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.
Murkowski: Iran Deal Will Disadvantage U.S. Energy
Thursday, July 2, 2015
U.S. Sen. Lisa Murkowski (R-Alaska), advancing efforts to lift the current ban on most U.S. crude oil exports, has released a report making the case that sanctions on Iranian oil should not be lifted without also lifting the ban on U.S. crude exports. The report, “Cross-Currents: Iranian Oil and the U.S. Export Ban,” challenges Obama administration statements to support her argument.
EPA, DOT Propose Efficiency Standards for Heavy-Duty Trucks
Thursday, July 2, 2015
The U.S. Environmental Protection Agency (EPA) and the Department of Transportation’s (DOT) National Highway Traffic Safety Administration are jointly proposing new standards for medium- and heavy-duty trucks aimed at boosting fuel efficiency and cutting carbon emissions. Claimed is that the move will reduce the impacts of climate change, bolster energy security, and spur manufacturing innovation.
NGL Market Weakness to Shift from Wet to Dry Gas?
Thursday, July 2, 2015
The energy consultancy Wood Mackenzie notes that recent declines in NGL prices are exacerbating the financial stress facing operators following the fall in oil prices over the past year. This is due to an oversupplied global market, driven by North American rich-gas production and a lack of market access for ethane and LPG—with the exception of the Gulf Coast.
Kinder Morgan Hosting Open Season for Marcellus Pipeline
Thursday, July 2, 2015
Kinder Morgan Inc. (Houston) has launched a binding open season to solicit commitments for the proposed Utica Marcellus Texas Pipeline (UMTP), which would transport liquids produced from the Utica and Marcellus basins to delivery points along the Texas Gulf Coast, including connectivity to a Kinder Morgan dock.