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May 16, 2012

Canada’s Enbridge to Expand Oil Pipelines  

Enbridge Inc. said it is moving ahead with $3.2 billion in pipeline expansions, mostly to send more crude oil from Canada and North Dakota to the U.S. Midwest and eastern Canada.  

The expansions include a full reversal of the Line 9 pipeline from Sarnia, Ontario, to Montreal, where crude oil produced in North America will replace imported crude oil.  

The expansions are another step in the reshaping of North America’s energy infrastructure to accommodate rising crude oil production in Canada and the western United States.  

Pipeline companies are building or expanding pipelines south, west and east from the center of the continent to the coasts. The cheaper North American production is starting to displace foreign oil imports, which are more expensive than U.S. benchmark prices.  

"Refineries in Ontario and Quebec are paying premiums of $20 per barrel or more to obtain crude oil from the foreign sources they are currently largely dependent on,” the head of Enbridge’s liquids pipelines business, Stephen Wuori, said. "Access to Canadian and U.S. Bakken [oil formation] production will help level the playing field for these refineries, protecting their long term viability and safeguarding jobs.”  

The expansions are expected to be completed in 2014.  

Click here for more information.



Today's Links

Technology Can Unlock New Fields, Curb Fears of Peak Oil  

Atlantic Wind Connection Secures Approval for 380-mile Line in U.S.  

‘Frenetic’ U.S. Midstream Pace Could Be Pipeline to Higher NG Prices  

Fracking Given Green Light in UK  


Earl’s Pearl of the Day:
 "We make a living by what we get, but we make a life by what we give.” — Winston Churchill



May 16, 2012

U.S. Crude Oil Supplies Grow By 2.1Million Barrels  

The nation’s crude oil supplies rose last week, according to a report released by the Energy Information Administration (EIA).  

Crude supplies grew by 2.1 million barrels, or 0.6 percent, to 381.6 million barrels, which is 3.1 percent above year-ago levels, EIA said in its weekly report.  

Analysts expected an increase of 1.5 million barrels for the week that ended May 11, according to Platts, the energy information arm of McGraw-Hill Cos.  

U.S. refineries ran at 88.3 percent of total capacity on average, up 1.9 percentage points from the prior week. Analysts expected capacity to increase to 86.8 percent.  

Click here for more information.



Today's Links

Excelerate Unveils U.S. Floating Liquefaction Plans  

Study: Pa. Shale Regulations Reduced Environmental Violations  

Anadarko Expands Massive Mozambique Discovery  

AFPM Highlights Critical Flaws in New Ethanol Study  


Earl’s Pearl of the Day:
 "The deepest principle in human nature is the craving to be appreciated.” —  William James




May 15, 2012

North Dakota Tops Alaska in Oil Production, Trailing Only Texas  

In March, North Dakota passed Alaska to become the second leading state in crude oil production, trailing only Texas, according to officials from Alaska and North Dakota.  

It’s been a dramatic rise for a state that was behind seven other states in 2006 in terms of oil production.  

North Dakota produced an average of 575,490 barrels of crude oil every day in March, another record, and up from 558,255 barrels a day in February, according to Lynn Helms, director of the state’s Department of Mineral Resources. The crude is coming from a record 6,636 wells, up from the previous record of 6,450 set in February.  

North Dakota’s new record output of crude surpassed the steadily declining output of Alaska, which saw its production fall to 567,481 barrels per day in March, down nearly 15,000 barrels from February’s daily average, said Stephen McMains of the state’s Oil and Gas Conservation Commission.  

Meanwhile, Texas’ production has been rising by 12 percent since September, to 1.72 million barrels per day in February, the latest figures available from the U.S. Energy Information Administration (EIA), which tracks state and federal crude oil production. Meg Coleman, a geologist with the EIA, said preliminary figures make it appear Texas’ production increased in March.   Fueled by the Bakken boom in the Williston Basin in the western part of the state, North Dakota’s oil production has nearly quadrupled since March 2007, when it averaged 118,103 barrels per day.  

The top four producing states — Texas, North Dakota, Alaska and California — accounted for 55 percent of the nation’s February total crude output of 6.144 million barrels a day, which also includes about 1.4 million barrels per day produced from federal offshore wells, according to EIA.  

Ron Ness, president of the North Dakota Petroleum Council, said he was surprised when he was told Alaska’s trend downward already appeared to have dipped below North Dakota’s five-year ascending production.  

"Holy cow, I didn’t think it would happen this fast,” he said.  

Alaska has seen decreasing production for decades, since pumping out more than 2 million barrels a day in the 1970s.  

Click here for more information.


Today's Links

Obama Administration Speaks with Energy Industry about Gas Drilling Regulations  

Research, Investment Still Needed for Oil Spill Cleanup Technology  

Anadarko’s New CEO Pledges to Stay the Course  

Oil Industry to Offer Wish List to Dems, GOP  


Earl’s Pearl of the Day:
  "Success usually comes to those who are too busy to be looking for it.” — Henry David Thoreau



May 14, 2012

Growing Number of Production Floater Projects Planned, Under Study  

The number of production floater projects planned or under study is growing worldwide, according to a recent report by International Maritime Associates Inc. (IMA).  

IMA has identified 216 projects now in the bidding, design or planning stage that could potentially require a floating production or storage system, up from 210 floating production projects identified as in the planning or bidding stage in November 2011. Five years ago, 109 projects had been identified, according to the IMA.  

"The growth in number of planned projects reflects the solid fundamentals underlying the floating production sector,” said Jim McCaul, head of IMA, in a statement.  

Additionally, 150 drillships and deepwater drill semisubmersibles ordered since 2005 have removed a bottleneck constraining exploration and development in deepwater, resulting in a dramatic increase in floater projects in the planning pipeline, McCaul added.  

Orders for 130 to 190 production floaters are forecast over the next five years, with floating production, storage and offloading vessels (FPSOs) to comprise approximately 75 percent of future production floater orders.  

The remaining 25 percent will be production semisubmersibles, spars, tension leg platforms (TLPs), floating liquefied natural gas vessels and floating storage and regasification units.  

Currently, the global floating production fleet now stands at 257 units, a 30-percent increase from five years ago and 90 higher than a decade ago.  

Click here for more information.


Today's Links

Lawmakers Get Down to Business on Keystone  

15 Firms to Bid for Gas Drilling Rights Off Cyprus

Midwest Sees a Sand Rush  

See What Gasoline Myths Aren’t True and Ways to Save on Gas  

Earl’s Pearl of the Day:  "Failure will never overtake me if my determination to succeed is strong enough.” — Og Mandino  



May 11, 2012

Got a Spare? Extra BOP Can Reduce Drilling Downtime  

With rates for deepwater drilling rigs climbing toward $600,000 per day, offshore drillers are looking for ways to minimize time lost to regulatory inspections or equipment maintenance.  

Carrying a spare blowout preventer is looking like one cost-effective option, according to a Barclays research report.  

Subsea equipment issues are behind 40-60 percent of unplanned offshore rig downtime, according to the report, so investment in an extra blowout preventer may make sense.  

A blowout preventer, or BOP, is a stack of valves and powerful shears sitting on top of a wellhead and designed to cut drillpipe and seal it as a last defense if excessive pressure threatens loss of well control.  
Adding a second BOP allows one to protect a well while the other is undergoing maintenance or required inspections.  

"We estimate the payback period for the second stack equates to less than two months of unplanned downtime, which could take place over a few years,” the report stated.  

Click here for more information.



Today's Links




May 10, 2012

Group Plans Oil Storage Facility for Louisiana  

A consortium including Australian investment bank Macquarie Group said it plans to build a 10-million-barrel oil storage terminal in Louisiana, a $600 million bet on both rising North American crude production and increasing exports of refined petroleum products.  

The group, led by closely held storage tank developer Petroplex International LLC, plans to start construction in the first half of 2013 in St. James Parish, La., and begin operations in 2014. The facility will initially have storage capacity for between 4 and 6 million barrels. It is being designed to accommodate an array of liquids, including crude oil; refined petroleum products, such as fuel oil and diesel; chemicals; renewable fuels and bitumen, the thick crude that comes from Canada’s oil sands.

Situated between New Orleans and Baton Rouge, La., the facility is planned for an area with several refineries that are expected to see an influx of crude from Canada’s oil sands and U.S. shale formations, which include North Dakota’s Bakken and Ohio’s Utica, and Texas fields. Those sources are producing more that nearby facilities can process.  

Those and other onshore oil fields are forcing a rapid reconfiguration of U.S. energy infrastructure, which has long been geared toward moving imported oil from the Gulf Coast, which hosts the world’s largest refining complex, to the nation’s interior.  

The proposed Petroplex facility, which will be linked to long-haul pipelines, refineries, waterways and rail lines, will be able to store either crude ahead of processing or refined products awaiting distribution or export, Petroplex said. The facility will be the only independent "for-hire” storage terminal in the St. James market.  

Click here for more information.  


Today's Links



Regulator Says Gulf Leases on Schedule  

Newly Independent ConocoPhillips Will Expand in North America, CEO Says  

Alaska’s First Shale Oil Exploratory Wells to Be Drilled This Summer  

Shell, Chevron ‘Set for Ukraine Shale Win’  


Earl’s Pearl of the Day:  "What a grand thing, to be loved! What a grander thing still, to love!” — Victor Hugo




May 9, 2012

Court Notifies Two Deepwater Horizon Spill Settlements  

A notification effort ordered by the U.S. District Court for the Eastern District of Louisiana is beginning to notify people, businesses and other entities about two separate proposed settlements with BP related to the Deepwater Horizon oil spill. BP has estimated the cost of the proposed settlement to be approximately $7.8 billion. The total amount BP will pay to settle valid claims is uncapped, and the ultimate cost will depend on the actual outcomes of the court-supervised claims processes.  

People may be affected by one or both settlements. In each settlement, class members have separate legal rights and options, including submitting claims for benefits, opting out or objecting to each settlement.  

The Economic and Property Damages Settlement (E&PD Settlement) includes people, businesses and other entities who live, work, conduct business operations and/or own/lease property in the states of Louisiana, Mississippi and Alabama, along with specified Texas and Florida counties. The E&PD Settlement generally covers the following types of claims: 1) Seafood compensation, 2) Economic loss, 3) Loss of subsistence, 4) Vessel physical damage, 5) Vessels of opportunity charter payment, 6) Coastal real property damage, 7) Wetlands real property damage, and 8) Real property sales damage. In addition to compensation for actual damage, payments to eligible claimants may include a multiplier related to unknown future damage.  

The Medical Benefits Settlement (Medical Settlement) includes "Clean-Up Workers” and people who resided during specified periods in 2010 in specific coastal areas and wetlands areas. Medical Settlement benefits include (a) payments for specified physical conditions including reimbursement of hospital expenses, (b) a 21-year periodic medical consultation program, and (c) a $105 million Gulf region health outreach program, available to all Gulf residents, class members and non-class members alike, in order to strengthen healthcare capacity and increase health literacy throughout the region.

Click here for more information.


Today's Links

Crosstex Energy Boosts Louisiana Crude Transloading Terminal

Keystone Pipeline: The Next Battle Lines Forming  

Deep Water Draws More GE dollars to Houston  

Gov’t Cuts Summer Gasoline Price Forecast  


Earl’s Pearl of the Day:  "Kindness is the language which the deaf can hear and the blind can see.” — Mark Twain




May 8, 2012

Homeland Security Investigates Cyber Attacks on Gas Pipelines  

There has been an "active series” of cyber attacks on natural gas pipeline companies’ computer networks over the past four months, according to the Department of Homeland Security (DHS).  

"The cyber intrusion involves sophisticated spear-phishing activities targeting personnel within the private companies. DHS is coordinating with the FBI and appropriate federal agencies, and Industrial Control Systems Cyber Emergency Response Team (ICS-CERT) is working with affected organizations to prepare mitigation plans customized to their current network and security configurations to detect, mitigate and prevent such threats,” DHS spokesman Peter Boogaard said.  

He noted ICS-CERT has held several classified briefings across the country with pipeline owners and operators to share information related to the cyber attacks. Obama Administration officials and Senate staff met Monday to discuss the situation.  

"Analysis of the malware [malicious software] and artifacts associated with these cyber attacks has positively identified this activity as related to a single campaign. The campaign appears to have started in late December 2011 and is active today. Analysis shows these spear-phishing attempts [to gain unauthorized access to confidential data] have targeted a variety of personnel within these organizations; however, the number of persons targeted appears to be tightly focused. In addition the emails have been convincingly crafted to appear as though they were sent from a trusted member internal to the organization,” the ICS-CERT report said.  

ICS-CERT said it has been working with critical infrastructure owners and operators in the oil and gas sector since March to address the series of cyber intrusions targeting pipeline companies.  

Click here for more information.


Today's Links

Feds: Pipeline companies must keep safety records  

Australia Awards 12 Offshore Exploration Permits  

Ship Brings New Technology to Gulf for Chevron Work 

Gas Prices Fall, a Sigh of Relief  


Earl’s Pearl of the Day:
"Honor is like an island, rugged and without shores; we can never re-enter it once we are on the outside.” — Nicholas Boileau



May 7, 2012

Norway’s Statoil Signs Arctic Deal With Russia’s Rosneft  

Norway’s Statoil ASA has signed a deal with Russian state oil company Rosneft to develop Russia’s mostly untapped offshore energy resources in the Arctic, in a venture that could require an investment of as much as $100 billion over decades.  

Statoil joined U.S.-based Exxon Mobil Corp. and Italy’s Eni, which have signed similar deals, in the scramble for the Russian Arctic, following Moscow’s approval of long awaited tax breaks for the potentially rich offshore fields.  

Russia faces declining production from its traditional oil regions and is eager to attract Western energy companies with money and expertise to develop the country’s Arctic shelf. Russian President-elect Vladimir Putin has actively supported the opening of the shelf to foreign companies.  

Statoil’s deal is similar in structure to those Exxon and Eni signed with Rosneft. Statoil will set up joint ventures with its Russian partner to develop fields in the Barents Sea and Sea of Okhotsk, holding 33.33 percent in each. Statoil is to pay all costs for exploration, while Rosneft may get stakes in Statoil projects in Norway’s offshore zones.  

Another Western player, BP PLC, is also interested in participating in Arctic projects in Russia. The company may only invest in Russia through TNK-BP, its 50-50 joint venture with a group of local billionaires, in order to avoid violating a shareholders’ agreement.  

Click here for more information.


Today's Links

Enbridge: $1.75B Pipeline Plan Will Create 528 Jobs  

Interest in SD Oil and Gas Leases Continues  

DOI Releases Draft Fracing Rules for Onshore Public, Tribal Lands  

Can the U.S. Be Energy Independent?  


Earl’s Pearl of the Day:
"What the mind can conceive, it can achieve.” — Napoleon Hill


May 4, 2012

TransCanada Applies for Keystone XL Pipeline Permit  

TransCanada Corp. has asked the U.S. government for approval to build the $7.6 billion Keystone XL oil pipeline, which has been put on hold due to environmental concerns.  

The company said today it has submitted an application with the U.S. Department of State for the pipeline from the United States and Canada border in Montana to Steele City, Neb.  

TransCanada said it will choose an alternative route through Nebraska to avoid an environmentally sensitive area. The company added its environmental review process was sound and should allow for the permit to be processed quickly.  

"Our application for a presidential permit builds on more than three years of environmental review already conducted for Keystone XL,” said TransCanada Chief Executive Russ Girling. "It was the most comprehensive process ever for a cross-border pipeline.”  

TransCanada said last month it hopes to have the project up and running by late 2014 or early 2015.

Click here for more information.


Today's Links

BP Unveils New Well Capping System  

Gulf Spill Judge Orders Jan. 14 Trial on U.S. Claims  

U.S. Likely To Limit LNG Exports To Keep Low Gas Price  

Valero CEO Says Gas Prices Likely Have Peaked  


Earl’s Pearl of the Day:
"It’s nice to be important, but It’s more important to be nice.” — Author Unknown  



May 3, 2012

Judge Allows Gulf Oil Spill Settlement to Proceed  

On Wednesday, a federal judge preliminarily approved a proposed class-action settlement that would resolve billions of dollars in claims against BP over the 2010 oil spill in the Gulf of Mexico.  

U.S. District Judge Carl Barbier’s ruling allows the settlement process to proceed, but he will hold a "fairness hearing” on Nov. 8 before deciding whether to give his final approval to the deal between London-based BP and a team of plaintiffs’ attorneys.  

The proposed settlement doesn’t have a cap, but BP estimates it will pay about $7.8 billion to resolve more than 100,000 claims by people and businesses who blame the spill for economic losses.  

BP has agreed to pay $2.3 billion for seafood-related claims by commercial fishing vessel owners, captains and deckhands. The settlement also would compensate other categories of losses, including lost business, wages, property damage and damage to vessels that worked on the spill cleanup.  

The agreement calls for paying medical claims by cleanup workers and others who say they suffered illnesses from exposure to the oil or chemicals used to disperse it. In addition, BP has agreed to spend $105 million over five years to set up a Gulf Coast health outreach program and pay for medical examinations.  

The settlement doesn’t resolve separate claims brought by the U.S. government and Gulf states against BP and its partners on the Deepwater Horizon drilling rig over environmental damage from America’s worst offshore oil spill. It also doesn’t resolve private plaintiffs’ claims against Switzerland-based rig owner Transocean Ltd. and Houston-based cement contractor Halliburton Co.  

The April 20, 2010, blowout of BP’s Macondo well triggered an explosion that killed 11 rig workers and spilled more than 200 million gallons of oil into the Gulf.  

In the aftermath, BP created a $20 billion fund to compensate commercial fishermen, property owners, hotels and other tourism-driven businesses that claimed they suffered economic damages.  

The Gulf Coast Claims Facility processed more than 221,000 claims and paid out more than $6 billion from the fund before a court-supervised administrator took over March 8.  

During the transition period, claimants have received more than $134 million.  

Click here for more information.



Today's Links

Is the Gulf Back in Business?  

Even Offshore Techs are Talking About U.S. Shale Gas  

Operators Assess Advances in Offshore Drilling Risk Management  

API: Ohio Poised to be Part of Shale Energy Revolution  


Earl’s Pearl of the Day:
  "Always do right. This will gratify some people and astonish the rest.” — Mark Twain




May 2, 2012

Marathon Petroleum Considering Reversal of Capline Pipeline  

Marathon Petroleum Corp. is exploring the possibility of reversing a major pipeline to bring oil from the Midwest to the Gulf Coast refining belt, a company executive said.  

Changing direction of the 1.2 million bpd Capline pipeline would be the second major pipeline reversal that could transport a glut of crude oil in the Midwest to the Gulf Coast, where it can be refined into petroleum products like gasoline or easily transported elsewhere.  

Enbridge Inc. and Enterprise Products Partners plan to reverse the 150,000 bpd Seaway pipeline within a month and expand its capacity to 400,000 bpd by 2013.  

Marathon is part owner of Capline, which currently brings oil from Louisiana to Illinois.  

The pipeline has been little utilized as crude from Canadian oil sands and U.S. Midwest shale formations pour into the oil storage hub in Cushing, Okla., where there are few ways to move the crude out of the region.  

"We are evaluating it now,” said Mike Palmer, Marathon Petroleum’s senior vice president of supply, distribution and planning, about a possible Capline reversal. He spoke in a conference call with investors. "We’re looking into alternatives to that asset as well as other assets.”  

Click here for more information.


Today's Links

Phillips 66’s Route to Focus on Refining, Pipelines  

Ice Roads and Polar Bears Among Challenges Offshore Alaska  

OTC: BSEE Director Calls for Industry to Promote Safety Culture  

‘Lessons Learned’ Post-Macondo by USCG  


Earl’s Pearl of the Day:
"Choose the life that is most useful, and habit will make it the most agreeable.” — Sir Francis Bacon


May 1, 2012

Delta to Buy Refinery in Effort to Lower Jet-Fuel Costs  

Delta Air Lines Inc. has reached an agreement to buy a refinery complex near Philadelphia in a bid to cut the carrier’s yearly jet fuel costs by $300 million.  
Atlanta-based Delta said it will purchase the Trainer, Pa., complex from Phillips 66 today. Under the deal, the airline would become the first U.S. carrier to buy a refinery.  

The airline intends to invest $150 million to acquire the complex and expects to receive $30 million in Pennsylvania state-government aid to help preserve jobs at the site. The company plans to spend a further $100 million to retrofit the plant to maximize its ability to produce jet fuel, and will enter marketing and sourcing pacts with Phillips 66 and BP.  

Delta said production from the Trainer refinery, as well as agreements to exchange gasoline, diesel and other refined products for jet fuel elsewhere, will provide 80 percent of the airline’s jet fuel needs in the United States.  

"Acquiring the Trainer refinery is an innovative approach to managing our largest expense,” Delta Chief Executive Richard Anderson said. "This modest investment, the equivalent of the list price of a new wide-body aircraft, will allow Delta to reduce its fuel expense by $300 million annually and ensure jet fuel availability in the Northeast.”  

Delta said under a three-year agreement BP will supply the crude oil to be refined at the facility. Delta will exchange gasoline and other refined products from the complex for jet fuel from Phillips 66 and BP elsewhere in the United States through multiyear agreements.  

Delta said it expects to close the deal in the first half of this year, with jet fuel production likely to begin during the third quarter. Delta expects 2012 fuel savings of at least $100 million.  

Pennsylvania Gov. Tom Corbett said the agreement "means the preservation of more than 5,000 jobs at the Trainer facility and in related industries.”  

Click here for more information.



Today's Links




April 30, 2012

BP Expects To Spend $4B A Year In Gulf Of Mexico  

After deep self-examination following the April 2010 Deepwater Horizon oil spill, BP decided not to leave the Gulf of Mexico and opted instead to increase investment as part of its renewed commitment to the region, a company executive said Monday.  

"After much soul-searching in the fall of 2010, we concluded it would be wrong to walk away,” BP Executive Vice President Bernard Looney said in a presentation at the Offshore Technology Conference in Houston. "We would have been walking away not only from our past, but from a key component of our future.”  

BP is planning to add three drilling rigs in the Gulf by the end of the year, bringing the total number to eight, more than the company had before the oil spill, Looney said. BP also plans to spend this year $4 billion in the Gulf and expects to spend at the same level for years to come, he said.  

"We hope to invest at least that much every year over the next decade,” Looney said.  

BP is working hard to learn from the oil spill lessons and help prevent "such an accident from ever happening again,” Looney said. "The Deepwater Horizon accident challenged us to the core.”  

Click here for more information.



Today's Links

Safety and Prevention to Dominate OTC, From Displays to Discussions  

Unwanted Nebraska Sand Put to Use in Oil Fields  

Neste Sells First Batch of Renewable Diesel to U.S. Market  

Energy Transfer to Buy Sunoco to Add Oil, Gas Logistics  


Earl’s Pearl of the Day:
"Those who cannot remember the past are condemned to repeat it.” — George Santayana




April 26, 2012

Offshore Safety Chief Wants to Zero In On Results  

Offshore federal regulators are bulking up enforcement staff and focusing more on industry safety results than on specific rules, James Watson, the head of the new Bureau of Safety and Environmental Enforcement (BSEE), said.  

