Higher Propylene Prices Have Flex-Feed Crackers Favoring LPG
Thursday, November 21, 2019
(November 21, 2019) — The petrochemical market information provider ICIS reports that a number of flex-feed crackers are likely to continue favoring LPG as a feedstock because costs for propane and butane remain at a relatively small spread to those for ethane, and because of higher coproduct prices for propylene.
Enbridge Wins Legal Fight, Attorney General Appeals
Monday, November 18, 2019
(November 18, 2019) — The Michigan Court of Claims has handed Enbridge Inc. (Calgary) a first-round victory in its legal battle to fund and construct a utility tunnel buried 100 feet beneath the bottomlands of the Straits of Mackinac. The reinforced concrete tunnel would encase Enbridge’s twin Line 5 pipelines, which transport light crude oil, light synthetic oil, and natural gas liquids, including propane.
Proposal Calls for Transport Of LNG on DOT 113 Railcars
Wednesday, November 13, 2019
(November 13, 2019) — The U.S. Department of Transportation (DOT) is proposing a change to the Hazardous Materials Regulations to allow the transportation of liquefied natural gas (LNG) on railcars, reports Transportation Today. The overture builds on an executive order by President Donald Trump issued earlier this year.
Executive Order Extends Hours of Service for Propane Delivery Until Nov. 30th
Tuesday, November 12, 2019
DES MOINES, Iowa (November 12, 2019) – Iowa Secretary of Agriculture, Mike Naig, thanked Gov. Reynolds for signing an Emergency Executive Order on Oct. 31, 2019, which will help resolve delivery challenges resulting from increased seasonal propane demands. The proclamation exempts drivers of commercial motor vehicles delivering propane from the Hours of Service (HOS) requirements outlined in Iowa Code, beginning on Nov. 1 and running through 11:59 p.m. on Nov. 30, 2019.
U.S. LPG Entrenched as India's Propane Supply Source
Monday, November 11, 2019
(November 11, 2019) — U.S. LPG is being shipped to India this month, establishing the country as a regular supplier to Asia’s second-largest importer. Stepped up flows commenced in April 2019 and accelerated after traders widened their sources to meet spot or term commitments after the September attacks on Saudi Arabia’s oil facilities disrupted supply, market sources tell S&P Global Platts.
U.S. Crude Oil Exports Set to Double by 2022
Monday, November 4, 2019
(November 4, 2019) — U.S. crude oil exports could grow from current levels of 2.9 MMbbld to nearly 6 MMbbld by 2022, according to a new forecast from Rystad Energy. With U.S. production expected to increase by 1.2 MMbbld year over year in 2020, and with domestic refineries already maxing out capacity to absorb shale growth, Rystad Energy expects oil exports to bal- loon and reach 4.7 MMbbld by the end of 2020 and nearly 6 MMbbld by the end of 2022.
EIA Cuts Oil Prices Owing to Demand Growth Uncertainty
Monday, October 28, 2019
(October 28, 2019) — S&P Global Platts reviews that the Energy Information Administration (EIA) this month sharply lowered its oil price outlook for early next year. The agency cited increasing uncertainty about economic and oil demand growth, factors it sees more than offsetting the higher risks of supply disruptions after a Saudi oil facility attack.
USGS Hikes Appalachian Estimates for Natural Gas
Thursday, October 24, 2019
(October 24, 2019) — The Marcellus Shale and Point Pleasant/Utica Shale formations in the Appalachian Basin contain an estimated 214 Tcf of undiscovered, technically recoverable natural gas, according to new U.S. Geological Survey (USGS) assessments. The Marcellus, Point Pleas- ant, and Utica are extensive formations that cover parts of Kentucky, Maryland, New York, Ohio, Pennsylvania, Virginia, and West Virginia.
Gas Price Forecast Falls to Levels Not Seen Since 1970s
Monday, October 21, 2019
(October 21, 2019) — A persistent oversupply of natural gas will drive the 2020 average price at the Henry Hub down to a level not seen in decades, according to a new report from IHS Markit. The oversupply, to be reinforced by a new surge in associated gas production from the Permian Basin, will push the average price down below $2/MMBtu for the year, the market intelligence provider maintains. That is the lowest prices have averaged in real terms since the 1970s. In nominal terms, the last time prices dipped under $2 was in 1995.
Enterprise Building 2nd Mont Belvieu PDH Plant
Tuesday, October 15, 2019
(October 15, 2019) — Affiliates of LyondellBasell Industries NV (Rotterdam) and Enterprise Products LP (Houston) have signed long-term contracts supporting construction of Enterprise’s second propane dehydrogenation (PDH) plant. PDH 2, to be located in Mont Belvieu, Texas, will have the capacity to consume up to 35,000 bbld of propane and produce up to 1.65 billion pounds of polymer-grade propylene (PGP) a year.
NPGA Sells CETP Training To Propane Council
Friday, October 11, 2019
(October 11, 2019) — The Propane Education & Research Council (PERC) and the National Propane Gas Association (NPGA) have reached agreement on terms to transfer the certification assets of the industry’s Certified Employee Training Program (CETP) from NPGA to PERC effective Dec. 31, 2019. The action was mutually agreed upon by the officers and leadership of both organizations to help improve safety and training in the propane industry by moving all assets under one roof.
