Pipeline

Constitution Pipeline Re-Routed to Avoid Fragile NY Forest

ALBANY, N.Y. (AP) — A section of the 124-mile route of the planned Constitution Pipeline has been redrawn to avoid a 1,000-acre private forest with fragile wetlands. Christopher Stockton, spokesman for the pipeline that will bring natural gas from Pennsylvania to New York City and New England, confirmed the route change Tuesday. Stockton says the change adds almost three miles to the route and affects 11 landowners who have signed right-of-way agreements.

ONEOK Enters Permian-to-Mexico Pipeline Venture

ONEOK Partners has entered into a 50-50 joint venture with a subsidiary of Fermaca Infrastructure, a Mexico City-based natural gas infrastructure company, to construct a pipeline that would transport natural gas from the Permian Basin in West Texas to Mexico. The $450 million Roadrunner Gas Transmission pipeline project extends from ONEOK Partners’ ONEOK WesTex Transmission natural gas pipeline system at Coyanosa, TX, west to a new international border-crossing connection at the U.S.-Mexico border near San Elizario, TX, where it will connect with Fermaca’s Tarahumara Gas Pipeline.

Begin Again: Keystone XL pipeline back before South Dakota regulators

PIERRE, S.D. (AP) — The Public Utilities Commission is considering whether to approve for the second time in just over five years construction of the South Dakota portion of the long-delayed Keystone XL oil pipeline. The hearing process started Monday. The state authorized TransCanada Corp.'s project in 2010, but permits must be revisited if construction doesn't start within four years. The commission is now considering the company's guarantee that it can complete the project while meeting the conditions of the 2010 approval. It's unlikely the panel will make a decision immediately.

ExxonMobil Could Turn Guyana into Major Oil Producer

Not typically thought of when considering major oil exporters, one small country holds significant potential to join the ranks of some of South America’s much larger oil producing powers. Guyana, located along the northern coast of South America, is not an oil producer of any significance. But that could change if the large reserves of oil and gas located offshore are successfully produced.

Russia Says Shale Will Affect Oil Prices More Than Irans Return

While many observers believe the deal Iran struck with six world powers over its nuclear program may depress oil prices even further, Russia’s energy minister says the cost of producing shale oil is likely to have an even bigger impact on the world market. Iran’s deputy oil minister, Mansour Moazami, said his country’s crude exports would nearly double eventually from 1.2 MMbpd to 2.3 MMbpd once the sanctions are lifted, and Tehran has urged fellow OPEC members to adjust their output accordingly in order to keep prices stable.

Alpha Crude Connector Begins Building Delaware Basin Pipeline

Alpha Crude Connector started construction of its 400-mile Alpha Crude Connector The crude oil pipeline would serve Lea and Eddy counties, NM and Culberson, Loving, Reeves and Winkler counties, TX. The system will have 100,000 bpd capacity for oil from over 250 lease tank batteries, other local pipeline systems, and truck terminals in the Northern Delaware Basin. Construction is scheduled to be completed in November.

Utility Board Approves Changes to NJ Pipeline Authorization

TRENTON, N.J. (AP) — The state's Board of Public Utilities has approved two amendments to an earlier order authorizing a natural gas pipeline in southern New Jersey. The board greenlighted Wednesday the amendments concerning the proposed nearly 22-mile pipeline from Maurice River Township to Upper Township. It's the latest in South Jersey Gas' efforts to move forward with the project that has been on hold amid environmental concerns because the pipeline runs through part of the state's Pinelands preserve.

Officials: Oil Train Didn't Speed Before Montana Derailment

BILLINGS, Mont. (AP) — A train that derailed and spilled 35,000 gallons of oil in northeastern Montana was traveling within authorized speed limits, federal officials said Monday as they continued to probe the accident's cause. The Burlington Northern Santa Fe Railway train loaded with crude from North Dakota was traveling 44 mph before Thursday's wreck, U.S. Federal Railroad Administration spokesman Matthew Lehner said. Officials have said the maximum authorized speed in the area is 45 mph.

Shell Gets Permits for Limited Oil Drilling in Arctic Waters

ANCHORAGE, Alaska (AP) — The Obama administration has given Royal Dutch Shell PLC approval to begin limited exploratory oil drilling off Alaska's northwest coast. The two permits issued Wednesday clear the way for drilling in Chukchi Sea, but with conditions. Shell can only drill the top sections of wells because the company doesn't have critical emergency response equipment on site to cap a well in case of a leak. That equipment is aboard a ship headed to Portland, Oregon, for repairs.

Report: Columbia Gas Followed Rules Prior to Hotel Explosion

LEXINGTON, Ky. (AP) — Investigators say Columbia Gas of Kentucky did not violate any safety rules at a Lexington hotel that exploded last year after a natural gas leak. The Kentucky Public Service Commission announced Wednesday that an investigation revealed that the gas company followed safety regulations regarding protection of meters from accidental damage.