Watson said the agency will hire 28 additional engineers and 48 more inspectors as it works to strengthen its capabilities in overseeing the complex and quickly changing offshore drilling industry.

"The first goal of BSEE is to ensure equipment is built and maintained to the right standards, people are trained and supported by the management, and there is a good monitoring of these activities,” Watson said. "That’s going to bring our biggest return.”  

Watson also warned the industry’s and government’s emphasis on safety should be broader than trying to prevent a repeat of the 2010 Deepwater Horizon disaster, noting the history of oil and gas exploration has seen a wide range of accident scenarios.  

"There is always the tendency to fight the last war,” Watson said. "There are a lot of things that can go wrong in offshore drilling.”  

The bureau was established in 2011 as part of a major overhaul of offshore regulation. It enforces safety and environmental regulations for offshore energy development, including approval of oil and gas plans, facilities and operations.  

Click here for more information.



Today's Links

Chairman Shares Insight Into This Year’s OTC  

Mulva: North America Already Energy Independent in Natural Gas  

ONGC Reports Four Discoveries in India  

Compensation Tracker: Working in North America  


Earl’s Pearl of the Day:
"The only man who never makes a mistake is the man who never does anything.” — Theodore Roosevelt



April 26, 2012

Judge Leans Toward Preliminary OK of BP Settlement  

A federal judge in New Orleans said he is leaning in favor of granting preliminary approval to a proposed class-action settlement that would resolve billions of dollars in claims against BP over the 2010 oil spill in the Gulf of Mexico.

After hearing BP and a team of plaintiffs’ attorneys outline the proposed deal, U.S. District Judge Carl Barbier said he plans to rule within a week. Barbier would hold a "fairness hearing” later this year, possibly in November, before deciding whether to give his final approval.  

The proposed agreement is intended to resolve more than 100,000 claims by people and businesses who blame economic losses on the nation’s worst offshore oil spill.

"This has been a very impressive effort on the part of counsel … in terms of getting to where you all are today,” Barbier said, noting litigation over the Exxon Valdez spill took roughly 20 years to resolve. "I did not intend for this case to go on for 20 years, not with me in charge of it.”  

London-based BP estimates it would pay about $7.8 billion to resolve these claims, but the settlement wouldn’t be capped and likely would be one of the largest class-action settlements ever.  

Barbier stressed his preliminary approval would only mark a "starting point,” with objections to the deal to be considered in coming months. The proposal was announced March 2 and is spelled out in hundreds of pages of documents filed last week.  

BP has agreed to pay $2.3 billion for seafood-related claims by commercial fishing vessel owners, captains and deckhands. The settlement also would compensate other categories of losses, including lost wages, businesses losses, property damage and damage to vessels that worked on the spill cleanup.  

The agreement calls for paying medical claims by cleanup workers and others who say they suffered illnesses from exposure to the oil or chemicals used to disperse it. In addition, BP has agreed to spend $105 million over five years to set up a Gulf Coast health outreach program and pay for medical examinations.

The settlement doesn’t resolve separate claims brought by the federal government and Gulf states against BP and its partners on the Deepwater Horizon drilling rig over environmental damage from the nation’s worst offshore oil spill.  

It also doesn’t resolve claims against Switzerland-based rig owner Transocean Ltd. and Houston-based cement contractor Halliburton. Barbier has scheduled a May 3 status conference to discuss plans for a possible trial on the other claims.  

Click here for more information.



Today's Links

OTC Opens with Optimism, Focus on Safety  

Shell: Motiva Refinery Expansion Operational, Eyes US GTL  

Turkey Starts Oil, Gas Search in North Cyprus  

Mexico Oil Opening First Time Since 1938 Shows Revival  


Earl’s Pearl of the Day:
"Difficulties strengthen the mind, as labor does the body.” —Seneca  



April 25, 2012

Salazar: Congress Should Ratify Mexico Offshore Oil Pact This Year  

Congress should act this year to ratify an agreement allowing oil and gas drilling along the maritime border between the United States and Mexico, Interior Secretary Ken Salazar said.  

The agreement, which would open up an area the size of Delaware to exploration, has already been confirmed by Mexico’s legislature, Salazar said in a speech calling for action on U.S. energy policy. "We shouldn’t have to wait to act on the agreement either,” he said. "Congress should act.”  

Both the House and Senate need to pass legislation implementing the Mexico agreement, an administration official said. The administration is also speaking with the Senate about whether the agreement constitutes a treaty that would require an additional Senate vote to confirm, the official said.  

Salazar, speaking at the National Press Club, said lawmakers should move this year to make "tax credits for renewable energy generation permanent and refundable so there is financial certainty.” It would only take a few days, he added, for Congress to pass a law that makes permanent the organizational and regulatory changes the Interior Department made in response to the 2010 oil spill in the Gulf of Mexico.  

Salazar also defended the Obama Administration’s record, saying it has been supportive of oil and natural gas development but has no "silver bullet” to lower gasoline prices in the near term.  

Click here for more information.



Today's Links

Senator: Report Shows Alaska Profitable for Oil

Ex-BP Engineer Named in First Spill-Related Criminal Charge

Industry Earnings Good for Jobs and Government Revenue

Eni and Rosneft Tie Arctic Knot  


Earl’s Pearl of the Day:
"Be civil to all; sociable to many; familiar with few; friend to one; enemy to none.” — Benjamin Franklin




April 24, 2012

Dow’s New Texas Ethylene Plant Will Need Up to 2,000 Workers  

The Dow Chemical Co. will build an ethylene plant in Texas that will employ as many as 2,000 workers, part of the company’s $4 billion investment in expanded chemical production as the price of natural gas drops to a 10-year low.  

The plant, scheduled to open in 2017, will be built at a Dow site in Freeport, Texas. The facility will use ethane and other natural gas liquids to make ethylene, a key plastics ingredient.  

Dow, the largest U.S. chemical maker, announced plans for the project a year ago. At the time, the company said the plant would be built on the Gulf Coast but didn’t specify an exact location.  

A Dow spokesman said the company selected its Texas operations "based on a variety of factors, including proximity to a large number of other downstream plants and the potential to obtain significant synergies through facility integration with the existing crackers and the previously announced new PDH unit.” Dow previously announced plans to build a propane dehydrogenation, or PDH, unit in Texas.  

The spokesman said, "In addition, Dow Texas Operations will give us the most access to the extensive asset base in our mining, storage and pipeline facilities. Further, the Freeport site’s existing capabilities and infrastructure are important factors that will make this project successful.”  

Dow Chairman and CEO Andrew Liveris said, "For the first time in over a decade, U.S. natural gas prices are affordable and relatively stable, attracting new industry investments and growth and putting us on the threshold of an American manufacturing resurgence.”  

Dow will also reopen a cracker this year at its St. Charles facility near Hahnville, La. The two ethylene projects and the propylene plant will cost about $4 billion and employ as many as 4,800 workers during peak construction, the company said.  

Click here for more information.



Today's Links

U.S. Gasoline Demand Rebound: Economy, Weather or Dodgy Data?  

Shell Agrees to Buy Cove After Raising Bid to $1.8 Billion  

Romney: I'll Build Pipeline If I Have To Do It Myself  

Total Starts Up Natural Gas Field Offshore Scotland
   


Earl’s Pearl of the Day:
"Our greatest glory is not in never falling, but in rising every time we fall.” — Confucius



April 23, 2012

Drilling in Deep Gulf Getting Busy Again  

Drilling in the deep Gulf of Mexico is becoming robust two years after the oil spill that prompted a six-month moratorium on deepwater exploration, but more of the work now is left to large companies.

Triple digit oil prices are driving the activity, making it worthwhile to go forward even given the cost, risk and heightened government scrutiny of working in waters often a mile deep or more.  

"We are seeing deepwater drilling coming back with a vengeance in the Gulf,” said Dr. RV Ahilan, executive vice president for GL Noble Denton, a technical adviser for the oil and gas industry. "The price is too big to ignore. People are quite keen and are booking rigs for long drilling campaigns in deeper drilling waters.”  

But while activity has resumed, it involves a smaller group of players with the deep pockets and deep experience necessary to navigate the complexity of the Gulf.  

"It has always been dominated by the large internationals — the BPs and Chevrons — and in the future is likely to be even more so,” said Pavel Molchanov, an analyst with Raymond James. "They are really the only companies that can take on the liability risk of having a multibillion-dollar oil spill.”  

In the aftermath of BP’s Macondo disaster, the federal government imposed a moratorium on certain portions of the Gulf of Mexico. It lifted the ban in October 2010.   The government awarded 163 deepwater drilling permits for the Gulf in 2009. The number dropped to 74 in 2010, but has climbed since then to 79 in 2011 and 44 through March of this year. Chevron holds 14 of those permits and Shell has 13.  

While deepwater drillers have grumbled about the increase in regulations, some in the industry acknowledge political stability still makes the Gulf appealing.  

"We can talk about many parts of the world where you may have an attractive opportunity but it is clouded by political difficulties,” Ahilan said, noting the risk of nationalization or regime change. "The rules of the game are clear in the Gulf of Mexico, even if regulatory changes are taking place.”  

Click here for more information.



Today's Links

Russia to Embrace Energy Partners  

Sirleaf Seeks to Lift Liberia with Oil Resource Development  

Floating Offshore Wind Kit Gets Spur from United States, Britain  

Sunoco-Carlyle JV Would Keep Philly Refinery Running  


Earl’s Pearl of the Day:
"If opportunity doesn’t knock, build a door.” — Milton Berle



April 20, 2012

Interior: Rules for Subsea Oil-Well Blowout Preventers En Route  

A top Interior Department official marked the two-year anniversary of the BP oil spill today with pledges to continue enhancing offshore drilling safety standards.

Bureau of Safety and Environmental Enforcement Director James Watson penned a column that touts upcoming drilling and workplace safety requirements, which he said would build on standards that were toughened in the wake of the disaster.

Watson, writing in "The Houston Chronicle,” said this will include measures to "usher in a new generation” of blowout preventers, which are failsafe devices that are supposed to contain undersea well ruptures. The blowout preventer on the Deepwater Horizon rig that was drilling BP’s Macondo well failed to deploy correctly.  

The plans for new blowout preventer standards have long been in the works but it remains unclear when Interior will propose the rules.  

Click here for more information.
 


Today's Links

O&G Industry Bounces Back from Deepwater Horizon  

Gulf residents getting an extra $64M for spill claims  

Gulf Oil Spill Anniversary: Photos Of The Deepwater Horizon Explosion 2 Years Later  

Cheap Natural Gas Feeds Chemical Industry Boom  


Earl’s Pearl of the Day:
"Know how to listen, and you will profit even from those who talk badly.” — Plutarch




April 19, 2012

TransCanada Asks Nebraska To Approve Keystone XL Reroute  

TransCanada Corp. submitted a reroute of its Keystone XL oil pipeline to the Nebraska government Wednesday, moving a step closer to reviving the project after it was rejected by the U.S. government earlier this year.  

The reroute will avoid an environmentally sensitive area in Nebraska, and comes a day after Nebraska Gov. Dave Heineman signed a bill allowing the state’s review of the controversial pipeline to continue.   The reroute will add a 100-mile eastern detour around the Sand Hills to the 1,700-mile pipeline from Alberta to the Texas Gulf Coast.  

If approved, the $7.6 billion pipeline would send up to 830,000 bpd from Canada and the western United States to refineries on the Gulf Coast. TransCanada has said the pipeline could begin flowing by 2015.  

Click here for more information.



Today's Links

Drillers Get Extra Time for Pollution Upgrades  

Chemical Makers Ride Gas Boom  

USGS: Estimate of Conventional Gas Resources Grows Internationally

Iraq Excludes Exxon From May Energy Auction  


Earl’s Pearl of the Day: "Action is the foundational key to all success.” — Pablo Picasso  




April 18, 2012

Judge Asked to Sign Off on $7.8 Billion BP Oil Spill Settlement  

BP and a team of plaintiffs’ attorneys have presented a federal judge with the details of a proposed class-action settlement designed to resolve billions of dollars in economic damage claims spawned by the 2010 oil spill in the Gulf of Mexico.  

The company and lawyers representing more than 100,000 individuals and businesses are asking U.S. District Judge Carl Barbier to give his preliminary approval to the agreement filed Wednesday in New Orleans.  

Barbier hasn’t indicated when he will rule.  

London-based BP PLC estimates it will pay about $7.8 billion to resolve private party claims, but the settlement doesn’t have a cap.  

"This settlement demonstrates BP’s continued progress in resolving significant issues related to the Deepwater Horizon accident,” said Bob Dudley, BP Group chief executive. "BP made a commitment to help economic and environmental restoration efforts in the Gulf Coast, and this settlement provides the framework for us to continue delivering on that promise, offering those affected full and fair compensation, without waiting for the outcome of a lengthy trial process.”  

Click here for more information.


Today's Links

Iraq Deputy PM: International Help Needed To Hit Refinery Goal  

Eyeing Regulation, Drillers Try to Be Neighborly  

Delta Clear Favorite for Idle Pennsylvania Refinery  

Statoil to Sell Fuel & Retail Business to Focus on Upstream Activities  


Earl’s Pearl of the Day:
"All our dreams can come true — if we have the courage to pursue them.” — Walt Disney
 



April 17, 2012

Cheniere Wins U.S. Approval for Natural Gas Export Facility  

Cheniere Energy Inc. received federal approval Monday to construct what would be the first major natural gas export facility in the lower 48 U.S. states, putting the company a step closer to shipping some of America’s newly abundant natural gas abroad.  

The Federal Energy Regulatory Commission (FERC) gave its approval for the construction of a liquefied natural gas (LNG) export facility in Cameron Parish, La., clearing the final regulatory hurdle for Cheniere. Pending financing for the project, estimated to cost $10 billion, Cheniere would become the only large-scale LNG exporter in the United States.  

"This was clearly a big step,” said Cheniere Spokesman Andrew Ware. "It’s a milestone.”  

The commission approved construction of the facility and authorized Cheniere to export gas for 20 years. Cheniere has already lined up supply contracts with Britain’s BG Group PLC, Gas Natural Fenosa, Gail (India) Ltd. and Korea Gas Corp.  

A technology-driven boom in U.S. natural gas production has depressed prices to around $2 per million Btus. That has attracted the attention of customers in other countries — particularly in Asia — where the commodity can cost nearly 10 times as much.  

Cheniere still must find about $4 billion in financing to build and develop the export facility, which it hopes to do within six months. The company said it is working with eight banks to arrange the necessary financing. Cheniere in February secured $2 billion for the project from Blackstone Group LP.  

Cheniere’s facility, called Sabine Pass, would have the capacity to export up to 2.2 billion cubic feet, or 16 million tons, of natural gas a year, according to FERC. Cheniere hopes to start LNG exports by 2015.  
Click here for more information.



Today's Links

Seaway Pipeline Reversal Moved Up To Late May  

Obama Seeks to Confront Oil Market Manipulation  

Texas to Play Significant Role in Future U.S. Crude Oil Growth  

GDF Suez, GAIL to Build India's First Floating LNG Terminal  


Earl’s Pearl of the Day: "Blessed are those who can give without remembering, and take without forgetting.” — Princess Elizabeth Asquith Bibesco





April 16, 2012

Gas Pipeline Crews Adjust to New Midstream Infrastructure Focus  

Natural gas pipeline construction companies are organizing themselves to tackle smaller midstream projects rather than long transmission pipelines, according to Don Santa, president and CEO of the Interstate Natural Gas Association of America (INGAA).  

Asked if oil pipeline construction was cutting into gas pipeline construction, Santa said this did not seem to be the case. "Anecdotally — we haven’t taken a look at this analytically — we have not seen that in any way,” he said. "There was a tremendous level of pipeline construction activity that occurred between two and four years ago where, because of the amount of activity going on at the same time, it had an impact on the prices of a lot of the inputs, ranging from steel to construction companies, pretty much across the board. I have not seen any evidence that is affecting natural gas pipeline construction prices.”  

"The one thing I will say,” Santa added, "based on conversations with some of the members of the INGAA Foundation, who are some of those pipeline construction firms, is with the intense emphasis on midstream infrastructure — and the gathering pipe needed and the smaller diameter pipe scattered about — if anything what they are doing is focusing a lot more on having their crews being kind of structured to do smaller, shorter spreads that fit more with the notion of building midstream infrastructure rather than building a lot of long-line transmission pipeline.”  

Infrastructure construction can lag behind drilling due to several factors, he said, including a layout of widely scattered wells; difficulties in obtaining rights of way; existing facilities designed for smaller volume wells; weather; the time to design, permit and build new facilities; and shortages of labor, housing and equipment. Each situation is unique and affects processing economics.  

Click here for more information.



Today's Links

N. Dakota Oil Production Doubles in Past 2 Years  

Obama Forms Unconventional Gas Interagency Working Group  

Russia to Cancel Oil Export Tax for New Arctic Projects  

Natural Seafloor Seep Seen As Likely Source of O&G Gulf Sheen
 

Earl’s Pearl of the Day: "No one can make you feel inferior without your consent.” — Eleanor Roosevelt




April 13, 2012

House GOP Hopes to Revive Keystone Fight With Tie to Highway Bill Extension  

House Republican leadership will take another crack at forcing approval of the Keystone XL oil pipeline on legislation extending federal transportation funding for another 90 days.  

"This bill will pave the way for a House-Senate conference to discuss both reforming how taxpayer dollars are spent on federal infrastructure programs, and also meaningful solutions that would address high gas prices and create jobs by permanently removing government barriers to American energy production,” a House GOP leadership aide said.  

The aide also said Republicans plan to attach language aimed at green-lighting the pipeline — which would carry oil sands crude from Alberta, Canada, to refineries on the Gulf Coast — to another 90-day extension.  

Republicans hope to gain support for their long-time quest to approve the project amid high gas prices and recent news that the Nebraska legislature approved a bill rerouting the pipeline around a key aquifer in the state.  

The Obama Administration and many Democrats have said the pipeline cannot move forward without a clear plan for rerouting it around the environmentally sensitive region in Nebraska.  

But efforts to quickly approve the pipeline face opposition from Obama and Senate Democrats. The Senate rejected a GOP plan to approve construction of the Keystone XL oil pipeline in March.  

Obama rejected a key permit for the project in January. But he said the decision was based not on the merits of the pipeline but on a GOP-backed deadline to weigh in on the project included in legislation to extend the payroll tax cut.  

In rejecting the permit, Obama welcomed Keystone developer TransCanada to reapply, which the company has said it will do. The president has said he will re-evaluate the permit based on a full review of the project.  

Obama threw his support behind the Southern leg of the project — which would carry oil from Cushing, Okla., to Texas — earlier this year. But House Speaker John Boehner and other Republicans have said that’s not enough.  

Click here for more information.



Today's Links

LNG export plant verges on U.S. approval  

Pressure on Oil Supply Eases  

Delta, JP Morgan May Partner in Pa. Refinery Deal  

Kinder Morgan to Expand Canada Pipeline  


Earl’s Pearl of the Day:
"Nearly all men can stand adversity, but if you want to test a man's character, give him power.”  — Abraham Lincoln




April 12, 2012

API: Systems in Place to Support Strongest Offshore Safety Standards Possible  

A comprehensive reappraisal of offshore oil and gas safety and environmental protection practices by the industry since the April 2010 Macondo deepwater well blowout and oil spill has laid the foundation for significant improvements, an American Petroleum Institute (API) official said.  

"As a result of this work, and extensive resources devoted to safety that continue to draw on the best minds from the industry and government, we’ve established a multilayer system, with many built-in redundancies to help prevent incidents, to intervene and stop a release that might occur, and to manage and clean up spills,” Erik Milito, API’s upstream and industry operations group director, said.  

He emphasized this was an industry wide effort, which also involved the National Ocean Industries Association, the International Association of Drilling Contractors, and other U.S. oil and gas trade associations as well as their foreign counterparts. United States and foreign government participation also was crucial, he said.  

Milito told reporters this improved offshore oil and gas operations network has three primary elements: prevention, embodied in the industry’s Center for Offshore Safety, through industry drilling standards and the promotion of robust safety and environmental management systems; new innovative well containment and intervention capabilities; and improved planning and resources for oil spill response.

Milito said the industry has always demonstrated a strong commitment to operate safely and responsibly offshore, and has deepened that commitment in the nearly two years since the Macondo well accident. "The bar continues to rise, the commitment is stronger and the mechanisms are in place to support the strongest safety standards possible,” he maintained.  

Click here for more information.


Today's Links

IEA Says Oil Supply Easing  

Mexican Presidential Candidate Touts Five-Refinery Plan  

Coast Guard Tests Oil Spill Response Plans  

Poll: Most US Consumers Unfamiliar With Hydraulic Fracturing  


Earl’s Pearl of the Day:
"Bite off more than you can chew, then chew it. Plan more than you can do, then do it.” — Anonymous  



April 11, 2012

Exxon Deal Opens Way for LNG Exports  

Alaska has reached a settlement with ExxonMobil and its partners to develop a huge, long-fallow oil and gas field, possibly paving the way for a $26 billion pipeline and an export plant for liquefied natural gas (LNG).  

The settlement, which resolves a long-running lease dispute over the Point Thomson field, could allow for exports of LNG via tanker to Asia and may boost Alaskan oil production after decades of decline.  

In exchange for continued lease control, operator ExxonMobil and partners BP and ConocoPhillips have agreed to build a pipeline from the field to deliver 70,000 bpd of liquids into the Trans Alaska Pipeline System.  

The settlement also calls for the companies to produce 10,000 bpd of natural gas condensates by the winter of 2015-16. The deal is a boon for TransCanada, which plans to build a natural gas pipeline from Alaska’s North Slope to the south coast, feeding a possible export plant that would ship gas to thirsty markets in Asia.  

Alaska Gov. Sean Parnell said the companies had agreed to work with TransCanada on the new pipeline project, which proposes to export gas just as Alaska’s 40-year-old and only existing LNG plant at Kenai closes down.  

"Alaska’s resources will be produced from Point Thomson rather than remaining locked underground,” Gov. Parnell said.  

Click here for more information.



Today's Links

Poll Finds Support for Fossil, Renewable Energy  

SOCAR: Azerbaijan’s Proven Hydrocarbon Reserves Estimated at 4.5B Tons  

Army Lab to Develop Energy-Saving Technology  

Hilcorp to Buy Marathon’s Cook Inlet Gas Assets  


Earl’s Pearl of the Day:
"The measure of who we are is what we do with what we have.” — Vince Lombardi  



April 10, 2012

New Life for the Gulf’s ‘Dead Sea’  

Energy companies are striking oil in a place many abandoned long ago: the shallow waters of the Gulf of Mexico.  

Most of the drilling on the Gulf’s continental shelf in recent years has been for natural gas and even that business has been declining for so long some in the industry have branded the shallow waters "the dead sea.”  

But there are signs of an oil-fueled revival. Last week, 37 shallow-water rigs were under contract to drill there, up 32 percent from the low point in January 2011, according to industry tracker RigData Offshore. Federal regulators issued 10 permits for new wells in shallow Gulf waters in February, the second-highest monthly total since the 2010 Deepwater Horizon oil disaster.  

