Legislation on Tax Parity for Alternative Fuels Passes House
Friday, July 24, 2015
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.
Mid-Month to Mid-Month: Lower Prices Coming?
Thursday, July 16, 2015
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.
International: Markets Facing Mixed Prices, Soft Demand
Thursday, July 16, 2015
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.
Topping Off...
Thursday, July 16, 2015
…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…
Pipeline Projects Support Prices And Production in Eastern U.S.
Thursday, July 16, 2015
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 Subsidiary Merges With MarkWest Energy
Thursday, July 16, 2015
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.
EIA Expands Coverage of U.S. Natural Gas Production
Friday, July 10, 2015
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’s Lucerne 2 Plant Launches Operations
Friday, July 10, 2015
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.
EIA: Net Petroleum Product Exports Continue to Increase
Friday, July 10, 2015
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.
RRC Chairman Highlights Safety Policy Changes for South Texas
Friday, July 10, 2015
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.
Court Refuses to Halt LNG Plant Construction
Friday, July 10, 2015
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.
GPA Seeks Seat on Pipeline Infrastructure Task Force
Friday, July 10, 2015
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.
Right Energy Policies Promise More Jobs, Robust Economy
Friday, July 10, 2015
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 Acquires Utah’s Propane Advantage
Friday, July 10, 2015
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.
NAFTC Develops Specialized First Responder Training Classes
Friday, July 10, 2015
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.
Exports Provide Outlet for Growing Propane Production
Friday, July 10, 2015
Exports of propane from the U.S. have been rising sharply since 2011, notes the Energy Information Administration (EIA). In April 2015—the latest available monthly data—propane exports averaged 636,000 bbld, 222,000 bbld above April 2014 levels. Meanwhile, U.S. propane production was 190,000 bbld higher in the first four months of 2015 compared to the same period in 2014, while exports were up 201,000 bbld between the two periods.
Topping Off...
Thursday, July 2, 2015
…According to the American Automobile Association, the number of motorists hitting the road in recreational vehicles this summer will hit the highest level in a decade. On the Propane MaRC, the Propane Education & Research Council offers free photos, a brochure, and a 30-second radio public service announcement on safety that are designed to appeal to RV enthusiasts…
Wolfcamp Delaware Hydrocarbon Play’s Economic Potential Emerging
Thursday, July 2, 2015
Located in the western portion of the Permian Basin that straddles the Texas-New Mexico border, the Wolfcamp Delaware is an emerging hydrocarbon play that has the economic potential to sustain select operators through the ongoing period of distressed oil prices, reports IHS in new analysis. However, like most adolescents, it is a story of promise, potential, and testing limits.
PBF Energy Buying Chalmette Refinery from ExxonMobil, PDV
Thursday, July 2, 2015
PBF Energy Inc. (Parsippany, N.J.) said June 18 that it has signed an agreement to acquire 100% of Chalmette Refining LLC, including its 189,000-bbld refinery in Chalmette, La., from joint-venture owners ExxonMobil and PDV Chalmette LLC, a subsidiary of state-owned Petróleos de Venezuela SA. The agreement includes related logistics and chemical assets. With the $322-million acquisition, PBF Energy will increase its throughput capacity to more than 725,000 bbld.
Refiner Margins Fail to Fully Offset Low Upstream Earnings
Thursday, July 2, 2015
First-quarter 2015 financial results for globally integrated oil companies, those that focus on both the exploration and production of crude oil—upstream—and the refining of crude into petroleum products—downstream—show that total earnings were $22 billion, or 54%, lower than in first-quarter 2014, reports the Energy Information Administration (EIA).
Unconventional Techniques Seen Reviving Old Conventional Fields
Thursday, July 2, 2015
As much as 141 Bbbl of potential incremental hydrocarbon resources could be unlocked if drilling and completion techniques refined in U.S. shale plays are applied to conventional, low-productivity oil plays outside of North America, according to new analysis from the consultancy IHS.
Alaska LNG Project Gets Conditional Export Approval
Thursday, July 2, 2015
The Alaska LNG project has received conditional authorization from the U.S. Department of Energy (DOE) to export liquefied natural gas to non-free trade agreement countries. The application to export up to 20 million metric tons a year from Alaska was submitted to DOE last July. Authorization to export to nations with free trade agreements was granted in November 2014. “We are very pleased with the progress this represents,” said Steve Butt, Alaska LNG senior project manager.