Thursday, February 19, 2015
Canyon Midstream Partners LLC (Houston) said Feb. 6 it had commenced operations at its James Lake system in the Permian Basin. Phase 1 consists of a 105-MMcfd cryogenic gas processing plant in Ector County, Texas, and six field compressor stations, 60 miles of 12-in. trunk line, and 20 miles of low-pressure gathering lines in Actor and Andrews counties, Texas.
Thursday, February 19, 2015
Analysts have forecast that the world’s hunger for energy will rise by more than 40% in the next two decades, with exports from oil-producing countries likely to slow down. However, it is expected that there should be enough energy available to meet climbing demand until 2035, when a fifth of the world’s gas will come from shale production.
Thursday, February 19, 2015
Spot propane at Mont Belvieu and Conway, Kan. Thursday, Feb. 19 posted some minimal losses compared to the Friday, Feb. 13 Update. Belvieu trading mid-morning was off a half cent to 0.625 cents compared to the previous reporting period, and Conway was down a penny. While bitter winter cold continues to grip much of the country, propane inventories remain well above the seasonal average at 61.5 MMbbl as the heating season winds down.
Thursday, February 19, 2015
The U.S. Environmental Protection Agency (EPA) has awarded more than $3 million in rebates to replace 210 older diesel school buses with new diesel buses that are more than 90% cleaner, reducing pollutants such as nitrogen oxides and particulate matter. Seventy-six school bus fleets in 30 states received rebates through EPA’s Diesel Emissions Reduction Act (DERA) funding to replace buses.
Thursday, February 19, 2015
Principal postings hardened considerably Thursday, Feb. 19, with prices firming a minimum of 3 cents but as much as 9.75 cents compared to the Friday, Feb. 13 Update. The steepest increases appeared on TEPPCO and on the Dixie Pipeline. Conversely, on the West Coast Los Angeles postings shed 3 to 8 cents over the same period.
Thursday, February 19, 2015
Canadian underground propane inventories fell 13.4% in January to post a monthly loss of 225.5 Mcm, according to the National Energy Board (NEB). As of Feb. 1, stocks stood at 1461.2 Mcm, the equivalent of 9.2 MMbbl. January’s decline followed volumes dropping 11.8% in December. Compared to a year earlier, however, supplies as of the beginning of February were a significant 274.1%, or 1070.6 Mcm, higher.
Thursday, February 12, 2015
The Energy Information Administration (EIA) reports that between 2014 and 2018, U.S. petrochemical capacity expansion projects are projected to increase domestic demand for ethane by nearly 600,000 bbld and propane by nearly 200,000 bbld. This growing demand is in response to rising domestic hydrocarbon gas liquids (HGL) supply and favorable petrochemical feedstock prices in the U.S.
Thursday, February 12, 2015
Kingston Oil Supply Corp. (Kosco), a full-service retail propane gas and heating oil company based in Hudson Valley, N.Y., sold its propane division and formed a strategic alliance for its fueloil division with Paraco Gas Corp. (Rye Brook, N.Y.). The sale of Kosco’s propane division to Paraco Gas includes service to 9000 existing Kosco propane accounts that use approximately 3.4 million gallons of propane annually.
Thursday, February 12, 2015
Stating the obvious, the Energy Information Administration (EIA) noted Feb. 4 that higher inventories, milder weather, and falling crude oil and natural gas prices have resulted in a Midwest propane market that so far this winter has not experienced the challenges faced last winter.
Thursday, February 12, 2015
Prices appear to be taking a minute to regroup and determine where the path heads. As it was a month ago, it seems that uncertainty continues to be the keyword. At Mont Belvieu, posted prices are keeping well above the 50-cent/gal.
Thursday, February 12, 2015
U.S. propane stocks fell by 2.3 MMbbl the week ended Feb. 6 to stand at 65 MMbbl, according to the Energy Information Administration (EIA) in its Feb. 11 “This Week in Petroleum” report. As of that reporting period, volumes were 37.1 MMbbl, or 132.8%, higher than a year ago. As a stark reminder of this year’s bounty versus last season’s penury, Midwest supplies alone, which last year stood at a bare-boned total just under 9 MMbbl, were up nearly 12 MMbbl, or 131.6%.
