Regulation
Keystone XL Developer Seeks Different Approval for Route
LINCOLN, Neb. (AP) — TransCanada is taking steps to circumvent one of the major roadblocks in Nebraska to the building of the Keystone XL pipeline. But in seeking approval Monday for the same contentious route through the state, the company could create another round of lengthy delays in an already drawn-out process.
Study: No Fracking Bonanza for California's Monterey Shale
SAN FRANCISCO (AP) — A U.S. Geological Survey report out Tuesday downgrades the fracking potential of California's vast Monterey Shale oil deposits. The study is the latest to lower a 2011 federal energy estimate that billed the Monterey Shale as a game-changer for U.S. oil, with what was then estimated at 13.7 Bbbls of recoverable oil overall. Instead, the U.S. Geological Survey's (USGS) new study said, the most oil-rich portion of the giant shale formation holds just 21 MMbbls of oil that can be recovered by intensive methods, such as hydraulic fracturing, better-known as fracking.
US, States Finalize $20 Billion Settlement with BP over Gulf Oil Spill
WASHINGTON (AP) — The Justice Department and five states have finalized a settlement worth more than $20 billion arising from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, federal officials announced Monday. The deal resolves all civil claims against BP and ends five years of legal fighting over the nearly 134 million-gallon spill. It requires the company to commit to a widespread cleanup project in the Gulf Coast area aimed at restoring wildlife, habitat, water quality and recreation.
World News: Polarled to Take Norwegian Gas Infrastructure Across the Arctic Circle
Work has begun on the Polarled project – the first pipeline crossing the Arctic Circle – for a consortium of Statoil-led companies. The 482-km, 36-inch pipeline will run from Nyhamna in western Norway to the Aasta Hansteen field, creating a new "gas highway" from the Norwegian Sea to Europe. The world’s largest pipelaying vessel, Solitaire from Allseas, is carrying out the job, In July, Pipelines International reported work was advancing with crews working around the clock.
In the News: Phillips 66, Spectra Energy Bail Out Troubled DCP Midstream
Phillips 66 and Spectra Energy, 50/50 joint venture owners in DCP Midstream, LLC, have entered into a nonbinding letter of intent for contributing assets to strengthen DCP Midstream. This transaction is expected to provide DCP Midstream with a stronger balance sheet and increased financial flexibility, and positions DCP to grow through commodity price cycles.
Government: INGAA Concerned About EPA Proposed Methane Controls
The Interstate Natural Gas Association of America (INGAA) contends that the methane and volatile organic chemical (VOC) emission limits for transmission pipelines proposed by the EPA will in many instances be difficult to comply with. Don Santa, president and CEO of INGAA, said, "While we haven’t had a chance to review fully the 500-plus page proposal, INGAA is concerned that some aspects of the EPA’s methane proposal would be impossible to implement cost-effectively, and that the regulations, if implemented, could adversely affect the reliability of interstate natural gas pipelines."
Feds: Proposed Pipeline Rules could Have Prevented Accidents
BILLINGS, Mont. (AP) — New federal rules proposed for pipelines that carry oil and other hazardous liquids could have prevented more than 200 accidents since 2010, including a Michigan rupture that ranks as the costliest onshore spill in U.S. history, federal officials said. The U.S. Transportation Department proposal announced Thursday covers more than 200,000 miles of hazardous liquids pipelines that crisscross the nation — a network that expanded rapidly over the past decade as domestic oil production increased.
Natural Gas Production Records from Idaho Well Made Public
BOISE, Idaho (AP) — The first batch of production records from a natural gas well in Idaho have been made public following a new rule approved by lawmakers. The Idaho Department of Lands earlier this week released the monthly records that span from February 2013 to July for a well named State 1-17 in southwest Idaho and operated by Houston-based Alta Mesa. Records show the well is producing a comparatively small amount of natural gas — 290,000 cubic feet in July. The gas is being sent to Intermountain Gas and used in the nearby town of New Plymouth.
Judge Poised to Sign Off on Oil Train Disaster Settlement
PORTLAND, Maine (AP) — A $338 million settlement fund for victims of a fiery train derailment that claimed 47 lives in Quebec is poised for final approval, but payments could be held up by a legal challenge from one of Canada's largest railways. Canadian Pacific, which opposes the settlement fund, declined to contribute because it contends others were responsible for the tragedy. If the settlement is approved, Canadian Pacific would be left open to lawsuits while those the railroad considers to be responsible would be shielded from further legal battles by the agreement.
Does OPEC Have An Ace Up Its Sleeve?
OPEC has been the most talked about organization in the oil and gas circuit in the last year as the cartel pursues market share, and any move by OPEC comes under intense scrutiny and analysis. Back in June 2015, it was reported that Indonesia, which was previously a member of OPEC, was looking to re-join the cartel as soon as possible. And now, it is confirmed that the most populous country in Southeast Asia will indeed be rejoining the cartel.
