Strait of Hormuz the World’s Leading Oil Transit Chokepoint
Monday, August 5, 2019
(August 5, 2019) — The Strait of Hormuz, located between Oman and Iran, connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. The strait is the world’s most vulnerable oil chokepoint because of the large volumes of crude that flow through it, writes the Energy Information Administration (EIA). In 2018, the strait’s daily oil flow averaged 21 MMbbld, or the equivalent of about 21% of global petroleum liquids consumption.
Quarles Petroleum Acquires PAPCO’s Propane Business
Wednesday, July 31, 2019
(July 31, 2019) — Quarles Petroleum (Fredericksburg, Va.), a regional provider of residential and commercial fuel, recently announced it has acquired the commercial and residential propane business of PAPCO Inc. Quarles said it will transition PAPCO customers into its service centers in southeastern and central Virginia. Quarles clarifies that PAPCO is divesting only its propane business, and will continue to operate its fuel business based in Virginia Beach, Va.
Stocks to Rise Year on Year, Days of Disposition Restrained
Friday, July 26, 2019
The National Propane Gas Association (NPGA), citing weekly stock reports by the Energy Information Administration, observes in its June summary that propane inventories continue to show an increasing separation compared to the volume levels seen in 2017 and 2018 at the same time of year—and a return to the higher supplies the U.S. experienced before the most recent wave of export terminals began operating.
Mont Belvieu Propane, Butane Prices to Climb
Monday, July 22, 2019
(July 22, 2019) — The U.S. and global LPG markets will remain partitioned until new export capacity enables more North American product to reach Asia and other markets, according to ESAI Energy’s newly published Global NGL 12-Month Outlook, and as reported by Hydrocarbon Engineering. And the relinking of North America and the world market has bullish implications for Mont Belvieu NGL prices and U.S. export volumes.
Bechtel Gets Construction Contract for Ohio Cracker
Thursday, July 18, 2019
A proposed construction project to build an ethane cracker in eastern Ohio has taken a step forward, reports Kallanish Energy. Engineering giant Bechtel Corp. (Reston, Va.) has been hired by Thailand’s PTT Global Chemical America and its South Korea-based partner, Daleim, to build the $6-billion facility. A final investment decision has yet to be made.
Lax Crewmen on Michigan Vessel Caused Anchor Strike
Monday, July 15, 2019
(July 15, 2019) — A much-enumerated, singular anchor strike has mushroomed into a casus belli. Michigan’s governor, the state’s top law enforcement official, and their political and environmental supporters demand the expedited shutdown of Calgary-based Enbridge Inc.’s Line 5 pipeline beneath the Straits of Mackinac.
Ohio Governor Underscores Impact of Line 5 Shutdown
Friday, July 12, 2019
Ohio Gov. Mike DeWine met in June with Gov. Gretchen Whitmer of Michigan to express his concerns regarding her plans for decommissioning or replacing Enbridge Inc.’s (Calgary) Line 5 pipeline. Meanwhile, Lt. Gov. Jon Husted traveled to Toledo to meet with employees at Toledo Refining. The pipeline traverses the Straits of Mackinac and serves several refineries in northwest Ohio.
FMCSA Expected to Release Hours-of-Service Rule Soon
Tuesday, July 9, 2019
Land Line Magazine, the official publication of the Owner-Operator Independent Drivers Association (OOIDA), reports that Federal Motor Carrier Safety Administration (FMCSA) Administrator Ray Martinez recently testified before a Senate Committee that he expects the agency’s notice of proposed rule-making for revised hours-of-service (HOS) regulations to be published soon. He did not, however, provide a date.
Utica Shale Sees Sharp Jump In Natural Gas Output
Monday, July 8, 2019
(July 9, 2019) — Gas producers active in the Utica Shale play, both big players and those with smaller operations, have seen sharp spikes in output over the past several years, reports S&P Global Platts, citing speakers at June’s Hart Energy DUG East conference in Pittsburgh. Ascent Resources, (Oklahoma City), one of the dominant participants in the Utica, has seen a dramatic ramp-up in production since it began drilling in earnest about three years ago, Ascent CEO Jeff Fisher said.
Enbridge Seeks Ruling on Agreement Enforcement
Monday, July 8, 2019
Calgary-based Enbridge Inc. has filed a legal action with the Michigan Court of Claims to establish the constitutional validity and enforceability of agreements signed between the company and the state of Michigan. The action relates to the construction and operation of a tunnel underneath the Straits of Mackinac to house a replacement for Enbridge’s Line 5 pipeline.
Michigan Governor’s Order Slammed as Fool’s Errand
Monday, July 1, 2019
An Upper Peninsula state senator in Michigan has slammed Gov. Gretchen Whitmer’s executive order to explore alternatives to meeting the region’s propane needs without Enbridge Inc.’s (Calgary) Line 5, arguing on the floor of the senate there are “no viable alternatives,” reports Michigan Live.
