April 2019, Vol. 246, No. 4

One of the early lessons of the new year that revealed itself in the first few weeks of January is there is a renewed bullishness in the offshore oil and natural gas potential for the Gulf of Mexico.

A comeback is expected for M&A activity in the U.S. Gulf of Mexico. The combination of substantial inventory on the block, potential proof-of-concept developments on the horizon and continued focus by many players in the region on divesting of non-core properties, may set the stage for heightened deal flow in the region, assuming commodity prices continue to cooperate.

Growing offshore exploration and production activity at locations around the globe is creating stronger demand for construction of pipelines and subsea infrastructure.

In the oil and gas industry, pressure can ramp up twofold during peak times and companies must figure out how to maximize extraction to optimize return.

The playing field of environmental permitting can be complicated, exhaustive, and time consuming. Among the most challenging rules and regulations for the energy industry are those which were designed to uphold national obligations to tribal nations.

Gas, widely seen as a transition fuel, provides 45% of California’s power, augmented by sustainable large-scale hydro (17.89%) and wind and solar. Indeed, California is one of only three U.S. states in which solar exceeds 10% of power generation. As of 2017 coal accounted for only 4.1% of California’s power, compared to 30% nationally and it will be zero by 2026.

As with many other natural gas providers, Virginia Natural Gas (VNG) faces the twin challenge of replacing aging pipeline in congested areas, where rights-of-way are also frequently overflowing with multiple other utilities’ infrastructure.

While energy leaders feel optimistic about 2019, many are facing the challenge of how to maximize their technology. Big data may be revolutionizing other industries, but its potential has yet to be unlocked by most energy companies.

China is expected to introduce a plan this year to combine the long-distance pipeline assets of its state-owned energy companies into a single, national oil and gas pipeline group and open access to private and foreign energy producers.

Lebanon warned its Mediterranean neighbors in March that a planned East Med gas pipeline from Israel to the European Union must not be allowed to violate its maritime borders.

Crude inventories in West Texas dropped in February to the lowest in four months after a converted pipeline began transporting crude from the nation’s biggest shale oil field to the U.S. Gulf Coast, according to data from Genscape.

Moda Midstream LLC is considering building a second berth at its Ingleside, Texas, crude export terminal to accommodate supertankers, the company’s chief executive, Bo McCall, said.

Service began on the 168-mile Valley Crossing Pipeline, which will transport natural gas from the Agua Dulce near Corpus Christi, Texas, to a pipeline in Mexico.