The number of rigs drilling in the Gulf’s coastal waters dwindled over the Past decade as companies left to find work internationally and production of both oil and gas there fell last year. But the firms that drill in less than 500 feet of water see new opportunity in high oil prices, stable drilling costs and improved seismic technology.  

Driving the resurgence is the price of oil, which has hovered around $100 a barrel for much of the Past year. Oil produced in the Gulf is even more valuable than land-bound crude because it doesn’t have to be delivered to refineries using the overtaxed pipeline system. Instead, it can be loaded onto tankers and shipped anywhere in the world.  

Companies drilling in the shallow Gulf tend to be small producers that, unlike larger rivals, don’t have to find massive new fields to replenish their reserves. But Chevron Corp. last year produced about 4.5 percent of its total output from the shelf and Apache Corp.’s production there accounted for 14 percent of its global volume.  

"It’s very important to us and it will continue to be,” said John Roper, an Apache spokesman. He said the company uses cash from its shelf operations to fund its global search for oil, pay down debt and make acquisitions.  

Analysts don’t foresee the Gulf’s shelf becoming a major destination for oil producers. But while companies around the world are vying for a foothold in booming U.S. oil fields like those in Texas and North Dakota, some see an opportunity to produce oil at a low cost in the coastal Gulf. Reserves purchased in the shallow-water Gulf tend to be discounted because the fields are more mature and considered to have less growth potential.  

Tom Ward, CEO of Oklahoma-based SandRidge Energy Inc., said assets in the Gulf are undervalued and the company will use the cash it generates from oil there to fund its drilling campaign in Kansas and Oklahoma.  

"It’s some of the cheapest oil in the world,” Ward said.  

Click here for more information.


Today's Links

Boehner Travels to Texas Oil Rig to Hammer Obama Over High Gas Prices  

Gasoline Analysts Say Peak Might Be Soon  

Salazar Likes Job But Unsure About Staying On  

Gauging the Recovery: A Parallel Look At Crude Prices and Employment 
 

Earl’s Pearl of the Day: This message was borrowed from the gravesite of Bill Young Jr.:  

Don’t Quit  

When things go wrong as they sometimes will,
When the road you’re trudging seems all uphill,
When the funds are low and the debts are high,
When care is pressing you down a bit,
Rest if you must, but don’t you quit!  

Life is queer with its twist and turns,
As everyone of us sometimes learns,
But many a failure turns about,
Don’t give up though the pace seems slow,
You may succeed with one more blow!  

Success is failure turned inside out,
The silver tint of the clouds of doubt, 
And you never can tell how close you are,
So stick to the fight when you’re hardest hit, 
It’s when things seem worst,
That We Must Not Quit!




April 9, 2012

Oneok Partners to Build Oil Pipeline  

Oneok Partners LP said it will spend between $1.5 billion to $1.8 billion to build a 1,300-mile pipeline between the Bakken Shale in North Dakota and the Cushing, Okla., crude oil market hub, marking the company’s entry into the crude oil transportation business.   T

he pipeline will have the capacity to transport 200,000 barrels per day. The move comes as Oneok Partners — the gas-gathering and transportation unit of Oneok Inc. — has been increasing its spending plans for the Bakken Shale region.  

Oneok Partners President Terry K. Spencer said the pipeline will build on the company’s core capabilities of transporting natural gas, natural gas liquids and refined petroleum products.

Construction is expected to begin by early 2014 and be completed by early 2015.

Click here for more information.  



Today's Links

Interior Chief Sees Federal Fracturing Rule Benefiting Industry  

Nat Gas vs. Electric Vehicles: Which Will Drive U.S. Passenger Car Market?  

Refinery Gets a Look From Delta, Perplexing Analysts  

Caterpillar’s Big Bet on the U.S. Economy  


Earl’s Pearl of the Day:
"It isn’t how high you go in life that counts, but how you got there.” ― Unknown



April 5, 2012

Shell Weighs Natural Gas-to-Diesel Processing Facility for Louisiana  

Royal Dutch Shell PLC is considering building a giant plant in Louisiana that would convert natural gas into diesel fuel, several people familiar with the company’s plans said.  

The plant, which could cost more than $10 billion, would be similar in size to Shell’s Pearl gas-to-liquids (GTL) facility in the Mideast nation of Qatar. Pearl, which went into operation last June, turns natural gas into enough diesel to fill more than 160,000 cars a day.  

The Anglo-Dutch company is expected to take up to two years to develop detailed engineering plans to determine if the plant is economically viable before submitting the project for approval by the company’s board.  

Shell’s plans are the latest sign companies are seeking new ways to exploit extensive natural gas discoveries in the United States. The boom in gas production from shale has sent natural gas prices down 50 percent over the past year to slightly over $2 per million Btus, the lowest level in a decade. Diesel prices are near a record, up 4 percent from a year ago.  

In September, South Africa’s Sasol Ltd. said it was undertaking an 18-month feasibility study for a $10 billion GTL facility adjacent to its existing chemical plant in Calcasieu Parish, La.  

The technology to turn natural gas into a clean, low-sulfur diesel fuel was developed in Nazi Germany. But the high costs of building GTL plants generally have kept the technique from being commercially viable.  

The first large-scale plants were built in Qatar because the nation has an abundance of low-cost natural gas. The cost of Shell’s plant in Qatar escalated to about $18 billion, but the company hopes the knowledge gained there will help keep costs in check in Louisiana. The diesel produced in the state could be exported to Europe and Latin America.  

Last year the United States was a net exporter of petroleum products, such as diesel, for the first time in 62 years. Shell considered locating the facility in Texas and Louisiana but opted for the latter because the state offered better incentives, a person familiar with the matter said.  

Click here for more information.



Today's Links


Decision Expected On Pipeline Changes  

North Sea Oil and Gas: A Long Future Ahead  

Asia-Pacific, the Middle East and Africa to Drive Global Refining Industry Growth to 2016  

Oman Refinery Feasibility Study to Be Ready in Two Months  


Earl’s Pearl of the Day:
"There is nothing impossible to him who will try.” — Alexander the Great



April 4, 2012

GAO Report Eyes Offshore Well Containment Regulatory Progress  

The U.S. Department of the Interior (DOI) has strengthened oversight of the offshore oil and gas industry’s ability to respond to a subsea well blowout, and industry has responded by improving well containment capabilities and creating dedicated well containment organizations, the U.S. Government Accountability Office (GAO) said.  

But DOI has not fully documented its well containment review process or established a regular inspection process for equipment listed in well containment plans, the congressional watchdog service said in a report it prepared for Democratic leaders on the U.S. House Energy and Commerce Committee.  

"Similarly, [DOI] does not have a documented process for monitoring the availability of equipment identified in operators’ well containment plans, but [it] requires operators to list multiple and redundant vessels and equipment in their well containment plans, and [DOI] officials believe this sufficiently mitigates the risk if certain equipment is unavailable,” it continued.  

The report said the sort of redundant vessel availability that exists in the Gulf of Mexico is not present off Alaska, and suggested DOI might want to consider this as it receives and evaluates Shell Offshore’s plans to drill for oil there.  

"Finally, [DOI] has conducted two unannounced spill drills that have included a subsea well containment scenario, and officials told us it will incorporate these scenarios into future spill drills,” it said. "However, [DOI] has not established a time frame for incorporating subsea well containment scenarios into spill drills, and until it does so, there is limited assurance operators drilling in the Gulf of Mexico or other areas will be prepared to respond to a subsea well blowout.”  

Marcilynn A. Burke, DOI’s acting assistant secretary for land and minerals management, said DOI concurred with the report’s recommendation to document a time frame for incorporating well response scenarios into its unannounced spill drills.  

The department also agrees with GAO that it’s important to properly document standards, criteria and procedures, which will be used to review and assess well containment plans submitted with drilling permit applications.  

Click here for more information.


Today's Links
 

Analysis: Shale Oil: From Curse to Cure For East Coast Refiners?  

Salazar: Drilling and Conservation Can Go Hand in Hand  

India Aims to Dramatically Expand Pipeline Network by 2017  

Bottom of Form It May Not Be King, but Coal Still Wields Power 

 

Earl's Pearl of the Day: "Always be a first-rate version of yourself, instead of a second-rate version of somebody else.” — Judy Garland





April 3, 2012

Drilling Review Process to Speed Up  

The Obama Administration will announce plans to speed up the review process for oil and gas companies seeking to drill on U.S. lands.  

Interior Secretary Ken Salazar is set to announce an automated system for tracking onshore drilling applications as he finishes a two-day tour of booming oil and gas exploration in North Dakota.  

Under the change, the Interior Department’s Bureau of Land Management will be able to better monitor permits at every step of the federal review process and quickly flag those with missing or incomplete information.  

Modeled after an approach used for offshore drilling applications, the move could slash the amount of time it takes the government to process oil and gas permits by two-thirds, down from an average of 298 days.  

Although the move would apply to drilling nationwide, it is significant for exploration in the West, where companies are using horizontal drilling techniques and hydraulic fracturing to extract oil and natural gas from dense shale formations.  

In the past four years, North Dakota has exploded with activity as companies take advantage of the techniques to extract crude from the Bakken Shale. The U.S. Geological Survey estimated in 2008 the Bakken contains up to 4.3 billion barrels of recoverable oil, though an upcoming agency reassessment may raise the number.  

Salazar called the region "ground zero for American energy production,” adding "there is a huge future here.”  

"The Bakken play here in North Dakota is generating impressive energy production for our country and creating thousands of American jobs,” he said.  

The surge in oil production in North Dakota, both on federal leases and private lands, helped push domestic oil production up to an eight-year high in 2011.  

In January, North Dakota produced 546,050 barrels per day of oil, according to the North Dakota Industrial Commission. That makes the state the nation’s third-biggest oil producer, ahead of California and just behind Alaska and Texas, the national leader.  

The oil boom has brought new jobs and drilling work, helping to drive down the state’s unemployment rate to 3.1 percent in February — the lowest in the United States — compared with a national average of 8.3 percent.  

Click here for more information.
 

Today's Links

Help Wanted in U.S. Petrochemicals

Report: Alberta Oil Sands Workforce to Increase 73%

Carbon capture main technology challenge for industry

Coalbed Methane to Play Integral Role in China's Gas Production Goals  


Earl’s Pearl of the Day:
"Whether you think you can or think you can’t, you're right.” —Henry Ford  



April 2, 2012

Exxon, BP, Conoco Agree to Start Alaska’s Point Thomson Production by 2016  

Exxon Mobil Corp., ConocoPhillips and BP PLC have agreed to start producing natural gas at their Point Thomson development in Alaska by May 2016 at the latest, according to a settlement agreement between the companies and the state of Alaska.  

According to the document, the oil companies will be allowed to continue developing Point Thomson in exchange for the commitment to begin producing natural gas and condensate by end of the winter season of 2015-2016. The initial production system, which could be later ramped up, is being designed to produce about 200 million cubic feet per day of gas and 10,000 barrels per day of condensate.  

Also, a pipeline is being designed to move about 70,000 barrels a day of liquid hydrocarbons from Point Thomson that will help move the fossil fuels to the Trans-Alaska pipeline.  

The companies also agreed to "undertake work for commercialization of North Slope gas,” the document said. The Alaska government has said it would like to see a liquefied natural gas development to ship local natural gas to Asia.  

If a deal to sell the natural gas hasn’t been struck by June 2016, the companies agreed to expand the amount of natural gas condensate shipped to the Trans-Alaska pipeline by 20,000 to 30,000 barrels a day. Point Thomson gas could also be delivered to oil operations in Prudhoe Bay for injection into the large oilfield there, the document said.  

Click here for more information.


Today's Links

Shell’s Message: Conserve and Produce  

Obama Finds Oil in Markets Is Sufficient to Sideline Iran  

Gas Producer Encana Seeks Partners  

Bromwich: Offshore Drilling Regulators Need to Step It Up  


Earl’s Pearl of the Day:
"Without hard work, nothing grows but weeds.”  — Gordon B. Hinckley



March 30, 2012

API, Joint Industry Task Forces Provide Offshore Safety Recommendations  

The American Petroleum Institute (API) and the Joint Industry Task Forces released the final of three reports and a progress report of the fourth. Collectively, these documents provide positive recommendations to the government on how to improve offshore safety.  

"These four Joint Industry Task Forces brought together the world’s best experts and these recommendations are part of a comprehensive effort by the industry to strengthen all aspects of offshore safety, while continuing to produce energy and create jobs for Americans,” said Upstream Senior Policy Advisor Holly Hopkins.  

The task forces were assembled to focus on critical areas of Gulf of Mexico offshore activity following the Gulf spill: the Joint Industry Offshore Operating Procedures Task Force, the Joint Industry Offshore Equipment Task Force, the Joint Industry Subsea Well Control and Containment Task Force, and the Joint Industry Oil Spill Preparedness and Response Task Force.  

"The task force recommendations added to industry programs that lead the way in implementing the strongest safety standards for offshore operations,” said Hopkins. "This process draws on the collective knowledge and experience of the industry and we will continue to promote the use of the best safety practices.”  

Hopkins added the industry continues to work with federal agencies and policy makers as part of its ongoing efforts to continuously improve offshore operations.  

"These recommendations will also help boost efforts by the newly created Center for Offshore Safety, which was put in place to guide companies to better engage in the regulatory process, adhere to independent third party audits and coordinate the application of the highest safety standards,” said Hopkins.  

Click here for more information.


Today's Links

San Joaquin Basin Shale Oil Drawing More Explorers  

Shell Wins Court Order Against Greenpeace  

Senate Rejects Attempt to End Oil Subsidies  

Creating Real American Jobs with Real American Energy  


Earl’s Pearl of the Day:
"Yesterday is history. Tomorrow is a mystery. And Today? Today is a gift. That’s why we call it the present.”  — Babatunde Olatunji



March 29, 2012

Approval of spill plan moves Shell closer to Arctic drilling  

Shell Oil Co. passed a major milestone toward launching exploratory offshore drilling in the Beaufort Sea near Alaska as federal regulators approved the company’s emergency plans for dealing with oil spills in those icy waters.  

The decision announced Wednesday by the Bureau of Safety and Environmental Enforcement means Shell has satisfied regulators that it can clean up oil spilled offshore even in the remote Arctic. It hopes to begin drilling this summer in the Beaufort and the nearby Chukchi Sea.  

In February, the safety bureau approved Shell’s oil spill response plan for proposed Chukchi drilling. Federal regulators also have approved Shell’s broad blueprint for drilling in the two regions.  

"Our focus moving forward will be to hold Shell accountable and to follow up with exercises, reviews and inspections,” said the bureau’s director, James Watson.  

Shell spokeswoman Kelly op de Weegh said the approval of the spill response plan is a big step in the company’s long quest to drill in the region.  

"It further reinforces that Shell’s approach to Arctic exploration is aligned with the high standards the Department of Interior expects from an offshore leader,” op de Weegh said.  

Shell hopes to drill four wells in the Beaufort Sea and six in the Chukchi Sea over the next two years, beginning after the ice clears this summer.   The proposed Beaufort Sea drilling is 16 to 23 miles off northern Alaska in water depths of 110 to 125 feet.  

A major challenge has been preparing for an oil spill in those remote waters, about 1,000 miles from the nearest Coast Guard base.  

Shell pledged it would have emergency equipment ready nearby, including a system for trapping and siphoning gushing crude from a blown-out subsea well. Similar containment systems have been developed for the Gulf of Mexico, following the 2010 oil spill that took nearly 90 days to stop.  

Click here for more information.


Today's Links

Petrochemical Industry Takes Note of Shale Bounty  

White House: No Decision Made on Tapping Emergency Oil Stockpiles

Pickens, Mississippi Gov. Team Up on State Energy Plan  

Analysis: To Canada and Back Again: A New U.S. Oil pipeline Race

Earl’s Pearl of the Day:
"Never be afraid to try, remember... Amateurs built the ark. Professionals built the Titanic.”  – Unknown


March 28, 2012

FERC Approves Sawgrass Gas Storage Facility in Louisiana  

The Federal Energy Regulatory Commission (FERC) authorized Sawgrass Storage LLC to build a proposed natural gas storage facility to serve markets in the Gulf Coast production region.  

"We try to promote as much gas storage as we can,” FERC Chairman Jon Wellinghoff said. "Storage is going to be an essential component of ensuring we can effectively deliver gas to electric generation.”

FERC handed down a March 15 order issuing certificates to Sawgrass, a joint venture between Samson Investment Co. subsidiary Mill Creek Gas Storage LLC and Nicor Inc. subsidiary Cypress Creek Gas Storage LLC. FERC allowed Sawgrass to charge market-based rates for open-access firm and interruptible storage services and interruptible hub services.  

"We find the proposed project would provide flexible storage services to producers, pipelines, local distribution companies, marketers, and gas-fired generation customers transporting on interstate and intrastate pipeline systems, enabling them to better manage their gas supplies,” FERC said. "In view of the above, we conclude Sawgrass’ proposed project should provide substantial public benefits without significant adverse impacts.”  

Sawgrass proposed to build and operate the storage facility about 20 miles northwest of Monroe, La. It will connect through a 13.9-mile header pipeline to the Midcontinent Express Pipeline at a point about nine miles southeast of Farmerville, La.  

Click here for more information.


Today's Links

United States Will Move to Allow Atlantic Seismic Research  

Offshore Drilling Safety Panels Wrap Up Work  

CERI: Oil Sands Profitable and Promising  

France Discussing Strategic Oil Release With U.K., U.S  


Earl’s Pearl of the Day:
"Never fear the want of business. A man who qualifies himself well for his calling, never fails of employment.” — Thomas Jefferson  


March 27, 2012

Planned Pipelines to Rival Keystone XL  

Two major energy companies are planning to build new pipelines that will move as much as 850,000 barrels of crude oil a day from Canada to refineries along the Gulf Coast by mid-2014, in the latest effort to cope with a surge of oil production in North America.  

The separate projects, planned by Houston based Enterprise Products Partners LP and Enbridge Inc. of Calgary, will compete with TransCanada Corp.’s proposed Keystone XL pipeline.  

Enbridge and Enterprise already operate the Seaway Pipeline, which used to move oil north — from Freeport, Texas, near Houston, to the massive oil storage hub in Cushing, Okla. Last year the companies said they would reverse the flow of that pipeline because a recent surge in Canadian and U.S. oil production has created an overabundance at that location. The reversal will let Seaway move as much as 150,000 barrels a day south to refiners by June 1 and 400,000 barrels a day by early next year by adding new pumping stations.  

The companies said they now have enough long-term commitments from new customers to also build a new 30-inch pipeline along the same right-of-way, which will add up to 450,000 barrels per day in capacity by the middle of 2014. Two smaller pipeline projects will connect the Seaway Pipeline to Enterprise’s storage hub along the Houston Ship Channel and to refineries near Port Arthur, Texas.

Enbridge is also going to start work on a pipeline to move oil from its existing Flanagan, Ill., pipeline hub to Cushing. The pipeline, which will run alongside an existing conduit, will have an initial capacity of 585,000 barrels per day.  

The Enterprise and Enbridge projects don’t face the same hurdles as Keystone XL, like a U.S. State Department review, because the cross-border portions of their pipelines are already built. But the new pipelines will require approval from the U.S. Federal Energy Regulatory Commission, which oversees how much pipeline owners can charge for moving products, and the U.S. Army Corps of Engineers, which must review the engineering and environmental plans.  

The Enterprise and Enbridge projects don’t negate the need for the Keystone XL, analysts said. Canadian oil-sands production is expected to double to 3 million barrels a day between 2010 and 2020, while total Canadian crude production is expected to increase 50 percent to 4.2 million barrels a day over that period, according to the Canadian Association of Petroleum Producers.  

Click here for more information.



Today's Links

BP Makes Ohio Shale Move  

Kenya says four exploratory oil wells to be drilled in 2012  

Senate Vote on Bill to Raise Taxes on Oil Firms Likely to Succeed  

Shrimp May Get Not-So-Puny Biofuels Role  


Earl’s Pearl of the Day:
"Happiness is when what you think, what you say, and what you do are in harmony.” — Mahatma Gandhi



March 26, 2012

White House Seeks Industry Input on Alaska Drilling  

The Obama Administration is asking the oil and gas industry to weigh in on a possible sale of drilling leases in the Cook Inlet off the coast of south-central Alaska.  

The move is designed to gauge the industry’s interest in exploring in the area, but it doesn’t guarantee the government will sell drilling leases in the region.  

"We will continue to support efforts to safely expand offshore oil and gas exploration, using the best science to assess where recoverable resources lie,” said Interior Secretary Ken Salazar.  

The announcement comes as the administration has been trying to tamp down fears about rising gasoline and oil prices ahead of the November election.  

The Interior Department already targeted the Cook Inlet for possible drilling, having included a potential sale there in its five-year plan for auctioning drilling leases in federal waters from 2012 to 2017.  

"This is the first step in a careful process designed both to gauge industry interest in oil and gas exploration in the Cook Inlet Planning Area, and to develop information about the potential effects of that activity,” said Tommy Beaudreau, the director of the Interior Department’s Bureau of Ocean Energy Management (BOEM).  

Industry leaders downplayed the announcement. In a statement, the American Petroleum Institute noted the region has been available for years and has drawn little easing interest.  

The group has lobbied the Obama Administration to make more offshore areas available for exploration, and industry leaders have complained that under the administration’s five-year drilling plan, there would not be new sales of leases in the Beaufort and Chukchi seas near Alaska until 2015 and 2016.  

The Cook Inlet has been tapped before. In the late 1970s and early 1980s, more than a dozen exploration wells were drilled in its federal waters, and companies are producing oil from 12 platforms in state waters.  

Oil and gas companies also are already preparing to drill in other areas off the north Alaska coast. Shell is seeking government approvals to launch exploratory drilling in the Chukchi and Beaufort seas north of Alaska once ice clears this summer.  

Click here for more information.



Today's Links

Analysis: Gas Price Spike Revives Fight Over Energy Taxes  

Hoeven: Williston Basin Oil Study Due Next Year  

Natural Gas as a Game Changer  

Dow Chemical To Invest In Saudi Arabia Plant  


Earl’s Pearl of the Day:
 "A wise man will make more opportunities than he finds.” — Sir Francis Bacon



March 23, 2012

Obama Vows More U.S. Oil Production

President Barack Obama, defending his energy policy from Republican criticism, vowed his administration will support domestic oil production while saying that won’t be enough to bring gasoline prices down.  

"Anybody who suggests that somehow we’re suppressing domestic oil production isn’t paying attention,” Obama said in Cushing, Okla., where TransCanada Corp. plans to begin building the southern segment of its Keystone XL oil pipeline.  

The president stood in front of pipes that will ease the bottleneck of oil stored in Cushing and said he’s streamlining the federal permit process for critical infrastructure, including TransCanada’s pipeline to deliver oil to refineries on the Texas coast.   

"We’re making this new pipeline from Cushing to the Gulf a priority,” Obama said. "We’re going to go ahead and get that done.”

Obama’s action won’t shorten the timeline for the project, as construction is slated to start as soon as June. TransCanada is awaiting permits from the U.S. Army Corps of Engineers, the last it needs to begin work, according to the company.  

Republicans said the president’s announcement was meaningless.  

Obama was "trying to take credit for part of the pipeline that doesn’t even require his approval,” said House Speaker John Boehner of Ohio.  

