Energy Commodity Prices Tumble in 2018 4th Quarter
Tuesday, January 22, 2019
After increasing 25% from January through the beginning of October 2018, the spot energy sub-index in the S&P Goldman Sachs Commodity Index (GSCI) ended the year 21% lower than at the beginning of the year, reports the Energy Information Administration (EIA). The S&P GSCI is a weighted average of commodity prices intended to reflect global commodity production quantities and futures contract trading volumes. Although all components of the S&P GSCI declined in 2018, the energy sub-index fell more than any other.
Energy Transfer Starts Service on Mariner East 2
Friday, January 18, 2019
Energy Transfer LP (Dallas) announced Dec. 29 that its Mariner East 2 natural gas liquids pipeline was online and available for both interstate and intrastate service. The 350-mile pipeline transports U.S.-produced ethane, propane, and butane east from processing plants in Ohio, across West Virginia, and Pennsylvania to Energy Transfer’s Marcus Hook Industrial Complex in Delaware County, Pa., where the NGLs are stored for distribution to local, domestic, and waterborne markets.
Small Businesses Score Small Wins, Big Leaps in 2018
Thursday, January 17, 2019
The National Federation of Independent Business (NFIB) reviews that its members celebrated a variety of important triumphs in 2018, including a delay of the Environmental Protection Agency’s (EPA) Waters of the U.S. rule, a dismissed court challenge to President Donald Trump’s two-for-one executive order on regulatory relief, and a rescission of the union persuader rule by the Department of Labor. The federation notes these successes helped fuel 45-year highs in small business optimism and plans for job creation.
Grants Available Up To $2.5 Million To Reduce Diesel Engine Emissions Using Clean, Propane Autogas
Friday, January 11, 2019
The U.S. Environmental Protection Agency (EPA) is awarding grants for the implementation of projects aimed at reducing emissions from the nation’s existing fleet of older diesel engines. EPA anticipates awarding about $40 million in Diesel Emission Reduction Program (DERA) grant funding to eligible applicants, subject to the availability of funds. Applicants in Arkansas, Louisiana, Oklahoma, New Mexico, and Texas can apply for up to $2.5 million in funding.
Capability to Switch Fuels In Manufacturing Declines
Tuesday, January 8, 2019
The capability of the U.S. manufacturing sector to switch the fuels it uses declined continuously between 1994 and 2014, according to data from the Energy Information Administration’s (EIA) 2014 Manufacturing Energy Consumption Survey published in September. Among the most commonly substitutable fuels used in manufacturing, the amount that could readily be switched in less than 30 days dropped from 24% in 1994 to 10% in 2014.
Report Highlights Benefits of Appalachian Ethane Storage
Monday, January 7, 2019
The U.S. Department of Energy (DOE) has published a report to Congress, Ethane Storage and Distribution Hub in the United States, highlighting the potential in Appalachia for the development of a new ethane hub based on the “tremendous low-cost resource” from the Marcellus and Utica shales, and the accompanying security and reliability benefits derived from geographic diversity in the nation’s petrochemicals manufacturing base.
Canada’s Propane Industry Helping Fuel the Economy
Monday, January 7, 2019
From extraction to end use, Canada’s propane industry supports a significant level of economic activity, concludes a new Conference Board of Canada report. The report also finds that the nation’s propane production is expected to increase by more than 20% over the next seven years, and so will the industry’s economic footprint.
U.S. LNG Export Capacity to More than Double by 2019
Friday, January 4, 2019
The Energy Information Administration (EIA) projects that U.S. liquefied natural gas (LNG) export capacity will reach 8.9 Bcfd by the end of 2019, making the nation the third-largest exporter in the world behind Australia and Qatar. Currently, U.S. LNG export capacity stands at 3.6 Bcfd. It is expected to rise to 4.9 Bcfd as two new liquefaction units, or trains, become operational soon.
Record U.S. Oil Production Contributes to Lower Prices
Thursday, January 3, 2019
The U.S. Energy Information Administration (EIA) lowered its Brent crude oil spot price forecast to $71/bbl in 2018 and $61/bbl in 2019 in its December 2018 Short-Term Energy Outlook. Prices were down $2/bbl and $11/bbl, respectively, from a month earlier. EIA also said it expects West Texas Intermediate (WTI) crude oil prices will average about $7/bbl lower than Brent prices next year. In a continuing price decline that began in mid-October, Brent spot prices fell from $71/bbl on Nov. 1 to $58/bbl on Nov.
Report Identifies Significant Opportunities for Propane
Wednesday, January 2, 2019
The Canadian Propane Association (CPA) is welcoming the findings of a report by the Conference Board of Canada, which identifies propane as a versatile fuel with multiple end-use markets both at home and abroad. Further, with the extensive activities covered by the industry’s supply chain, the propane industry’s economic footprint across Canada is significant, supporting many jobs and generating millions of dollars in taxes and revenues.
