Storage

ILI Offers Technology that Will Continue to Advance

There are about 3.5 million kilometers of oil and gas pipelines worldwide needing regular cleaning, inspection and maintenance, according to the U.S. Energy Information Agency (EIA).

TransCanada Asks US to Suspend Pipeline Application Review

TORONTO (AP) — After waiting seven years for a decision, the company behind the proposed Keystone XL pipeline from Canada to Texas has asked the U.S. State Department to suspend its review of the project. The move comes as the Obama administration increasingly appeared likely to reject the pipeline permit application. TransCanada said Monday it had sent a letter to Secretary of State John Kerry requesting that the State Department suspend its review of the pipeline application. Until recently, it would have been unimaginable for the Calgary, Alberta-based company to ask for a delay.

US Propane Exports Increasing, Reaching More Distant Markets

As U.S. propane production has increased and domestic demand has remained relatively flat, the United States has transitioned from being a net propane importer to a net exporter. Facilitated by rapid expansion in the capacity to export domestic supply, propane exports from the United States are changing traditional propane trade patterns across the globe.

Vallourec to Supply 14,000 Tons of Pipe for Deepwater Project

Vallourec has deliveries totaling 14,000 tons of premium tubes in the scope of a contract with Hess Corp. for the Stampede project in the U.S. Gulf of Mexico. Stampede is a deepwater subsea development located in the Green Canyon Block area, 115 miles south of Fourchon, LA.

In the News: California Tightens Responses to Future Energy Spills

Just months after a pipeline rupture dumped 20,000 gallons of oil into the ocean on Oct. 8 near Santa Barbara, CA, Gov. Jerry Brown signed a package of bills aimed at preventing and better responding to future spills. Brown said he signed the bills “in order to more fully protect our inland and coastal communities and environments from the harm of oil spills.”

Midstream Segment Boosts 3rd Quarter Deal Activity, According to PwC US

HOUSTON – Megadeals in the midstream segment dominated U.S. oil and gas deal value despite a slow-down in capital markets in the third quarter of 2015, according to PwC US. In total, there were 14 midstream deals accounting for $63.5 billion in the third quarter of 2015, or 70% of overall deal value.

Atlantic Coast Pipeline to Build $5 Billion Natural Gas System

Four major U.S. companies – Dominion, Duke Energy, Piedmont Natural Gas and AGL Resources – formed Atlantic Coast Pipeline LLC to build a $5 billion interstate natural gas pipeline. The 564-mile Atlantic Coast Pipeline (ACP) will be capable of delivering up to 1.5 MMbcf/d of gas that will be used to generate electricity, heat homes and run local businesses in West Virginia, Virginia and North Carolina.

Nepal Turns to China for Fuel after India Restricts Supply

KATHMANDU, Nepal (AP) — Fuel-starved Nepal has signed an agreement with China to import gasoline, diesel and cooking gas, effectively ending a monopoly on supply from India, which has restricted fuel convoys as a result of political protests in the Himalayan nation. The decision to import Chinese oil amid severe shortages has brought China a step closer to Nepal, which traditionally is more influenced by India in the south. The two Asian giants have been jostling for influence in landlocked Nepal.

Mexico Gains Final Permission for US Crude Oil Imports

MEXICO CITY (AP) — The U.S. has given Mexico final permission to import about 75,000 barrels of light crude per day from north of the border. In return, Mexico will send heavier crude to U.S. Gulf coast refineries. The permit applies for one year. Mexico's state-owned Pemex oil company said Wednesday the arrangement will allow better logistics and refinery use, and reduce transport costs. Mexico is a major crude oil exporter, but sometimes is squeezed to produce refined products like gasoline. In August, the U.S. lifted a decades-old ban on crude oil exports.

Is Oil Trending? How Twitter Influences Oil Price Volatility

Crude oil prices don't care what's #trending. Just as negativity lingers, volatility breeds more volatility. Wild periods repeat and feed upon themselves. In the global marketplace, dramatic swings in Asia can spread to the West with ferocity.