Land Management Approves Route for Nevada Pipeline Expansion
The Bureau of Land Management approved the route of a natural gas pipeline that will be built by Paiute Pipeline Co. to connect Elko, NV with El Paso’s Ruby Pipeline, north of town. The project will expand available capacity of gas delivered to Elko by installing 35 miles of 8-inch pipeline from the city to Ruby Pipeline LLC’s Wieland Flat Compressor Station.
Key House Panel Votes to Lift 40-Year-Old US Ban on Oil Exports
WASHINGTON (AP) — A key House committee endorsed a bill Thursday to lift the four-decade-old ban on crude oil exports, setting up a likely vote by the full House on a bill President Barack Obama opposes. The House Energy and Commerce Committee approved the legislation, 31-19, with three Democrats joining 28 Republicans to back the bill. The White House opposes the bill, arguing that a decision on whether to end the ban should be made by the Commerce Department, not Congress.
White House Opposes GOP Bill to Lift Oil Export Ban
WASHINGTON (AP) — The White House said Tuesday it opposes a House Republican bill to lift the four-decade-old ban on crude oil exports. A decision on whether to end the ban should be made by the Commerce Department, not Congress, White House press secretary Josh Earnest told reporters. Earnest also took a shot at House Majority Leader Kevin McCarthy and other Republicans pushing to end the oil export ban, which was imposed in the 1970s as the United States responded to an Arab oil embargo that sparked inflation and prompted long lines at gas stations.
Kevin Bodenhamer Sets Lofty Standard for Engineers
What more can you say about Kevin Bodenhamer other than he has had a career that most people in the pipeline business can only dream of having. His professional accomplishments can fill a whole page so let’s start with the resume: • 1979-1993, engineer, supervising manager for Cities Service/Occidental Petroleum/Trident NGL. • 1993-1998, manager, Mid-America Pipeline Co. • 1998-2002, director, Williams Cos. • 2002-2013, vice president, senior vice president, Enterprise Products. • 2013-2015, vice president, chief engineer, Willbros Engineers Inc.
Pragmatic Approach to Understand Indian Natural Gas Market
A Pragmatic Approach to Understand Indian Natural Gas Market Historically, India has relied on coal to generate power, liquid fuels as feedstock and oil for its transport sector. But for environmental reasons India needs to focus on cleaner fuels. Natural gas has emerged as the fuel of choice for many industries in India owing to its environmental benefits and higher economic efficiency. However, India’s natural gas market is seeing a supply deficit due to its low domestic production.
Interior Dept.: High-Risk Oil, Gas Wells Checks Lack Funding for Inspections
WASHINGTON (AP) — The U.S. Bureau of Land Management lacks sufficient resources to inspect high-risk oil and gas wells on federal land as a drilling boom continues in Wyoming, Colorado and other states, Interior Secretary Sally Jewell said Tuesday. The Obama administration has proposed a fee on oil and gas drillers that would allow the land management agency to hire more than 60 inspectors, but the proposal has not gained traction in Congress.
US Virgin Islands Sues Oil Company over Shuttered Refinery
WASHINGTON (AP) — The U.S. Virgin Islands has filed a lawsuit against American oil company Hess Corp. for more than $1 billion, alleging the firm abandoned a massive oil refinery it had pledged to run through the year 2022. Within hours of the filing Monday, the Hess subsidiary that owns the refinery announced that it will file for Chapter 11 bankruptcy, allowing it to pursue the sale of the refinery for use as a simple storage facility — the outcome that the territory's government had sought to prevent.
Court: Environmental Study Still Required for Sandpiper Oil Pipeline Certificate
MINNEAPOLIS (AP) — The Minnesota Court of Appeals has reversed regulators' decision to grant a certificate of need for the proposed Sandpiper oil pipeline, saying Monday that state regulators must complete an environmental impact statement before the certificate can be issued. The appeals court sent the issue back to the Minnesota Public Utilities Commission to conduct an environmental review and reconsider whether a certificate should be granted.
World News: Algeria Reforms Laws to Attract Foreign Investment
A Today in Energy brief from the U.S. Energy Information Administration said Algeria is reforming its laws to attract foreign investment in hydrocarbons. Algeria is the third-largest oil producer in Africa, after Nigeria and Angola, and the largest natural gas producer in Africa. However, production of both oil and natural gas has declined over the past decade.
With China Slowdown, Russia Looks to India
By now, the whole world knows that Russia has been trying to pivot toward China in the wake of the U.S. and EU sanctions that specifically targeted the Russian oil and gas industry. During a meeting of Russian President Putin and Chinese President Xi Jinping on Sept. 3 in Beijing, China’s CNPC and Russia’s Gazprom signed a memorandum of understanding for a third project that will be developed in the next five years. Although this seems to be a win- win situation for both nations, one has to consider the fact that there have been several delays in most of the previous China-Russia deals.
