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.
Hexagon Acquires Remaining 50% Stake in Agility Fuel Systems
Tuesday, December 4, 2018
Hexagon Composites ASA (Aalesund, Norway) is acquiring the remaining 50% of Agility Fuel Solutions Holdings Inc. (Costa Mesa, Calif.). The transaction values Agility’s 100% equity at $250 million. Signing of the agreement took place Nov. 8. Closing is expected in January 2019.
FMCSA Adds Propane to Hours Of Service (HOS) Short-Haul Exemption
Friday, November 30, 2018
The National Propane Gas Association (NPGA) reports that the Federal Motor Carrier Safety Administration (FMCSA) has amended its hours-of-service regulations. The move includes propane among the fuels excluded from the requirement to observe a 30-minute break when a driver unexpectedly exceeds the requirements of the short-haul criteria specified in 49 CFR 395.1(e).
Shale Boom Lowers U.S. Trade Deficit by $250 Billion
Friday, November 30, 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 produc- tion 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.
Space, Water Heating Account for Nearly Two-Thirds of Home Energy
Sunday, November 25, 2018
Space heating and water heating were the top two energy-consuming uses in U.S. homes in 2015, according to the Energy Information Administration’s (EIA) latest Residential Energy Consumption Survey. Space heating consumption can vary considerably by climate and building characteristics, while variation in water heating consumption is driven primarily by the number of occupants in a home. Households use a variety of fuels for space heating and water heating, which affects the end-use shares of household energy expenditures.
Enterprise Projects Set To Boost Fractionation and Processing
Monday, November 19, 2018
Enterprise Products Partners LP (Houston) is again increasing natural gas liquids fractionation capacity at its Mont Belvieu complex, complementing its previously reported move to construct a new fractionator adjacent to the complex. In addition, the company has begun construction of a new natural gas processing plant and work has started to increase LPG loading capacity at its hydro-carbon terminal on the Houston Ship Channel.
Ferrellgas Acquires Wylie LP Gas, Salathe Gas, North Star Exchange
Thursday, November 15, 2018
(November 15, 2018) — Ferrellgas Partners LP (Overland Park, Kan.) has acquired Wylie LP Gas Inc. of Lubbock, Texas; Salathe Gas Co. of Harvey, La.; and North Star Exchange Inc. of Walton, Ind. Terms of the deals were not disclosed. The transactions are expected to be immediately accretive.
Analysis Shows Energy States Recovering from Bust of 2014
Thursday, November 15, 2018
The proliferation of hydraulic fracturing to extract oil and natural gas has been one of the most profound drivers of regional-level growth prospects in recent memory, writes Kark Kuykendall, principal economist, U.S. regional economics, at IHS Markit. It revitalized the energy industry in traditional oil-producing states such as Texas and Oklahoma and opened up brand new industries in North Dakota and Pennsylvania, bringing an economic windfall to rural areas that otherwise would attract little interest for outside investment.
China LPG Importers Hit As U.S., Iran Supplies Fall
Monday, November 12, 2018
Chinese importers of LPG have been hit with higher prices and narrower margins as an ongoing trade dispute and sanctions have forced them to axe supplies from two key exporters—the U.S. and Iran—writes S&P Global Platts. China’s propane dehydrogenation (PDH) plant operators, the main LPG importers, have sought alternative supply as they resell contracted volumes from the U.S., pushing up procurement costs even though the overall LPG market remains well supplied.
Canadian Farmers Cite Propane Supply Tightness for Crop Drying
Monday, November 5, 2018
(November 5, 2018) — While the 2018 corn and soybean harvest on the U.S. side has seen average demand for propane to serve crop drying operations so far, farmers in parts of Western Canada in October were reported to be facing challenges to secure sufficient fuel to get this year’s wet and snowy crop in the bin. “It’s an added stress factor producers don’t need,” Ian Boxall, a grain farmer and vice president of the Agriculture Producers Association of Saskatchewan, told iPolitics.