United Arab Emirates Plans to Increase Crude Oil, Natural Gas Production

The United Arab Emirates (UAE) was the world's sixth-largest oil producer in 2014, and the second-largest producer of petroleum and other liquids inOPEC, behind only Saudi Arabia. Because the prospects for further oil discoveries in the UAE are low, the UAE is relying on the application of enhanced oil recovery (EOR) techniques in mature oil fields to increase production.

ConocoPhillips Gets Approval for Production Site inside Alaska Federal Reserve

ConocoPhillips gained approval to build the first oil production facilities at a federal reserve in Alaska. The U.S. Bureau of Land Management approval allows the company to construct an 11.8-acre drilling pad and other infrastructure within the reserve. The project boosts the possibility of adding oil to the 800-mile-long Trans-Alaska Pipeline System, designed to ferry 2 MMbpd of crude from the North Slope. It is currently at about 25% capacity due to production declines.

Day Of Reckoning for US Shale Will Have To Wait

October has been billed as a pivotal month in which indebted shale companies would see their credit lines cut, precipitating a faster consolidation in the industry that would sow the seeds of a rebound.

Schlumberger CEO: Rebound in Oil Will Take Longer than Many Expect

Schlumberger, the world’s largest oilfield services company, is revising its outlook for a recovery in energy prices, and says it plans to reduce spending, through more layoffs for example, in order to remain profitable. In July, Schlumberger’s CEO, Paal Kibsgaard, said he expected oil prices to begin recovering by the end of 2015. But in a conference call with analysts on Oct. 16 he said prices may not begin rising until 2017.

Interior Department Curbs Future Arctic Offshore Drilling

ANCHORAGE, Alaska (AP) — The Interior Department announced Friday it is canceling future lease sales and will not extend current leases in Arctic waters off Alaska's northern coast, a decision that significantly reduces the chances for future Arctic offshore drilling. The news follows a Sept. 28 announcement by Royal Dutch Shell that it would cease exploration in the Chukchi and Beaufort seas after spending upward of $7 billion on Arctic exploration. The company cited disappointing results from a well drilled in the Chukchi and the unpredictable federal regulatory environment.

Is Oil and Gas Fire Sale about to Start?

Much has been written about the mounting pile of debt for U.S. oil companies (not to mention the well-known Brazilian oil giant).

Oil Companies Pledge Support for Paris Climate Deal

STOCKHOLM (AP) — The chief executives of 10 of the world's biggest oil and gas companies have pledged support for an "effective" deal to fight global warming at a Paris conference next month. In a statement Friday, the CEOs of BP, Shell, Saudi Aramco, Total, Repsol, Statoil, Eni, Petroelos Mexicanos, Reliance Industries and BG Group said they recognize greenhouse gas emissions trends are inconsistent with the ambition to keep warming below a level many consider dangerous. Burning coal, oil and gas for energy is a key emissions source.

Snelsons New Leader Spreading the Word on Range of Pipeline Services

Snelson Companies opened its doors in 1946 as a small family-owned plumbing and heating business in Sedro-Woolley, WA. Frank Snelson, Sr. opened and ran the business with his three sons, Frank Jr., Jack and Bill. Bill, the youngest of the three, took over for his father in 1957. By 1966, Snelson was among the top hundred mechanical contracting firms in the U.S.

ANSI/API Recommended Practice 1173 Released; What Does It Means for Pipeline Safety?

On July 8, 2015, the American Petroleum Institute (API) released the first edition of ANSI/API Recommended Practice (RP) 1173 Pipeline Safety Management Systems. As an ANSI designated standards document, the RP became the national standard for pipeline safety management systems (PSMSs) in the U.S.

Iran Prepares Oil Sector for Life after Sanctions

Iran says it is ready to offer more than 50 projects for energy exploration and production to investors so that it can return quickly to the global oil market as soon as it is free from Western sanctions. Seyed Mehdi Hosseini, the chief negotiator for Iran’s Oil Contracts Restructuring Committee, said Iran will introduce the contracts in Tehran in November and at an energy conference in London next February. He made the announcement on Oct. 6 at the Oil and Money conference in Britain’s capital.

