Storage
Colombia's President Blasts Rebels for Causing Oil Spill
BOGOTA, Colombia (AP) — President Juan Manuel Santos says an oil spill triggered by a rebel attack on a pipeline the worst environmental disaster in Colombia's history. Santos made the comments Friday while visiting the southern port city of Tumaco to survey damage from the June 22 bombing by the Revolutionary Armed Forces of Colombia.
Magellan, LBC to Build Terminal, Pipeline Infrastructure on Gulf Coast
Magellan Midstream Partnersand LBC Tank Terminals, LLC ("LBC") announced they formed a 50/50 limited liability company. Seabrook Logistics, to own and operate crude oil storage and pipeline infrastructure in the Houston Gulf Coast area. The assets will include more than 700,000 bbls of new crude oil storage and other distribution infrastructure located adjacent to LBC’s existing terminal in Seabrook. In addition, the JV will build an 18-inch pipeline, which will connect the new storage to an existing third-party pipeline that will transport crude oil to a Houston-area refinery.
European Regulators Clear Siemens' Buyout of Dresser-Rand
NEW YORK (AP) — European regulators have cleared Siemens' $7.6 billion acquisition of the U.S. oilfield equipment-maker Dresser-Rand. The German electronics and engineering company is beefing up its global oil and gas and power generation businesses, seeing growth opportunities in Dresser-Rand's portfolio of compressors, steam and gas turbines and engines. The deal is scheduled to close on June 30. Siemens AG has agreed to pay $83 per common share of Dresser-Rand, which has a market capitalization of $6.12 billion. The deal includes assumption of debt.
US Capacity to Refine Crude into Products Reaches 18 MMbpd, EIA Says
Increased refinery runs, based on increases in both capacity and use, have helped accommodate increases in U.S. crude oil production. The United States' capacity to refine crude oil into petroleum products – measured as operable atmospheric crude distillation unit (CDU) capacity – increased by 0.2% in 2014, reaching 18 MMbpd, according to EIA's annual Refinery Capacity Report.
Latest DOE Report Slams Canadas Oil Sands
Oil from Canada’s oil sands is about 20% more carbon-intensive on average than crude from elsewhere. That is the damming conclusion from a forthcoming new study by the U.S. Department of Energy’s (DOE) Argonne National Laboratory and its partners. The study looked at a wells-to-wheels analysis, which takes into account greenhouse gas emissions along the entire supply chain, from extraction to transit, refining, and finally combustion by the end user.
Argentina, China lead shale development outside North America in first-half 2015
As recently as last year, only four countries in the world were producing commercial volumes of either natural gas from shale formations (shale gas) or crude oil from tight formations (tight oil): the United States and Canada, and more recently, Argentina and China. Beyond these four countries, other countries have started exploring hydrocarbons from shale and other tight resources, but they are still short of reaching commercial production.
PHMSA: Pipeline Operator Couldn't Reach Staff at California Spill Site
LOS ANGELES (AP) — As thousands of gallons of crude oil from a ruptured pipeline spread along the California coast, its operator was unable to contact workers near the break to get information required to alert federal emergency officials, records released Wednesday said. Personnel for Plains All American Pipeline needed the precise location of the May 19 spill and an estimate of its size before notifying the National Response Center, a clearinghouse for reports of hazardous-material releases, according to federal Pipeline and Hazardous Materials Safety Administration documents.
ExxonMobil Halts 3 Oil Platforms Due to Santa Barbara Pipeline Spill
LOS ANGELES (AP) — ExxonMobil has been forced to halt operations at three offshore oil platforms because it couldn't deliver to refineries in the wake of a broken pipeline that spilled up to 101,000 gallons of crude on the Santa Barbara coast, the company said. Operations temporarily ceased last week because Santa Barbara County rejected its emergency application to truck oil to refineries, spokesman Richard Keil said Tuesday.
CorEnergy to Acquire Grand Isle Gathering System for $245 Million
CorEnergy Infrastructure Trust will acquire the Grand Isle Gathering System (GIGS), a subsea, midstream pipeline system with related onshore facilities serving oil-producing fields in the shallow portion of the Gulf of Mexico. GIGS is comprised of 153 miles of undersea pipeline, connects to seven oil fields, including four of the top 15 largest fields in the Gulf of Mexico shelf region with customers including ExxonMobil and Shell. It transports about 18,000 bpd of oil and 42,000 bpd of water with a capacity of 120,000 bpd.
Indonesia Banking On Big Return to Oil, Gas
Indonesia, the most populous country in South East Asia, is trying hard to reshape its ailing energy industry as it seeks new investors in both its exploration and refining sectors to dramatically upgrade its energy capabilities. At a time when most new global investments in oil and gas projects have either been cancelled or postponed due to low oil prices, this latest move by Indonesia is a bold one. However, Indonesia’s poor infrastructure and difficult domestic regulatory environment have affected investment in the past, with only seven oil and gas contracts signed in 2014.
