Department: Web Exclusive

10 Surprises in the Energy Sector During 2017

There’s less than two weeks left before the 2016 calendar gets tossed. So for the pundit community it’s time to publish the obligatory list of, “What to Watch For in in the New Year.” It’s pointless to list the obvious. For oil and gas, pundits know that things like OPEC compliance, U.S. rig counts, pipeline angst, and Chinese consumption are on a long list of standard items that are obligatory to parse from our cluttered news feeds. But what are the nascent items that could lead to unforgiving surprises? “When everyone looks to the right, […]

Anadarko Selling Marcellus Shale Natural Gas Assets

Anadarko Petroleum agreed to sell its operated and non-operated upstream assets and operated midstream assets in the Marcellus Shale of north-central Pennsylvania to Alta Marcellus Development, a wholly owned subsidiary of Alta Resources Development, for about $1.24 billion. The transaction is expected to close during the first quarter of 2017. The midstream assets in the Marcellus owned by Western Gas Partners, Anadarko’s sponsored master limited partnership, are excluded from the agreement. “With this transaction, we have announced or closed monetizations totaling well in excess of $5 billion in 2016, while principally focusing Anadarko’s U.S. onshore […]

Militants Shut Down Chevron’s Escravos, Onshore in Nigeria

May 2016, Vol. 243, No. 5

WARRI, Nigeria (AP) — Militants bombed a pipeline feeding electricity to Chevron’s Escravos terminal Thursday, shutting down the U.S.-based oil major’s onshore operations in Nigeria, the attackers and residents said. It was the third assault on a Chevron Nigeria facility this month. It’s the latest in a string of attacks claimed by the Niger Delta Avengers that has brought Nigerian production to a 20-year low and lost the West African nation its position as the continent’s biggest oil producer to Angola. The attack forced Chevron to suspend operations at the terminal exporting more than 160,000 […]

Memorial Day Gasoline Prices Lowest since 2009

May 2016, Vol. 243, No. 5

The U.S. average retail price for gasoline was $2.30 per gallon (gal) on May 23, 47 cents per gallon (cents/gal) lower than at the same time last year, and the lowest average price just before Memorial Day weekend (the start of the summer driving season) since 2009. Lower gasoline prices reflect lower crude oil prices, with the spot price of North Sea Brent crude $16 per barrel (b) lower than at the same time last year, despite a price increase of more than $20/b since the last week of January. Average retail gasoline prices for […]

Why $50 Oil Is Here To Stay

May 2016, Vol. 243, No. 5

Now that oil prices have rebounded to $50 per barrel, will U.S. shale drillers turn the taps back on? That is the million dollar question that the oil markets still do not have a clear answer on. Last year, when oil prices rebounded from $44 per barrel in March to $60 in June, the rig count leveled off. Some drillers even redeployed some rigs, stepping up drilling ahead of what they believed would be a swift rebound in prices. The renewed drilling spooked the markets and crude plunged again, and since August of last year, […]

Baltimore Gas and Electric Continues to Accelerate Natural Gas Infrastructure Replacement

May 2016, Vol. 243, No. 5

Baltimore Gas and Electric (BGE)  continues to modernize the natural gas system serving customers in central Maryland, replacing more than 52 miles of gas mains in the first two full years under the company’s Strategic Infrastructure Development and Enhancement (STRIDE) plan. Another 45 miles of gas mains are projected to be replaced this year as the company continues to accelerate its gas equipment replacement program following passage of Maryland’s STRIDE law in 2013 and the Maryland Public Service Commission’s approval of the plan in March 2014. “Our STRIDE plan enables us to begin work on more […]

Reform Leads to Opportunities, says Mexico’s Energy Secretary

May 2016, Vol. 243, No. 5

Mexican Energy Secretary Pedro Joaquin Coldwell used the launch of a regional oil and gas forum Thursday in the nation’s capital to reiterate his country’s commitment to the reform of its domestic energy market. Citing measures initiated by President Enrique Peña Nieto and approved by the nation’s legislature, he said, “This reform opened the whole value chain in the hydrocarbons and electricity sectors to national and foreign private investment.” Coldwell was speaking at a dinner to mark the start of the first regional forum organized by the International Association of Oil & Gas Producers (IOGP) […]

Linde Expands Plant Turnaround, MRO and Pipeline Services

May 2016, Vol. 243, No. 5

Specialty gas supplier Linde has expanded its plant turnaround, maintenance, repair and overhaul, and pipeline services capabilities to include the Gulf Coast region from a new facility located in Baytown, TX. With a secure supply of industrial gases from its recently completed air separation units in La Porte, the new facility complements Linde’s Northeast site located in West Middlesex, PA. “These two locations allow Linde to provide services to customers in the two major areas of activity in the U.S. – natural gas production in the Northeast and petrochemical and refining in Texas and Louisiana,” said Brian Kubalik, program manager for Chemistry […]

2015 Worst Year For Oil Discoveries Since 1952

May 2016, Vol. 243, No. 5

A report by Rystad Energy has revealed that new oil discoveries in 2015 totaled 12.1 billion barrels, which is the least amount of new oil discovered in a single year since 1952. Last year was also the fifth year in a row in which the amount of new reserves discovered was smaller than in the previous year. E&Ps have slashed their exploration budgets repeatedly in a bid to weather the effects of the oil price drop. They’ve laid off hundreds of thousands of staff and have focused on staying afloat, lacking not just the money, […]

Why Did Saudi Arabia Kill OPEC?

May 2016, Vol. 243, No. 5

The OPEC meeting is only a week away, but the chances of a positive result are as remote as ever. Rising oil prices, the heightened rivalry between Saudi Arabia and Iran, and Saudi Arabia’s willingness to go it alone will make a deal all but impossible. First of all, Iran is not in a cooperative mood. According to the IEA, Iran has managed to boost oil production to 3.56 million barrels per day in April, its highest level since November 2011. Oil exports also jumped 600,000 barrels per day to 2 million barrels per day. […]

Industrial, Electric Power Sectors Drive Projected Growth for US Natural Gas

May 2016, Vol. 243, No. 5

U.S. consumption of natural gas is projected to rise from 28 trillion cubic feet (Tcf) in 2015 to 34 Tcf in 2040, an average increase of about 1% annually, according to EIA’s Annual Energy Outlook 2016 (AEO2016) Reference case. The industrial and electric power sectors make up 49% and 34% of this growth, respectively, while consumption growth in the residential, commercial, and transportation sectors is much lower. Much of this growth in natural gas consumption results from relatively low natural gas prices. In the AEO2016 Reference case, average annual U.S. natural gas prices at the […]

Mozambique’s LNG Dreams Falling Apart

May 2016, Vol. 243, No. 5

Mozambique is heading towards a major default on outstanding loans related to offshore natural gas infrastructure, symbolizing the deflating hopes for a major source of new natural gas production from East Africa. The state-owned Mozambique Asset Management is set to default on $535 million in loans, which it took out to construct shipyards to service natural gas drilling off of its coast. Because of the grace period included in the loan terms, Mozambique is not yet technically in default, but it could default soon if it fails to convince creditors to make a deal. Mozambique […]

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