Energy Industry Seen Keeping Tighter Rein on Expenditures
Wednesday, February 12, 2014
Amid a positive outlook for the energy industry in 2014, senior oil and gas professionals are forecast­ing tighter monitoring of capital expenditures this year, according to research published by Norway’s DNV GL, a technical advisor to the oil and gas industry.
ECI Acquires Superior Holdings; Adds Gas Flow, Control Products
Wednesday, February 12, 2014
Engineered Controls International LLC (ECI; Elon, N.C.) said Feb. 1 it had acquired Superior Hold­ings LLC, owner of Macro Technologies LLC and Superior Products LLC. ECI noted that the acquisi­tion adds to its expanding portfolio of companies representing brands of gas flow and control products. Those brands now include RegO Products, Goddard Valve, Superior Products, and Macro Technologies.
Midwest Spots Plunge, Mont Belvieu Climbs
Wednesday, February 12, 2014
With a more restrained winter draw of 0.8 MMbbl reported for the nation by the Energy Information Administration the last week of Janu­ary, and an actual build of that same amount in the Midwest, fears seemed to have been calmed somewhat of the calamity of draining the Heartland dry before the end of the heating season. Once again the markets reacted immediately and decisively and spot propane at Conway, Kan.
HHS Releases Additional $454 Million in LIHEAP Funds
Wednesday, February 12, 2014
The U.S. Department of Health and Human Services’ (HHS) Administration for Children and Families is making available $454 million in support of the Low Income Home Energy Assistance Program (LIHEAP). In November, HHS released $2.9 billion in LIHEAP funding while awaiting action on final fiscal year 2014 appropriations.
Propane Inventories Fall 0.8 MMbbl
Wednesday, February 12, 2014
U.S. propane stocks fell by 0.8 MMbbl the week ended Jan. 31 to stand at 30.8 MMbbl, 24 MMbbl, or 43.8%, below year-ago levels, according to the Energy Information Administration (EIA) in its Feb. 5 “This Week in Petroleum” report. Gulf Coast volumes decreased by 1 MMbbl, while conversely Midwest supplies climbed by 0.8 MMbbl. East Coast inventories gave up 0.5 MMbbl, and stocks in the Rocky Mountain/West Coast region dipped by 0.2 MMbbl.
U.S. Energy Imports Trending Down; Exports on Horizon
Wednesday, February 12, 2014
The Energy Information Administration’s (EIA) “2014 Annual Energy Outlook” projects declines in U.S. oil and natural gas imports as a result of increasing domestic production from tight oil and shale plays. U.S. liquid fuels net imports as a share of consumption is pro­jected to decline from a high of 60% in 2005 and about 40% in 2012 to about 25% by 2016. The U.S. is also forecast to become a net exporter of natural gas by 2018.


New Reserve Assessment Solidifies Fayetteville Forecast
Wednesday, February 12, 2014
A new study by the Bureau of Economic Geology (BEG) at the University of Texas at Austin forecasts that one of the nation’s most productive shale gas basins, the Fayetteville Shale, will continue to be a major contributor to U.S. natural gas supplies for years to come, with eco­nomically recoverable reserves of 18 Tcf through 2050.
Railroad Commissioner Porter Testifies on EPA Overreach
Wednesday, February 12, 2014
Railroad Commission of Texas (RRC) com­missioner David Porter Feb. 5 testified before Congress on what he termed is the “egregious overreach” of the federal government, specifically the U.S. Environmental Protection Agency (EPA). The House Committee on Science, Space, and Technology held a hearing titled “Examining the Science of EPA Overreach: A Case Study in Texas.”
COMMENTARY Big Moves Again
Wednesday, February 12, 2014
Significant swings higher on the Dixie Pipeline and steep discounts in the Midwest were seen Thursday compared to postings provided for the Monday email Update. And while changes up or down on TEPPCO and at Mont Belvieu were appreciably more moderate, in any other market they would raise eyebrows, not prompt a yawn.


