Storage
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.
Natural Gas To Challenge Oils Monopoly as Transportation Fuel, IHS Study Says
A new study by business information provider IHS forecasts significant growth and value in the market for natural gas and LNG as a transportation fuel. The study, <em>LNG in Transportation: Challenging Oil’s Grip</em> showed that use of natural gas as a transportation fuel could displace more than 1.5 MMbpd of oil demand by 2030. A combination of drivers — environmental, technological and commercial — will lead to greater adoption of natural gas in transport, the study said. The highest level of adoption will be in high-fuel-consuming applications such as trucks and ships.
Ruptured Santa Barbara Pipeline Badly Corroded, Report Says
LOS ANGELES (AP) — A pipeline rupture that spilled an estimated 101,000 gallons of crude oil near Santa Barbara last month occurred along a badly corroded section that had worn away to a fraction of an inch in thickness, according to federal regulators. The preliminary findings released Wednesday by the federal Pipeline and Hazardous Materials Safety Administration point to a possible cause of the May 19 spill that blackened popular beaches and created a 9-mile slick in the Pacific Ocean.
Enterprise Announces Acquisition of Eagle Ford Midstream Assets
HOUSTON – Enterprise Products Partners announced today it executed definitive agreements to purchase all member interests in Eagle Ford Shale gas-gathering company EFS Midstream from affiliates of Pioneer Natural Resources Company and Reliance Industries Limited for $2.15 billion.
In The News: Obama Gives Final Approval to Cove Point LNG Terminal
The Obama administration on May 7 granted final approval to a $3.8 billion natural gas export facility in Calvert County, MD – the first gas export site on the East Coast. Environmentalists sued within hours to stop the project.
Embracing Uncertainty: Reducing Risk by Working Together
It’s trite but true: The only thing constant is change. Especially in our industry, it seems. There’s always a new technology or tool to consider or a proposed regulation to ponder. Access to capital restricts and relaxes. Individual rig or well performance can vary widely. Even the location of our best prospects can confound us: North Dakota?
Southcross Holding Open Season To Transport Y-Grade
Southcross Energy Partners announced the launch of a binding open season to solicit commitments for its proposed Y-Grade pipeline. Once complete, the pipeline will allow Southcross to offer transportation services of Y-Grade from a point near Woodsboro, TX to a point near Robstown. The pipeline will have access to the Y-Grade pipeline of Southcross’ holding company that runs from Pettus to Robstown.
Plains All American/Delek Logistics Form JV To Develop Pipeline
Plains All American Pipeline, L.P. and Delek Logistics Partners LP have formed Caddo Pipeline LLC, a 50/50 joint venture to develop the Caddo Pipeline. The 80-mile, 12-inch pipeline will run between Longview, TX and Shreveport, LA.
Midstream: Changing Routes, Emphasis for Energy Renaissance
As global oil prices were still falling and various parts of the U.S. oil/natural gas space were reassessing plans for 2015, the American Petroleum Institute (API) was reorganizing to better service one of the industry’s growth sectors – midstream. API said it was going to provide more attention to “pipelines and processing facilities” that connect oil and gas production with markets. The key is infrastructure, according to the globally recognized Washington, DC-based trade and standards-setting group.
Rangeland Lands Anchor Shipper for RIO Pipeline
Rangeland Energy has executed a long-term agreement with a subsidiary of Delek US Holdings, Inc. to be an anchor shipper of crude oil on the Rangeland Integrated Oil Pipeline (RIO Pipeline). The pipeline will connect production from the Delaware Basin to the crude oil market center in Midland, TX. Delek Logistics Partners LP, Delek US’s logistics arm, will own 33% of the RIO Pipeline and supporting terminals.
Making the Best of Evolving Midstream Infrastructure
The changing oil production and consumption landscape in North America has led to new developments in the infrastructure that brings oil to market – the pipelines, gathering systems, storage facilities, rail networks and marine-based transport networks that comprise the industry’s midstream oil infrastructure.
Editor's Notebook: Crude Exports More Important Than Keystone
I was driving to work this morning on Kamikaze Highway, officially known as I-10, and switched on the 9 a.m. news when a story so outlandish grabbed my attention, nearly forcing me into another lane of traffic, in which case I could not have written this column. The story, reported by Fox News, cited an increase in President Obama’s popularity that it attributed to lower gasoline prices. Say what? He being responsible for lower gas prices is like saying the API is non-political. It’s just not so, am I right, Jack Gerard?
Billions of Barrels of Oil Discovered Near London But There's A Catch
A small British oil company has found a bonanza of potentially billions of barrels of oil beneath a field near London’s Gatwick Airport. The only problem is how much of the oil is accessible. UK Oil and Gas Investments (UKOG) said April 9 that 3,000 feet of exploratory drilling at Wytch Farm in the Weald Basin, a rural area just north of the airport, discovered a “world-class potential resource.” The area is now referred to as “Britain’s Dallas.” It was the deepest well dug in the region in three decades.
Nimble by Nature: Pipeline Market in Transition
In an environment that is exhibiting disruption and change, being nimble is a necessity. The concept of being flexible rather than rigid in the face of change is one that for many industry participants is counterintuitive. Bruce Lee might have said it best when he suggested, “Empty your mind, be formless. Shapeless, like water. If you put water into a cup, it becomes the cup. You put water into a bottle and it becomes the bottle. You put it in a teapot, it becomes the teapot. Now, water can flow or it can crash. Be water, my friend.”
In the News: Price Declines Lower Tax Revenues in Production States
The Energy Information Administration reported March 12 that the decline in spot oil prices in the last half of 2014 and first month of 2015 has reduced oil and natural gas production tax revenues in some of the largest oil- and natural gas-producing states.
Can Shale Formations Enable U.S. to Become Oil Exporter?
In recent years, the technological advances in recovering hydrocarbons trapped in tight formations, like shale, using unconventional drilling methods (horizontal drilling in conjunction with multi-stage hydraulic fracturing) have made U.S. oil production grow dramatically.
Crude Oil Export Ban: Dated Policy with Real-Life Implications
If you are lucky enough to have grown up in Texas, you are all too familiar with how popular culture, particularly Hollywood, has glamorized the life of a wildcatter or roughneck. The movie Giant depicts James Dean on a windswept Texas countryside, sopping head to toe in newly discovered oil. While maybe a compelling drama, as a Texas Railroad Commissioner, I can tell you this is far from reality.
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- Court Ruling Allows MVP’s $500 Million Southgate Pipeline Extension to Proceed
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- LNG Canada Start-Up Fails to Lift Gas Prices Amid Supply Glut
- TC Energy’s North Baja Pipeline Expansion Brings Mexico Closer to LNG Exports
