Regulation
Latest Price Shock Offers Some Midstream Bright Spots
The price of oil may have fallen to its lowest level in six years, but this “price shock” is different than the 2008-’09 variety, according to analysts at Pace Global. “The current low-price situation is likely to persist for several years unless geopolitical events shift the market psychology from one of surplus to one of shortage,” Jim Diemer, vice president and head Pace Global-Siemens’ Energy Consulting Company, told PG&J.
Newsreel: Northeast Utilities Becomes Eversource Energy
Northeast Utilities, which operates New England’s largest energy delivery company, has become Eversource Energy. All of the company’s subsidiaries, including Connecticut Light and Power Co., NSTAR Electric, NSTAR Gas, Public Service Co. of New Hampshire, Western Massachusetts Electric Co. and Yankee Gas Services Co. have begun operating under the Eversource brand. The company serves more than 3.6 million electric and natural gas customers in Connecticut, Massachusetts and New Hampshire, and employing a workforce of more than 8,000 New Englanders.
Illinois Oil Train Derailment Involved Safer Tank Cars
GALENA, Ill. (AP) — The two rail cars that split open and burst into flames during a western Illinois oil train derailment were retrofitted with protective shields to meet a higher safety standard than federal law requires, the railroad said. Thursday's accident in a rural area south of the city of Galena is the latest failure of the safer tank car model and raises more concerns that even tougher requirements are needed.
Government: Proposed Obama Methane Emissions Plan Lacks Details
The Obama administration announced a plan to cut methane emissions from pipeline operations but gave no specifics beyond the federal agencies which would handle rule-makings. The technical details of those rule-makings and the extent of the cut of methane emissions they seek to produce won't be known for some time.
Texas Railroad Commissioner Looking For Sound Advice On Regulating
Newly sworn-in Texas Railroad Commissioner Ryan Sitton told about 165 members of the Texas Pipeline Association (TPA) members in Houston that he will be looking to the oil and gas industry for “good, sound advice” on improving regulations during his tenure. The Texas A&M University graduate said it is imperative to establish a “level playing field for operators” where regulations are concerned and in some ways work as an advocate for Texas’ energy interests, which must compete with other states.
Editor's Notebook: Local Updates
I hope the industry is paying attention to some regionalized developments that could hamper activity, at least in the short term.
British Columbia Prohibits Oil Or Bitumen Transport Through LNG Pipelines
British Columbia has adopted a regulation to ensure pipelines built to support LNG facilities will not be permitted to transport oil or diluted bitumen. This follows concerns expressed in environmental assessments and by First Nations about the long-term pipeline use.
In Turnaround, FERC Proposes to Allow Surcharges to Fund Modernization
In a departure from past policy, the Federal Energy Regulatory Commission (FERC) is considering allowing interstate pipelines to recoup the costs of complying with federal environmental and safety regulations.
OSHA Inks Alliance To Protect E&P Workers
The Occupational Safety and Health Administration (OSHA) signed a two-year alliance with the National Service, Transmission, Exploration & Production Safety Network and the National Institute for Occupational Safety and Health to prevent injuries, illnesses and fatalities among workers in the exploration and production sector of the oil and gas industry.
Keystone Pipeline Ends First Year Of Canada To Texas Delivery; Expansion on Hold
TransCanada’s Keystone Pipeline has just completed a year’s service of bringing Canadian tar sand syn crude from Alberta to U.S. Gulf Coast facilities for refining and marketing. This was the third phase of the project. Bringing crude from Cushing, OK to Texas began in January 2013 and still has a lateral line to be completed that will bring crude oil from Nederland, TX to Houston-area refineries. A terminal will be completed in mid-2015 for the Houston refining.
Constitution Gains Key Permit; Northeast Braces For Cold
A federal approval for construction of a major natural gas pipeline that will ship supplies from the Marcellus to underserved New England and the Northeast markets closed out 2014 with a reminder to the industry of good things to come.
Battleground for Anti-Oil/Gas Efforts Increasingly Local
As the 2014 mid-term elections faded from view, one cogent footnote of the political power change was the significant shift in the money and manner of spending it in the national environmental movement. Even some of their harshest critics were noting a higher level of professionalism and use of legitimate spokespersons as they attempted to spend their growing cash infusion more strategically.
Williams Seeks FERC Approval For Southeast Expansion
Williams announced Transco has filed an application with FERC to expand its pipeline system to serve the growing need for natural gas by electric generators, natural gas distributors and end-users in the southeastern United States.
Eagle LNG Pre-Filing Request Approved
Eagle LNG Partners’ pre-filing review process for the Jacksonville LNG project was approved by the Federal Energy Regulatory Commission (FERC). The proposed LNG facility will serve domestic and international markets. Eagle LNG will receive and liquefy natural gas, temporarily storing the produced LNG and periodically loading it onto ocean-going vessels for use in marine fueling trade.
Gas, Electric Sectors Split On Key Scheduling Issue
Gas producers and pipelines seem in general agreement about a Federal Energy Regulatory Commission (FERC) proposal to improve coordination between gas suppliers and electric transmission providers. But regional electric buyers such as the ISOs and RTOs are a little disappointed.
Pipeline Engineering Quality Management System
I’ve only been working in the pipeline engineering business for a short time, but have noticed a disparity between how the quality systems of the two main portions of the business are structured. This, even though corporate quality and construction quality systems both follow the International Standards Organization (ISO) 9001:2008 format of quality standards.