Far More than Money at Stake

How do you measure the cost of a pipeline spill? The answer: you can’t. That’s what the upper management of Plains All-American Pipeline is learning these days. It’s been a bad year for the Houston-based outfit that, through a series of acquisitions, has quickly become one of the nation’s largest independent midstream operators with over 18,000 miles of oil products pipelines.

Mastering Inspection of Challenging Pipelines

Pipelines are a valuable asset and need protection. In order to achieve this, a modern pipeline integrity management program usually includes regular inspections followed by integrity assessment, and if required, repair and rehabilitation measures.

Where do Oil Majors Really Stand on Climate Change?

Oil majors have been present in the renewable energy space for years. But with momentum building around the Paris COP21 climate talks at the end of the year, their focus has changed. Traditional energy players are positioning themselves in the debate on carbon pricing and emissions reductions, rather than wind and solar. Greater engagement by oil companies should be welcomed as cooperation between the public and private sectors will be critical to moving the conversation forward both in Paris and beyond.

Egypt Gas Find Sparks Panic in Israel about Israeli Reserves

Italian major Eni, on Aug. 30, announced the discovery of a supergiant gas field in the Mediterranean Sea off the coast of Egypt. The Zohr field is estimated to hold 30 Tcf of natural gas (5.5 Bbbls oil equivalent), though Eni believes more could be found. As it stands, the potential reserves represent the largest discovery in Egypt and the Mediterranean, topping Israel’s 16-Tcf Leviathan field.

House OKs Lifting 40-year-old US Ban on Oil Exports

WASHINGTON (AP) — Defying a White House veto threat, the Republican-controlled House on Friday approved a bill to lift a 40-year-old U.S. ban on crude oil exports. The House approved the bill on a 261-159 vote. Supporters said an ongoing boom in oil and gas drilling has made the 1970s-era restrictions obsolete. Lifting the export ban would lower prices at the pump, create jobs and boost the economy, said House Speaker John Boehner.

Mastering Inspection of Challenging Pipelines (1)

Pipelines are a valuable asset and need protection. In order to achieve this, a modern pipeline integrity management program usually includes regular inspections followed by integrity assessment, and if required, repair and rehabilitation measures.

Keystone XL Developer Seeks Different Approval for Route

LINCOLN, Neb. (AP) — TransCanada is taking steps to circumvent one of the major roadblocks in Nebraska to the building of the Keystone XL pipeline. But in seeking approval Monday for the same contentious route through the state, the company could create another round of lengthy delays in an already drawn-out process.

Study: No Fracking Bonanza for California's Monterey Shale

SAN FRANCISCO (AP) — A U.S. Geological Survey report out Tuesday downgrades the fracking potential of California's vast Monterey Shale oil deposits. The study is the latest to lower a 2011 federal energy estimate that billed the Monterey Shale as a game-changer for U.S. oil, with what was then estimated at 13.7 Bbbls of recoverable oil overall. Instead, the U.S. Geological Survey's (USGS) new study said, the most oil-rich portion of the giant shale formation holds just 21 MMbbls of oil that can be recovered by intensive methods, such as hydraulic fracturing, better-known as fracking.

Oil Traders Finally Get some Bullish News

Crude prices are off to a good start this week, jumping by more than 2% on Oct. 5 following several pieces of bullish news. First, Baker Hughes reported a sharp contraction in the rig count last Friday, with oil rigs falling by 26, the largest decline in months. Oil and gas rigs are now down by more than 1,100 since October 2014.

NGPL, Cheniere Agree on Gas Transportation to Corpus Christi Liquefaction Project

Natural Gas Pipeline Company of America (NGPL) has an agreement with Corpus Christi Liquefaction, a subsidiary of Cheniere Energy, Inc., to provide the Corpus Christi Liquefaction Project with 385,000 dekatherms per day of southbound natural gas transportation capacity on NGPL’s expanded Gulf Coast mainline system for a 20-year term.