"The only recent action the president has taken on energy involved lobbying senators personally and successfully” to defeat legislation that would have allowed construction of the entire pipeline, Boehner said.  

In response to Republican accusations his policies have helped drive up the cost of gasoline, Obama has countered that oil prices are set by the global market and are rising because of increasing demand from fast growing economies such as China, India and Brazil, and uncertainty caused by tension with Iran, the No. 2 producer in the Organization of Petroleum Exporting Countries after Saudi Arabia.  

"The main reason gas prices are high right now is because people are worried about what’s happening with Iran,” Obama said. "It doesn’t have to do with domestic oil production.”  

The Administration argues domestic oil production is at an eight-year high and natural gas production is at an all-time high. New vehicle fuel economy standards put in place by Obama will cut oil consumption by 2.2 million barrels a day, according to a White House fact sheet. The United States imported 45 percent of its oil needs last year, down from 57 percent in 2008, according to a March 12 administration report.  

Click here for more information.


Today's Links

U.S. Inches Toward Goal of Energy Independence  

PetroQuest Brings Louisiana La Cantera Well Online

Skrugard 'tip of iceberg' in Barents  

China Mulls Giving Oil Majors More Autonomy In Setting Fuel Prices  


Earl’s Pearl of the Day: "Don't bother just to be better than your contemporaries or predecessors. Try to be better than yourself.” — William Faulkner



March 22, 2012

Exxon Says ‘Significant Progress’ Made to End Alaska Gas Dispute  

Exxon Mobil Corp. has made "significant progress” toward resolving an Alaska natural-gas dispute, and more work remains to reach a settlement, David Eglinton, a company spokesman, said.  

Exxon, BP Plc and other oil companies are embroiled in a six-year-old lawsuit over their leases to the Point Thomson oil and gas field on Alaska’s North Slope, estimated to hold 300 million barrels of oil and 8 trillion cubic feet of natural gas.  

The state revoked the leases, which date back to 1965, in 2006 for failure to submit an acceptable development plan. The companies sued and won a court ruling last year reversing that decision.   Alaska Gov. Sean Parnell said the parties had been meeting over the last three months and the companies had been given a deadline of the end of this month.  

"The state is cautiously optimistic the Point Thomson dispute will be resolved by the governor’s deadline,” said Elizabeth Bluemink, a spokeswoman for the Alaska Department of Natural Resources.

She declined to comment about what would be included in the settlement. Parnell said earlier this month his goal was "production out of Point Thomson.” The oil companies, primarily Exxon, have invested more than $1 billion in the field over the last three years.  

Click here for more information.


Today's Links

AFPM Calls on President Obama to Approve Entire Keystone XL Pipeline  

Poll: Majority favor Keystone XL pipeline  

Mexico Invites Bids for $3.5B Gas Pipeline Project  

U.S. Navy OKs Test with Algal Fuel Blend  


Earl’s Pearl of the Day: "Always laugh when you can. It is cheap medicine.” — Lord Byron





March 21, 2012

BOEM Seeks Comments on Proposed Eastern Gulf Lease Sales

The U.S. Bureau of Ocean Energy Management (BOEM) will open a public comment period and hold four public meetings concerning two proposed oil and gas lease sales in the eastern Gulf of Mexico.

OCS Lease Sales 225 and 226 would include 657,905 acres more than 120 miles off the Alabama and Florida coasts, where there are active leases and known or anticipated hydrocarbon potential, as part of the 2012-17 U.S. Outer Continental Shelf leasing program.

BOEM Director Tommy P. Beaudreau said the agency would use information from submitted comments and the public meetings to determine issues, which would be addressed in an environmental impact statement (EIS). Planning for an EIS does not represent a final decision about the sales’ inclusion in the 2012-17 plan, he noted.

The agency has scheduled public meetings about the proposed lease sales on April 3 in Tallahassee, Fla.; April 4 in Panama City Beach, Fla.; April 5 in Spanish Fort, Ala.; and April 9 at BOEM’s New Orleans offices. Comments will be accepted until May 4.

Click here for more information.


Today's Links

Under Pressure From Fuel Prices, Obama Starts Energy Blitz

Royal Dutch Shell in Deal for China Shale Gas

QR Energy to Purchase Oil Assets in U.S. States

API Urges Administration to Bring Domestic Energy to Americans  


Earl’s Pearl of the Day:
"Gratitude is not only the greatest of virtues, but the parent of all others.” — Cicero  



 
March 15, 2012

Minge: Parties On Track To Meet Pipeline Deadline

The three major players on Alaska’s North Slope are on track to meet a month-end deadline to unite to pursue a natural gas pipeline project.

John Minge, president of BP Exploration Alaska, told The Associated Press "great strides” have been made toward alignment by BP, ConocoPhillips and ExxonMobil Corp.

"We have more alignment today than certainly we had eight months ago, because we’re all working together,” he said, adding later: "We’re actually working together with an aligned view of how Alaska gas can compete in the world marketplace.”

Alignment, to Minge, means being on the same page, interested in the same project: in this case, a liquefied natural gas line that would allow for overseas exports.

In January, Gov. Sean Parnell set a March 31 deadline for alignment of the parties under "an Alaska Gasline Inducement Act framework,” a deadline he has said was born of his frustration with the lack of progress on a line. He said alignment must include work on a large-diameter liquefied natural gas pipeline to tidewater that would allow for overseas exports.

Minge said the companies are pursuing the liquefied natural gas option in a "structured, systematic way,” meaning, determining who would do what, how the issue would be studied and how the companies would share information.

Minge called alignment "a good first step. Without it, (a project) goes nowhere. But there’s a lot of work to do. This will be a major, major, major investment.”

Click here for more information.


Today's Links

Shell Chooses Pennsylvania for Cracker  

Spain Approves Canary Islands Oil Exploration  

Cameron Says No Decision Reached on Releasing Oil Reserves  

Offshore Oil a ‘Game-Changer’ for Falkland Islands
   


Earl’s Pearl of the Day:
"It is wiser to find out than to suppose.” — Mark Twain  


March 15, 2012

U.S., U.K. Mull Oil Release

U.S. President Barack Obama and U.K. Prime Minister David Cameron have agreed to keep open discussions about a possible release of oil held in emergency stockpiles, which have been used in the past to reduce prices or compensate for a supply disruption.

Cameron and Obama discussed the topic during a meeting at the White House Wednesday but didn’t come to any conclusions, an official said. The meeting came as oil prices remain very high and the International Energy Agency (IEA) warned sanctions against Iran could remove as much as 1 million barrels a day of oil production from an already tight market.

Western powers will impose the strictest sanctions yet on Iran this summer to pressure the country over its nuclear program. The European Union (EU) has agreed to ban all imports of oil from Iran from July 1, and both the EU and the United States will tightly restrict transactions with Iran’s central bank, further constricting the country’s ability to trade oil.

The IEA estimates the EU ban, combined with action from other countries and financial sanctions, could remove between 800,000 and 1 million barrels a day of Iranian oil from the market. With gasoline prices already at all-time highs in much of Europe, and becoming a hot issue in the U.S. presidential election, many industry analysts have begun to speculate consumer nations could release oil from emergency stocks this summer to blunt the affect of sanctions.

U.S. Deputy Energy Secretary Daniel Poneman said the United States is constantly monitoring whether a release is necessary from its Strategic Petroleum Reserve.

"The president has been very clear, we have every tool available at our disposal,” Poneman said. "We are going to keep consulting with our partners globally and the [IEA] to see what tools we need to be using.”

The executive director of the IEA, Maria van der Hoeven, said an emergency release isn’t imminent.

"There is a tightening market, there is no doubt about that” as oil inventories are below the five-year average, she said. "At this moment there is no need to use [emergency oil stores].”

The last IEA emergency stock release was in June 2011, after the Libyan civil war shut down 1.1 million barrels a day of oil exports.

Click here for more information.


Today's Links

U.S. Midstream Spending Poised to Spur Job Growth

Pickens Plan Hits Senate Roadblock

Earthquake Anniversary Sees Japanese Oil, LNG Consumption Higher

George W. Bush Says Keystone XL Pipeline a ‘No-Brainer’


Earl’s Pearl of the Day: "A 'No' uttered from the deepest conviction is better than a 'Yes' merely uttered to please, or worse, to avoid trouble.” Mahatma Gandhi



March 14, 2012

Saudi Oil Chief Pledges to Offset Shortfalls

Saudi Arabia’s oil minister said Wednesday his country and other oil exporters are ready to offset any shortfalls in supply because of market volatility — an apparent reference to showdowns with Iran over its nuclear program.

"There is ample production and refining capacity … Saudi Arabia and others remain poised to make good any shortfalls — perceived or real — in crude oil supply,” said Ali Al-Naimi.

Al-Naimi made no specific reference to Iran, which is the Organization of the Petroleum Exporting Countries’ (OPEC) second largest oil producer after Saudi Arabia. But the comments come as U.S. and Western partners urge key Iranian oil customers in Asia, such as China and India, to cut back on their imports from the Islamic Republic and turn to other suppliers such as Western ally Saudi Arabia.

There also are fears military action against Iran could severely disrupt global oil supplies. Iran also has threatened to block the Strait of Hormuz at the mouth of the Gulf in retaliation for U.S. and European sanctions targeting its oil exports. The strait is the route for about a fifth of the world’s oil exports.

Iran’s Oil Minister Rostam Ghasemi blasted the policies of "unilateral economic constraints” — a reference to sanctions —he claims, "jeopardizes free trade and continuity of oil supply in the world.”

"Ultimately, all the concerned groups in the oil market … will face various problems,” he said.

Ghasemi added, "energy security may not be achieved through interference in the domestic affairs of countries.”

The West and others fear Iran’s nuclear program could eventually produce atomic weapons. Iran says it only seeks reactors for energy and medical research.

"Volatility is bad for the consumer, bad for producers and bad for the sort of long-term planning required in the energy business,” Al-Naimi added.

Click here for more information.



Today's Links

Chevron Predicts a Jump in Output

WoodMac: US Downstream on Track to Become Key Export Center

Chesapeake, Partners to Build Ohio Pipeline

Are We Developing and Retaining Rig Workers 'Well' Enough?


Earl’s Pearl of the Day: "Attitude is more important than aptitude in determining altitude.” — Earl’s Pearls pg. 184







March 13, 2012

A State-Backed Ad Campaign for ANWR Development?

An Alaska lawmaker is proposing state funding to support advertising campaigns that promote drilling in the Arctic National Wildlife Refuge (ANWR).

Rep. Lance Pruitt (R-Anchorage) is the lead sponsor of HB358, which has attracted seven Republican co-sponsors.

The bill calls for Alaska to fund at least half of out-of-state advertising campaigns promoting drilling in ANWR. The rest of the funding would come from a trade group, which the state commerce department would contract with to run the campaign.

Pruitt said the idea came from a trip he and other legislators took to Washington, D.C., earlier this session and from previous state efforts to promote Alaska tourism and fishing industry through ad campaigns. He said the point is to dispel misinformation about the environmental impact of drilling and of Alaskans’ opinion of development.

The bill cleared the House Labor and Commerce Committee without opposition and awaits a hearing in the House Finance Committee.

It is not clear how much the proposal would cost the state, but the finance committee plans to request a more detailed fiscal note.

Click here for more information.


Today's Links

Baker Hughes Joins BP, Schlumberger on Talks to Upgrade Kirkuk  

Anadarko starts production at new well in Gulf of Mexico’s Green Canyon  

Sweet Gas: Is Brazilian Sugar Cane Ethanol Ready for the World?  

Oil Producers Worry About Impact of High Prices on Economy, Demand



Earl’s Pearl of the Day:
"The better you listen, the more you will glisten.” Earl’s Pearls pg. 181



March 12, 2012

Exxon Eyeing Turkish Shale Gas Prospects  

ExxonMobil has held talks with state energy company TPAO on exploring for shale gas in Turkey, the head of TPAO said on Monday.  

According to analysis released by the U.S. government in early 2011, Turkey has 15 trillion cubic feet of technically recoverable shale gas, reserves Exxon could help TPAO tap.  

"We have carried out our studies ... We have big shale gas potential ... This attracts a lot of foreign firms, ExxonMobil in particular,” TPAO Chief Executive Mehmet Uysal told Reuters.  

"They are currently considering the potential in Trakya (western Turkey) and they’re going to make up their mind whether or not to become partners with us.”  

An April 2011 study by Advanced Resources International (ARI) for the U.S. government of global shale gas prospects identified Turkey — along with France, Poland, Ukraine, South Africa, Morocco and Chile — as a country whose future supply could be significantly boosted by shale.  

The ARI study identified the Anatolian Basin in the southeast and Thrace Basin to the west of Istanbul as the main areas of potential shale gas production in the country.  

TPAO needs North American companies’ expertise in horizontal drilling and fracturing equipment needed to extract gas trapped in Turkish soil and a number of them, including Canada’s TransAtlantic Petroleum Ltd, are already looking.  

"Shale gas has a difficult production process,” Uysal said. "There aren’t a lot of companies with enough infrastructure to drill that many wells at the same time.”  

Click here for more information.



Today's Links


Shale Boom Turns North Dakota into No. 3 Oil Producer  

Obama Monitors for Gasoline, Diesel Fraud  

Something Cooking Under Jan Mayen Surface  

Multi-University Initiative to Provide Shale Training    


Earl’s Pearl of the Day:
"Practice self control in all that you say and do.”  — Earl’s Pearls pg. 200




March 9, 2012

New Nebraska Keystone Route Almost Set  

A new route for the controversial Keystone XL oil pipeline through Nebraska should be ready within weeks with "relatively modest” changes, an executive with the project’s backer announced.

Calgary-based TransCanada Corp. is working closely with the Nebraska government to find a path that avoids the ecologically sensitive Sandhills region of Nebraska, Alex Pourbaix, president of TransCanada’s energy and oil pipelines division, told an energy conference in Houston.  

The company has identified several corridors that will be made public in a few weeks. It appears the new plan will require about 20 miles of additional pipe and about a 99-to-165 mile reroute around the Sandhills.  

"We’re talking about a relatively modest jog around the Sandhills,” Pourbaix said.  

TransCanada announced last week it plans to effectively chop Keystone XL into two separate projects, pursuing the most urgently needed portion of the line first.  

The $2.3 billion leg between an oversupplied storage hub at Cushing, Okla., to the Gulf Coast, should be in service by mid-2013.  

TransCanada has said it will soon file a new presidential permit application for the northern part of Keystone XL from the Canada-U.S. border at Montana to Steele City, Neb.  

Click here for more information.



Today's Links

ExxonMobil Earmarks $185B to Develop Energy Sources  

AFPM President Testifies on Gasoline Prices  

U.S. Energy Agency ‘Satisfied’ With Protection From Cyberthreats  

Industry Alters Designs in an Effort to Make Future Plants Safer    


Earl’s Pearl of the Day:
"Practice what you preach. No one likes a hypocrite.” — Earl’s Pearls pg. 200





March 8, 2012

Shell Exec Confident Alaskan Arctic Drilling to Start this Summer  

Royal Dutch Shell remains confident it will be able to start exploring for oil in the Arctic Ocean off the coast of Alaska this summer, the company’s Executive Vice President for Exploration David Lawrence said Wednesday.  

"As long as we continue to meet critical milestones, we will drill this summer,” Lawrence told reporters.

Shell has been seeking permits to drill in the Beaufort and Chukchi Seas off the north coast of Alaska for several years and has spent more than $4 billion to prepare for exploratory drilling. The company has already obtained several key approvals but it still needs to cross several more regulatory barriers before it will be permitted to begin drilling in July. It also faces opposition from several environmental groups.  

Shell will continue pursuing exploratory drilling in Alaska because it’s one of the most promising areas in the company’s portfolio, Lawrence said. "When you look at offshore Alaska, you are looking at 25 billion barrels of oil and 120 trillion cubic feet of gas, so it’s a major resource that can compete in any arena we look at globally,” Lawrence said.  

Drilling in the Alaskan Arctic "is relatively easy” because it’s done in relatively shallow waters and under relative low pressure and Shell already knows a lot about the region’s geology, Lawrence said. "We have a resource that is capable of transforming the energy picture in the Americas.”  

Additionally, if oil is produced from the Arctic Ocean, "it will be critical inflow to keep the Trans Alaska pipeline running,” Lawrence said. "That is a vital link in our U.S. energy security system.”  

Shell has spent years "assuring itself” it has the best drilling plan in place for the Beaufort and Chukchi Seas. "We wouldn’t be there if we don’t think we can do it safely,” Lawrence said.  

Click here for more information.



Today's Links

Senate to vote on Keystone oil pipeline  

Panel: Low Natural Gas Prices Give US Manufacturers Edge  

Center for Offshore Safety names Charlie Williams, Executive Director; announces next steps for new safety program  

7 tips for how to save money on gasoline    


Earl’s Pearl of the Day:  "Compromise is better than confrontation. Find the middle ground where everyone is comfortable.”  — Earl’s Pearls pg. 200




March 7, 2012

Statoil Chief Calls on Industry to Reform Public Image  

The president of Norwegian energy giant Statoil called on the global oil and gas industry to reform its image by being more proactive on climate change and exceeding regulatory standards on safety measures.  

During an address at the CERAWeek conference, Helge Lund, Statoil president and chief executive officer, encouraged the audience of energy leaders and executives to work together in foraging a new public perception of fossil fuel producers.  

"What we do matters. Our products matter. So people should care,” Lund said. "We need access, but we also need acceptance.”  

Lund encouraged fellow energy leaders to heed the power of social media to rapidly galvanize the public against a perceived enemy, whether a wayward government or an unresponsive corporation. 

"We cannot ignore parts of the public that don’t trust our industry and our ability to operate safely,” he said. "Trust must be earned.”  

Lund called for industry-wide collaboration to recast energy corporations as socially responsible and technically sophisticated global leaders. For instance, he noted companies have the technological prowess to lead responses to climate change concerns.  

"We have a responsibility to show leadership and take action beyond what is formally required of us,” he said. "Rather than await new governing regulations and legislation on our operations, we can take our own initiatives and exceed the expectations we meet.”  

Click here for more information.


Today's Links


Oil Giants Innovate, Push Boundaries  

Energy Provides Engine for Rail Recovery, Exec Says  

TransCanada Exec: Oil Sands, Not Sand Hills, Behind Keystone Opposition  

With Gas Prices Rising, Obama Feels Heat  


Earl’s Pearl of the Day:
"More people become successful because they’re nice than because they’re brilliant.” — Earl’s Pearls pg. 199





March 6, 2012

US Widens Lead Over Russia as Top Gas Producer  

Russia retained its spot as the world’s No. 1 gas producer during the past decade until 2009, when a sharp, recession-induced drop in demand for Russian gas, rather than a decline in production capacity, allowed the United States to edge into first place.  

Russian production recovered quickly in 2010, but U.S. shale gas production had been rising since 2006 and it continued to narrow the gap with Russia. By 2010, marketed dry gas production in the United States reached 634 billion cubic meters (bcm) according to the U.S. Energy Information Administration (EIA), the highest level since a 1973 peak of 641 bcm. As a result, the 2010 U.S. marketed gas production was very close to, and probably larger than, Russian marketed production.  

Data from CDU TEK, Russia’s equivalent to the U.S. EIA, put total Russian production in 2010 at 665 bcm, but this is a wellhead production number that includes flared gas.  

Using the U.S. National Oceanic and Atmospheric Administration’s (NOAA) estimate of gas flaring derived from satellite imagery performed in 2010, PFC Energy estimates Russia produced a net 630 bcm, with 35 bcm flared. The margin of error on the NOAA estimate was +/- 4 bcm, meaning Russia could have produced as little as 626 bcm or as much as 634 bcm. Thus, the United States likely produced more gas in 2010, but the data is not definitive.  

For 2011, the data is much less ambiguous. The EIA puts total U.S. marketed gas production at 684 bcm, or 8 percent higher than in 2010. Russian wellhead production reached 688 bcm in 2011. While NOAA has not yet released 2011 flaring estimates, PFC Energy’s conservative view, based on the flaring trend reduction since 2005, puts 2011 flaring at 34 bcm, some 4 percent below 2010 levels.  

Click here for more information.


Today's Links

Settlement puts new focus on Transocean, Halliburton

Experts Urge Nation to Hit Energy Reset Button

Energy Department expands ‘clean fleets’ program

EDITORIAL: Creativity, Common Sense Prevail in TransCanada Decision  


Earl’s Pearl of the Day: "Before we can manage others effectively, we must master self-management.” — Earl’s Pearls pg. 200






March 5, 2012

Dems Blame Wall Street for High Gas Prices, Urge CFTC Action  

Dozens of House and Senate Democrats are urging federal regulators to implement limits on speculative trading in energy futures markets, which the lawmakers call a major factor behind the run-up in gasoline prices.  

A letter to the Commodity Futures Trading Commission (CFTC) from 23 senators and 45 House members underscores how gas prices have soared to the top of the political agenda on Capitol Hill and the campaign trail.  

"It is one of your primary duties — indeed, perhaps your most important — to ensure the prices Americans pay for gasoline and heating oil are fair, and the markets in which prices are discovered operate free from fraud, abuse and manipulation,” states the letter from lawmakers including Sens. Bernie Sanders (I-Vt.), Bill Nelson (D-Fla.) and Ron Wyden (D-Ore.) and Reps. Maurice Hinchey (D-N.Y.) and Louise Slaughter (D-N.Y.).  

The letter to the CFTC bashes the regulators for failure to implement rules finalized last October that establish "position limits” on the amount of futures and swaps contracts for oil and other commodities traders may hold. The limits are required under the sweeping 2010 Wall Street reform law. "As the cost for American people to fill their gas tanks continues to skyrocket, the CFTC continues to drag its feet on imposing strict speculation limits to eliminate, prevent or diminish excessive oil speculation as required by the Dodd-Frank Act,” the letter states.  

Regular gasoline prices are now averaging $3.77 per gallon nationwide, compared to $3.48 a month ago and $3.50 at this time last year, according to AAA.

The Democrats’ new letter makes the case prices at the pump are far above what supply-and-demand fundamentals should dictate.

Click here for more information.



Today's Links

BP reaches $7.8bn settlement for Gulf oil spill  

Iraq weighs offers to raise output from Kirkuk  

CERAWeek conference to focus on energy policy  

Natural Gas to Power Pickups  


Earl’s Pear of the Day: "Remember what it was like at the bottom and help others reach the next rung on the ladder of success.” — Earl’s Pearls pg. 200




March 2, 2012

Canada Oil Sands Producers to Share Environmental Technology  

A dozen of the largest Canadian oil sands producers have agreed to share funding for environmental research, saying pooling their resources will speed the creation of new technologies to reduce the negative effects of oil-sands development.  

The 12 companies involved in the new organization, called Canada’s Oil Sands Innovation Alliance, have agreed to jointly fund environmental research and then share the intellectual property rights for environmental technologies.  

"We will remain competitors and will continue to compete aggressively in the market with our products, but when it comes to the environment, we know we’ll all win when we start working more closely together,” Suncor Energy Inc.’s (SU) Chief Operating Officer and incoming Chief Executive, Steve Williams, said before signing the charter of the new group at a press conference in Calgary.  