Constitution Pipeline Receives Final Environmental Review
Constitution Pipeline Company, LLC reported a key regulatory milestone toward approval to construct its proposed pipeline on a schedule that targets increasing natural gas supply to New York and New England markets in time for the winter 2015-16 heating season.
More Emphasis Needed On Natural Gas, APGA Leader Says
These are unquestionably exciting times in America’s natural gas industry as wide arrays of statistics continue to show. Homeowners and businesses that use natural gas are enjoying considerable cost savings and ample, reliable supplies that will only increase as the nation’s pipeline grid spreads to regions that have not been accustomed to using the environmentally friendly and domestically produced fuel.
GOP Control Of Senate Improves Legislative Outlook For Pipelines
The ascent of Republicans to majority status in the Senate in 2015 means the pipeline industry will be able to play more effective defense against Obama administration regulations it opposes and more effective offense behind energy legislation it supports.
Dominion Accepts FERC Order Approving Cove Point LNG Export Project
Dominion notified the Federal Energy Regulatory Commission that it has accepted the commission's order approving the Cove Point LNG liquefaction and export project and all of FERC's environmental conditions.
Changes At Federal Pipeline Regulatory Agencies
One top federal pipeline regulator left her job and a prominent state regulator is coming to Washington to fill a second high-profile pipeline job. Cynthia Quarterman left as administrator of the Pipeline and Hazardous Materials Safety Administration (PHMSA) Oct. 3. No replacement has been named. Meanwhile, the White House nominated Colette Honorable as a commissioner at the Federal Energy Regulatory Commission (FERC). When confirmed, which is likely, she would probably be appointed chairman. Honorable is chair of the Public Service Commission in Arkansas.
PG&E, others appeal $1.4 billion penalty
SAN FRANCISCO (AP) — Pacific Gas & Electric Co. and others on Thursday appealed a proposed $1.4 billion penalty against PG&E in a deadly 2010 gas-pipeline explosion, in a case that has raised repeated accusations of cozy relations between the utility and state regulators.
FERC's Moeller Presses Online Gas Trading Platform; Industry Unenthusiastic
FERC "pipeline" Commissioner Phillip Moeller held a workshop Sept. 18 to explore the possibility of the commission, on its own or through a third party, establishing an online trading platform for the nomination and confirmation of pipeline deliveries of natural gas. The proposal was made at a technical conference in April by Don Sipe, a Maine attorney, on behalf of the American Forest and Paper Association.
Oil Boom In North Dakota: Putting On A Happy Face
As part of a record-setting industry meeting in May at the Williston Basin Petroleum Conference in North Dakota, Republican Gov. Jack Dalrymple offered a keynote speech with one superlative after another about his sparsely populated, but energy- and agriculture-rich state. It seems his state is leading the nation in a number of categories these days, including having the happiest residents.
Best Estimates: Developing New Quantification Protocol For Methane Emissions Reduction
Aggressive efforts are underway to reduce methane emissions from the natural gas sector and the industry is working on technologies and approaches for mitigating emissions. But it also must improve the way emissions are quantified. By establishing reasonable baselines, utilities will be able to provide more accurate reports about their emissions profiles and implement mitigation and reduction programs. GTI and its industry partners are working to update those baselines now.
FERC Commissioner Concerned About Pipeline Adequacy In Face Of Utility Carbon Restrictions
There is at least one raised eyebrow at the Federal Energy Regulatory Commission (FERC) over the EPA's proposed Clean Power Plan, the subject of a proposed rule issued on June 2. The plan would force electric utilities to reduce carbon emissions to advance President Obama's Climate Action Plan, which seeks to lower air emissions of the six greenhouse gases, of which carbon dioxide is the major member. The plan foresees individual states devising separate, and perhaps different, plans for reducing carbon emissions from electric utilities.
NAESB Group Moves To Respond To FERCs Gas-Electric Coordination Proposal
In a meeting held in Houston on April 22-23, NAESB’s Gas-Electric Harmonization (GEH) Forum continued its efforts to forge a consensus of natural gas and electric industry stakeholders in response to the Notice of Proposed Rulemaking (NOPR) on gas-electric coordination announced by FERC on March 20. (Docket No. RM14-2-000, available at http://tinyurl.com/mleskru.)
Instability In Iraq: Effect On Production, Infrastructure
Iraq has a long and varied history of oil exploration and development, and its proven reserve base is largely unmatched outside of the Middle East. However, regional conflicts throughout history have disrupted exploration drilling and resulted in extensive damage and neglect to infrastructure, ensuring current oil production is considerably lower than its potential.
Editor's Notebook: North Dakota Making News
I’ve never been to North Dakota; in fact, I don’t think I’ve ever met anyone from that state. Now, one of the great oil discoveries of recent years, the immense Bakken Shale, has put the upper Plains state on the map for all to see.
PHMSA's Attention To Pipeline Safety Becomes Issue
Pipeline safety is back on the congressional agenda, in part because of a recent Department of Transportation Inspector General's report, in part because of PHMSA'S failure to finish rulemakings mandated by the 2011 pipeline safety bill. PHMSA's foot-dragging has irritated the industry and the major pipeline safety advocacy group equally.
- 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
