Propane Industry News

Allison Platz has been hired as an assistant for Arro Autogas, the propane autogas division of Delta Liquid Energy (Paso Robles, Calif.). Platz is the great-granddaughter of the late Harry and Iva Platz, Delta Liquid Energy co-founders, and is the first fourth-generation family member to join the company.

The Federal Motor Carrier Safety Administration (FMCSA) has issued a final rule to amend the Federal Motor Carrier Safety Regulations to allow the voluntary mounting of certain devices on the interior of windshields of commercial motor vehicles, including placement within the area that is swept by windshield wipers on the exterior.

The U.S. simultaneously imports and exports gasoline because of regional differences in gasoline supply and demand balances, reports the Energy Information Administration (EIA). The two regions with the largest supply and demand imbalances are the East Coast, which imported 581,000 bbld of gasoline in 2015, and the Gulf Coast, which exported 551,000 bbld in 2015.

Production of oil and natural gas in the Appalachian Basin’s Utica play, which includes both the Utica and Point Pleasant formations, has increased significantly since 2012, reports the Energy Information Administration (EIA). Monthly natural gas from Utica wells increased from 0.1 Bcfd in December 2013 to more than 3.5 Bcfd in June 2016. Oil production increased from 4400 bbld to nearly 76,000 bbld over the same period.

Mexico’s secretary of energy says the nation could open its vast shale fields to U.S. drillers as early as next year. Pedro Joaquin Coldwell, speaking Sept. 23 at Rice University in Houston, said long-delayed auctions for shale
fields in northern Mexico could begin in the first quarter of 2017, adding that final preparations should be completed by March.

Starting in September, the Energy Information Administration’s (EIA) Drilling Productivity Report (DPR) began including estimates of the number of drilled but uncompleted wells (DUCs) in the seven DPR regions. Estimates will go through the prior month. The September DPR includes estimates through August.

As outlined by Wells Fargo Securities, and with the arrival of the first ethane shipment from Enterprise Products Partners’ terminal in Morgan’s Point, Texas, Oil & Gas 360 reports that total U.S. NGL supply averaged 4,509,000 bbld in May 2016, representing a 10.6% increase from the prior year. NGL production from natural gas processing accounted for 82% of supply while imports and refinery outputs accounted for 3% and 15%, respectively.

American Petroleum Institute (API) president and CEO Jack Gerard highlighted the importance of American energy ahead of the first presidential debate Sept. 26. Gerard noted that the debate was scheduled to focus on securing America, achieving prosperity, and America’s direction. He asserted that a conversation about any of those topics cannot occur without including the U.S. energy sector and, in particular, U.S. oil and natural gas.

A coalition of groups supportive of responsible resource development in Alaska and off its coast have launched a new broadcast, print, and digital advertising campaign calling on the Obama administration to keep intact the Arctic leasing areas currently contained in the Department of Interior’s draft proposed plan. The draft program, revealed in March, allows for the possibility of lease sales to be held for federally controlled tracts in the Beaufort and Chukchi seas.

The recent delivery of 16 alternative fuel buses to the Flint, Mich. Mass Transportation Agency signals the largest rollout of Blue Bird Corp.’s propane Vision buses for commercial use. According to Flint MTA, the new buses will cut costs, reduce emissions, and allow the agency to take advantage of a domestically produced fuel. Compared with the diesel buses they replaced, each new bus will reduce nitrogen oxide emissions by 800 pounds a year and particulate matter by 35 pounds.

Starting with the Aug. 31 release of its Weekly Petroleum Status Report (WPSR), the Energy Information Administration (EIA) began publishing weekly petroleum export and consumption estimates. The estimates are based on near-real-time export data provided by U.S. Customs and Border Protection. EIA previously relied on weekly export estimates based on monthly official export data published by the U.S. Census Bureau roughly six weeks following the end of each reporting month.

The National Propane Gas Association (NPGA) reports that data developed by IHS shows continued length in domestic propane inventory for September, with weekly estimates expected to outpace values seen in September 2015 and potentially setting a record for the month. The primary driver behind the growth in weekly stocks is a dramatic decline in propane exports due to low arbitrage economics in Asia, notes NPGA.

WASHINGTON, DC (September 26, 2016) – The Federal Motor Carrier Safety Administration (FMCSA) has issued a final rule to amend the Federal Motor Carrier Safety Regulations (FMCSRs) to allow the voluntary mounting of certain devices on the interior of the windshields of commercial motor vehicles (CMVs), including placement within the area that is swept by the windshield wipers.

Since the removal of the final significant restrictions on exporting U.S. crude oil in December 2015, the number of countries receiving exported crude from the nation has risen sharply, the Energy Information Administration (EIA) said in August. These exports have occurred despite a sustained narrow price premium of international crude oil prices over U.S. domestic prices, the many costs associated with arranging cargos for export, and falling U.S. crude production.

Apache Corp. (Houston) has confirmed its discovery of a significant new resource play, the Alpine High, on acreage it owns in the southern portion of the Delaware Basin, primarily in Reeves County, Texas. The company estimates hydrocarbons in place are 75 Tcf of rich gas and 3 Bbbl of oil in the Barnett and Woodford formations alone. Apache also sees significant oil potential in the shallower Pennsylvanian, Bone Springs, and Wolfcamp formations.

Global oil demand growth is slowing at a faster pace than initially predicted, the newly released Oil Market Report from the International Energy Agency (IEA) tells subscribers. For 2016, a gain of 1.3 MMbbld is now expected, a downgrade of 0.1 MMbbld from the agency’s previous forecast due to a more pronounced third-quarter slowdown. Momentum eases further to 1.2 MMbbld in 2017 as underlying macroeconomic conditions remain uncertain.

Calgary-based Enbridge Inc. and Spectra Energy Corp. (Houston) have entered into a merger agreement under which the two companies will combine in a stock-for-stock transaction. The merger will create one of the largest energy infrastructure companies in North America with a value of about $127 billion. Enbridge president and CEO Al Monaco will serve as president and CEO of the combined company. Greg Ebel, Spectra president and CEO, will

With the Obama administration temporarily shutting down construction of one segment of the Dakota Access Pipeline, American Petroleum Institute president Jack Gerard and North America’s Building Trades Unions president Sean McGarvey are underscoring the benefits of increased energy infrastructure and the negative impact of administration action on the rule of law, American workers, and consumers.

The Propane Education & Research Council (PERC) has launched Propane Equipment Dealer Point, an online search tool that allows commercial landscape contractors to find the nearest knowledgeable dealers of propane-powered mowers. Propane equipment dealers can also sign up—free of charge—to be listed as a propane equipment dealer on Dealer Point.

Invitations have been extended to propane industry members to play in Trinity Containers’ Golf Fore Education Tournament Oct. 1 at the Omni Grove Park Inn in Asheville, N.C. The event precedes the start of the National Propane Gas Association (NPGA) fall board of directors meeting. All proceeds benefit the National Propane Gas Foundation (NPGF) Scholarship Fund.

Pennsylvania’s natural gas production volume trended upward in 2015, according to the newly released Department of Environmental Protection (DEP) 2015 Oil and Gas Annual Report. In 2015, more than 4.6 Tcf of natural gas was produced in the Keystone State compared to about 1 Tcf in 2011. Currently, Pennsylvania is reported to be the second-largest supplier of natural gas in the nation.