Pipeline
Cushing Connected Pipelines Shut After Enbridge Spearhead Pipeline Spill
The Enterprise Product Partners-operated 450,000 bpd Cushing, OK,-to-Jones Creek, TX, Seaway Twin crude pipeline remained down Wednesday after being shut on Aug. 11, following the shutdown of Enbridge Energy Partners’ 193,000 bpd Spearhead and 600,000 bpd Flanagan South pipelines.
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.
Howard Energy Partners Going Forward With South Texas-to-Mexico Pipeline
Howard Midstream Energy Partners (HEP) said due to a successful open season construction will move forward on the Nueva Era Pipeline, a 50-50 joint venture between HEP and Mexico-based energy and services firm Grupo Clisa. The project will connect HEP’s existing Webb County Hub in South Texas directly to Escobedo, Nuevo León, Mexico, and to the Mexican National Pipeline System (Sistema de Transporte Nacional Integrado) in Monterrey, Mexico.
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.
Latest Contender for Next Shale Boom
The largest natural gas producer in Africa is overhauling its laws in order to halt the decline of production, which has stagnated for more than a decade. Algeria is the continent’s largest natural gas producer and the second largest supplier of gas to Europe (Russia is the largest supplier). It is also the third-largest oil producer on the continent after Nigeria and Angola.
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.
Polyamide Pipe Selected to Carry High-Volume Gas to Chemical Plant
PA12, a high-performance polyamide pipe, has found a niche in the oil and gas market, allowing it to enter a realm that has long been dominated by metallic pipe. VESTAMID® NRG PA12, developed by Germany-based Evonik Corp., can handle extreme stresses, but unlike other thermoplastic pipes, it can also handle high-pressure systems. This expanded capability changes the game when choosing a pipe material for oil and gas transport.
In the News: NiSource, Columbia Pipeline Group Now Separate Companies
NiSource Inc. and Columbia Pipeline Group announced July 2 separation of the two companies was completed through a distribution of all the common stock of CPG held by NiSource to its shareholders. NiSource, based in Merrillville, IN, is one of the largest natural gas utility companies in the United States with over 3.5 million customers in seven states under the Columbia Gas and NIPSCO brands. The company also provides electric distribution, generation and transmission services for 500,000 NIPSCO customers in northern Indiana.
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.
NAPCA Convention Hears of Need for More Gathering Pipe
The 51st annual convention of the National Association of Pipe Coating Applicators (NAPCA) was held April 15-18 at The Hyatt Regency Scottsdale, AZ Gainey Ranch, with over 200 attendees. The convention’s business sessions heard updates from several speakers, including Rich Hoffman, executive director of the INGAA Foundation, who stressed to the group that “even in a downturned economy, safety has got to be the most important thing that we do.”
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.
Scientist: Oil Slick Likely from Natural Seafloor Seepage
LOS ANGELES (AP) — Coast Guard officials were still trying to determine the source of a mysterious miles-long oil slick off California's Santa Barbara County shoreline, but a scientist said Thursday that it's likely the result of naturally occurring seepage from the sea floor. Authorities said the 3-mile sheen was harmless to people and beaches remained open — in contrast to the mass closure that occurred in May when a broken pipeline spilled 100,000 gallons of crude oil, fouling sands, seabirds and fishing areas in the same general area.
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.
Wood Group Awarded FEED Contract for Australia FLNG Development
Wood Group secured a contract to carry out front-end engineering and design (FEED) for the Woodside-operated Browse Floating Liquefied Natural Gas (FLNG) Development, offshore Western Australia. Wood Group Kenny (WGK) will perform all design engineering for the insulated production flowline system required for the asset’s offshore gas-condensate fields - Brecknock, Calliance and Torosa – located 300 km from the Kimberly coast. The 12-month contract, which is valued at US$6 million and effective immediately, will be delivered from WGK’s Perth office.
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.
Kinder Morgan Plans Open Season for Mier-Monterrey Pipeline Expansion
A Kinder Morgan subsidiary scheduled a binding open season for incremental firm natural gas transportation service on its Mier-Monterrey pipeline, which would expand capacity to 1.34 Bcfd. The project, planned for completion by the fourth quarter of 2017, will loop the existing Mier-Monterrey pipeline system from the Mexico-United States border to Huinalá, Nuevo León, Mexico, adding a lateral from Pesquería, Nuevo León, to Escobedo, Nuevo León.
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.
- 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
- U.S. Buys Nearly 5 Million Barrels of Oil for Emergency Stockpile
- U.S. Appeals Court Strikes Down Controversial Biden Pipeline Safety Rules
- Texas Oil Pipelines Near Max Capacity, Threatening Future Export Limits
- 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
