Tag Archives: crude oil

Pembina Boosts Natural Gas Holdings, Buys Veresen

Pembina Pipeline is buying its smaller competitor, Veresen, in a stock-and-cash deal worth about $7.1 billion (C$9.7 billion). The move gives the pipeline operator access to natural gas pipelines and processing infrastructure. Both Calgary, Canada-based companies hold assets in several oil and gas producing areas in Alberta, B.C. and the Bakken Formation, which overlaps the U.S.-Canada border. Pembina is primarily a liquids company, while Veresen is primarily a gas company. The deal is expected to close this summer. Among its holdings, Veresen owns Alliance Pipeline, which runs from the Western Canadian Sedimentary Basin and the […]

NuStar Buying Navigator Assets in Midland Basin

NuStar Energy has entered into a definitive agreement to acquire Navigator Energy Services for $1.48 billion, subject to purchase price adjustments. The deal is expected to close in mid- to late-May. Navigator owns and operates crude oil transportation, pipeline gathering and storage assets in the Midland Basin of West Texas that include about 500 miles of crude oil mainline transportation pipelines with 74,000 bpd, ship-or-pay volume commitments and deliverability of 412,000 bpd through multiple outbound interconnects. Included in the deal are a pipeline gathering system with more than 200 connected producer tank batteries capable of […]

Oklahoma Regulators Develop New Earthquake Guidelines

OKLAHOMA CITY (AP) — Oklahoma regulators say the number of earthquakes could increase as oil and gas production expands in a broad area of the state, and they’re telling energy companies that they need to be ready to shut down if a temblor exceeds magnitude 3.5. The Oklahoma Corporation Commission on Tuesday released new guidelines to help producers deal with the risks of earthquakes linked to oil and natural gas production in parts of the state. The panel said the South Central Oklahoma Oil Province and the Sooner Trend Anadarko Basin Canadian and Kingfisher counties […]

US Takes Key Step to Implement Sage Grouse Conservation Plan

DENVER (AP) — Federal land managers issued guidelines Thursday for restricting energy development, livestock grazing and other activities on public land in the West to protect the greater sage grouse, part of a broad effort to save the bird without resorting to listing it as an endangered species. The Bureau of Land Management guidelines tell field employees when and how to apply new rules under a sweeping conservation plan announced last year. That plan is designed to keep the distinctive ground-dwelling bird from being listed as endangered or threatened, which could bring down tougher restrictions […]

Enbridge Drops Plans for Sandpiper Crude Oil Pipeline

ST. PAUL, Minn. (AP) — Enbridge Energy said Thursday it has dropped its proposal to build the Sandpiper crude oil pipeline across northern Minnesota. Enbridge attorneys notified the Minnesota Public Utilities Commission that the company won’t pursue the regulatory approvals needed for the $2.6 billion Sandpiper, which would have carried North Dakota light crude across Minnesota to Enbridge’s terminal in Superior, Wisconsin. They cited market conditions and other factors. Calgary, Alberta-based Enbridge said back in February that it expected to push the startup date for Sandpiper back until 2019 because of the need for an […]

Plains All American, Phillips 66 Partners Form STACK Pipeline Joint Venture

Plains All American Pipeline and Phillips 66 Partners have formed STACK Pipeline, a 50/50 limited liability company, to own and operate a common carrier pipeline that transports crude oil from the Sooner Trend, Anadarko Basin, Canadian and Kingfisher counties (STACK) play in northwestern Oklahoma to Cushing. Under the joint venture agreement, Plains contributed an existing terminal at Cashion with 200,000 bbls of crude oil storage and the 100,000 bpd, 55-mile crude STACK pipeline. Phillips 66 Partners will pay  $50 million cash to Plains for a 50% interest in the JV. “The formation of the STACK […]

Fate of Sandpiper Pipeline in Limbo After Enbridge-Marathon Move

MINNEAPOLIS (AP) — The future is unclear for a proposed oil pipeline that would cross northern Minnesota. Enbridge Energy on Tuesday announced it is investing in a different pipeline that would transport North Dakota crude oil — but not across Minnesota. The Canadian company has proposed the $2.6 billion Sandpiper pipeline that would run from the Bakken oil fields through Minnesota to a terminal in Superior, Wisconsin. Enbridge, based in Calgary, Alberta, and Houston-based Marathon Petroleum, a key partner in Sandpiper, are forming a joint venture to buy a stake in the Bakken Pipeline project, […]

Keystone Outage Affects North American Crude Stock Levels

April 2016, Vol. 243, No. 4

The recent eight-day outage on TransCanada’s cross-border Keystone pipeline potentially removed 4.6 MMbbls of oil from entering the United States from Canada and was a widespread influence on crude stock levels in both countries, according to Genscape. The 590,000 bpd pipeline resumed flow April 10 after being shut down due to a leak near the Freeman pumping station in South Dakota. The Keystone pipeline system flows from Hardisty, AB, to Steele City, NE. From there, crude flows to either Patoka, IL or Cushing, OK, where stocks declined greatly last week. ​Genscape monitors detected the pipeline […]

TransCanada Says 6,800 gallons of oil leaked in South Dakota

March 2016, Vol. 243, No. 3

FREEMAN, S.D. (AP) — TransCanada estimates that about 16,800 gallons of oil leaked into a field in South Dakota as part of a spill that has shut the Keystone pipeline down while officials investigate. The company says it reported the 400-barrel estimate Thursday to the National Response Centre and the Pipeline and Hazardous Materials Administration (PHMSA). It says the estimate is based on the excavation of soil to expose more than 100 feet of pipe and takes into account factors including oil observed in the soil and the potential area affected. TransCanada hasn’t yet said […]

Kuwaiti OPEC Official: Oil Freeze Deal Likely 

March 2016, Vol. 243, No. 3

KUWAIT CITY (AP) — Kuwait’s OPEC governor is saying members of the oil cartel and other producing countries likely will reach a deal later this month to freeze production as crude prices sit below $40 a barrel. The state-run Kuwait News Agency quoted Nawal al-Fuzai on Tuesday as saying that oil ministers of OPEC nations and several non-OPEC nations showed interest in freezing production at the same rate of February, but that further negotiations are ongoing. Al-Fuzai says Iran remains a holdout on freezing production levels as it tries to recoup money lost to years of […]

Oil Price Crisis Pushes East Asian Offshore Hub to Malaysia

March 2016, Vol. 243, No. 3

Singapore, once a preferred hub for oil and gas exploration companies, is losing its world class status as four of the world’s top multinational subsea contractors announce plans to shift the bulk of their operations to neighboring Malaysia where cheaper operational costs will help them survive low crude oil prices. It’s a short-term type of thinking that represents the desperate fallout of persistently low crude oil prices. Singapore and Malaysia have long been in a tough competition to solidify their status as the regional hub for offshore and marine companies. But lately, concerns have emerged […]

Once Wedded to Oil, Houston Economy Carries on Despite Bust

March 2016, Vol. 243, No. 3

HOUSTON (AP) — Amanda Salazar watched for a year as colleagues at the Houston-based oil rig manufacturer where she worked lost jobs, victims of the latest oil bust. She realized it was time for a change before she too got a pink slip. So Salazar left her job as a software trainer with National Oilwell Varco for a similar position at a hospital. Even if the oil market turned around immediately, she reasoned, it might take 18 months before the industry picked up again. “And that’s a long time to be sitting at work wondering if you’re going […]