Oil sands development is being targeted by environmental groups and politicians for the higher greenhouse gas emissions it creates, as well as the land destruction and waste ponds created by strip mining in northern Alberta. Resistance to the Keystone XL oil pipeline from Canada to Texas — rejected by the U.S. government earlier this year — focused in part on what the environmental groups called "dirty” oil from Canada’s oil sands.   The oil sands in northeastern Alberta is the world’s third-largest oil reserve and is expected to roughly double in production to 3 million barrels a day by the end of this decade.  

The companies that signed onto the agreement include BP Plc, Canadian Natural Resources Ltd., Cenovus Energy Inc., ConocoPhillips, Devon Energy Corp., Imperial Oil Ltd., Nexen Inc., Royal Dutch Shell, Statoil, Suncor Energy, Teck Resources Ltd. and Total SA.  

The group is already working on two technologies to improve environmental performance. One technology will speed up the land reclamation process after oil sands strip mining and the other is a new fuel technology to reduce the carbon-dioxide emissions from oil sands produced from underground steam-injection.  

Click here for more information.


Today's Links

U.S. Deepwater Permits Nearing Issuance Pace Before Macondo Oil Spill  

Gulf Oil Spill Response Consortium Better Equipped  

Pickens at TED: Natural Gas a ‘Bridge’ to Energy Autonomy  

Romney Taps Harold Hamm for Advisory Role  


Earl’s Pearl of the Day:
"It is more blessed to give than to receive.” — Earl’s Pearls pg. 183




March 1, 2012

Chevron in Talks With Russia on Arctic Exploration  

U.S. oil major Chevron Corp. held talks with a senior Russian government official on Arctic exploration, as Prime Minister Vladimir Putin hinted he would allow non-state companies to operate in Russia’s northern seas.  

"Your country has enormous reserves, and the absence of large projects in the Russian Federation is a big gap in our portfolio,” Chevron’s Russia Chief Andrew McGrahan told Deputy Minister for Natural Resources Denis Khramov at a meeting.  

Unlike peers such as Exxon Mobil Corp., Royal Dutch Shell PLC and BP PLC, Chevron failed to gain a foothold in Russia following the breakup of the Soviet Union.  

The parties discussed the development of Russia’s Arctic reserves as well as changes to the investment climate and tax regime for oil companies operating in the country.  

The news comes just a day after Putin, who is strong favorite to win presidential elections Sunday, said non-state companies should be allowed to explore offshore reserves in order to avoid a drop in Russia’s hydrocarbon production.  

Khramov said his ministry is preparing changes to the current legislation, including liberalizing access to offshore reserves and lower taxes. The government will review the changes in the second quarter 2012.  
Click here for more information.



Today's Links

To Avoid Last-Minute Suit, Shell Asks U.S. Court to Rule  

Bill Clinton says Keystone XL should be built on new route  

Chevron Phillips CEO: Saudi Start-Up Imminent  

Shell, environmental group team up to save island  



Earl’s Pearl of the Day: "The quiet words of the wise are more to be heeded than the shouts of a ruler of fools.”  — Ecclesiastes 9:17





February 29, 2012

ONGC’s Share Auction Set for Thursday  

An auction to sell a 5-percent stake in India’s state-run Oil & Natural Gas Corp. (ONGC) will start Thursday, with the government expecting to generate at least $2.53 billion to narrow its fiscal deficit.  

The auction that will reduce the government’s stake in the explorer to 69.14 percent from 74.14 percent is part of New Delhi’s target of generating 400 billion rupees ($8.16 billion) from selling stakes in state-run companies in the fiscal year through March. It has so far sold shares worth only 11.5 billion rupees as a weak market has forced it to delay or scrap plans for several companies.  

The government will auction 427.77 million shares in ONGC for at least 290 rupees each in what is likely to be among the top five share sales in India’s history.  

Investors will have to pay 100-percent upfront margin for every order, according to a term sheet seen by Dow Jones Newswires. A minimum 25 percent of the shares will be kept aside for mutual fund and insurance firms.  

Citigroup is the selling broker for the shares.  

Click here for more information.



Today's Links


Pemex Ready to Drill in GOM's Deep Waters  

Putin Calls for Open Arctic Market  

Study tags 65,000 jobs, $4.9B boost to Ohio shale  

Researchers Study Tobacco's Biofuel Potential  

Earl’s Pearl of the Day:
"The ways of a fool seem right to him, but a wise man listens to advice.” — Proverbs 13:20




February 28, 2012

Pipeline Gets Jump With Gulf Route  

TransCanada Corp. says it will move ahead with the U.S. Gulf Coast portion of its contentious Keystone XL oil pipeline, a move expected to help ease a Midwest supply glut even as Washington delays a decision on the bigger project until after the presidential election this year.  

The 435-mile leg, envisioned to run from the U.S. storage hub of Cushing, Okla., to refineries in Texas, would cost $2.3 billion to build, TransCanada said. The Calgary-based firm said the segment will transport 700,000 barrels of oil a day and could be completed by the middle of 2013.  

The move is the latest twist in a pipeline-approval process recently embroiled in Washington politics. TransCanada officials have always said they would prefer to build the whole pipeline — aimed at moving oil-sands crude from Alberta to the Texas coast — at the same time.  

But those plans were upended after President Barack Obama rejected the proposal earlier this year, saying it needed further study amid concerns about the possible environmental impact of the pipeline’s path from Canada across an aquifer in Nebraska.  

The Obama Administration said then TransCanada was free to resubmit the application, and TransCanada said it intended to do so. The Gulf Coast leg, however, doesn’t require Washington approval since it wouldn’t cross the U.S. border. The White House quickly endorsed the Gulf Coast portion.  

The move comes amid a glut of crude in the U.S. Midwest due to surging production from Canada and from oil-shale developments in places like North Dakota. The region’s refining capacity is full, and there currently isn’t enough pipeline capacity to move the oil to other refineries, particularly those on the Gulf Coast.  

A spokesman for the White House said in a statement President Obama welcomes the move. It "will help address the bottleneck of oil in Cushing” and "modernize our infrastructure, create jobs and encourage American energy production.” The spokesman said the United States would give the reapplication for the larger Keystone XL project from Canada "the important assessment it deserves.”

Click here for more information.



Today's Links

Key Alaska Dems Open to Talk Oil Tax Progressivity  

BP-Plaintiff Talks Focus on Spill Fund  

Rowan plans to become UK company  

The Truth Behind High Gas Prices  


Earl’s Pearl of the Day:
"Focus on being more interested instead of being more interesting.” — Earl’s Pearls pg. 199






February 27, 2012

North Alaska May Hold 80 Trillion Cubic Feet of Shale Gas  

Alaska’s North Slope shales may hold as much as 80 trillion cubic feet of gas, or more than half the highest estimate for the Marcellus formation, and as much as 2 billion barrels of oil, the U.S. Geological Survey said.

President Barack Obama’s Administration and the state of Alaska are offering more access to oil and natural gas resources on land and in the Arctic waters to help lower dependence on imported fuel and push more crude through a major oil pipeline crossing the state. Royal Dutch Shell Plc plans to start drilling this year in the Chukchi and Beaufort seas, which are off the coast of the North Slope.  

"Alaska’s energy resources hold great promise and economic opportunity for the American people,” Interior Secretary Ken Salazar said.  

The geological service, part of the Interior Department, said North Slope shale hasn’t been developed because of economic and infrastructure considerations.  

The assessment, the first made of North Slope shale resources, is based on success in extracting oil and gas from similar formations, such as the Marcellus Shale in the U.S. East. The agency last year estimated Marcellus might hold as much as 144 trillion cubic feet of gas.  

Click here for more information.


Today's Links

Permian Basin of West Texas seeing oil boom  

Spill trial delayed for a week as settlement talks continue  

Kinder Morgan, Martin Midstream Plan Permian Rail Terminal  

Arch Coal CEO Leer To Retire; COO Eaves Named As Successor  


Earl’s Pearl of the Day:
"We are full of weaknesses and errors; let us mutually pardon each other for our follies.”  — Voltaire



February 24, 2012

Murkowski Says ‘ANWR Will Happen’ — But Not Soon  

U.S. Sen. Lisa Murkowski (R-Alaska) says drilling will happen in the Arctic National Wildlife Refuge (ANWR), but people shouldn’t hold their breath waiting for it.  

The U.S. House cleared a bill last week that would open a portion of ANWR for exploration and drilling, but Murkowski said strong enough support from the White House and her Senate colleagues appears unlikely. She insisted "ANWR will happen” but only after Republicans have a firm majority in the Senate and a "supportive administration” is in place.  

"Even with high unemployment, $100 (per barrel) oil and an empty Treasury, we still don’t seem to have the votes to break a filibuster,” Murkowski said.  

Click here for more information.



Today's Links


Poll Shows Support for Keystone Pipeline, Environmental Regulations  

In a Nod to Gas Prices, Obama Talks About Energy  

Total Begins Production at Usan FPSO  

BP’s Fate Rests With Ex-Maritime Lawyer
   



Earl’s Pearl of the Day:
"One of the great things about starting at the bottom is there is plenty of room to advance.”  — Earl’s Pearls pg. 200



February 23, 2012

Obama to Address Gas Prices, Pitch Energy Policy  

President Barack Obama is confronting Americans’ anxiety over rising gasoline prices by drawing attention to his energy policies and taking credit for rising oil and gas production, a greater mix of energy sources and decreased consumption.  

Obama is in Florida to promote an energy strategy the administration says will reduce dependence on foreign oil in the long term. But Obama’s pitch will also have a subtext: the federal government can do little to halt the current rise in gasoline prices.  

White House advisers believe Obama needs to address the recent spike in gasoline prices, even though they see it as a cyclical occurrence. The current $3.58 per gallon is the highest price at the pump ever for this time of year.  

White House officials point to increased oil production and decreased consumption as evidence Obama’s policies are working and will lead to greater energy independence in the long run. But they assert there is little Obama — or any president — can do to change the trajectory of prices now.  

To be sure, oil and gas production has increased during the Obama Administration, though the trend began during the presidency of George W. Bush, according to the U.S. Energy Information Administration. The increase has reversed a decline that began in 1986, and the agency projects by 2020 oil production will reach a level not seen since 1994.

The agency also has reported a drop in petroleum consumption, caused by the economic downturn after the 2008 recession, new efficiencies and changes in consumer behavior.  

Click here for more information.


Today's Links

Shell Bid Starts Race for African Gas Fields Bigger Than Norway’s  

UK Crude Oil Imports Exceed Production for First Time since 1978  

Judge Rules BP, Anadarko Liable in Gulf Spill  

Crude Math: What Is Really Impacting Gasoline Demand  


Earl’s Pearl of the Day: "Remember, Abe Lincoln lost many elections before becoming a winner. Never give up!” – Earl’s Pearls p. 200




February 22, 2012

U.S., Mexico Sign Gulf of Mexico Transboundary Agreement  

The United States and Mexico have signed an agreement allowing exploration and development of oil and gas resources along the two countries’ maritime boundary in the Gulf of Mexico.  

The accord, which still requires legislative approvals in both countries, makes U.S. Outer Continental Shelf (OCS) acreage with potentially 172 million bbl of oil and 304 bcf of gas available for leasing, Secretary of the Interior Ken Salazar said.  

"This agreement removes uncertainties, which have kept U.S. operators from exploring nearly 1.5 million acres of the U.S. [OCS],” Salazar told reporters. "That’s an area larger than the state of Delaware.”   Under the agreement, U.S. companies and Mexico’s state-run Petroleos Mexicanos (Pemex) can voluntarily agree to jointly develop reservoirs that cross the boundary. If a consensus can’t be reached, it provides a way for U.S. producers and Pemex to develop resources on their respective sides while protecting each nation’s interests and resources.  

"No U.S. company wanted to develop close to the transboundary because of this uncertainty,” Salazar said. "Each nation will continue sovereignty and its own regulatory system in its own territory.”  

"We believe because of the structure of this agreement, there’s a strong incentive toward voluntary unitization,” added Tommy P. Beaudreau, U.S. Bureau of Ocean Energy Management (BOEM) director. "It was reached in consultation with both U.S. operators and Pemex.”  

BOEM will offer leases along the maritime boundary for the first time at a sale scheduled for June, he said.   The agreement also provides for joint inspections of facilities developing transboundary reservoirs, as well as reviews of development plans and oil spill containment capabilities, according to Salazar. "U.S. companies can now move forward with legal certainty, which has been missing in this area,” he said.  

Salazar said DOI will begin discussions with U.S. Senate leaders soon to ratify the agreement promptly.

Click here for more information.



Today's Links

US Oil, and Outlook, Gushing

'Find of a Lifetime' in Black Sea: OMV

BP Growing Wind Farm in West Texas

Create More American Jobs by Growing U.S. Fuel Exports  



Earl’s Pearl of the Day:
"A smiling face is the best way to end a conversation or a written personal note.” – Earl’s Pearls p.199





February 20, 2012

U.S. Approves Shell Oil Spill Plan for Alaska  

U.S. officials have approved an oil spill plan for Royal Dutch Shell PLC as the company looks to begin drilling in the Arctic, saying Shell has demonstrated its ability to respond to potential spills in icy waters despite protests from environmental groups.  

The approval, granted by the U.S. Interior Department, helps pave the way for Shell to begin drilling in the Chukchi Sea this summer after years of preparation for the project.  

Shell still has to obtain drilling permits from the Interior Department before it can move forward.  

"We are taking a cautious approach,” Interior Secretary Ken Salazar said.  

In approving Shell’s oil spill response plan, a crucial part of the federal permitting process, the Interior Department said the company met new requirements adopted after BP PLC’s Deepwater Horizon oil spill. Shell had to prove it could respond to a spill that released five times as much oil as a previous contingency plan and make additional preparations for emergencies.  

Click here for more information.



Today's Links

U.S. Oil Gusher Blows Out Projections  

BP Spill Deal Possible this Week After Mitsui, Analyst Says
 

Ivory Coast: Ultradeepwater licenses awarded  

IEA Director: Oil Market Can Cope With Lost Iran Exports  


Earl’s Pearl of the Day:
"God gave us two ears and one mouth so we will listen twice as much as we talk.” – Earl’s Pearls p.181





February 17, 2012

Jamaican Minister Wants U.S. Oil Major to Help Drill for Potential 10B Barrels  

Jamaica’s minister for energy wants to attract a U.S. oil major to explore for billions of barrels of oil that waters around the Caribbean island may be hiding.  

Minister of Science, Technology, Energy and Mining Philip Paulwell has asked the American Chamber of Commerce (AMCHAM) to assist in attracting a major U.S. drilling company to explore for offshore oil. The minister said there are "great prospects for striking commercially viable oil offshore Jamaica [which now] appears more certain, based on the data collected to date, indicating there could be as much as 10 billion barrels of reserves in the Walton Basin.”  

Paulwell’s request for help with the search for Jamaican oil comes after the U.S. Bureau of Safety and Environmental Enforcement said last month it was in discussions with a number of Caribbean countries, including Jamaica, in anticipation of increased drilling activities in the region.  

Click here for more information.



Today's Links




February 16, 2012

GOP Seeks to Tie Keystone XL to Petroleum Reserve  

Three Republican senators introduced legislation this week that would bar the administration from releasing oil from the Strategic Petroleum Reserve unless it approves the Keystone XL pipeline.  

The legislation from Sens. David Vitter of Louisiana, John Hoeven of North Dakota and Richard Lugar of Indiana comes in response to White House spokesman Jay Carney’s recent comment that opening the reserve wasn’t off the table if oil prices continue rising.  

Republicans have sought to pass legislation approving the Keystone XL pipeline ever since the Obama Administration denied a permit Jan. 18, saying a Feb. 21 decision deadline included in the payroll-tax law at the insistence of Republicans didn’t provide enough time for an environmental review.  

"The Keystone XL pipeline is yet another example of the president putting a political agenda in front of common sense energy policy,” Vitter said. "It’s as if this administration had never heard of the economics of supply and demand … unless it becomes politically expedient to release from our strategic reserves to influence gas prices when there is a looming election.”  

The GOP has tacked language approving the TransCanada Corp. pipeline from Canada to Gulf Coast refineries onto the House’s version of surface-transportation legislation.  

Click here for more information.


Today's Links

White House Begins Gas ‘Fracking’ Rule Review  

Apache Opens $9.5b Warchest as Profit Up  

Falkland Islands: Oil Opportunity Amid Rising Diplomatic Tensions  

Is Downstream M&A Poised for an Upswing in 2012?  


Earl's Pearl of the Day: "There is no big 'I' or little 'u' in 'team'." - Earl's Pearls p.182




February 15, 2012

Salazar Says Fracking Rules Coming in ‘a few weeks’  

Interior Secretary Ken Salazar announced his department will formally unveil its highly anticipated rules for hydraulic fracturing on federal lands in "a few weeks.”  

The Interior Department has worked on a trio of rules that would require companies operating on federal lands to disclose the chemicals in their fracturing fluids (with a trade-secret exemption), impose standards meant to ensure wells can withstand fracturing and require companies to explain how they plan to dispose of flow-back water.  

"If we are going to be successful, the public needs to have confidence that fracking operations are being conducted safely, and drinking water supplies are protected,” Salazar said.  

A leaked draft of the fracturing rules came under fire from oil and gas groups, which called the proposals redundant with what many states and industry itself are already doing and saying they would further impede oil and gas development on federal lands.  

Salazar said fracturing is already being done safely "in most cases.” But he defended the rules, saying not moving forward with them could undermine public confidence in unconventional natural gas production enough to serve as its "Achilles heel.” He also said the American people have a right to have their public lands used in a "responsible way.”  

Click here for more information.



Today's Links

TransCanada Again Extends Keystone XL Schedule  

Chevron-led Kazakh oil venture plans $6 billion drilling program  

Magnolia Blooms on US Acreage Buy  

Anne-Grete Ellingsen: Elf's First Female Engineer  


Earl’s Pearl of the Day:
"Learn more, earn more.” – Earl’s Pearls p. 181



February 13, 2012

Cyprus Rings Bell for Second Round  

Cyprus launched its second offshore licensing round today, with 12 blocks on offer off its southern coast.  

The latest tender is likely to attract strong interest from explorers following the landmark Aphrodite-1 discovery made last December by U.S. independent Noble Energy.  

The well — the first to be drilled off the Mediterranean island state — struck estimated gross resources of between 5 trillion and 8 trillion cubic feet of gas in Block 12.  

Noble may also be among the participants in the new round, in which the blocks on offer are reported to have both oil and gas potential.  

Applications can be submitted within 90 days of the date of the notice and a decision on the applications is expected to be made by the Cypriot cabinet within six months from the date of their submission.  

Click here for more information.



Today's Links

Alaska Lawmakers Debate Tax Cut for Oil Companies  

Senate GOP Push for Keystone Vote on Highway Measure  

API: Inspector General's Report Should Clear the Way for Keystone XL Approval  

Private Equity Drills Into Oil Patch   
 

Earl's Pearl of the Day: "When we point the finger at someone, there are always three pointing back at us." - Earl's Pearls p.184




February 10, 2012

Geoscientists Call For Honest Dialogue on Fracking  

Better industry oversight, an honest dialogue with the public about controversial drilling methods and a clearer explanation from companies about how clean, natural gas can be extracted from wells drilled hundreds of feet underground is desperately needed from energy companies, two geoscientists said Tuesday.  

The two spoke as part of a panel on hydraulic fracturing, or "fracking,” a controversial process that uses water, sand and other additives to free natural gas underground.  

Critics worry about water and other environmental contamination and point to hundreds of earthquakes that have hit Oklahoma since fracking was introduced. But supporters say those fears are overblown.   One prominent proponent, billionaire energy magnate T. Boone Pickens, recently boasted that out of the 800,000 wells that have been fracked in the Southwest, he didn’t know of a single lawsuit or complaint that arose from the process — even offering he had fracked "over 3,000 wells” himself.  

Tuesday’s moderated discussion at the University of Tulsa featured scientists David Hughes and Terry Engelder. Hughes is president of Global Sustainability Research, Inc. Engelder is a professor of geosciences at Penn State University.  

Engelder, who has been named to "Foreign Polic”y magazine’s 2011 list of "Top Global Thinkers,” said energy companies have gone on the offensive, forming America’s Natural Gas Alliance, to take their message directly to the public. 

"They came out with a new ad ... and the first sentence had the word ‘risk’ in it,” he told The Associated Press following this speech. "And it starts out something to the effect everything we do is risk, and this includes the gas industry.”  

Engelder’s counterpart, David Hughes, who has researched, published and lectured over the past 10 years on global energy and sustainability issues across the world, said there’s no question about the risk to the environment, but fracking makes economic sense and is "the right thing to do.”  

Click here for more information.



Today's Links

Three Coking Mega-Projects Will Shift Midwest Crude Dynamics  

Another day, another Keystone XL bill  

BP Reiterates ‘Fair and Reasonable’ Stance After $17.6B Settlement Report  

MSHA Reorganizes to Centralize Oversight of Assessments, Accountability Programs



Earl’s Pearl of the Day:
"You never get a second chance to make a first impression.”  - Earl’s Pearls p. 182




February 9, 2012

Congressman Wants LNG Fuel to Be on Equal Footing with Diesel  

Rep. Mac Thornberry (R-Texas) plans to make LNG more attractive as a vehicle fuel by lowering an excise tax to be more in line with other fuels such as diesel, gasoline and compressed natural gas.

"We have an abundance of natural gas here at home that we can use to meet our energy needs and still become a net exporter within the next decade,” Thornberry said. "We can help encourage the use of this resource domestically by equalizing its tax treatment, which this bill does. Clearly, it makes sense from both an economic and national security perspective.”  

The excise tax on vehicle fuels helps support the U.S. Highway Trust Fund, which was established in 1956 to finance the interstate highway system, other roads and infrastructure projects.  

Thornberry, who represents the Texas Panhandle and other parts of northern Texas, introduced H.R. 3832, the LNG Excise Tax Equalization Act of 2012, on Jan. 25. The bill was referred to the House Committee on Ways and Means. Thornberry is working with natural gas organizations and looking for co-sponsors.  

If signed into law, the bill would apply an excise tax of 24.3 cents on LNG based on an equivalent unit of energy of a gallon of diesel. Currently, LNG and diesel are both taxed at 24.3 cents per gallon, even though LNG has roughly two-thirds the energy of diesel.  

According to Thornberry’s bill, LNG has an energy content of 84,820 Btu per gallon, and diesel has an energy content of 137,380 Btu per gallon. The bill, in effect, would attempt to equalize the tax for the two fuels.  

Click here for more information.



Today's Links

More Players Join Shale Party

Brazil’s ‘Father of Ethanol’ Sees Bounty for Biofuel

Repsol YPF Ups Argentine Shale Potential

Shell Spotlights Energy Innovation With iPad App



Earl’s Pearl of the Day: "If you make others No. 1, they’ll realize how brilliant you are and respond in kind.” – Earl’s Pearls p.181



February 8, 2012

Lawmakers Ask Feds to Consider New Waters in Offshore Plan  

A group of 182 lawmakers, almost all of them Republicans, have asked the Interior Department to consider opening new offshore waters for oil and gas drilling in its five-year offshore leasing plan.  