Ethanol Production May Be Approaching 'Blend Wall'
It’s onward and stubbornly upward for the U.S. ethanol industry, which shows little sign of slowing after a record year in 2014. Weekly ethanol production matched its record high in the first week of June, equaling output from the week ending December 19, 2014. At 992,000 bpd, production is up 20,000 bpd from last week and more than 100,000 bpd since the beginning of May.
Every Company Needs a Tailored Solution
Service companies of every sort are scattered throughout the oil, gas and utilities industries. Mosaic is a Washington state-based business that moves its offerings one step further: by using its industry experience and analytical insight to develop strategy and consulting, training and technology services that are specifically designed for each customer.
India Now Worlds 3rd Largest Importer of Crude
The country’s oil imports have steadily climbed along with its growing economy. India has surpassed Japan in terms of oil imports multiple times over the past few years, and could trade spots again. But while they duel it out in the short-term, the outlook is clear. India’s import dependence is rising fast and it will be one of the largest sources of demand growth for the foreseeable future. The International Energy Agency predicts that India will burn through 4.1 MMbpd in the second quarter of this year, edging out Japan’s 3.8 MMbpd.
Photos of Ruptured West Coast Pipeline Offer Clues of Reason for Leak
LOS ANGELES (AP) — Photos of the pipeline that spilled oil on the Santa Barbara coast show extensive corrosion and provide clues about the cause of the rupture, experts said. Corrosion visible around the crack, coupled with wear documented inside the pipe, led Robert Bea, a civil engineering professor emeritus at the University of California, Berkeley, to believe the pipe burst during a pressure spike when the operator restarted pumps that had failed the morning of the May 19 spill.
Caspian Regions Newly Independent Nations Look for Higher Gas Profits
The Caspian region of Central Asia is one of the world’s most important oil and gas-producing regions. Until recently, Caspian gas traveled thousands of miles via largely Soviet-built pipelines to eastern Russia where a portion of it was re-exported to Europe at two and even three times the purchase price. Since 2010, however, newly built pipelines have carried natural gas east to China, which receives about 50% of Caspian gas exports, surpassing Russia and Europe’s share 26% and Iran and Turkey take of 24%.
Presidents Report Finds Energy Infrastructure Needs Major Investments
The need for major changes to the nation’s energy infrastructure is why President Obama initiated a quadrennial cycle of energy reviews to provide a multiyear roadmap for U.S. energy policy. The result is the recent release of the initial installment of the first-ever Quadrennial Energy Review 2015 (QER) prepared by the White House task force.
Crude by Rail Boosts West Coast Supply as Regional Production Falls
While U.S. crude oil production increased by nearly 3.2 MMbpd from 2010 to 2014, production in the West Coast region decreased by 100,000 bpd, continuing a long-term decline, EIA data showed. With no major crude oil pipelines connecting the West Coast to other parts of the country, refineries on the West Coast adjusted by increasing imports of foreign crude oil, reaching an average of 1.1 MMbpd over the past five years.
California Oil Spill Cleanup Cost Reaches $62 Million
GOLETA, CA — The cost of cleaning up the oil spill that fouled beaches last month on the California coast has reached $62 million so far, pipeline company Plains All American Pipeline said Wednesday. Costs are running at $3 million a day, and there is no timetable for when the cleanup will be complete, the company's on-scene coordinator, Patrick Hodgins, told The Associated Press. The Plains All American is responsible for footing the bill after a pipeline break near Santa Barbara forced the closure of two state beaches and prompted a fishing ban in the area.
Washington State to Review Shell Oil-By-Rail Project
OLYMPIA, Wash. (AP) — Washington state regulators say they'll work with Skagit County to conduct a full environmental review of a proposed oil-by-rail project at the Shell Puget Sound Refinery near Anacortes. Royal Dutch Shell wants to build a rail spur from existing railroad tracks to handle about 60,000 bpd, or about one mile-long train. The oil would be pumped from rail cars into storage tanks.
Crews Prepare to Recover Ruptured Pipeline in Arkansas River
LITTLE ROCK, Ark. (AP) — Workers are preparing to recover a natural gas pipeline that ruptured in the Arkansas River, forcing closure of a 2-mile section of the river near Little Rock. Spectra Energy Corp. said the recovery process could begin Tuesday once conditions are safe enough to put divers in the water. The company provides gas to CenterPoint Energy in the Little Rock area. The leak in a 24-inch-wide backup pipeline occurred May 31. A section of pipe traveled downstream and now lies along the north bank of the Arkansas River.
Engineering Mounded, Vertical, Cylindrical, Welded, Carbon Steel Tanks
Kerosene-type jet fuels are sometimes required to be stored in bulk in tanks with earthen backfill. No single code or standard addresses the requirements for construction of such tanks, which needs a multidisciplinary approach. This article provides a concise basis for aviation fuel storage in mounded, vertical, cylindrical, welded, carbon steel storage tanks.