Report Finds Global Warming Fight Hurts Poor, Inland Communities
Wednesday, January 2, 2019
A new report released by the Pacific Research Institute concludes that California’s big-government approach to fighting global warming hurts inland, rural, and poor communities, which have hotter temperatures and larger percentages of minority populations.
Ethane Feedstock Demand Exceeds Supply Capability
Thursday, December 20, 2018
A surge in production of associated and non- associated natural gas from U.S. shale gas and tight oil plays, combined with a wave of new petrochemical steam crackers coming online, has created a major pinch point for producers and purchasers of ethane due to a lack of adequate NGL fractionation capacity to separate the mixed natural gas liquids, or Y-grade, stream into purity products, according to market analysis by IHS Markit.
Projects Expected to Reverse Gulf Declines
Thursday, December 20, 2018
Natural gas production in the U.S. Federal Gulf of Mexico (GOM) has been declining for nearly two decades, reports the Energy Information Administration (EIA).
Shale Producers Tackle Sharp Decline Rates
Sunday, December 16, 2018
Nearly a decade since independent oil firms ushered in the U.S. unconventional oil boom with advances in hydraulic fracturing, a key challenge remains—how to stem sharp decline rates at shale wells without burning through budgets, writes Argus Media. U.S. oil production is forecast to rise by 1.3 MMbbld to a record 10.7 MMbbld this year and hit 11.5 MMbbld in 2019, driven by growth in tight oil output from the Permian Basin and other shale formations, says the Energy Information Administration.
Propane Risks Falling Off Europe’s Feedstock Slate
Friday, December 14, 2018
As propane’s discount to naphtha has shrunk to its narrowest point in nearly a year, the market is watching for signs that propane could slip off the petrochemical feed- stock slate in Northwest Europe in favor of naphtha, S&P Global Platts reported in late November.
Small Business Owners Report Job Creation, Expansion Plans
Friday, December 14, 2018
Small business optimism continued its two-year streak of record highs according to the National Federation of Independent Business’s (NFIB) October Small Busi- ness Optimism Index. Overall, small businesses continue to support the 3%-plus growth of the economy and add significant numbers of new workers to the employment pool. Owners believe the current period is a good time to expand substantially, are planning to invest in more inven- tory, and are reporting high sales figures.
Outgoing Michigan Governor Presses to Lock In Line 5 Pipeline Deal
Thursday, December 13, 2018
Outgoing Michigan Gov. Rick Snyder is hoping to use the final weeks of his administration to lock in a deal allowing construction of a sharply debated NGL and light crude oil pipeline tunnel under the Straits of Mackinac, a waterway linking two Great Lakes, Michigan and Huron, the Associated Press reports. The plan is opposed by his successor. Snyder, a two-term Republican, is working on several fronts to cement an agreement with Enbridge Inc. (Calgary) to replace the underwater segment of Line 5.
New Guidance Available For Hours-of-Service Waivers
Wednesday, December 12, 2018
(December 10, 2018) — The National Propane Gas Association (NPGA) reports it has engaged the National Association of State Energy Officials (NASEO) to update the November 2014 edition of the guidance on emergencies and hours-of-service (HOS) waivers. NPGA said it identified the need to clarify points of confusion regarding regional waivers afforded by the Federal Motor Carrier Safety Administration (FMCSA), as well as provide state officials more information on what constitutes an emergency to justify a declaration and HOS waiver.
Energy Transfer LP Hosting Mariner East Open Season
Wednesday, December 12, 2018
Energy Transfer LP (Dallas) said Nov. 30 that its subsidiary, Sunoco Pipeline LP, has launched a binding open season to solicit shipper commitments for transportation service of C3-plus natural gas liquids from the Marcellus/Utica play in Pennsylvania to facilities in Claymont, Del. and Marcus Hook, Pa. via the Mariner East pipeline system.
First Time Since 1949 U.S. On Track To Become Net Exporter Of Petroleum. Shale Boom Lowers U.S. Trade Deficit by $250 Billion
Wednesday, December 12, 2018
The U.S. is now on track to become a net exporter of petroleum for the first time since at least 1949, writes IHS Markit, a development leading to additional expected trade deficit gains. The boom in U.S. oil and gas production over the past decade has exerted a moderating force on what is a large domestic merchandise trade deficit by helping to reduce the country’s net petroleum imports, a new report by the business information provider observes.
Governments Seen Determining Future Shape of Energy System
Tuesday, December 11, 2018
Major transformations are under way for the global energy sector, from growing electrification to the expansion of renewables, upheavals in oil production, and globalization of natural gas markets, writes the International Energy Agency (IEA) in its World Energy Outlook 2018 report. “Across all regions and fuels, policy choices made by governments will determine the shape of the energy system of the future,” the organization asserts.