Led by Reps. Rob Wittman (R-Va.), Gene Green (D-Texas), Jim Costa (D-Calif.) and Bill Flores (R-Texas), the lawmakers told Interior Secretary Ken Salazar they were "disappointed” the department’s proposed 2012-2017 plan for the outer continental shelf doesn’t include waters that industry hasn’t had access to yet. The members write opening new areas "will bring new jobs, new energy and new revenues to the Treasury — all at a time where each of these benefits is desperately needed.”  

"We continue to believe any new five-year leasing plan should allow for the consideration of expanding into new areas, such as offshore Virginia,” the 167 Republicans and 15 Democrats wrote in a letter. 

President Obama said in his State of the Union address he was directing the Interior Department to move forward with its new five-year plan to lease areas of the Gulf of Mexico and Arctic Ocean. He and Salazar have said the plan would make available 75 percent of the nation’s potentially recoverable offshore resources.  

Click here for more information.



Today's Links

Obama Administration Outlines Arctic Energy Policy Initiatives  

House Panel Clears Keystone XL Bill, Setting Up Showdown  

EMGS Plans 3D Survey of Barents Sea  

Jacobs Wins Contract for Potential La. Methanol Plant




Earl’s Pearl of the Day:
"Don’t go after a territory you can’t take and don’t take a territory you can’t hold.” – Earl’s Pearls p.181



February 7, 2012

Nigeria’s Jonathan: Government Will Issue More Licenses for Refineries  

Nigerian President Goodluck Jonathan announced the federal government is willing to give licenses to those interested in setting up refineries in the country.  

The move, he said, is part of the overall efforts by government to raise the nation’s petroleum refining capacity and reduce the importation of refined products.  

President Jonathan lamented despite having four refineries, the country is still importing refined petroleum products because of their inability to meet domestic demands for the products.  

"Nigeria has four refineries, but their combined capacity does not meet the country’s needs, so we are willing to approve applications for refining licenses,” Jonathan said.  

The president also disclosed the government has now opened up previously restricted areas to private investors as part of his transformation agenda.  

Click here for more information.



Today's Links

Americans Gaining Energy Independence  

IHS: Shale plays driving demand for oil field chemicals  

Q&A: The Women of Oil and Gas  

Steps to Mitigating Pathological Complacency



Earl's Pearl of the Day: "You can't lose business you don't have, so don't be afraid to go for it."  - Earl's Pearls p.181



February 6, 2012

ANWR Bill Clears House Natural Resources Committee  

House Republicans have officially resuscitated the age-old fight over the Arctic National Wildlife Refuge (ANWR).  

The House Natural Resources Committee fired its latest shot with a bipartisan 29-13 vote for a bill that would open a portion of ANWR to oil and gas drilling. It was the first action on an ANWR bill during this Congress.  

The bill will be part of a larger House Republican strategy to use energy production and other revenue to finance popular infrastructure projects. It’s expected on the House floor later this month.  

Three panel Democrats — Jim Costa of California, Dan Boren of Oklahoma and Pedro Pierluisi of Puerto Rico — voted for the bill.  

Congressional Democratic leaders have long opposed the idea, as does the Obama Administration.   Rep. Rush Holt (D-N.J.) said it would allow the oil and gas industry "to put a bull’s-eye” on the entire national wildlife refuge system.  

But Rep. Don Young (R-Alaska) and other backers have argued the area in ANWR where drilling would occur is not environmentally sensitive, is merely a small portion of the reserve and is an idea broadly backed by fellow Alaskans.  

"Oil is not where you want it to be. It’s where it is,” Young said.  

Click here for more information.



Today's Links

Shell hopeful for Arctic drilling

Imperial Oil Approves $2B Cold Lake Oil-Sands Expansion

Canada to boost efforts to monitor oil sands pollution

How to Strike It Big in the New Energy Boom





February 3, 2012

Administration Fast-Tracks Offshore Wind Farms  

The Obama Administration says it plans to make areas off the coasts of Maryland and New Jersey available to wind-energy developers by year’s end, paving the way for the first leases under a program designed to fast-track offshore wind farms.  

While President Obama has said he favors an "all of the above” approach to energy development, Thursday’s announcement highlighted the stronger emphasis he places on wind and solar power compared with Republicans. A House committee on Wednesday approved three bills promoting oil and gas exploration, an issue also stressed by the GOP’s presidential candidates.  

The United States gets about 3 percent of its electricity from land-based wind turbines but doesn’t yet have any turbines offshore.  

Announcing the wind plan, Interior Secretary Ken Salazar said his department found there would be "no significant impact” on the environment from issuing the leases and allowing developers to test whether the areas are viable.  

The decision eliminates a step from the environmental-review process, shortening it by as much as two years, said Jim Lanard, president of the Offshore Wind Development Coalition. "This is a critical step,” he said.  

Environmental reviews will still be needed for individual project plans, and wind farms in the designated areas are still years away from coming online.  

Under the only offshore lease executed so far by the United States — for a 46-square-mile parcel in Nantucket Sound, off the coast of Massachusetts — project owner Cape Wind Associates would pay the government about $88,000 in annual rent for 33 years, plus 2 percent to 7 percent of electricity sales.  

The Interior Department is also targeting areas off the Delaware and Virginia coastlines for future leases. "We will be able to see one day the harnessing of the tremendous amount of energy we have off the Atlantic coast,” Salazar said.  

Click here for more information.



Today's Links

Energy Secretary Backs Natural Gas Exports

Shell Looking At Ways To Improve US Gas Profits

Source: Repsol Begins Deep-Water Exploration Drilling Off Cuba

Assistant Secretary of Labor for Mine Safety and Health Joseph Main: Mine Safety and Health Improving Through Collective Efforts of Government, Industry




February 1, 2012

Shell CEO Says Arctic Focus is Alaska, Greenland  

Royal Dutch Shell PLC’s plans to drill for oil and gas in the Arctic region will be centered on Alaska and Greenland, though the Anglo-Dutch major is also eyeing Russia’s far north as an exploration frontier, said Chief Executive Peter Voser.  

"For us the focus is in Alaska and to some extent in Greenland, although in the coming years there may also be opportunities in Russia,” said Voser.  

Although Shell’s intention to drill in Alaska has been well documented — the company has received the necessary clean-air permits and expects to commence operations there this summer — the renewed focus on Greenland is the latest sign the energy giant plans to open a new exploration frontier in one of the world’s last undiscovered oil and gas provinces.  

Vast hydrocarbon reserves are believed to lie off the coast of Greenland. The U.S. Geological Survey estimates reserves of 31 billion barrels of oil equivalent yet to be tapped off the west coast, while another 17 billion are estimated to sit under the seabed off the island’s east coast.  

Shell risks unleashing the wrath of environmental campaigners, who are strongly opposed to oil companies drilling in the region. They argue a spill could be impossible to contain and risk damaging the fragile ecosystem.  

Voser acknowledged the Arctic environment was a particularly sensitive one, but said he believed Shell could safely conduct operations there.  

Click here for more information.


Today's Links

Refiners, Union Reach Deal

Missouri Governor backs Plans for New Oil Pipeline

Rare Earth Metal Refinery Nears Approval

Saudi Arabia Names Candidate to Head OPEC




January 30, 2012

Unit of Buffett’s Conglomerate ‘Ready to Haul’ Canadian Crude

Warren Buffett’s Burlington Northern Santa Fe is among U.S. and Canadian railroads that stand to benefit from the Obama Administration’s decision to reject TransCanada Corp.’s Keystone XL oil pipeline permit.

With modest expansion, railroads can handle all new oil produced in Western Canada through 2030, according to an analysis of the Keystone proposal by the State Department.  

"Whatever people bring to us, we’re ready to haul,” Krista York-Wooley, a spokeswoman for Burlington Northern, said in an interview. If Keystone XL "doesn't happen, we’re here to haul.”  

The State Department denied TransCanada a permit Jan. 18, saying there was not enough time to study the proposal by the Feb. 21 deadline Congress imposed. TransCanada has said it intends to re-apply with a route that avoids an environmentally sensitive region of Nebraska, something the Obama Administration encouraged.  

The rail option, though costlier, would lessen the environmental impact, such as a loss of wetlands and agricultural productivity, compared with the pipeline, according to the State Department analysis.  

Click here to read more.

Today's Links

Obama's Keystone XL Decision: What Have Workers Got to Lose?  

CAPP outlines fracing operating practices for shale, tight gas  

Entergy Announces Key Leadership Changes  

Forecasting the future of natural gas



January 30, 2012

Could North America Be the Next Energy Hub?  

North America is poised to become the "new Middle East” of energy exports by the next decade, according to a Citigroup analyst.  

Edward Morse, Citigroup’s managing director of commodities research, told "The Vancouver Sun” the continent is likely to see export capacity rise as production of tar sands, natural gas and oil — both onshore and offshore — ramp up in Mexico, Canada and the United States.  

"North America, particularly the United States, is poised to become a growing exporter of petroleum products from the U.S. Gulf Coast,” Morse said.  

Click here for more information.
 


Today's Links

Boehner says highway bill fair game for Keystone XL provision  

Statoil opts for Luva giant spar  

TonenGeneral Sekiyu to Buy ExxonMobil’s Marketing Unit in Japan for $3.9 Billion  

Offshore Wind: an Opportunity for the Oilfield Services Industry




January 27, 2012

EU: Study Shows No Need for New Laws to Regulate Shale Gas  

There is no need for new legislation to regulate shale gas exploration in the European Union, according to a study published today.  

The study, carried out by a consultant and authorized by the European Commission, says existing legislation on exploration and production of fossil fuels — which are mainly aimed at guaranteeing safety and environmental protection — can apply to both conventional and unconventional gas.  

"The legal study confirms there is no immediate need for changing our EU legislation,” Energy Commissioner Guenther Oettinger said. "We take environmental concerns seriously and will continue to monitor the development of shale gas extraction in the EU.”  

Shale gas is a controversial issue in the EU, with France and Bulgaria being the main opponents to its extraction due to environmental concerns, while others — led by Poland — are strongly in favor because they see it as a means of easing their dependence on imported gas, usually from Russia.

Shale gas is extracted by injecting large amounts of water mixed with chemicals underground, to crack the rocks that trap the gas and push it to the surface — a process called hydraulic fracturing, or fracking. Opponents fear the procedure can pollute drinking water sources and possibly create small earthquakes, while supporters say the gas operations are carried out much deeper underground, and if the engineering is correct, there is no danger.  

Exploratory drilling is taking place at more than 20 sites in the EU, half of which are in Poland.  

Click here for more information.


Today's Links

Energy Industry Wants To Ditch 'Fracking'  

CH2MHill brings new global energy group to Houston  

National Petrochemical & Refiners Association Becomes American Fuel & Petrochemical Manufacturers  

Looking for work? Click here to see job openings





January 26, 2012

Obama to Unveil Energy Plans  

President Barack Obama is set to announce a pair of new measures designed to advance the "all of the above” energy agenda he laid out in Tuesday’s State of the Union address, including an embrace of natural gas as a transportation fuel.  

At a United Parcel Service Inc. facility in Las Vegas, President Obama will throw his support behind using natural gas for transport in the medium and heavy truck fleet, according to administration officials.

UPS used more than $5 million in federal support to upgrade its own fleet of trucks and complete the first natural-gas "corridor” linking the port of Long Beach, Calif., with Salt Lake City, where big trucks can readily refuel with liquefied natural gas.  

The White House plan, contingent on congressional support, would include tax credits to offset part of the cost of upgrading trucks to run on natural gas, and federal help to spur the creation of five additional natural-gas corridors on heavy trucking routes.  

Additionally, the Obama Administration plans to double down on federal research to find new ways to use natural gas for transportation, as well as supporting the conversion of city bus and truck fleets to run on the cleaner fuel, administration officials said.  

Click here for more information.


Today's Links

Obama Admin to Hold GOM Lease Sale  

Chevron gets go ahead to expand Table Rock Field  

Deep rig market 'set for boom'  

Building a Pipeline of Talent for the Oil and Gas Industry





January 25, 2012

Obama Pushes Natural Gas Fracking to Create 600,000 Jobs  

President Barack Obama pushed drilling for gas in shale rock and support for cleaner energy sources to boost the economy in his final State of the Union address before facing U.S. voters in November.

Hydraulic fracturing, the process of injecting water, sand and chemicals underground to free gas trapped in rock, could create more than 600,000 jobs by the end of the decade, Obama said.  

"We have a supply of natural gas that can last America nearly 100 years and my administration will take every possible action to safely develop this energy,” Obama said.  

Obama reiterated support for conservation and cleaner sources of power and pledged more oil drilling as part of an "all-out, all-of-the-above’’ policy "that’s cleaner, cheaper, and full of new jobs.” He announced incentives to make industries more energy efficient and again called on Congress to require a larger percentage of the nation’s power come from low pollution sources.  

He directed his administration to open up more than 75 percent of potential offshore oil and gas resources for production.  

As Obama backed more domestic oil and gas production, he also pledged support for renewable sources of power, urging Congress to pass clean energy tax credits and a mandate for more electricity to come for cleaner sources of power.  

An energy efficiency initiative he’s backing would cut $100 billion from the nation’s energy bills, he said. Obama also pledged the Defense Department would make the largest renewable energy purchases in history.  

Obama also repeated his call from last year to repeal tax credits for the oil and gas industry. That effort failed to win broad support in Congress, after producers said the measures would push more production and jobs outside the United States.  

Click here for more information.

Today's Links

Company Seeks To Construct LNG Export Facility at Brownsville, Texas  

EIA energy projections show need for policy changes  

US Ethanol Company POET, Royal DSM Announce Ethanol Venture  

Big Oil had good 2011, despite 4th-quarter slump




January 24, 2012

EIA: U.S. Reliance on Energy Imports in Decline through 2035  

In a statement released by the U.S. Energy Information Administration (EIA), increased production of oil, natural gas and renewable energy improvements in energy efficiency will reduce U.S. dependency on imported energy resources.  

Continued development of tight oil in the onshore United States and exploration and production in the U.S. Gulf of Mexico will push domestic crude oil production in the reference case to 6.7 million bpd in 2020, a level not seen since 1994.  

"With modest economic growth, increased efficiency, growing domestic production and continued adoption of nonpetroleum liquids, net petroleum imports make up a smaller share of total liquids consumption,” EIA noted.  

U.S. gas production will exceed consumption early in the next decade thanks to the shale gas production boom, with the United States expected to become a net exporter of liquefied natural gas (LNG) in 2016, a net pipeline exporter in 2025 and an overall net exporter of natural gas in 2021.  

The share of natural gas used in electricity generation will grow from 24 percent in 2010 to 27 percent in 2035, while the share of renewables used in power generation will rise from 10 percent to 16 percent over the same time period.  

The U.S. electric power sector’s historical reliance on coal-fired power plants has begun to decline, and the projected share of coal in overall electricity generation falls to 39 percent, well below the 49-percent share seen as recently as 2007. This decline can be attributed to slow growth in electricity demand, continued competition from gas and renewable plants and the need to comply with new environmental regulations.  

Energy demand is expected to slow through 2035 due to an extended economic recovery and increased energy efficiency, EIA officials said. The share of fossil fuels in U.S. energy consumption is forecasted to fall from 83 percent of total U.S. energy demand in 2010 to 77 percent in 2035.  

EIA’s findings were released Monday in the Annual Energy Outlook 2012 (AEO2012) Reference case, which includes updated projections for U.S. energy markets through 2035.  

The full AEO2012 report will be released in April.  

Click here for more information.


Today's Links

Obama to talk energy, jobs in State of Union speech  

Pemex makes Veracruz oil find  

Shift to liquids helps keep Halliburton profit growing  

Brazil Picks New Petrobras CEO


 


January 23, 2012

Oil Fields Gushing in the U.S.  

Federal forecasters are expected to confirm today what the energy industry already knows: Oil production is surging in the United States.  

The U.S. Energy Information Administration is likely to raise by a substantial amount its existing estimate that U.S. oil production will grow by 550,000 barrels per day by 2020, to just over 6 million barrels daily.  

The forecast will include new production data from developing oil fields, including the Bakken shale area in North Dakota, which could hold as much as 4.3 billion barrels of recoverable oil. North Dakota’s output of oil and related liquids topped 500,000 barrels per day in November, meaning the state pumped more oil than Ecuador. In fact, U.S. oil production grew faster than in any other country over the past three years and will continue to surge as drillers move away from natural gas due to a growing gas glut, experts say.  

This rising tide of oil and related liquids such as condensate that also are used as fuel could reduce U. S. dependence on oil imports and help ease the country’s trade deficit. But it may have limited impact on U.S. gasoline prices, which increasingly are set by global supply-and-demand trends.  

The increased domestic production also isn’t enough to help the United States achieve the elusive ideal of energy independence — the country is expected to consume more than 19 million barrels of oil and liquids a day by 2020.   From 2008 through 2011, U.S. production of a broader category of oil and related liquids grew by 1.3 million barrels per day, or more than 17 percent, to 8.9 million barrels, according to the research firm IHS-CERA.  

IHS-CERA predicts U.S. production could grow by another 1.3 million barrels per day by 2020, to 10.2 million barrels.  

"I don’t think it’s widely appreciated how dramatic it’s been,” Jim Burkhard, managing director of IHS-CERA’s Global Oil Group, said of U.S. growth. "Deepwater production has contributed to the growth in recent years, and more biofuels has helped, but the really dramatic improvement has been in onshore oil and liquids — and that is what will continue to drive growth in coming years.”  

Click here to read more.



Today's Links

Shell to Spend Nearly $1B on Offshore Nova Scotia Oil Exploration  

Oil and gas producer Apache buying Cordillera Energy Partners III in a deal valued at $2.85B  

Gracas Foster nears Petrobras top job  

Shale Gas: A Renaissance In U.S. Manufacturing?






January 20, 2012

Lawmakers Seek to Undo Pipeline Denial  

Congressional supporters of the Keystone XL pipeline are exploring legislation that might circumvent the Obama Administration’s denial of a permit for the project by letting Congress or an independent federal agency approve it.  

United after the State Department denied the permit Wednesday, Republicans in both chambers vowed they would push proposals to force approval of the pipeline.  

"All options are on the table,” House Speaker John Boehner (R-Ohio) told reporters. "This fight is not going to go away.”  

Stand-alone proposals would face tough odds in the Democratic-held Senate.  

But Boehner pointed to certain "legislative vehicles we’ll be moving.” He didn’t rule out tying the proposals to a bill further extending the payroll tax break and unemployment benefits.  

The administration said TransCanada could reapply. President Barack Obama said his administration rejected the pipeline permit not on the merits, but because the deadline didn’t give enough time to study alternative routes around a drinking-water aquifer in Nebraska, making the national-interest decision impossible.  

TransCanada said it will take up the offer to reapply and is working with Nebraska officials to get a new route picked by October.  

Legislation by Rep. Lee Terry (R-Neb.) would transfer Keystone XL authority to the Federal Energy Regulatory Commission (FERC), an independent agency, and require it to approve the pipeline within 30 days. Terry argues FERC understands pipelines better.  

A House Energy and Commerce subcommittee will debate the bill at a hearing Wednesday.  

Click here for more information.



Today's Links

Fracking market to grow 19% to $37 billion worldwide  

Pemex Seeks Bids to Develop More Mature Oil Fields  

Huge oil rig arrives to explore in Cuban waters  

Ten Questions for the Refining Industry in 2012





January 19, 2012

Obama Says No, for Now, to Canada Pipeline  

The Obama Administration rejected construction of the Keystone XL oil pipeline from Canada to the Gulf of Mexico, saying a congressionally imposed deadline didn’t allow enough time to review the project’s environmental impact.  

President Barack Obama said the decision, which put the pipeline on hold following a review that began in 2008, "is not a judgment on the merits of the pipeline” and criticized next month’s deadline as "arbitrary.” The administration suggested the pipeline’s builder, TransCanada Corp., could reapply.  

TransCanada CEO Russ Girling said the company "remains fully committed to the construction of Keystone XL.” He said, "We will reapply for a presidential permit and expect a new application would be processed in an expedited manner to allow for an in-service date of late 2014.”  

David Goldwyn, a former State Department envoy for international energy affairs who now heads a consulting firm, said the United States could reuse some of the studies and analyses it has already conducted but the process would take "a minimum of 18 months to two years.”  

The Obama Administration said a fresh request would trigger a new environmental review. The State Department’s Kerri-Ann Jones declined to commit on a timeline for completing the review, saying, "It would be a completely new application.”  

Administration officials said they had to reject the permit since TransCanada has yet to submit an alternate route for a portion of the pipeline that passes through an environmentally sensitive area. The administration postponed a pipeline decision in November, saying a new route was needed to avoid the Nebraska Sand Hills, which sit atop an aquifer that supplies fresh water. Critics saw that move as political, since it delayed the decision until after the election.  

Alison Redford, the premier of Canada’s oil-rich province of Alberta, said she was disappointed in the U.S. government’s decision but said she believed the project would eventually be approved.  

Click here for more information.



Today's Links


Fossil Fuel Forecast: A Huge Role  

Barents Opening 'in 2013'  

Pembina Pipeline to Buy Provident Energy  

Mulva: U.S. Govt Needs 'Constructive Role' in U.S. Shale Boom





January 18, 2012

Obama Advisers Call For ‘All In’ Energy Strategy For Jobs, Security  

Business leaders who advise President Obama have recommended an "all-in” energy approach that would encourage more development of conventional and renewable energy on federal lands to create jobs and boost U.S. energy security.  

Obama’s Council on Jobs and Competitiveness suggested leasing more federal lands and speeding up regulatory approvals for oil, gas and coal production there while ensuring safety standards exist to protect health and the environment.  

"The council recognizes providing access to more areas for drilling, mining and renewable energy development is controversial,” the advisers said, "but, given the current economic situation, we believe it’s necessary to tap America’s assets in a safe and responsible manner.”  

The advisers said the United States and the world will still need fossil fuels for years to come.  

They said developing more of America’s energy resources would help reduce foreign-energy reliance, pointing to the roughly $1 billion the United States spends daily on oil imports.  

"Over the long term, we expect innovation and technological advancements will greatly reduce America’s reliance on fossil fuels,” they said. "Until then, however, we need to be all in.”  

Click here to read more.



Today's Links

Shell teams up with Tullow to explore for oil in Atlantic

Anadarko hits natural gas off Mozambique

Laredo aims to raise production by 25%

North Dakota Drillers Need More Fracking Crews, State Says





Norway Awards 60 New Oil Production Licenses  

Norwegian Energy Minister Ola Borten Moe announced today the country has awarded 60 new production licenses to 42 oil companies in the "biggest ever” award in so-called predefined areas.  

The companies were awarded 34 licenses in the North Sea, 22 licenses in the Norwegian Sea and four licenses in the Barents Sea, Moe told attendees at an oil conference.  

The licenses are situated in mature areas on the Norwegian Continental Shelf, where 27 of the companies have been awarded operatorships.  

Moe also said the recent Aldous/Avaldsnes discovery in the North Sea will be renamed Johan Sverdrup, after a former Norwegian politician.  