PGC Report Shows Record-High Resource Evaluation of US Natural Gas
The United States possesses a large and growing domestic abundance of natural gas. The biennial report,<em> Potential Supply of Natural Gas in the United States,</em> developed by the Potential Gas Committee (PGC), details the nation's total technically recoverable resource base of natural gas, which provides the foundation for stable prices, customer savings, energy security and more.
Pipeline Firm Told California Oil Spill 'Extremely Unlikely'
LOS ANGELES (AP) — A Texas company whose ruptured pipeline created the largest coastal oil spill in California in 25 years had assured the government that a break in the line while possible was "extremely unlikely" and state-of-the-art monitoring could quickly detect possible leaks and alert operators, documents show. Nearly 1,200 pages of records, filed with state regulators by Plains All American Pipeline, detail a range of defenses the company established to guard against crude oil spills and, at the same time, prepare for the worst should a spill occur.
Alpha Crude Begins Delaware Basin Pipeline Construction
TULSA, OK – Alpha Crude Connector has has begun construction of its 400-mile Alpha Crude Connector Pipeline. The crude oil transportation pipeline serves Lea and Eddy counties in New Mexico and Culberson, Loving, Reeves and Winkler counties in Texas. The system will have more than 100,000 bpd capacity from more than 250 lease tank batteries, other local pipeline systems, and truck terminals in the Northern Delaware Basin. Shippers will have access to several downstream pipelines and a rail terminal, providing markets at local refineries, Cushing and the U.S. Gulf Coast.
Pioneer and Reliance Selling Pipeline, Plant to Enterprise
NEW YORK (AP) — Pioneer Natural Resources Co. and India's Reliance Industries Ltd. have agreed to sell a pipeline and processing company to Enterprise Products Partners LP for $2.15 billion. Irving, TX-based Pioneer currently owns 50.1% of the Eagle Ford Shale Midstream business, while Reliance owns 49.9% of that business. The transaction is expected to close in the third quarter of 2015. Enterprise Products is a gas and oil pipeline company based in Houston.
Former BP Cleared of Lying about Oil Spill
NEW ORLEANS (AP) — A federal jury has found a former BP executive not guilty of making false statements to investigators in connection with the 2010 Gulf of Mexico oil spill. Prosecutors said David Rainey, the former vice president of Exploration for the Gulf of Mexico, in the early days of the spill, manipulated calculations to match a far-too-low government estimate of the amount of oil spewing into the Gulf following the explosion of the Deepwater Horizon drilling rig. However, defense attorneys said Rainey's figures were made honestly and that he had no reason to lie.
Dominion Sues Virginia Landowners in Pipeline Feud
RICHMOND, Va. (AP) — Dominion Resources has filed lawsuits against 27 Virginia landowners it says haven't allowed surveyors to access their property for a proposed natural gas pipeline. Dominion announced Wednesday the lawsuits are the first of what could be more than 100 separate complaints filed against landowners Dominion says are legally obligated to allow surveyors to enter their properties, which are along the Atlantic Coast Pipeline's proposed route.
Increases in U.S. Oil Production Predominantly Light, Sweet Crude
U.S. crude oil production has grown rapidly in recent years, primarily from light, sweet crude from tight resource formations. About 90% of the nearly 3MMbpd growth in production from 2011 to 2014 consisted of light, sweet grades, meaning they have an API gravity of 40 or above and a sulphur content of 0.3% or less. EIA's <em>Annual Energy Outlook 2015</em> projects the U.S. supply of lighter API gravity crude oil from formations in regions such as the Bakken, Permian Basin, and Eagle Ford continues to outpace that of medium and heavier crudes.
SemGroup to Build Maurepas Pipelines
SemGroup plans to build and operate three pipelines in the Gulf Coast region of Louisiana. Collectively named the Maurepas Pipelines, they will support Motiva Enterprises efforts to interconnect its refinery operations.
Magellan, TransCanada Pursue Houston Pipeline Connection
Magellan Midstream Partners and TransCanada have a joint development agreement to connect TransCanada’s Houston tank terminal to Magellan's East Houston terminal. The $50 million project would include a 9-mile, 24-inch pipeline under a 50/50 ownership agreement. It would give TransCanada’s Keystone and Marketlink shippers access to Magellan’s Houston and Texas City crude oil distribution system.
- Keystone Oil Pipeline Resumes Operations After Temporary Shutdown
- Freeport LNG Plant Runs Near Zero Consumption for Fifth Day
- Biden Administration Buys Oil for Emergency Reserve Above Target Price
- Mexico Seizes Air Liquide's Hydrogen Plant at Pemex Refinery
- Enbridge to Invest $500 Million in Pipeline Assets, Including Expansion of 850-Mile Gray Oak Pipeline