Thursday, February 12, 2015
Spot propane at Mont Belvieu and Conway, Kan. Thursday, Feb. 12 tempered strong early-week gains, with trading at the Texas hub little changed from the Monday email Update and the Midwest rising another penny. Early in the week prices at Belvieu hardened by 2.5 to 2.875 cents, while by Thursday they were either 0.125 cents lower or unchanged. Conway strengthened 3.25 cents when the markets opened after the weekend, and as the week was ending prices had edged up another penny.
Thursday, February 12, 2015
With oil prices having fallen more than 50% in less than six months, the OPEC group’s reluctance to cut production in order to stabilize prices reflects the threat being posed by production increases from non-OPEC countries, according to the research and consulting firm GlobalData (London). Matthew Jurecky, GlobalData’s head of oil and gas research and consulting, states that more than 70% of the 12.7-MMbbld incremental production between 2008 and 2013 came from non-OPEC countries, led by the U.S., Russia, and China.
Thursday, February 12, 2015
Principal postings were both higher and lower Thursday, Feb. 12, showing mixed results on the Dixie Pipeline and on TEPPCO while Midwest prices universally gained and Mont Belvieu declined. Increases were in a range of a half cent to as much as 7 cents, and discounts were from a quarter cent to 2 cents compared to the Monday email Update.
Thursday, February 12, 2015
As supply and demand balances loosened in the second half of 2014, global inventories increased and crude oil prices for near-term delivery declined substantially more than prices for delivery farther into the future, reports the Energy Information Administration (EIA). In January 2015, the price discount of near-term deliveries to longer-dated deliveries grew to the highest levels since 2009 for North Sea Brent futures and since 2011 for West Texas Intermediate (WTI) futures.
Monday, February 9, 2015
By Pat Thornton, Marty Lerum, and Jeff Thompson
Friday, February 6, 2015
U.S. shipments of residential gas storage water heaters for November 2014 increased 3.9% to 362,082 units, up from 348,542 units shipped in November 2013, reports the Air-Conditioning, Heating & Refrigeration Institute (AHRI).
Friday, February 6, 2015
As sales of the propane autogas S2G truck continue to grow among its initial market of propane distributors, Freightliner Custom Chassis Corp. (Gaffney, S.C.) is demonstrating new applications for the truck with the sale of its first medium-duty dry van, also known as a box truck, for a specialty manufacturer in California.
Wednesday, February 4, 2015
EIA reported Jan. 26 that the sharp decline in oil prices over the last quarter of 2014, which continued in January, is already having a significant effect on drilling activity in the U.S., as shown by the 16% drop in the number of active onshore drilling rigs in the Lower 48 states between the weeks ending Oct. 31, 2014 and Jan. 23, 2015.
Sunday, January 11, 2015
The spot markets picked up where they left off prior to the holidays and continued to move even lower Thursday, Jan. 8. Mont Belvieu was down another 1.75 to 2 cents, while Conway shed just a half cent compared to the Monday email Update. Those late-week losses added more bad news for the markets as early-week trading showed even steeper declines of 4.375 cents at Belvieu and 4.5 cents at Conway compared to the previous reporting period. Significantly, Texas propane has dropped well under 50 cents/gal. and the Midwest is now below 40 cents.
Sunday, January 11, 2015
U.S. propane stocks fell by 1.6 MMbbl the week ended Jan. 2 to stand at 75.7 MMbbl, according to the Energy Information Administration's (EIA) latest "This Week in Petroleum" report. The draw left volumes 33.2 MMbbl, or 78.3%, higher than a year ago. The Gulf Coast gave up 1.1 MMbbl and the Midwest 0.4 MMbbl. Rocky Mountain/West Coast regional inventories declined by 0.1 MMbbl, while East Coast supplies gained 0.1 MMbbl. Propylene non-fuel-use stocks represented 4.8% of total propane inventories, inching up from 4.6% the previous week.
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