Statoil ASA’s (STO) Chief Executive Helge Lund said the company aims for production start at Aldous/Avaldsnes "well ahead of 2020” and reiterated his demand for new acreage to increase production after that date.  

"Unless we get new discoveries, production can halve from 2020 to 2030,” Lund said.

Click here to read more.



Today's Links

ConocoPhillips Seeks Partner for Canada Oil-Sands Assets  

Aramco, Sinopec Sign Yanbu Refinery Deal  

Valero Energy to invest in cellulosic ethanol plant in US  

Drilling could help plug abandoned oil wells





January 16, 2012

Oil India Plans to Buy Shale Gas Assets in U.S., Australia  

State-run Oil India Ltd. plans to buy shale gas assets worth up to $200 million and is scouting for potential acquisitions in the United States and Australia as it seeks to gain expertise in the field ahead of India’s plans to auction blocks in the country.  

"Shale gas is going to be the future of unconventional oil exploration and development,” Director of Finance T.K. Ananth Kumar said. "We prefer to go in for a joint venture partnership rather than fully owning the asset. This is our strategy for acquisition of shale gas.”  

The U.S. shale gas boom has transformed the gas market and made the country a net exporter. India is seeking to tap into its shale gas resources to meet rising gas demand from power plants and factories.  

Last October, Oil Minister Jaipal Reddy said the government would reveal its policy on shale gas block auctions in 2012. The South Asian nation expects to launch its auction of blocks by the end of 2013.  

Oil India joins other Indian companies — such as Reliance Industries Ltd. and GAIL (India) Ltd., which have already acquired acreage in the United States — to get technology for exploiting the natural resource and secure fuel supplies.  

The "Mint” newspaper cited Oil India Chairman N.M. Borah as saying the company is in talks with a U.S.-listed firm to buy a 25-percent stake for some $200 million in acreage in Texas.  

Click here for more information.


Today's Links

Platts Survey: OPEC Pumps 30.83 Million Barrels of Crude Oil Per Day in December

Ichthys Decision Puts Darwin on the LNG Map

South Sudan Signs First Oil Deals Since Independence

Project to Pour Water into Volcano to Make Power







January 13, 2012

Shell Leader Expects Arctic Offshore Drilling This Year  

At a scientific conference on Thursday, Shell Oil Co. President Marvin Odum said the company expects to clear remaining regulatory hurdles and begin drilling later this year in the Chukchi Sea near Alaska.  

Shell received conditional federal approval last month to drill six exploratory wells in the Arctic offshore region but still must secure permits for individual wells.  

Selling regulators on its plan for responding to spills or other accidents at the sites are among the requirements for Shell to obtain those permits.  

Odum said Shell is mindful of the 2010 Deepwater Horizon disaster in the Gulf of Mexico, and the wide criticism BP and others involved received for the conditions leading to the accident and their response.  

"We will have every piece of response in Alaska available on a one-hour notice,” Odum said in a keynote address at the ninth conference of the Academy of Medicine, Engineering and Science of Texas. "The access to the equipment will provide for a much different response than what the world watched in the Gulf of Mexico.”  

Environmentalists who oppose the drilling contend no proven technology exists for cleaning up a spill in the slushy Arctic environment.  

The area about 70 miles off the Alaska coast is more remote than the Gulf, and winter ice causes additional challenges.  

Odum noted, however, the drilling will be in about 150 feet of water — far shallower than the well under a mile of water that blew out in the Deepwater Horizon disaster.  

He said Shell is also working with Norwegian experts on how best to clean up any potential spills in colder climates.  

Click here for more information.



Today's Links

Inpex, Total Approve $34 Billion Australian LNG Project  

Petrobras platform arrivals to accelerate reserve growth    

Solazyme announces appointment of Mark Warner as SVP of engineering  

Oil and Gas Professionals Wanted at San Antonio Career Fair





January 12, 2012

Chamber Touts Keystone XL, Domestic Energy to Create Jobs  

Energy topped the U.S. Chamber of Commerce’s annual list of priorities for boosting the economy, as the group’s president urged approval of the Keystone XL pipeline and further exploitation of domestic oil, gas and coal resources.  

Chamber President Tom Donohue called energy a "game changer” for the United States in his annual State of American Business speech, which sets out priorities to boost the economy. For 2012 Donohue also suggested stopping an "avalanche” of energy and business regulations, reforming Social Security and Medicare, boost intellectual property protections and using other policies that can promote growth "without raising taxes or adding to the deficit.”  

He said the nation could create more than 1 million jobs by 2018 developing oil, natural gas and coal — a claim promoted by the American Petroleum Institute (but decried by a top Democratic lawmaker). Pointing to the oil boom in North Dakota, where unemployment has fallen below 4 percent, he said the United States "is on the cusp of an energy boom that is already creating hundreds of thousands of jobs, revitalizing entire communities and reinvigorating American manufacturing.”  

He also urged the Obama Administration to approve TransCanada’s Keystone XL pipeline that would carry tar-sands oil from Alberta, Canada, to refineries in the Gulf Coast. Like other supporters, Donohue said its construction would create 20,000 jobs and more down the road, and the 1,700-mile pipeline would provide energy from a friendly neighbor.

"The project has passed every environmental test,” Donohue said, adding some labor unions have been "screaming” in support of it. "There is no legitimate reason, none at all, to subject it to further delays.”  

Click here to read more.



Today's Links

Hess to focus capex on shale plays  

Oil Companies Still Eye Controversial Norwegian Acreage  

Steffy: Other countries learning Macondo’s lessons  

New Partnership Helps Commercial Kitchens Recycle Trap Grease, Save Money




January 11, 2012

Oil and Gas Leases on Public Lands Up 20 Percent in 2011, Feds Say

Oil and gas lease sales on public lands grew 20 percent in 2011, a top official said Tuesday, as the Interior Department plans more sales in 2012 and mulls whether to boost the royalty rate.  

In 32 lease sales, the Bureau of Land Management brought in $256 million on sales of 1,296 parcels of land, up from $213 million in 2010 on sales of 1,090 parcels, the Interior Department said. Deputy Interior Secretary David Hayes told reporters the numbers for 2011 include a lease sale in the Strategic Petroleum Reserve-Alaska in December.  

BLM has scheduled 32 additional lease sales on U.S. public lands in 2012, according to the agency.  

"We intend to continue to build on that success [from 2011] this year,” said Hayes.   Hayes also told reporters the department will "soon” propose a rule that could increase the 12.50  percent royalty rate for onshore oil and gas leases on public lands. He did not elaborate on the timetable or what the proposed rule will contain.  

A report by the Government Accountability Office, the government watchdog agency housed in Congress, has said the federal government’s royalty rate is less than what states and private land owners get paid.  

"It is not a trivial exercise to identify what particular royalty rates might make sense,” Hayes said. "Our intent is to make sure the American taxpayer is getting appropriate value for oil and gas development on our public lands.”  

The announcement also comes as the Interior Department finishes writing rules the department says would require disclosure of fluids used on public lands for hydraulic fracturing, the controversial process used to free up trapped oil and gas from shale-rock formations.  

Click here for more information.



Today's Links

Lease sales on federal lands climb  

10 Significant Discoveries of 2011  

BP, Sempra to Invest $1 Billion in Wind Farms  

ConocoPhillips Announces Executive Appointments





January 10, 2012

Statoil makes large oil discovery in Barents Sea  

For the second time in less than a year, Norway’s Statoil announced it has discovered a large oil reserve in the Barents Sea.  

A well drilled in the Havis prospect in the Barents Sea proved both oil and gas at an estimated volume of between 200 million and 300 million barrels of recoverable oil equivalents, the state-controlled oil company said Monday.  

Statoil discovered between 150 million and 250 million recoverable barrels of oil equivalents in the nearby Skrugard prospect last April.  

"Havis is our second high-impact oil discovery in the Barents Sea in nine months,” Statoil CEO Helge Lund said. "The discovery’s volume and reservoir properties make it Skrugard’s twin. Skrugard and Havis open up a new petroleum province in the North.”

Statoil has been exploring in the Barents Sea for more than 30 years and said the find proves persistence and long-term thinking bear fruit.  

"We are about to realize the Barents Sea as a core area on the Norwegian continental shelf,” said Erik Strand Tellefsen, Statoil’s vice president for the Skrugard development.

Click here to read more.



Today's Links

Youngstown opens mills again as states jockey for fracking jobs  

Feds say rig heading for Cuba drilling meets standards  

How Microbes Teamed to Clean Gulf  

Finding a Way to Put a Zebra in Your Tank










January 9, 2012

BOEM to Hold Public Hearing on Proposed O&G Leasing Program  

The Bureau of Ocean Energy Management (BOEM) will hold a public hearing in Houston on Jan. 10. The hearing will provide an opportunity for the public to comment on the Draft Environmental Impact Statement (DEIS) for the proposed Outer Continental Shelf (OCS) oil and gas lease sales offshore Texas, Louisiana, Mississippi and Alabama. This DEIS is for the proposed lease sales in the Western and Central Gulf of Mexico 2012 – 2017 five-year program.

A leasing program consists of a schedule of oil and gas lease auctions indicating the size, timing and location of proposed leasing activity for the five-year period following its approval by the Secretary of the Interior.

The proposed program includes offshore areas in the Western and Central Gulf of Mexico where there are currently active leases and exploration, and where there is known or anticipated hydrocarbon potential.  

Click here for more information.



Today's Links

Keppel scoops $150m US rig deal  

Biosensors to Prevent Heat Stroke Unveiled as Petro-Safety Tools  

Alaska governor, majors' executives discuss ANS gas  

Amid BCS mania, BP pushes a feel-good Gulf story





January 6, 2012

US Refiners May Profit From Petroplus Woes

U.S. refiners could see new opportunities as Europe's largest independent refiner and wholesaler of petroleum products shuts down three of its five refineries, analysts said.

Petroplus Holdings AG announced the three closings last Friday as banks starting freezing more than $2 billion worth of the financially troubled Swiss company's credit lines. Petroplus has faced stubbornly high crude prices, stagnant demand and fierce competition from overseas refiners, which has led to net losses in every quarter except one since 2009.

The refinery shutdowns in France, Belgium and Switzerland could help U.S. crude processors fill refining gaps and grab market share in Europe. That could increase the expanding U.S. exports of oil distillates, such as heating oil and diesel, to the Continent. Output from the combined 667,000 barrels a day of refining capacity at the shuttered refineries already has ceased, while the company's refineries in U.K. and Germany are running at half of their combined 330,000 barrel-a-day capacity, according to Petroplus Chief Executive Jean-Paul Vettier. Half of Petroplus's output is diesel according to a Bank of America energy newsletter. Read more...



Today's Links

Lebanon plans to hold bidding for oil, gas licenses in 2012    

COTEMAR Tracks Offshore Workers with RFID Tags  

Northern Gateway Oil-Pipeline Backers Emerge In Canada Filing  

Twelve-story Animated Lightshow to Dazzle Downtown, Salute LSU, BCS, and Showcase New Orleans





January 5, 2012

Alaska Governor to Meet with Oil CEOs  

Today the chief executives of the big three North Slope energy producers are expected to meet with Alaska’s Gov. Sean Parnell.  

Parnell, who said it was time the region’s major players, including the state, "work collectively to determine the shape of the next generation of North Slope resource development,” proposed this virtually unheard-of meeting three months ago.  

The letter, which went to the CEOs of Exxon Mobil Corp.; Rex Tillerson, BP, Bob Dudley; and ConocoPhillips, Jim Mulva, called for a "multiparty meeting of the gas commercialization stakeholders.”

Parnell, hoping to jolt stalled efforts to advance a major natural gas pipeline from the North Slope, said he wants the companies to unite behind a project that would allow for liquefied natural gas to be shipped overseas, if the market truly has shifted from the Lower 48.  

He said he wants them to do this under the framework of the Alaska Gasline Inducement Act. If they do, he said the state can be flexible, including talking tax and royalty terms.  

Last month, Parnell said he expected the major players to get behind one project or the state would move in another direction. He also said the producers were talking, which he considered progress.  

Click here for more information.



Today's Links

API urges energy discussion in election campaigns  

Louisiana: Payments for Gulf Spill Resume  

U.S. Needs Reality-Based Energy Policy  

Danos & Curole Says Hello to New Operations Director





January 4, 2012

International Players Jump at U.S. Shale  

International energy companies are signing billion dollar deals with U.S. firms to reap the financial benefits of their oil fields and siphon knowledge from their experience in extracting petroleum from dense shale rock to carry the skills overseas.  

In return, they are ponying up the funds to get more wells drilled, so the oil and natural gas bounty trapped deep below can get to market quickly.  

"The big motivation for [U.S. companies] wanting to find a partner is finding someone with big pockets,” said Scott Hanold, energy research analyst for RBC Capital Markets. "They are just money men at the end of the day.”  

French energy giant Total signed its second shale compact with Oklahoma-based natural gas producer Chesapeake Energy last week to secure acreage in Ohio’s burgeoning Utica shale. The company received 25-percent interest in a 619,000 acre joint venture with Chesapeake and Houston-based EnerVest. In exchange, it forked over $700 million cash along with a promise to fund 60 percent, or about $1.63 billion, of the group’s drilling and well completion costs in the Utica.  

China’s Sinopec International Petroleum Exploration & Production Corp. muscled its way into U.S. shale with a $2.2 billion investment in oil fields owned by Oklahoma-based energy company Devon.  

The Chinese corporation gains one-third interest in Devon’s 1.2 million acres in the Utica shale, the Michigan Basin, the Mississippian in Oklahoma, the Tuscaloosa marine shale in Louisiana and the Niobrara in Wyoming.  

Sinopec will pay $900 million cash when the deal closes, expected in 2012’s first quarter, and cover 70 percent of Devon’s drilling costs, about $1.6 billion.  

Total and Sinopec follow other international energy powerhouses that have crossed the Atlantic recently, including Norway’s Statoil.  

"It’s a continuation of a very fevered process of large international companies with cash coming into North America,” Hanold said.  

Including Total’s deal, overseas-based companies spent about $33 billion buying into U.S. shale through acquisitions or joint ventures last year. For the international energy behemoths, North America’s rapidly expanding shale fields can be viewed as a sure and easy bet, requiring big bucks, but little work.  

Click here for more information.



Today's Links

Enterprise says Appalachia-to-Texas pipeline is a go  

DeepOcean names new CEO  

Exxon in Talks to Restructure Stake in Japanese Unit TonenGeneral Sekiyu  

Clean Harbors to Present at the 14th Annual Needham Growth Conference




January 3, 2012

Technology, Innovation and Economy Will Shape Energy Industry in 2012  

According to year-ahead predictions by business advisory firm Deloitte, a higher demand for gas, rising global commodity prices, together with demergers and nanotechnology will be among key themes to emerge in the energy sector in 2012.

Due to tightening environmental regulations, expectations of ample supply at competitive prices and the need to back up intermittent renewable resources such as wind and solar to ensure reliability, gas is expected to become the fuel of choice for many global energy hubs.  

The Middle East is expected to provide much of the incremental supply thanks to its massive resources and forecasted increase in export capacity. In fact, the production rate in the Middle East is projected to nearly triple over the next two decades.

The complexity of the offshore value chain is expected to grow considerably over the next 10 years, driven by the rising global demand for energy, the move toward more and more remote geographies and legislative change.

"The industry operates under a magnifying glass with oil companies held accountable for environmental, anti-corruption and safety standards not just in relation to their own behavior but for that of all their contractors,” said Graeme Sheils, oil and gas partner at Deloitte in Aberdeen, United Kingdom.

The outlook for the oil price and focus on finding new areas for development saw a number of companies split their upstream and downstream operations into separate units during 2011, allowing for a sharpened management focus, increased transparency for investors and creating additional value for shareholders.

"We believe further splits will occur over the next two or three years within the ranks of the integrated international oil companies,” added Sheils. "However, some large vertically-integrated companies may maintain their current structure for several reasons such as the difficulty in assessing shipping assets and the time taken for renewable assets to become profitable enough to sell.”

The increasing consumption and demand of natural resources has led to a scavenger hunt for new supplies by companies and countries alike. While the South China Sea has yet to be explored in depth, early predictions by Chinese analysts put oil reserves at more than 200 billion barrels.

The ongoing civil unrest in Arab countries will also continue to impact on the oil markets. This has seen the biggest impact in Libya where crude production fell from 1.6 million bpd to less than 100,000 bpd since February.

Nanotechnology, the science of small things, is expected to progress in leaps and bounds in 2012 with a particular resonance in the renewables sector, facilitating the generation of electricity directly from solar, wind and geothermal resources.

"Research will continue unabated over the long term with some economists predicting a $1 trillion global market for nanoproducts over the next 10-15 years. A market this large will have implications for the energy sector, not just for renewables but also for oil and gas and, in particular, energy storage,” concluded Sheils.  

Click here for more information.


Today's Links

Total Buys $2.32 Billion Shale Stake, Helping Chesapeake Pare It’s Debt  

U.S. Appeals Court Stalls Implementation of Cross-State Emissions Rule  

Latin Oil Supplies for U.S. Start to Dry Up  

Iran targets 5 million barrels oil a day





January 2, 2012

In a first, gasoline and other fuels are top U.S. export  

For the first time, the top export of the United States, the world’s biggest gas guzzler, is — wait for it — fuel.  

Measured in dollars, the nation is on pace this year to ship more gasoline, diesel and jet fuel than any other single export, according to U.S. Census data going back to 1990. It also will be the first year in more than 60 that America has been a net exporter of these fuels.  

A decade ago, fuel wasn’t even among the top 25 exports. And for the last five years, America’s top export was aircraft. The trend is significant because for decades the U.S. has relied on huge imports of fuel from Europe in order to meet demand. It only reinforced the image of America as an energy hog.  

And up until a few years ago, whenever gasoline prices climbed, there were complaints in Congress that U.S. refiners were not growing quickly enough to satisfy domestic demand; that controversy would appear to be over.  

Click here for the complete story.




Today's Links

White House, GOP battle for supremacy on Keystone pipeline

New poll shows Americans still support Keystone XL

UK Hands Out 46 New North Sea Exploration Licenses

Five top federal energy policy moments in 2011





December 29, 2011

Impact Statement Released for Upcoming US Rounds

US regulators have put out a draft environmental impact statement for the next five years of Gulf of Mexico offshore leasing and are now soliciting public comment, the Bureau of Ocean Energy Management said Thursday.  

The document is the government's new long-term evaluation of the environmental risks of drilling in the Gulf of Mexico since 2010’s Macondo disaster, which killed 11 workers and caused the worst offshore oil spill in US history.

Once finalized, the document  will set the stage for planned lease sales in the Central and Western Gulf of Mexico scheduled from 2012 to 2017. Read more...



Today's Links

Deutsche Bank: U.S. Chemicals Sector Growth to Post Modest Growth in 2012

All eyes on German renewable energy efforts

Twelve Global Executives to Watch in 2012

Petro-Scholarships and Grants Proliferate




December 28, 2011

EPA Finalizes 2012 Renewable Fuel Standards  

The United States Environmental Protection Agency (EPA) has finalized the 2012 percentage standards for four fuel categories that are part of the agency’s Renewable Fuel Standard program (RFS2). The EPA continues to support greater use of renewable fuels within the transportation sector every year through the RFS2 program, which encourages innovation, strengthens American energy security, and decreases greenhouse gas pollution.

The Energy Independence and Security Act of 2007 (EISA) established the RFS2 program and the annual renewable fuel volume targets, which steadily increase to an overall level of 36 billion gallons in 2022. To achieve these volumes, EPA calculates a percentage-based standard for the following year. Based on the standard, each refiner and importer determines the minimum volume of renewable fuel that it must ensure is used in its transportation fuel.

The final 2012 overall volumes and standards are:

Biomass-based diesel (1.0 billion gallons; 0.91 percent)
Advanced biofuels (2.0 billion gallons; 1.21 percent)
Cellulosic biofuels (8.65 million gallons; 0.006 percent)
Total renewable fuels (15.2 billion gallons; 9.23 percent)

Last spring EPA had proposed a volume requirement of 1.28 billion gallons for biomass-based diesel for 2013. EISA specifies a one billion gallon minimum volume requirement for that category for 2013 and beyond, but enables EPA to increase the volume requirement after consideration of a variety of environmental, market, and energy-related factors. EPA is continuing to evaluate the many comments from stakeholders on the proposed biomass based diesel volume for 2013 and will take final action next year.

Overall, EPA’s RFS2 program encourages greater use of renewable fuels, including advanced biofuels. For 2012, the program is implementing EISA’s requirement to blend more than 1.25 billion gallons of renewable fuels over the amount mandated for 2011.

Click here for more information on the standards and regulations. 

Click here for more information on renewable fuels.



Today's Links

Noble Energy Discovers More Natural Gas Off Cyprus

Calgary oil transforms Canada to energy superpower


Top 5 Highest-Paying Jobs without Degrees

Buying, Selling 'Pre-Owned' Facilities A Complex Process  
 



December 27, 2011

Obama Signs Payroll Tax Bill that Requires Speedy Decision on Keystone Pipeline  

President Obama has signed into law a broad payroll tax package that includes a measure requiring him to make a speedy decision on the Keystone XL pipeline.

The GOP-backed measure requires the administration to make a decision within 60 days on the pipeline, which would carry oil sands crude from Alberta, Canada, to refineries on the Gulf Coast. In order to reject the pipeline, Obama would have to declare the project is not in the national interest.

While Republicans lobbied aggressively for the provision, administration officials note the move could backfire. They point to a recent warning by the State Department — the lead agency conducting the federal review of TransCanada Corp.’s proposed project — that the administration will have little choice but to reject the project if officials are forced to make a decision in 60 days.  

White House Communications Director Dan Pfeiffer said on Twitter last week the Keystone provision "simply shortens the review process in a way that virtually guarantees the pipeline will NOT be approved.”

Still, the measure will force the administration to weigh in on the pipeline before the 2012 election.

Opponents of the Keystone XL pipeline said they hoped the measure requiring a speedy decision on the project will ensure its rejection by the administration.

"Our hope is the president will use the opportunity to deny the permit, and sooner rather than later,” 350.org President Bill McKibben said in a statement.

Click here for more information on this story.



Today's Links

Shale-Gas Boom Spurs Race

Turkey, Azerbaijan Sign Deal For Trans Anadolu Pipeline Project

Lafayette moving toward natural gas

Top 5 Paying O&G Jobs with Degrees




December 23, 2011

A new chapter for rig survivor  

Chad Murray was one of the last people off the Deepwater Horizon. He twice fought his way back through the burning, debris-strewn living quarters to help rescue injured co-workers, risking his life to save them from the smoke and flames.  

A day and a half later, when the survivors finally arrived at shore, they were told to wait on the boat. Final preparations for their arrival supposedly weren’t ready. Murray, having been through the most grueling ordeal of his life, had had enough. He walked up the gangplank anyway, and his crew mates followed him.

Now, Murray, 36, is leading the way again, determined to make sure the Deepwater Horizon’s victims, its survivors and their families aren’t forgotten.  

Earlier this year, he settled his legal claims with Transocean, the rig’s owner and his former employer, and while he can’t discuss the terms, he said he accepted a lower settlement so he could move on with his life.  

Last April, on the first anniversary of the disaster, he used some of the money to form DWH11.org, a charity to help families and workers affected by offshore drilling accidents.