Kinder Morgan Says Propane Available on Cochin from Canada
Wednesday, February 12, 2014
Kinder Morgan (Houston), owner and operator of the Cochin pipeline system, is advising third-party shippers that contrary to some erroneous reports, the line is fully operational and capable of operating at 50,000 bbld. In addition, gallons received into the pipeline from third-party storage facilities in Fort Saskatchewan, Alberta, and Regina, Saskatchewan can be delivered immediately to U.S. terminals.
Canyon Midstream Developing Permian Gas Processing System
Wednesday, February 12, 2014
Canyon Midstream Partners LLC (Houston) has commenced development of a natural gas gathering, processing, and treating system in the Permian Basin—the James Lake System—that is anchored by a 10-year gathering agreement with an unnamed major oil and gas company.
Blue Racer Enters Agreements For Services in Utica Shale
Wednesday, February 12, 2014
Blue Racer Midstream LLC (Dallas) has entered into long-term agreements with several Utica Shale natural gas producers to provide integrated midstream services for production in liquids-rich acreage in Monroe, Noble, Guernsey, Belmont, Harrison, and Carroll coun­ties in Ohio. Producers that have made recent dedications to Blue Racer include Eclipse Resources, Hess Corp., CONSOL Energy Inc., and PDC Energy Inc.
Topping Off...
Sunday, January 26, 2014
…Congress did not extend past 2013 two expir­ing tax provisions that impact the propane industry— the 50-cents per gallon alternative fuel credit and the alterna­tive fuel refueling property credit. The National Propane Gas Association reports that as of Jan. 1, 2014, the credits are no longer available for propane, natural gas, and other alternative vehicle fuels…

NPGA Steps Up to Expedite Fuel Deliveries, Provide Relief
Sunday, January 26, 2014
The National Propane Gas Association (NPGA) this month was stepping up efforts to identify and imple­ment measures and policies to expedite propane ship­ments as much of the nation continues to struggle under a scenario of crimped supplies, transportation constraints, and spiraling prices.
Targeting Builders at the Local Level
Sunday, January 26, 2014
Athough residential business has declined for the propane industry over the past several years, the residential market still represents more than 47% of all propane gallons sold, according to the Propane Education & Research Council (PERC). While the residential market will continue to represent the largest profit center for propane marketers, the industry must work to increase that business.
Outlook for North Sea Revenues Slashed
Sunday, January 26, 2014
With the outlook for revenues from the North Sea having been slashed, firms drilling for shale gas in the UK will get a massive tax break in an effort to boost exploration. In March 2013, the UK government forecast that £6.8 billion ($11.15 billion U.S.) would roll into Treasury coffers from North Sea levies, but that amount has since been cut back to £5 billion ($8.2 billion U.S.), and expectations downgraded for every year until 2018.
Propane Exports Dip from October
Sunday, January 26, 2014
Exports of propane from the U.S. dipped 2.7% in November compared to a month earlier, but still came in at a strong 12,307,471 bbl, off 335,090 bbl from October levels, according to the U.S. Department of Com­merce (DOC). At the same time, compared to November 2012, propane exports soared 76.1%, or by 5,316,773 bbl.
Propane Spot Markets Soar Again
Sunday, January 26, 2014
Both U.S. and Canadian spot markets for propane rocketed to unprecedented levels Thursday as cold temperatures and demand for fuel ran at an all-time high. Transportation constraints continued to plague the industry as marketers operated hand to mouth with limited supplies. Schools were reported closed in at least one state due to a lack of heat and some residential customers were using electric space heaters to stay warm.
ExxonMobil: All Forms of Energy Needed to Meet Demand
Sunday, January 26, 2014
The world will require all forms of energy over the next quarter century to meet a greater than one-third increase in demand that will be driven by population growth, improved living standards, and expanded urban­ization, according to ExxonMobil’s “Outlook for Energy: A View to 2040” report.
Modern Compass Improves Oilfield Productivity, Cuts Costs
Sunday, January 26, 2014
By using the earth’s magnetic field, combined with new innovative technology, oil and gas drilling com­panies are increasing oilfield productivity while reducing development costs and environmental impacts, reports the U.S. Geological Survey (USGS), a partner in implement­ing the technology.
COMMENTARY OMG
Sunday, January 26, 2014
A number of wholesalers had pulled their posted rack prices Thursday as price volatility and unprecedented demand continued to roil the propane markets. Principal postings, where available, have stretched higher by an astounding 15.5 to as much as 300 cents since Monday. Increases from 55 to more than 150 cents were common.


Chamber Leader Calls for Policies to Extend Prosperity
Sunday, January 26, 2014
U.S. Chamber of Commerce president and CEO Thomas J. Donohue declared in his recent annual “State of American Business” address that the American busi­ness climate is improving, but that despite some economic progress, he warned against policies and government actions that drive uncertainty. Donohue called for leader­ship to solidify the nation’s recovery, help generate stronger growth and job creation, and expand opportunity.