Proulx Oil & Propane Merges With J.A. Bourque & Sons
Thursday, February 19, 2015
Proulx Oil & Propane (Newmarket, N.H.) has joined forces with J.A. Bourque & Sons, a 78-year-old oil company in Manchester, N.H. The combined company will provide heating oil and propane delivery, air conditioning and heating system installation and 24-hour service for homeowners from southern Maine and the Seacoast through central New Hampshire and the White Mountain region.
Natural Gas Prices Drop Following Strong Production
Thursday, February 19, 2015
Following a short-lived price increase in Novem­ber, natural gas prices have dropped to their lowest levels since September 2012, reflecting strong domestic produc­tion and inventory builds, reports the Energy Information Administration (EIA). The 2013-2014 winter’s sustained cold weather and record drawdown of inventories led Henry Hub prices to spike to five-year highs, peaking at a monthly average of $6/MMBtu in February 2014.
NGL Production Forecast Drops 60% on Lower Prices
Thursday, February 19, 2015
The global energy market intelligence consultancy Genscape (Louisville, Ky.) has dropped its expectation for year-on-year NGL production growth by roughly 100,000 bbld, or 25%, for 2015, and 125,000 bbld, or 60%, for 2016. Growth in 2016 is now expected to be only 40,000 bbld, most of which is additional ethane recovered to meet commitments in the Northeast.
MFA Oil Expands Propane Operations Into Utah
Thursday, February 19, 2015
MFA Oil Company (Columbia, Mo.) has acquired Basin Propane Systems, an independently owned propane retailer based in Vernal, Utah. Basin Propane services cus­tomers in the northeast region of the state.
NGL Projects Seen Bolstering Jobs, Pennsylvania Economy
Thursday, February 19, 2015
Philadelphia-based Econsult Solutions has released an economic impact study that finds the Sunoco Logis­tics Mariner East projects are expected to add up to $4.2 billion to Pennsylvania’s economy, supporting more than 30,000 jobs during the construction period and about 300 to 400 permanent jobs.
NGL Energy Completes Purchase Of Magnum NGL Storage Assets
Thursday, February 19, 2015
NGL Energy Partners LP (Tulsa) said Feb. 18 it had completed its acquisition of Magnum NGLs from Magnum Development LLC, a company of Haddington Ventures LLC (Houston). Magnum owns and operates an NGL storage facility with multiple salt caverns and a potential capacity of greater than 10 MMbbl. The facility is located southwest of Salt Lake City, Utah, with rail and truck access to western U.S. markets.
Canyon Midstream Begins Operations at James Lake
Thursday, February 19, 2015
Canyon Midstream Partners LLC (Houston) said Feb. 6 it had commenced operations at its James Lake system in the Permian Basin. Phase 1 consists of a 105-MMcfd cryogenic gas processing plant in Ector County, Texas, and six field compressor stations, 60 miles of 12-in. trunk line, and 20 miles of low-pressure gathering lines in Actor and Andrews counties, Texas.
Supplying Future Energy Needs
Thursday, February 19, 2015
Analysts have forecast that the world’s hunger for energy will rise by more than 40% in the next two decades, with exports from oil-producing countries likely to slow down. However, it is expected that there should be enough energy available to meet climbing demand until 2035, when a fifth of the world’s gas will come from shale production.
Mont Belvieu and Conway Spots Dip
Thursday, February 19, 2015
Spot propane at Mont Belvieu and Conway, Kan. Thursday, Feb. 19 posted some minimal losses compared to the Friday, Feb. 13 Update. Belvieu trading mid-morning was off a half cent to 0.625 cents com­pared to the previous reporting period, and Conway was down a penny. While bitter winter cold continues to grip much of the country, propane inventories remain well above the seasonal average at 61.5 MMbbl as the heating season winds down.
EPA Awards Rebates to 30 States to Replace School Buses
Thursday, February 19, 2015
The U.S. Environmental Protection Agency (EPA) has awarded more than $3 million in rebates to replace 210 older diesel school buses with new diesel buses that are more than 90% cleaner, reducing pollutants such as nitrogen oxides and particulate matter. Seventy-six school bus fleets in 30 states received rebates through EPA’s Diesel Emissions Reduction Act (DERA) funding to replace buses.
COMMENTARY: Postings Climb
Thursday, February 19, 2015
Principal postings hardened considerably Thursday, Feb. 19, with prices firming a minimum of 3 cents but as much as 9.75 cents compared to the Friday, Feb. 13 Update. The steepest increases appeared on TEPPCO and on the Dixie Pipeline. Conversely, on the West Coast Los Angeles postings shed 3 to 8 cents over the same period.