Click here to read the complete story.



Today's Links

API calls on President Obama to approve Keystone XL 

EOR Playing Role in Carbon Capture, Storage Research

Excelerate Advances Puerto Rico Floating Regas Project

Chesapeake relocates prairie dog family from drill site




December 22, 2011

First Movers in Eco-Drilling: Greener Results to be Clicks Away  

At the clickety-click of a mouse, stakeholders in the Eagle Ford and other shale areas will be able to discern the impact that different aspects of natural gas shale development have on the environment and collaborate on the best ways to prevent damage.  

The Houston Adavanced Research Center (HARC) has awarded Petris Technology of Houston a contract to commercialize a geographic information system (GIS) that will help predict and prevent ecological harm from drilling operations. The technology initially will be developed in the Eagle Ford shale play area. The work will complement prototype efforts underway by the University of Arkansas for the Haynesville and Fayetteville shale plays.  

Petris’ work will focus on a GIS analytical tool and associated technology integration transfer for optimizing well placement. The system also will enable key types of environmental data to be shared between stakeholders, such as exploration and production (E&P) firms, land owners and regulatory agencies. Read more…



Today's Links

Spectra, Chesapeake, AEP plan pipeline from Utica shale  

Phillips 66 leadership team announced  

McDermott and Heerema in Ichthys win    

DOJ approves Exelon deal, with conditions




December 21, 2011

Canada PM: ‘Very Serious’ About Focusing On Asia For Energy Exports  

In a broadcast interview, Canadian Prime Minister Stephen Harper said the country is "very serious” about focusing its efforts on selling oil and gas to Asia, even in the event of an accelerated approval for the Keystone XL project.  

The CTV network released excerpts of the interview where Harper says there was no turning back on its push to boost energy-related exports to Asia.  

The Obama Administration has said a decision on whether TransCanada Corp. can get a permit to build the extension to the existing Keystone pipeline — which would move crude oil from the Alberta oil sands to the Gulf Coast — won’t be made until after the 2012 election.  

"I am very serious about selling our oil off this continent, selling our energy products off to Asia. I think we have to do that,” Harper said in the interview. "When I was down in the United States recently it was interesting. I ran into several senior Americans who all said, ‘Don’t worry, we’ll get Keystone done. You can sell all of your oil to us.’ I said, ‘Yeah, we’d love to but I think the problem is now that we’re on a different track’.”  

The United States Senate has agreed to extend a payroll tax cut the White House pushed, but only on the condition the White House accelerates plans on a Keystone XL decision to within the next two months.



Today's Links


Cyprus’ FM briefs US officials on gas development

EPA finalizes air-toxics rule for power plants, likely will unveil it today

Enbridge Wins Contracts to Proceed With Gulf Coast Pipeline

Total Buys ExxonMobil Out of Fina Antwerp Olefins





December 20, 2011

Mississippi Moves Toward Offshore Oil and Gas Leasing  

Mississippi state officials have published regulations to lease state waters in the Gulf of Mexico for oil and gas drilling.  

Mississippi Development Authority (MDA) Spokesman Dan Turner said the move could clear the way for a lease sale sometime in 2012, after a public comment period that ends Jan. 20.  

State officials said they believe state waters largely hold natural gas, cutting the threat of large oil spills. They said drilling could produce $250 million to $500 million in royalties for the state over time, almost of all which is legally directed to education.  

The authority plans to hold a public hearing on the coast in January or February and is likely to issue the rules sometime after. That could clear the way for the state to take bids on leases later in 2012.  

Turner said because little if any oil is believed to be there, Mississippians have little reason to fear a Deepwater Horizon-style massive spill like the one in 2010.  

"This is tried and true technology,” Turner said. "Texas, Alabama and Louisiana have been using it for decades. This is just an apples-and-oranges comparison to BP.”  

Click here for more information on this story.



Today's Links

Conoco Gets a Permit to Develop Alaska Site

Demand for offshore supply ships 'will rise 10%'

Science, Public Outreach Can Curb Questionable Groundwater Complaints

Rick Perry stands up for natural gas drilling





December 19, 2011

Shale's Bounty Goes Beyond Oil and Gas  

The United States shale oil and natural gas boom has cracked open another lucrative market—gas liquids used to make plastics.  

The same drilling technologies that have unlocked vast amounts of crude and natural gas from previously unproductive shale formations across the U.S. also are reaping large stores of ethane, propane and butane, known as natural-gas liquids.  

This growing bounty has resuscitated the U.S. petrochemical industry, which just a few years ago was being strangled by the high costs of the raw materials.  

Processing ethane into chemicals is 50 percent cheaper than using crude oil-derived naphtha and its availability has made U.S. petrochemical companies the envy of overseas competitors. It also brings the prospect of lower prices for auto parts, Styrofoam and other products. Read more…



Today's Links

Alberta's Redford: Leading the Energy Conversation

Oil companies exploring south-central Kansas

Noble Increases Resource Estimate for Leviathan

Cheniere provides developing liquefaction project in Texas




December 16, 2011

Efficiency, Safety Spur RFID Development for O&G Sector  

As companies seek to address issues of safety and non-productive time, use of radio-frequency identification (RFID) technology – in which radio waves are used to transfer data from an electronic tag, attached to an object, through a reader, in order to identify and track an object – has started to grow within in the oil and gas industry.  

RFID technology has primarily been used to track inventory, and has been utilized in industries such as retail asset tracking, animal identification and transportation tolls. Now, oilfield service company Weatherford has introduced RFID traceable drillpipe, which can connect temperature, pressure, number of rotating hours and cumulative fatigue load to specific joints. To date, the company has tested in the North Sea and has shipped to operators in Brazil and China.  

The company has also developed and deployed the RipTide reamer, the first RFID activated drilling reamer. The RFID tag can be dropped from the surface into a well, enabling multiple activations and deactivations during drilling or tripping. Weatherford’s addition of RFID drillpipe to its suite of well completion products is the culmination of over a decade of effort by the company to implement RFID technology into drillpipe. Read more...


Today's Links

Canada oil pipeline into US gets extension support

Neste to Develop, Test Microbial Oil Processes at Porvoo

Anadarko ready to drill in big Gulf project

Americans support shale, poll finds



December 14, 2011


First Offshore Bids to be Opened Since Spill  

For the first time since the 2010 Deepwater Horizon disaster, the federal government will auction offshore drilling leases in the western Gulf of Mexico.  

The auction, which will get underway at 9 a.m. central time at the Mercedes-Benz Superdome in New Orleans, will be presided over by Interior Secretary Ken Salazar.

Early details suggest there is plenty of pent-up industry demand for the offshore tracts up for grabs. The Bureau of Ocean Energy Management reports 20 companies have placed 241 separate bids to buy 191 tracts off the coast of Texas — slightly more than the 189 bids 27 companies submitted on 162 tracts during the last western Gulf lease sale in August 2009.  

The lease sale covers about 20.6 million acres of the Gulf of Mexico, with available blocks located in federal waters at least nine miles off the shoreline. Some of the available offshore tracts are shallow — just 16 feet deep — but the available acreage includes territories as deep as 10,975 feet.  

According to the Offshore Energy Bureau, the areas up for sale could produce 222 million to 423 million barrels of oil and 1.49 trillion cubic feet to 2.65 trillion cubic feet of natural gas.  

Click here for more information on this story.



Today's Links

OPEC Agrees on Output Ceiling

House passes bill linking tax cut, Keystone pipeline

API applauds passage of new pipeline safety legislation

FTTN targets oil & gas leases in Texas, Oklahoma & Louisiana




December 13, 2011

House Set to Vote on Keystone XL Today  

The House is slated to force a showdown with the White House over the controversial Keystone XL pipeline today, by voting on legislation that would speed up the project’s approval and renew a payroll tax cut the Obama administration favors.  

At its heart, the bill is designed to extend a 2 percent Social Security payroll tax cut before it expires Jan. 1 and extend unemployment insurance through Jan. 31, 2012.  

But House Republicans have folded in the unrelated pipeline proposal and another provision that would strike new EPA pollution standards for industrial boilers. The measure would give the Obama administration 60 days to approve a permit for TransCanada’s Keystone XL pipeline, designed to carry Canadian crude from Alberta to southeast Texas refineries.  

The State Department recently decided to delay a final verdict on whether the $7 billion project is in the national interest until early 2013 so it could conduct an environmental analysis of an alternative route being considered by TransCanada and Nebraska policymakers.  

President Barack Obama has vowed to reject any legislation linking the pipeline and payroll tax cut. And Senate Majority Leader Harry Reid, D-Nev., has said the combination pipeline-payroll package is dead on arrival in that chamber.  

But House Republicans could force the White House’s hand. If the House passes the legislation today and quickly recesses for the holiday break, Senate Democrats and the Obama administration may have no choice but to accept the pipeline proposal as the price for the payroll tax cut extension — or let the tax relief expire. Read more...



Today's Links

Iraq Expects To Be Given OPEC Presidency In 2012

Pipeline safety bill wins bipartisan vote in House

Schlumberger, Halliburton maybe eyeing Heckmann Corp.

Pickens: Reduce Foreign Oil Imports




December 12, 2011


OPEC Seeks to Heal Rift and Fix Oil Target  

The Organization of the Petroleum Exporting Countries (OPEC) began negotiations today on a new production deal aimed at healing the rift caused by a bad-tempered failure to agree on an output target when it last met in June.  

At stake for OPEC is a credible output policy heading into a year when sluggish global economy could undermine fuel demand and bring down oil prices that now are more than $107 a barrel.  

"I think they have to agree this time because they need to be credible,” said former Algerian Oil Minister Chakib Khelil ahead of the meeting of the 12-member cartel that pumps more than half the world’s oil exports.  

Without a collective supply target, OPEC members with spare capacity — Saudi Arabia and its Gulf Arab allies — will remain free to pump at will.  

Leading producer Saudi Arabia made clear its intention to keep oil prices under control, saying it was producing a surprisingly high 10 million barrels daily of crude, much more than estimated by most in the oil industry.  

That pleased consumer nations worried about the impact of oil prices on global growth. But the Saudi position is worrying for the price hawks in OPEC like Iran, Algeria and Venezuela who want to keep oil above $100. Iran wants a commitment from Saudi Arabia and other Gulf OPEC producers that they cut back to accommodate the restoration of Libyan supply.  

OPEC’s secretariat has prepared a report for today’s meeting, which forecasts demand for OPEC crude at 30 million bpd on average in the first half. That would allow for stocks to rebuild in the second quarter when global fuel demand is at its lowest.  

Click here for more information on this story.



Today's Links

Rosetta to Spend $590 Million on Eagle Ford Expansion

US players eye E&P JV


Chesapeake sees benefits in hiring returning vets

Subsea 7 nets Gulf contract double






December 9, 2011


Obama vows to fight effort to link Keystone XL, payroll tax cut  

US President Barack Obama promised to block any effort to include a Keystone XL pipeline project approval provision in legislation to extend the payroll tax cut, which is due to expire at yearend. "My warning is not just specific to Keystone,” he said following a Dec. 7 meeting with Canadian Prime Minister Stephen Harper. "Efforts to tie a whole bunch of other issues to something [congressional Republicans] should be doing anyway will be rejected by me.”  

Harper, who appeared with the president, said the Canadian government’s positions on the proposed pipeline, which would move oil produced from Alberta’s oil sands to US Gulf Coast refiners, are very well known, and that he’s discussed the matter with Obama on many occasions. 

 "He’s indicated to me, as he’s indicated to you today, that he’s following a proper process to eventually make that decision here in the United States, and that he has an open mind in regard to what that decision may, or may not, be,” the prime minister told reporters. "I take that as his answer.” Read more...



Today's Links


The Great Crew Change: Petro-Opportunities for Veterans Abound  

BP's Svanberg to Be Named Volvo Chairman Monday  

Canada green lights Total oil sands project  

LyondellBasell Plans U.S. Olefins Expansion and Asia PO/TBA Unit




December 8, 2011


U.S., Alaska Lease Sales Nab $24M in High Bids  

The volume of crude oil in the trans-Alaska pipeline could increase thanks to a State of Alaska petroleum lease sale, which took in just under $21 million in high bids on the North Slope and in near-shore waters of the Beaufort Sea.  

Although the state received no bids for the North Slope Foothills region, it tentatively sold 178 tracts covering 334,969 acres for $14.1 million on the North Slope. It also sold another 78 tracts covering 281,095 acres for $6.8 million along the Beaufort coast.  

A federal lease sale within the National Petroleum Reserve-Alaska, held a few hours after the state lease sale, attracted three companies or groups that submitted high bids of $3 million for 141,739 acres.  

The state will receive 50 percent of the earnings from the federal lease sale.  

Alaska officials said they were pleased with the results. Gov. Sean Parnell called it a step toward his goal of getting a million barrels per day moving through the trans-Alaska pipeline. The line has been operating at less than a third of its 2.1-million barrel per day capacity.  

One new player was Royale Energy of San Diego, with more than 50 high bids. The company said it targeted liquids-rich shale known to have sourced the Prudhoe Bay and Kuparuk oil fields.  

Shell Offshore submitted 18 high bids in Harrison Bay in the Beaufort sale.  

Repsol E&P USA was high bidder on 26 leases on the North Slope and five in the Beaufort Sea.  

Pioneer Natural Resource submitted the highest state bids — $876 per acre on a pair of Beaufort leases.   ConocoPhillips was the high bidder on at least 34 North Slope tracts.  

In the federal lease sale, ConocoPhillips Alaska was the high bidder on three leases and was edged out on two others by the 70&148 LLC, which was the high bidder on 11 tracts.  

Woodstone Resources was the third bidder in the federal sale.  

Click here for more information on this story.



Today's Links

Exxon Declares Gas King

Conoco: Seeking Buyers For Alliance Refinery In Louisiana

BASF investing $20 million in Vidalia, Louisiana, plant improvements, creating world-class adsorbents manufacturing environment

Shell, Eni buy Nigeria offshore oil field rights





December 7, 2011

Report: Gulf of Mexico Still Worth Drilling  

A new report shows the deep water Gulf of Mexico is still a good bet for exploration and production, despite recent regulatory changes in the wake of the Macondo disaster.  

Since the April 2010 oil spill, U.S. authorities have moved to strengthen regulatory oversight of the offshore industry, splitting the previous regulator into three separate bodies and increasing the number of permits required.  

Global energy research and consulting firm WoodMackenzie said its study had found the Gulf of Mexico was still an attractive place to invest, citing the region’s geology, its well-developed infrastructure and a stable fiscal regime.  

"There are large yet-to-find volumes in maturing and emerging plays alike,” the report said, adding a typical discovery makes positive returns in all geologic plays.  

At the same time, the report acknowledged existing technology had some catching up to do before the local resource potential could be fully tapped. The high cost of extracting remaining play from remote areas and challenging reservoirs would necessitate billions in development drilling and facility capital pitching the five-year budget for this at $82 billion.  

However, the Houston-headquartered consultancy also said higher oil prices could lead to "project economics improving dramatically.”  

The report pointed out with a typical breakeven rate of $75 per barrel of oil, "the majority of Gulf of Mexico fields will be profitable to develop if the oil price stays at or above $80 per barrel in the long term.”



Today's Links

BP, Shell preparing for resuming oil exploration in Libya  

New Hart Energy Study: World Refinery Capacity to Grow Despite Recession  

U.S. Navy Places America's Largest Biofuel Order With Dynamic Fuels  

The State of American Energy in 2012





December 6, 2011

U.S. House Bill Would Move Keystone XL Permit Decision to FERC

United States House Republicans have joined their Senate colleagues in urging President Barack Obama to reverse his Nov. 11 decision to delay acting on TransCanada Corp.’s cross-border permit application for the project until after the 2012 elections. Actions included introduction of legislation that would transfer authority for approving or denying the permit from the U.S. Department of State to the Federal Energy Regulatory Commission (FERC).  

Lee Terry (R-NE), an Energy and Power subcommittee member, introduced HR 3548 that he said would create a structured process by which FERC could approve the pipeline, including a route modification to be worked out with Nebraska.  

Terry said his bill would enable construction of the proposed pipeline’s non-Nebraska portion while details and approval of a route modification in Nebraska are worked out. "Going forward with FERC is simply moving the authority to an agency that understands pipelines,” Terry explained.  

House Energy and Commerce Committee Republicans agreed. Ed Whitfield (R-KY), chairman of its Energy and Power Subcommittee, said the administration "was relentlessly insistent” that a decision would be made by Dec. 13. "Now, [it says it’s] incapable of making a decision before 2013,” he continued in his opening statement at the subcommittee’s hearing. "In the meantime, tens of thousands of American workers are forced to wait at least another year for possibly the most shovel-ready of all projects.”

Witnesses from organized labor urged action to get the project moving so their members could go to work. "Joblessness in construction is far higher than any industry sector, with over 1.1 million construction workers currently unemployed in the United States,” noted Brent Bookers, construction department director at the Laborers’ International Union of North America. "Too many hard-working Americans are out of work, and the Keystone XL pipeline will change that dire situation for thousands of them.”  

Click here for more information on this story.


Today's Links

Post-Macondo Regulations Change the O&G Industry  

Natural gas boom projected to fuel job growth  

Shell Chemicals Hopes to Crack Appalachia  

End of Mideast ‘Easy Oil’ Means Opportunity for Exxon, BP: Energy Markets






December 2, 2011

Senate GOP Bill Prods Obama to Reverse Keystone XL Delay  

Later today, the Subcommittee on Energy and Power will hold the 14th congressional hearing on the Keystone XL Pipeline. The focus of the discussion will be on energy security issues, job creation and a GOP-backed bill that aims to speed up construction approval.  

Senate Republicans introduced legislation earlier this week that would deem the proposed Keystone XL crude oil pipeline federally approved 60 days after enactment if the Obama Administration did not act. But several said they would rather see President Obama reverse his Nov. 11 decision to delay acting on TransCanada Inc.’s cross-border permit application for the project until after the 2012 elections.  

"Our foreign oil vulnerability endangers our national security,” said Richard D. Lugar (R-Ind.), the bill’s main sponsor. "Building the TransCanada Keystone XL Pipeline now is a dramatic opportunity to change that equation. It’s also a dramatic opportunity to create jobs. It’s the largest infrastructure project ready now in the United States.  

Mike Johanns (R-Neb.), one of the bill’s 37 cosponsors, said issues surrounding Keystone XL’s route across his state have been resolved, and the bill reflects this. "If the president were to act on this today, work could commence,” said Johanns.  

Other cosponsors noted forcing Canadian oil sands producers to sell crude recovered from Alberta deposits elsewhere would have greater adverse environmental impacts. John Hoeven (R-S.D.), another Energy and Natural Resources Committee member, said supertankers and terminals involved in transporting the crude from Canada’s west coast to East Asian customers would emit more carbon dioxide than the proposed 1,700-mile pipeline.  

The American Petroleum Institute immediately expressed its strong support for the bill. "It would enable the permitting process to proceed while efforts continue to resolve concerns related to one isolated area in Nebraska,” said API Executive Vice President Marty Durbin. "The process has dragged on for more than three years and the latest decision by the president will add at least another year of delay. This shovel-ready project should not be shelved for political purposes.”    

For more information on this story, click here.

Today's Links

China's Demand For Oil Will Equal US Demand By 2040 Say Researchers

MSHA to start using pre-assessment conferencing procedures

Cyber Security Poses Threat to O&G Bottom Line

Has US Learned The Lesson Of Enron?
 




December 1, 2011

Two Companies Announce Gas Finds in Gulf of Mexico  

Anadarko and Pemex reported Thursday two separate natural gas finds in the Gulf of Mexico.  

Anadarko made its natural gas discovery in the deepwater U.S. Gulf of Mexico at its Cheyenne East well.  

Chuck Meloy, senior vice president of worldwide operations, said the company hit 50 feet of "high quality” gas pay in the eastern Gulf. The well will be tied back to the Independence hub and the company expects first gas in 2012.  

Meanwhile, Mexican state-owned oil giant Pemex has pointed to "great potential” at an exploration well in the Gulf of Mexico off Veracruz.  

Tests at the Nen 1 well have proven, probable and possible reserves of "around 400 billion cubic feet of gas.”  The well has an estimated production of 27 million cubic feet per day.  

In a statement released Thursday company officials stated, "The assessment derived from geophysical logs, dynamic testers and core training and background wall positively identified three sites that together represent a net thickness of about [164 feet] of oil impregnated.”  

Click here for more information on the Anadarko find.
 

Click here for more information on the Pemex find.



Today's Links




November 30, 2011

U.S. Nears Milestone: Net Fuel Exporter  

For the first time in 62 years, the United States’ exports of gasoline, diesel and other oil-based fuels are soaring, putting the nation on track to be a net exporter of petroleum products in 2011.  

A combination of faltering domestic activity and booming demand from emerging markets means the United States is exporting more fuel than it imports.  

A report released by the U.S. Energy Information Administration shows the United States sent abroad 753.4 million barrels of everything from gasoline to jet fuel in the first nine months of this year, while it imported 689.4 million barrels.  

That the United States is shipping out more fuel than it brings in is significant because the nation has for decades been a voracious energy consumer. As recently as 2005, the United States imported nearly 900 million barrels more of petroleum products than it exported. Since then the deficit has been steadily shrinking until finally disappearing last fall, and analysts say the country will not lose its "net exporter” tag anytime soon.  

"It looks like a trend that could stay in place for the rest of the decade,” said Dave Ernsberger, global director of oil at Platts, which tracks energy markets. "The conventional wisdom is the United States is this giant black hole sucking in energy from around the world. This changes that dynamic.”  

The growth in exports is part of a "transformation of the energy system,” says Ed Morse, global head of commodity research at Citigroup Inc. "It’s the beginning signs of a process that will continue for the next decade and will point toward energy independence.”  

The reversal raises the prospect of the United States becoming a major provider of various types of energy to the rest of the world, a status that was once virtually unthinkable. The United States already exports vast amounts of coal, and companies such as Exxon Mobil Corp. are pursuing or exploring plans to liquefy newly abundant natural gas and send it overseas.  

Also adding to the exporting firepower: Refineries are more efficient, giving them an edge over older facilities in Europe. New drilling methods are boosting oil production, helping ensure steady supplies of raw material for refiners to process.  

The United States could expand its export trade further next year. Motiva Enterprises LLC, a joint venture between Shell and Saudi Arabian Oil Co., is expected to finish work next year on a refinery expansion in Port Arthur, Texas, which would double the facility’s capacity and make it the largest in the country. Kinder Morgan Energy Partners LP and TransMontaigne Partners LP plan to build a $400 million terminal on the Houston Ship Channel.  

To be sure, the balance could shift back relatively quickly. If the United States economy was to rebound sharply, domestic need for fuels refined from crude oil could also shoot back up, which could increase crude import demand. In addition, refineries could lose customers if foreign economies falter, sending the United States back to being a net importer.  

Click here for more information on this story.


Today's Links

Nexen, CNOOC Team Up in GOM JV

Samsung C&T, KNOC buying Apollo oil unit for $772 million

Texas company plans drilling fluid plant in W.Va.

Sasol Plans Ethane Cracker in Louisiana




 

 

 














   

 

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