Canadian underground propane inventories in June climbed 6.8% to post a month-over-month increase of 87.0 Mcm, according to the National Energy Board (NEB). As of July 1, stocks stood at 1368.6 Mcm, the equivalent of 8.6 MMbbl. Compared to a year earlier, volumes were higher by a sharp 30.7%, advancing 321.2 Mcm.
Westport Innovations Inc. (Vancouver, B.C.) said July 7 it will begin offering dedicated, liquid propane fuel systems for 2016 Ford 5.0-liter F-150 pickup trucks. The new system will be in addition to Westport’s CNG package for the Ford F-150. Both fuel option packages are part of the company’s WiNG Power System and are expected to be certified by the Environmental Protection Agency and the California Air Resources Board.
Forty-five U.S. Senate Democrats have released a letter to all 50 state governors requesting their comments on national energy policy. The senators outlined their priorities for a national energy policy as investing in clean energy, empowering consumers, modernizing infrastructure, cutting carbon pollution and waste, and investing in research and development.
Virginia Clean Cities is commending Virginia Gov. Terry McAuliffe for increasing access to funds to help accelerate the conversion of public-sector fleets to alternative fuel vehicles in areas with some of the highest air quality issues in the state. At its June meeting, the Commonwealth Transportation Board (CTB) approved expanding access to the Virginia Alternative Fuel Vehicles Program to local governments.
Independent Petroleum Association of America (IPAA) president and CEO Barry Russell has sent a letter to President Obama in support of efforts to lift the 1970s-era restrictions on exporting surpluses of U.S. crude oil to the global marketplace. In the letter, Russell outlined how repealing the 40-year-old crude exports ban would benefit American consumers, businesses, and national security.

 

Delaware Gov. Jack Markell and the state’s Department of Natural Resources and Environmental Control have introduced the Clean Transportation Incentive Program. With $2.7 million in funding initially available, the program includes three rebate programs for purchasing passenger vehicles, tractor trailer trucks, and electric vehicle charging equipment, as well as two competitive grant programs that provide financial incentives for the development of alternative fueling infrastructure.
The Air-Conditioning, Heating, and Refrigeration Institute (AHRI) has filed comments in response to the U.S. Department of Energy’s (DOE) notice of proposed rulemaking on energy conservation standards for residential furnaces (80 Fed. Reg. 13,120). AHRI is objecting to a proposed revised minimum 92% AFUE standard for non-weatherized and mobile home gas furnaces.
A provision sponsored by U.S. Rep. Todd Young (R-Ind.) that would provide excise tax parity for on-highway propane and liquefied natural gas has been passed in the U.S. House of Representatives. The provision is included in H.R. 3038, a five-month extension of the highway bill. The bipartisan provision ensures that excise taxes are levied at a rate consistent with propane and LNG’s energy output relative to gasoline and diesel.
The energy markets this week were focused on the lifting of sanctions on Iran following a deal being struck over its nuclear program. An end to sanctions revived the specter of adding to the persistent global crude oil glut, further depressing already low prices. Analysts reported there was a possibility of up to 1 MMbbld of additional oil quickly flooding the markets, an amount Iranian officials said the nation could deliver within months. U.S.
Royal Dutch Shell is set to embark on a contentious Arctic drilling campaign, spending nearly $3 billion (U.S.) over two years in an effort to strike oil in an area seen as the last undiscovered frontier for the energy industry. In the face of fierce opposition from environmentalists, Shell plans to drill two new wells at sites in the Chukchi Sea, off the northwest coast of Alaska.
…The House Oversight and Government Reform Committee July 9 issued a subpoena to Secretary of State John Kerry to provide all reports, recommendations, letters, and comments received by the State Department from advising agencies regarding the permit for the Keystone XL pipeline. The subpoena followed letters to the department on Feb. 24 and June 15 requesting the same documents. To date, the State Department has been unwilling to produce any of the requested materials…
Two major natural gas pipeline projects serving the Marcellus/Utica areas scheduled to come online in August will support further increases in East U.S. production and should be supportive of basis prices in those producing areas, notes the market intelligence consultancy Genscape. However, some of the price gains may be muted by expectations of weak downstream demand growth in markets targeted by the projects.
Marathon Petroleum Corp. (MPC; Findlay, Ohio) said July 13 that its midstream master limited partnership, MPLX LP, had signed a merger agreement with MarkWest Energy Partners LP (Denver) whereby MarkWest would become a wholly owned subsidiary of MPLX. The merger would be a unit-for-unit transaction, generally expected to be tax-free, plus a one-time cash payment to MarkWest unit holders. The deal is valued at about $20 billion, including assumption of debt of about $4.2 billion.
The Energy Information Administration (EIA) has expanded its reporting of monthly natural gas production by adding 10 more states. The enhanced coverage, which now includes Arkansas, California, Colorado, Kansas, Montana, North Dakota, Ohio, Pennsylvania, Utah, and West Virginia, broadens EIA’s efforts, previously limited to Alaska, Louisiana, New Mexico, Oklahoma, Texas, Wyoming, and the federal Gulf of Mexico.
DCP Midstream Partners’ new 200-MMcfd Lucerne 2 natural gas processing plant is now in service, increasing the company’s processing capacity in the Denver-Julesburg Basin to about 400 MMcfd. Lucerne 2 is the largest of a nine-plant system in the D-J Basin owned and operated by DCP.
Petroleum product exports averaged 4.1 MMbbld over the first four months of this year, the latest data available, reports the Energy Information Administration (EIA). This was an increase of 0.5 MMbbld over the same time last year. Meanwhile, product imports are also higher than last year, but to a lesser extent, leading to an increase in net petroleum product exports.
Railroad Commission of Texas (RRC) chairman David Porter has laid out several policy changes to increase commission inspection staff safety in the pipeline areas in South Texas. Enhancements include ensuring that RRC staff and inspectors who want to carry firearms for self-protection on duty have the opportunity to obtain their concealed handgun license in a timely manner.
A federal court of appeals has refused to stop construction of an LNG export facility in southern Maryland while it considers additional legal challenges to the project’s approval. A three-judge panel of the U.S.
The Gas Processors Association (GPA) reports that Pennsylvania’s new Democrat governor, Tom Wolf, is forming a pipeline infrastructure task force, with the stated intention being to help commonwealth agencies, the natural gas industry, and communities work together as thousands of miles of pipelines are being proposed to transport natural gas and natural gas liquids throughout the state.
Pro-development energy policies could add 2.3 million U.S. jobs and add $443 billion a year to the U.S. economy by 2035, according to a study by Wood Mackenzie, “A Comparison of U.S. Oil and Natural Gas Policies—Pro Development vs. Proposed Regulatory Constraints,” released by the American Petroleum Institute (API).
Ferrellgas Partners LP said July 6 that it had acquired the assets of Propane Advantage LLC. Ferrellgas commented that the acquisition expands its strategic footprint, giving the company entry to the rapidly growing Salt Lake City, Utah market and complementing its existing operations in the Mountain West region.
The National Alternative Training Consortium (NAFTC) is working on the development of two stand-alone first responder safety training courses, one targeting law enforcement and one aimed at emergency medical services (EMS) personnel. Sponsored by Tulsa Area Clean Cities, the training materials are being developed as a complement to NAFTC’s existing U.S. Department of Energy-funded Firefighter Safety Training for Alternative Fuel Vehicles curricula.