9 billion in cash. Duke will also assume $1.8 billion in Piedmont existing net debt. Piedmont began operations in 1951 in Charlotte, NC and is primarily engaged in distributing natural gas to over 1 million residential, commercial, industrial and power generation customers in portions of North Carolina, South Carolina and Tennessee. Duke and Piedmont are key partners in the $5 billion Atlantic Coast Pipeline that will be the first major natural gas pipeline serving eastern North Carolina.
Michels Sets North American HDD Record on Northern Courier Pipeline
Michels used horizontal directional drilling (HDD) beneath the Athabasca River on Nov. 21 to complete a company record 1.36-mile installation – the longest in North America for a 42-inch pipe. The 7,200-foot crossing is located near Fort MacKay, Alberta, about one hour north of Fort McMurray. The crossing, part of the TCPL Northern Courier Pipeline Project, involved installing a 42-inch casing pipe with six HDDs and one Direct Pipe™.
Oil and Gas Research Eyeing Future, Bridging Gaps
In the gridlock of first-quarter 2015 earnings conference calls last spring, Doug Suttles, CEO at Alberta-based Encana Corp., talked bullishly about the Canadian energy company’s production growth prospects. This while in the midst of reporting a $1.7 billion loss for the quarter tied to a $1.2 billion impairment charge brought on by last year’s global oil price crash and another $500 million of red ink coming from a foreign exchange loss. Regardless, Suttles couldn’t have been more upbeat when he talked to analysts in mid-May.
South Dakota Regulators Grant Dakota Access Pipeline Permit
PIERRE, S.D. (AP) — South Dakota regulators approved a construction permit Monday for a pipeline that will cross through the state as it carries North Dakota oil to Illinois. The South Dakota Public Utilities Commission voted 2-1 to approve the permit for the Dakota Access Pipeline, and construction on the roughly 270-mile leg could begin early next year.
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.
Willbros Closes Sale of Its Professional Services Segment
Willbros Group, Inc. announced it has closed on the sale of its Professional Services segment to TRC Companies in a cash deal valued at $130 million, subject to normal working capital and other adjustments. “The close of this transaction is a milestone in the transformation of Willbros to a lean organization focused on energy infrastructure construction and maintenance,” said Willbros outgoing Chairman and CEO John T. McNabb II. “I am confident that we are taking the right actions to return Willbros to prominence in its markets.”
Algonquin Plans Pipeline Expansion of LNG Storage Facility
Algonquin Gas Transmission, LLC has filed a request with the Federal Energy Regulatory Commission (FERC) for a pre-file review process for the proposed Access Northeast Project. Upon completion of the review, Algonquin will file an application with FERC to start construction.
Steel Factory Gas Leak Kills 10, Injures 7 in Eastern China
BEIJING (AP) — A gas leak at a steel parts factory in eastern China killed 10 people and left seven others hospitalized with carbon monoxide poisoning in the latest deadly industrial accident to hit China, officials said Monday. The leak occurred late Saturday and poisoned 17 people, five of whom died immediately, the Zouping County government said on its official microblog. It said five more died early Sunday, and the cause of the leak was under investigation.
Prince Rupert Project Receives Construction/Operation Permits
TransCanada has final permits from the BC Oil and Gas Commission (BCOGC), giving regulatory approval for construction and operation of the Prince Rupert Gas Transmission pipeline project (PRGT). “Receiving the full complement of 11 pipeline and facility permits is a major milestone for the project, and concludes an exhaustive regulatory process that we embarked on more than two years ago,” said Tony Palmer, PRGT president.
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.
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.
- 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