Superior Plus Corp. Considers Divesting Chemicals Business
Monday, June 17, 2019
(June 17, 2019) — Superior Plus Corp. (Toronto) said June 10 it is considering the sale of its specialty chemicals business, which operates under the trade name ERCO Worldwide. Superior Plus added that given the significant growth opportunities in its U.S. energy distribution business, and the potential benefits of it becoming a pure play energy business focused on retail propane distribution, it had retained Barclays Capital Canada Inc. to assist with a potential sale of the specialty chemicals segment.
First Cargo Departs AltaGas’ Prince Rupert Export Terminal
Wednesday, June 12, 2019
(June 12, 2019) — AltaGas (Calgary) said May 28 that the first export cargo departed its new terminal bound for Asia on May 23. The company’s new Ridley Island Propane Export Terminal (RIPET) is located in Prince Rupert, B.C. and is the first marine export terminal in Canada. The facility began introducing propane feedstock in mid-April.
Enterprise Products to Extend Ethylene Pipeline Network
Monday, June 10, 2019
Enterprise Products Partners LP (Houston) is extending its ethylene pipeline and logistics system further into South Texas, a leading growth area for new crackers and ethylene derivative plants. The Baymark ethylene pipe- line will originate in the Bayport area of southeast Harris County and extend about 90 miles to Markham, Texas in Matagorda County.
Enbridge's Earlier Line 5 Tunnel Completion on Offer
Friday, June 7, 2019
Enbridge Inc. (Calgary) said in late 2019 it could have a previously approved but subsequently contested tunnel project built and operational by early 2024, earlier than the more conservative 10-year timeframe that had been expected, the Associated Press reports. The tunnel would run beneath the Straits of Mackinac, a 4-mile-wide waterway that links Great Lakes Huron and Michigan, and would house Enbridge’s Line 5 replacement.
IEA: Oil Market Remains Calm Despite Geopolitical Backdrop
Thursday, June 6, 2019
The International Energy Agency’s (IEA) May oil market report observed that despite the difficult geopolitical situation and other supply problems, oil prices were little changed from a month earlier. Noted was that ongoing geopolitical concerns around Libya, Iran, and Venezuela had been joined by attacks on shipping off Fujairah and on two pumping stations in Saudi Arabia. But at the time of the report’s writing there were no disruptions to oil sup- plies and prices remained little changed.
Flexible LNG Contracts Prompt Transformation of Finance Models
Thursday, June 6, 2019
Flexible U.S. LNG contracts are helping to create a global, commoditized spot market and are transforming project financing models, writes S&P Global Platts, citing the American Petroleum Institute (API). The U.S. could become the world’s third-largest LNG exporter by the end of this year, after Qatar and Australia, and is bringing “unprecedented” options for pricing and contract terms to the market, API policy officer Dustin Meyer tells the market intelligence provider.
ExxonMobil to Invest Up to $100 Million on R&D Project
Wednesday, June 5, 2019
ExxonMobil (Irving, Texas) is investing up to $100 million over 10 years to research and develop advanced, lower-emission technologies in partnership with the U.S. Department of Energy’s (DOE) National Renewable Energy Laboratory and National Energy Technology Laboratory.

The agreement, among the largest between DOE’s laboratories and the private sector, will support research and collaboration into ways to bring biofuels and carbon capture and storage to commercial scale across the transportation, power generation, and industrial sectors.
North Dakota Courting Petrochemical Industry For Plastics Plant
Wednesday, June 5, 2019
The Bismarck Tribune reports that North Dakota is courting the petrochemical industry with a new tax incentive aimed at adding value to the state’s abundant natural gas supply. A bill approved in the recent legislative session adds a sales tax exemption for certain natural gas processing facilities. The goal is to produce a supply of ethane, propane, and other products that could attract a plastics manufacturing plant to North Dakota.
Con Edison Calls Moratorium For New York Gas Connections
Wednesday, June 5, 2019
Consolidated Edison Inc., or Con Edison, the largest utility provider in the New York City area and one that serves 10 million customers, called a moratorium on new natural gas connections in most of Westchester County effective March 16. The Energy Information Administration (EIA) comments that demand for natural gas in the region has increased in recent years, leading to concerns about reliability of service.
After Crane Rule, Industry Focuses On Other Concerns
Friday, May 31, 2019
Jeff Petrash, National Propane Gas Association (NPGA) vice president and general counsel, said a quote from a Rolling Stones song that may summarize as well as anything the industry’s results on years of fighting for an exemption from the OSHA Crane Rule. “You can’t always get what you want,” the lyrics say. “But if you try, sometimes, you might find you get what you need.” While the total exemption was not agreed to, the rule limits the expensive certification to installing tanks at construction sites.
Interior Department Disburses $215 Million to Coastal States
Wednesday, May 29, 2019
The U.S. Department of the Interior (DOI) has disbursed nearly $215 million in fiscal year 2018 energy revenues to the four Gulf Coast oil- and gas-producing states—Alabama, Louisiana, Mississippi, and Texas, and their coastal political subdivisions—an increase of $26.95 million, or 14.3%, over the previous year.