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.
Gas Water Heater Shipments Increase 3.9% in November
Friday, February 6, 2015
U.S. shipments of residential gas storage water heaters for November 2014 increased 3.9% to 362,082 units, up from 348,542 units shipped in November 2013, reports the Air-Conditioning, Heating & Refrigeration Institute (AHRI).
Freightliner Showcases Expanded S2G Applications With First Box Truck
Friday, February 6, 2015
As sales of the propane autogas S2G truck continue to grow among its initial market of propane distributors, Freightliner Custom Chassis Corp. (Gaffney, S.C.) is demonstrating new applications for the truck with the sale of its first medium-duty dry van, also known as a box truck, for a specialty manufacturer in California.
Crude Outlook Report
Wednesday, February 4, 2015
EIA reported Jan. 26 that the sharp decline in oil prices over the last quarter of 2014, which continued in January, is already having a significant effect on drilling activity in the U.S., as shown by the 16% drop in the number of active onshore drilling rigs in the Lower 48 states between the weeks ending Oct. 31, 2014 and Jan. 23, 2015.
Mont Belvieu, Conway Posts Move Lower
Sunday, January 11, 2015
The spot markets picked up where they left off prior to the holidays and continued to move even lower Thursday, Jan. 8. Mont Belvieu was down another 1.75 to 2 cents, while Conway shed just a half cent compared to the Monday email Update. Those late-week losses added more bad news for the markets as early-week trading showed even steeper declines of 4.375 cents at Belvieu and 4.5 cents at Conway compared to the previous reporting period. Significantly, Texas propane has dropped well under 50 cents/gal. and the Midwest is now below 40 cents.
U.S. Propane Inventories Fall 1.6 MMbbl
Sunday, January 11, 2015
U.S. propane stocks fell by 1.6 MMbbl the week ended Jan. 2 to stand at 75.7 MMbbl, according to the Energy Information Administration's (EIA) latest "This Week in Petroleum" report. The draw left volumes 33.2 MMbbl, or 78.3%, higher than a year ago. The Gulf Coast gave up 1.1 MMbbl and the Midwest 0.4 MMbbl. Rocky Mountain/West Coast regional inventories declined by 0.1 MMbbl, while East Coast supplies gained 0.1 MMbbl. Propylene non-fuel-use stocks represented 4.8% of total propane inventories, inching up from 4.6% the previous week.
Heightened Inspection Regime Explored by Railroad Commission
Sunday, January 11, 2015
Railroad Commission of Texas (RRC) chairwoman Christi Craddick has directed the commission's executive director to explore the potential need for further emphasis on inspections in highly populated, urban areas throughout the state. Craddick noted that RRC has heard concerns from residents of urban areas where drilling is occurring.
November Petroleum Demand Reaches 7-Year High
Sunday, January 11, 2015
Total U.S. petroleum deliveries, a measure of demand, rose in November by 1.9% from November 2013 to average 19.9 MMbbld, the highest level for the month in seven years, reports the American Petroleum Institute (API). ìIt has been several years since weíve seen this level of demand in November,î said API chief economist John Felmy. ìThe economy overall appeared to be in good shape, and production of crude, natural gas, and refined products all remained quite strong.î
New Routes Adopted for Northeast Gas Expansion
Wednesday, January 7, 2015
Tennessee Gas Pipeline Co. (TGP), a subsidiary of Kinder Morgan Inc. (Houston), is adopting two alternative routes for its proposed Northeast Energy Direct project to minimize environmental impact and allow for the expan¬sion of natural gas service in New Hampshire. Following an evaluation of feasible route alternatives from Wright, N.Y. to Dracut, Mass., the company has submitted an amended filing with the Federal Energy Regulatory Com¬mission.
Mont Belvieu, Midwest Spots Little Changed
Wednesday, January 7, 2015
While overall quiet prevailed in the markets late in the week, spot propane at Mont Belvieu and Conway, Kan. was only fractionally higher and lower Thursday, Dec. 18, compared to the Monday email Update. The Texas trading hub showed minimal gains of just 0.125 to 0.625 cents mid-morning, while the Midwest had slipped 0.625 cents. The late-week moves followed some gains in both markets Monday, when Belvieu stepped up 1.125 cents and Conway jumped 2.5 cents from the previous reporting period. Market watchers note there is currently overhang for propane supply.
COMMENTARY Most Postings Dip
Wednesday, January 7, 2015
Most principal postings declined Thursday, Dec. 18, backing off a minimum of an odd 0.35 cents but as much as 3.75 cents compared to the Monday email Update. There was a scattering of increases in the Midwest, on TEPPCO, and at Mont Belvieu. The additions ranged from a quarter cent to 1.32 cents. Two sellers held firm in the Midwest.
Canadian Inventories Inch Higher, Dip in East
Wednesday, January 7, 2015
Canadian underground inventories rose just 0.8% in November for a monthly gain of 15.8 Mcm, according to the National Energy Board (NEB). As of Dec. 1 they stood at 1921.7 Mcm, the equivalent of 12.1 MMbbl. The slight build followed stocks rising 0.5% in October. Compared to a year ago, however, November volumes were a marked 92.9% higher, or by 925.3 Mcm.
Barton Bill Would Remove Crude Oil Export Restrictions
Wednesday, January 7, 2015
U.S. Rep. Joe Barton (R-Texas) has introduced legislation that would remove all restrictions on the export of crude oil from the U.S. H.R. 5814 notes that growing domestic production from shale reservoirs has made the nation the largest oil producer in the world, but laws governing exporting are nearly 40 years old. Rep. Jim Bridenstine (R-Okla.) is an original cosponsor of the bill.
Propane Council Boosts Business Fleet Incentives
Saturday, November 29, 2014
The Propane Council of Texas (ProCOT), a nonprofit organization dedicated to promoting the use of cleaner burning, domestically produced propane, is offering incentives to Texas businesses that upgrade their fleet vehicles to autogas. ProCOT now offers up to a $7500 incentive per new propane vehicle purchased or converted by a private fleet. The program cap is $15,000 per private fleet. In return for the incentives, recipients will be required to provide data on their business fleet.
Production Remains Resilient Amid Lower Crude Oil Prices
Saturday, November 29, 2014
The vast majority of potential U.S. tight oil production growth remains economical in the current lower crude oil price environment, according to a new report by IHS, a global source of information and insight in the energy industry. About 80% of potential gross U.S. tight oil capacity additions in 2015 would remain resilient at West Texas Intermediate (WTI) prices as low as $70/bbl, the report maintains. The report examines the outlook for U.S. tight oil in light of the recent drop in crude oil prices, which have fallen by nearly one-third since summer.
Nestlé Waters Beverage Trucks Running on Autogas in Los Angeles
Saturday, November 29, 2014
Five medium-duty beverage trucks fueled by propane autogas have begun operation at Nestlé Waters North America’s Los Angeles location. The trucks will deliver Arrowhead Mountain Spring Water to area businesses and residents. Reasons cited for the purchase of the trucks include an alternative fuel system that maintains full factory warranty, ease of fueling, and low infrastructure cost. Nestlé Waters operates more than 2000 trucks nationwide, primarily fueled by diesel.
IC Bus Showcases New Propane-Fueled CE Series
Saturday, November 29, 2014
IC Bus LLC (Lisle, Ill.) in November was showcasing its new CE Series school bus at the National Association for Pupil Transportation’s 40th annual Summit in Kansas City, Mo. IC Bus will manufacture the propane-fueled CE Series at its assembly plant in Tulsa. Deliveries will begin this summer, and buses will go into service at the start of the 2015-2016 school year.