Cuadrilla to Appeal UK Council's Anti-Fracking Decision

LONDON (AP) — Cuadrilla Resources Ltd. said it will appeal a local authority decision to block the oil and gas exploration company's bid to frack shale gas in northwest England — a setback for plans to establish a fracking industry in Britain. Lancashire County Councilors last month rejected plans for exploratory drilling at two sites about 240 miles northwest of London, citing effects on traffic and the landscape. Britain's government hopes fracking will reduce the country's reliance on gas imports.

Forget Media Hype: Oil Set To Rebound

Despite oil prices being somewhat depressed by the hype surrounding the Iran deal – which has repeatedly been debunked as not affecting supply until, at the earliest, the first quarter of next year – expect another large oil inventory draw to come. It starts with the API inventory figures published Tuesday followed by Wednesday’s EIA report, which I expect to not only show an inventory draw of over 4 MMbbls again but continued declines in production. This is, in part, tied to growing demand in the U.S., but there are several other reasons we should discuss.

North Dakota Regulators Signal Comfort on Energy Transfer Pipeline Issues

BISMARCK, N.D. (AP) — North Dakota's Public Service Commission says some big environmental concerns have been addressed by the company proposing a $3.8 billion pipeline from western North Dakota to Illinois. The three-member regulatory panel says Energy Transfer Partners appears to have a good plan in place to address worries about land reclamation and river crossings. The PSC held an informal work session on the project Monday but took no action. The panel expects to meet again late next month to talk about the company's permit application.

Barges Collide Near Entrance to Houston Ship Channel

GALVESTON, Texas (AP) — Emergency personnel have extinguished a fire aboard a barge carrying petroleum after the vessel collided with another barge near the entrance to the Houston Ship Channel. U.S. Coast Guard Petty Officer Andrew Kendrick says some nearby ship traffic was suspended but traffic along the Houston Ship Channel was not affected. He says two tugboats were pushing the barges early Monday morning near the Bolivar Peninsula when one of the tugboats lost power. The barge it was pushing then collided with the second barge.

Iran Looking to Bring 500,000 bpd Online Soon After Sanctions Lifted Probably 'Too Optimistic'

Oil Minister Bijan Namdar Zanganeh thinks Iran can manage to bring an additional 500,000 barrels online right after sanctions are removed. That is probably a bit too optimistic After months of speculation and anticipation, Iran and the P5+1 nationsreached a historic agreement on its nuclear program. The deal puts limits on Iran’s ability to develop nuclear weapons in exchange for sanctions relief. Here are a few of the key points: • Iran commits to reduce its uranium stockpile and number of centrifuges. • Enrichment is banned at certain nuclear facilities.

Nexen Pipeline Spills 1.3 Million Gallons of Emulsion in Alberta

CALGARY, Alberta (AP) — A pipeline at Nexen's Long Lake oil sands project in northeastern Alberta has leaked, spilling about 1.3 million gallons of a mixture of bitumen, water and sand. The company, which was taken over by China's CNOOC Ltd. in 2013, said the affected area is about 172,000 square feet, along the pipeline's route. Nexen says the spill was discovered Wednesday afternoon and it's since been contained. Alberta Energy Regulator and the company say it's too soon to say what might have caused the leak.

Rail Cars Leaking Crude After Train Derails in Montana

CULBERTSON, Mont. (AP) — More than 20 cars on an oil train derailed in rural northeastern Montana, and at least three of them were leaking crude, leading some homes to be evacuated, authorities said. There were no immediate reports of injury or fire, but of the 21 cars that derailed Thursday evening, only two remained upright, Roosevelt County Sheriff Jason Frederick said.

Kinder Morgan To Proceed with Northeast Energy Direct Project

Kinder Morgan announced Thursday its board of directors authorized subsidiary, Tennessee Gas Pipeline Company (TGP), to proceed with the $3.3 billion Northeast Energy Direct (NED) project's “market path” segment from Wright, NY too Dracut, MA.

Northern Canada Proposes Potential Arctic Oil Pipeline

CALGARY, Alberta (AP) — Canada's provincial Northwest Territories government has been talking to pipeline companies about shipping crude oil through the Arctic, according to the territory's minister in charge of resource development. David Ramsay, the territory's minister of industry, and NWT Premier Bob McLeod, have been touting the concept of an "Arctic Gateway" pipeline, which could see Alberta crude moved north for shipment from a port on the Beaufort Sea coast.

PRCI Welcomes Pipeline Community to Tech Development Center

Research development organization Pipeline Research Council International (PRCI) officially opened its new Technology Development Center at a ribbon-cutting ceremony and tour Wednesday. “We want you to think of this place as yours,” PRCI President Cliff Johnson told attendees, many of whom represented pipeline and service companies. “How would you use this space?” The 30,000 square-foot facility broke ground July 7, 2014 on a 10-acre campus northwest of Houston with about half of the area earmarked for a state-of-the-art pull-test facility.