California Oil Bill Defeated at Least for Time Being
A landmark energy bill in California was watered down after facing significant opposition from the oil and gas industry. The California legislature was considering a bill that would have slashed the state’s petroleum use by 50% by 2030, but the Democrats decided to drop the provision in order to keep the larger bill alive. After seeing the bill pass the State Senate earlier this year, the legislation ran up against a deadline this week for the end of session. However, with strong opposition from the oil and gas industry, the State Assembly could not gather enough votes.
Pipe Staged Ahead of Permits for ND Oil Pipeline
BISMARCK, N.D. (AP) — Pipe is being staged in four states for a proposed $3.8 billion pipeline from western North Dakota to Illinois. The piles of pipe are being placed in anticipation of permits for the project by regulators in the Dakotas, Iowa and Illinois. Dallas-based Energy Transfer Partners is proposing the pipeline that would move about 450,000 bbls of North Dakota crude daily. Officials say it's the biggest-capacity pipeline proposed to date to move North Dakota crude.
Cyprus Gas Could Be Shipped to Europe, Eni President Says
NICOSIA, Cyprus (AP) — Cyprus' prospects of supplying energy to Europe got a boost Thursday when an extraction company said gas found off the shores of the Mediterranean island could be processed in a way that would allow it to reach the continent's markets. Claudio Descalzi, the CEO of Italian energy firm Eni, said it would be possible to bring the Cypriot gas to the company's Damietta facilities in Egypt. There, the plant is outfitted to convert gas into a liquefied form that can be shipped.
Crude Oil Swaps with Mexico Could Provide Economic, Environmental Benefits
U.S.-Mexico crude oil swaps approved last month by the U.S. Department of Commerce's Bureau of Industry and Security will likely involve exchanges of U.S. light sweet crude for Mexican heavy sour crude that is already being exported to the United States.
Ensuring Quality Contractor Workforce Through Standardized Training
At the first-of-its-kind Distribution Contractors Association/American Gas Association (DCA/AGA) Utility Contractor Workshop in Chicago, presenters and attendees were single-minded in their focus on one goal: to ensure the growing contractor workforce has the requisite knowledge to safely build the nation’s gas distribution infrastructure while expanding the contractor workforce to meet the needs of utility main replacement and expansion programs. With plans at many utilities to accelerate programs aimed at replacing aging pipeline systems, meeting this goal is more important than ever.
Saudi Arabia Maintained Crude Market Share in Asia in First Half of 2015
In the first half of 2015, Saudi Arabia exported on average 4.4 MMbpd of crude oil to seven major trading partners in Asia, making up more than half of Saudi Arabia's total crude oil exports over that period. Even as global crude oil prices fell in 2014 and 2015, Saudi Arabia increased production and kept its export levels high, enabling it to maintain its market share in these countries. However, long-term trends within Saudi Arabia's energy sector may reduce its global crude oil market share.
Strategy Report Points to Improved Safety, Smart Pigs
With liquids pipeline incidents down by half since 1999, even as their use to transport crude oil pipeline has increased, there is little doubt among experts about what has led to this success on the safety front – preventive maintenance and integrity management programs.
Canadas Oilfield Service Sector Battered by Low Prices
In some ways the numbers don’t look that bad. For a group of 25 diversified, publicly traded Canadian oilfield service (OFS) companies, combined revenue of nearly $9 billion in the first six months of 2015 was only 22.1% lower than $11.53 billion for the same period in 2014. With oil prices down 50 percent for the first half of 2015, a revenue decline of 22.1% looks misleadingly attractive.
EIA Says Effects of Removing Crude Export Limits Depend on Price, Resource Assumptions
A new study by the U.S. Energy Information Administration (EIA) on the potential implications of allowing more crude oil exports finds that effects on domestic crude oil production are key to determining the other effects of a policy change. Gasoline prices would be either unchanged or slightly reduced. Trade in crude oil and petroleum products would also be affected.
In the News: Crude Oil Prices Poised to Drop Further
Since the oil price collapse, global oil production has risen, not fallen. Since the fateful Nov. 27, 2014 OPEC meeting, aggregate production from the U.S., Saudi Arabia, and Iraq is up 2 MMbop/d – far more than demand. November is also when the U.S. inadvertently became the swing oil producer. Prices have not yet fallen far enough or for long enough for an appreciable U.S. supply adjustment to occur. It may not be far off, especially if oil prices fall further with new Iranian supplies, says a study from IHS Energy that notes:
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Texas Oil Company Challenges $250 Million Insurance Collateral Demand for Pipeline, Offshore Operations