Canadian Inventories Decline 13.4% in January
Thursday, February 19, 2015
Canadian underground propane inventories fell 13.4% in January to post a monthly loss of 225.5 Mcm, accord­ing to the National Energy Board (NEB). As of Feb. 1, stocks stood at 1461.2 Mcm, the equivalent of 9.2 MMbbl. January’s decline followed volumes dropping 11.8% in December. Compared to a year earlier, however, supplies as of the beginning of February were a significant 274.1%, or 1070.6 Mcm, higher.
Growing HGL Production Spurs Petrochemical Industry Investment
Thursday, February 12, 2015
The Energy Information Administration (EIA) reports that between 2014 and 2018, U.S. petrochemi­cal capacity expansion projects are projected to increase domestic demand for ethane by nearly 600,000 bbld and propane by nearly 200,000 bbld. This growing demand is in response to rising domestic hydrocarbon gas liquids (HGL) supply and favorable petrochemical feedstock prices in the U.S.
Paraco Gas Acquires KingstonOil’s Propane Division
Thursday, February 12, 2015
Kingston Oil Supply Corp. (Kosco), a full-service retail propane gas and heating oil company based in Hudson Valley, N.Y., sold its propane division and formed a strategic alliance for its fueloil division with Paraco Gas Corp. (Rye Brook, N.Y.). The sale of Kosco’s propane division to Paraco Gas includes service to 9000 existing Kosco propane accounts that use approximately 3.4 million gallons of propane annually.
Midwest Propane Market Better Balanced Than Year-Ago Period
Thursday, February 12, 2015
Stating the obvious, the Energy Information Administration (EIA) noted Feb. 4 that higher invento­ries, milder weather, and falling crude oil and natural gas prices have resulted in a Midwest propane market that so far this winter has not experienced the challenges faced last winter.
Mid-Month to Mid-Month: Time to Take a Breather
Thursday, February 12, 2015
Prices appear to be taking a minute to regroup and determine where the path heads. As it was a month ago, it seems that uncertainty continues to be the keyword. At Mont Belvieu, posted prices are keeping well above the 50-cent/gal.
U.S. Propane Inventories Decline 2.3 MMbbl
Thursday, February 12, 2015
U.S. propane stocks fell by 2.3 MMbbl the week ended Feb. 6 to stand at 65 MMbbl, according to the Energy Information Administration (EIA) in its Feb. 11 “This Week in Petroleum” report. As of that reporting period, volumes were 37.1 MMbbl, or 132.8%, higher than a year ago. As a stark reminder of this year’s bounty versus last season’s penury, Midwest supplies alone, which last year stood at a bare-boned total just under 9 MMbbl, were up nearly 12 MMbbl, or 131.6%.
Conway Spots Edge Up, Belvieu Little Changed
Thursday, February 12, 2015
Spot propane at Mont Belvieu and Conway, Kan. Thursday, Feb. 12 tem­pered strong early-week gains, with trading at the Texas hub little changed from the Monday email Update and the Midwest rising another penny. Early in the week prices at Belvieu hardened by 2.5 to 2.875 cents, while by Thursday they were either 0.125 cents lower or unchanged. Conway strengthened 3.25 cents when the markets opened after the weekend, and as the week was ending prices had edged up another penny.
Falling Oil Prices Underline OPEC’s Diminishing Influence
Thursday, February 12, 2015
With oil prices having fallen more than 50% in less than six months, the OPEC group’s reluctance to cut production in order to stabilize prices reflects the threat being posed by production increases from non-OPEC countries, according to the research and consulting firm GlobalData (London). Matthew Jurecky, GlobalData’s head of oil and gas research and consulting, states that more than 70% of the 12.7-MMbbld incremental pro­duction between 2008 and 2013 came from non-OPEC countries, led by the U.S., Russia, and China.
COMMENTARY: Postings Up, Down
Thursday, February 12, 2015
Principal postings were both higher and lower Thursday, Feb. 12, showing mixed results on the Dixie Pipeline and on TEPPCO while Midwest prices universally gained and Mont Belvieu declined. Increases were in a range of a half cent to as much as 7 cents, and discounts were from a quarter cent to 2 cents compared to the Monday email Update.
Market Balances Reflected in Changing Futures Price Spreads
Thursday, February 12, 2015
As supply and demand balances loosened in the second half of 2014, global inventories increased and crude oil prices for near-term delivery declined substan­tially more than prices for delivery farther into the future, reports the Energy Information Administration (EIA). In January 2015, the price discount of near-term deliveries to longer-dated deliveries grew to the highest levels since 2009 for North Sea Brent futures and since 2011 for West Texas Intermediate (WTI) futures.