Judge OKs $119 Million Royalty Settlement Against Chesapeake Energy

OKLAHOMA CITY (AP) — An Oklahoma judge has approved a $119 million settlement in a class-action lawsuit that claimed a Chesapeake Energy Corp. affiliate underpaid natural gas royalties to owners in the past decade. A Chesapeake Energy spokesman said on Monday that the company is pleased that Beaver County District Judge Jon K. Parsley approved the settlement agreement. He said that the company looks forward to further strengthening its relationships with its Oklahoma royalty owners. The company didn't admit fault and denied that it did anything under the law in the agreement.

Price Gregory President Discusses Accomplishments, Semi-Retirement

Price Gregory President Michael Langston recently announced his retirement after a 35-year career in the pipeline construction sector. Langston joined H.C. Price in 1981. Following a merger between H.C. Price and Gregory & Cook Construction, Price Gregory was formed. Price Gregory was later purchased by Quanta Services and Langston was named president of the company.

Novel Solution to Fracking Wastewater Could Keep Everyone Happy

Water used for fracking has always been a headache for the oil industry but now, thanks to new technology being developed in the United States, produced water – H2O used in the process of oil and gas extraction – could soon be recovered and used to power the operation or be put back into the grid, saving operators a bundle. Critics of fracking have long pointed to the prodigious use of water in the fracking process as one of the reasons to be against the controversial procedure, which props open layers of shale rock in order to let the oil or gas hydrocarbons flow into the well bore.

Fewer Passenger, Freight Rail Delays Attributed to Drilling Decline

BISMARCK, N.D. (AP) — Delays in Amtrak service and agricultural product shipping have eased across the Upper Midwest in part because weak oil prices have prompted a drilling slowdown in North Dakota, officials said. Along with recent track upgrades, a recently completed pipeline and a new North Dakota refinery also has resulted in fewer oil-laden trains, freeing up rail space and lessening the potential for another disastrous derailment, like the 2013 explosion in Quebec that killed 47 people, involving crude from western North Dakota's oil patch.

PHMSA Issues Rules for State Pipeline Excavation Damage Prevention, Enforcement

WASHINGTON – The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) today announced the issuance of a final rule to establish the process for evaluating State excavation damage prevention programs and enforcing Federal standards in states where such requirements are inadequate or do not exist.

California Gas Prices May Top $4 a Gallon Despite National Downward Trend

CAMARILLO, Calif. (AP) — While gas prices nationwide are on a downward trend, California is experiencing a spike that could see prices top $4 a gallon before easing again, according to analysts. A shortage in oil and other components used in refining California's unique blend of less-polluting gas was one of the reasons for the price jump, industry analyst Trilby Lundberg said. A slowdown in imported crude and a refinery shutdown in Torrance also caused wholesale prices to skyrocket, experts said.

World News: Report Outlines Climate Framework, Spending

Development of a clear climate framework and a global emissions target is essential if $48-53 trillion for a new sustainable energy infrastructure is to be delivered, according to a new report from the World Energy Council. The findings are discussed in the fifth edition of the energy leaders’ dialogue series, the World Energy Trilemma Report, ‘Priority actions on climate change and how to balance the energy trilemma,’ released by the World Energy Council and project partner Oliver Wyman, along with the Global Risk Centre of its parent Marsh & McLennan Companies.

Offshore News: McDermott Awarded 12 Jacket Order for Saudi Fields

McDermott International, Inc. was awarded a large brownfield contract by Saudi Aramco for the engineering, procurement, construction and installation (EPCI) of twelve jackets for offshore oil and gas fields in Saudi Arabian waters. Engineering and procurement is expected to be performed by McDermott’s teams in Dubai, and Al Khobar, Saudi Arabia. The jackets are scheduled for fabrication by McDermott’s Dubai, U.A.E.-based fabrication facility.

EIA: Annual Energy Outlook Through 2040

The latest <em>Annual Energy Outlook 2015 (AEO2015)</em> prepared by the federal Energy Information Administration (EIA) presents long-term annual projections of energy supply, demand and prices through 2040. This analysis focuses on six scenarios: a reference case, low and high economic growth cases, low and high oil price cases, and the high oil and gas resource case.

Vaquero Midstream Invests in Southern Delaware Basin

Vaquero Midstream is moving forward on its gas-gathering and processing project in the Southern Delaware Basin. The company selected a site in Pecos County near the Waha Hub and the Lone Star NGL pipeline. Additionally, Vaquero anticipates building an extensive gathering footprint in the area, with over 100 miles of 8- to 30-inch pipeline, connected to central delivery points on producers’ acreage blocks. The company plans to complete construction of the plant and gathering system over the next 12 months with the complex in operation by mid-2016.