Rhoads Energy Announces Plan to Upgrade Vehicle Fleet to Propane
Thursday, October 10, 2019
(October 10, 2019) — The Rhoads Energy Family of Companies, has plenty of first-hand experience helping school districts convert bus fleets to clean propane autogas: they’re quieter, cleaner and cost significantly less to operate.

In fact, Rhoads found the advantages so compelling that the company decided to commit to expanding its own propane-powered service fleet of more than 20 vehicles over the next year.
Natural Gas Production Reaches New Record Despite Low Prices
Monday, October 7, 2019
(October 7, 2019) — U.S. natural gas production continued to rise in August, setting a new daily production record of 92.8 Bcfd on Aug. 19, according to estimates by IHS Markit and as reported by the Energy Information Administration (EIA). Natural gas output also set a new monthly record in August, averaging more than 91 Bcfd for the first time.
Oil Price Next Year Relies on 3 Factors
Friday, October 4, 2019
(October 4, 2019) — Three essential factors will determine the direction of the oil price and market balancing next year, according to Oslo, Norway-based Rystad Energy. In a market update, BjØrnar Tonhaugen, head of oil market research at the business intelligence company, argues that a balanced oil market in 2020 is contingent on three pillars: no global recession, continued OPEC production cuts, and the effect of stricter new International Maritime Organization (IMO) regulations effective Jan. 1, 2020 on vessel bunker-fuel emissions.
Canadian Association Hosts Federal, Provincial Officials
Thursday, October 3, 2019
(October 3, 2019) — Federal natural resources minister Amarjeet Sohi and Alberta’s assistant minister of natural gas Dale Nally addressed Alberta members of the Canadian Propane Association (CPA) in September. Their attendance at an event in Red Deer showed a recognition that propane has an important role to play in Canada’s policy development, the association said.
Pennsylvania Permitting Plummets As Natural Gas Producers Pull Back
Tuesday, October 1, 2019
(October 1, 2019) — Still under pressure from investors to throttle back spending in the face of low natural gas prices, Pennsylvania shale gas drillers pulled 23% fewer permits for new wells in August compared with 2018 and 14% fewer permits compared with July, writes S&P Global Platts.
Energy Transfer to Acquire SemGroup in $5-Billion Deal
Monday, September 30, 2019
(September 30, 2019) — Energy Transfer LP (Dallas) has a merger deal in place to acquire SemGroup Corp. (Tulsa) in a stock and cash transaction valued at about $5 billion, which includes assumption of debt. The transaction is expected to close late this year or early next year, subject to the approval of SemGroup stockholders and regulatory approvals.
Saudi Production Outage Sends Global Crude Oil Prices Soaring
Thursday, September 26, 2019
(September 26, 2019) — The Energy Information Administration (EIA) writes that the Sept. 14 attack that damaged the Saudi Aramco Abqaiq oil processing facility and the Khurais oil field in eastern Saudi Arabia caused Brent and West Texas Intermediate (WTI) crude prices to experience their steepest single-day increase in a decade Sept. 16. The Abqaiq facility is the world’s largest crude oil processing and stabi- lization plant, with a capacity of 7 MMbbld, or about 7% of world oil output capacity.
NPGA Opposes ASHRAE Proposal For Unvented Heater Standard
Wednesday, September 25, 2019
(September 25, 2019) — The National Propane Gas Association (NPGA) reports that over the last few years it has joined other fuel gas industry partners to oppose an “extremely stringent sizing criteria” for unvented heaters that was proposed for ASHRAE (American Society of Heating and Air-Conditioning Engineers) 62.2—Standard for Ventilation and Acceptable Indoor Air Quality for Low-Rise Residential Buildings.
Canadian Association Issues Weather Emergency Advice
Monday, September 23, 2019
(September 23, 2019) — As Atlantic Canada grappled with the effects of heavy rainfall and power outages in early September, the Canadian Propane Association (CPA) and propane retailers encouraged Canadians to take safety precautions and issued flood safety tips for propane users to keep themselves safe during difficult weather conditions.
35% Decline In Onshore Well Production
Monday, September 23, 2019
IHS Markit, noting it had harnessed the power of artificial intelligence (AI) to assess, automate, and predict the future production of each of the nearly one million producing oil and gas wells in its North American data- bases, is forecasting rapid onshore oil-production decline rates, with existing wells falling by 35% over the next 12 months. This compares with base declines of 5% to 14% for most petroleum systems globally during the same period—and a base decline rate of less than 15% a decade ago in the U.S.
National Resolution Opposing Sen. Sanders’ Climate Plan Passed
Monday, September 23, 2019
(September 23, 2019) — The Interstate Oil and Gas Compact Commission (IOGCC) passed a resolution introduced by Railroad Commission of Texas chairman Wayne Christian urging the federal government to oppose presidential candidate and U.S. Sen. Bernie Sanders’ (I-Vt.) version of the Green New Deal.