Operations

Mastering Inspection of Challenging Pipelines

Any inspection device used internally must be introduced into the pipeline to be investigated. This implies that the line is accessible. “Piggable” lines need suitable launchers and receivers and are generally inspected in a unidirectional mode. If tool traps are not available or suitable, access has to be achieved via other means. Accessibility can be achieved through technical and/or procedural means.

Retrofitting Customized Valves, Actuators for Pipeline Monitoring Stations

Oil and gas engineers face a major problem in accurately and reliably measuring and monitoring the various fluids that are introduced into oil pipelines from well site pumping stations. A thorough understanding of both the oil separation process and the properties of valves and actuators is required to correctly specify a system that will sufficiently measure and monitor these various types of fluids. Also, the conditions downstream from each well are different, requiring valves and actuators to be highly customized to their specific role in the process.

IEA Sees No Oil Price Rebound for Years But ...

Oil prices are likely to stay below $80 per barrel for another five years, according to a closely watched energy report. The International Energy Agency released its 2015 <em>World Energy Outlook</em>, with predictions for energy markets out to 2040. Although there are no shortage of caveats, the IEA projects that oil prices will only rebound slowly and intermittently, and the supply overhang will slowly ease through the rest of the decade. In its “central” scenario, it sees oil prices rebalancing in 2020 at $80 bbl, with increases in the years following.

Getting Basics of Construction Productivity Right

The U.S. midstream oil and gas construction industry has experienced tremendous growth over the past decade, forcing industry stakeholders from across the nation to work together under extreme environmental conditions, compressed project schedules, persistent labor fluctuations and ongoing cost pressures.

As Total US Crude Imports Fall, Canadas Import Supply Share Rises

Although overall U.S. crude oil imports have been declining since 2005, crude oil imports from Canada have been increasing. As of August, Canada provided 45% of all crude oil imports to the United States, almost three times as much as all Persian Gulf countries combined.

Technip Awarded Contract Hydrogen Plant in Montana

Technip was awarded a contract by CHS Inc. to provide technology as well as engineering, procurement and construction for a 40,000-normal-cubic-meter-per-hour grassroots hydrogen plant at the CHS Refinery in Laurel, MT. The plant is part of ongoing upgrades to boost efficiency, increase diesel production and process additional crudes at its refinery.

GPR, EM Technologies Offer Rewards in Environmental Assessments

Geophysical surveys can be the bedrock – pardon the pun – of environmental projects, from locating abandoned underground storage tanks (USTs) and utilities, to complex mapping of geology in remedial investigations and finding landfill boundaries and other buried unknown problems.

Oil Market Uncertainties, Growing Natural Gas Production Projected in 2016

The <em>Pipeline & Gas Journal 35th Annual 500 Report</em> is the industry’s most comprehensive listing of U.S. energy pipeline systems. As in past years, the report ranks gas distribution, liquids and gas transmission systems. Gas transmission companies are listed by total miles of pipe. Gas distribution operators by number of customers and liquids pipelines by total crude oil and products delivered.

Ending Ban on Oil Exports Looms as Biggest Hurdle for Oil Industry

As President Obama smugly twiddles his thumbs and decides when he’ll put Keystone out of its misery, sides are being taken, mostly along political lines, in the real debate that will decide the fate of the domestic oil industry: ending the outdated 1975 ban on crude oil exports. Obama, of course, sees no need to lift the ban, though he says he might reconsider IF the oil industry gives up its tax breaks. As one expected, Hillary Clinton, presumptive Democratic nominee for president, also opposes ending the ban.

Ozark Pipeline Upgrade Planned Beneath Mississippi River

Canadian company Enbridge will make $17.3 million in improvements to its Ozark Pipeline along a 4,000-foot segment that runs beneath the Mississippi River into north St. Louis. The work is scheduled for completion in 2016. Crews will bore under the river, welding 22-inch steel pipe together on the Missouri side, before pulling it through a new tunnel. The 435-mile Ozark Pipeline carries up to 215,000 bpd of oil from Oklahoma through Missouri, en route to the Wood River, IL refinery, Enbridge said.

Anadarko Withdraws Rejected Apache Takeover Bid

Anadarko Petroleum Corporation today announced it withdrew its offer to buy rival oil company Apache in what would have been the biggest takeover of a U.S. crude producer this year. The proposed all-stock transaction, which included a modest premium, was based on public information and Apache's historic financial and operating under-performance, according to Anadarko President and CEO Al Walker. The transaction offered shareholders of both companies numerous value-creation opportunities.

Appalachian Midstream Operators Face Myriad of Challenges

This has been a busy year of new challenges and issues facing the Appalachian oil and gas industry as rig count in the Appalachian Basin and elsewhere is down substantially compared to the previous two years. A significant challenge ahead for shale developers in a lower price environment is to continue to be active in finding land, drilling wells and getting the natural resource to market. This article concerns our most recent report, published in May, on the issues and challenges facing midstream operators in the Appalachian Basin.

Oil Prices Forecast to Stay Low Until 2020

PARIS (AP) — Oil prices are likely to remain low over the next five years because of plentiful supply and falling demand in developed countries, the International Energy Agency said Tuesday in its annual forecast. The Paris-based body, which advises developed countries on energy policy, says it expects oil prices to return to $80 per barrel in 2020, with further increases after that. Oil prices are down more than 50% since the middle of last year. On Tuesday, the U.S. crude oil contract was trading at $43.95 a barrel.

Apache Resists Unsolicited Takeover Bid

Apache Corporation, a Houston-based oil and gas exploration company, says it has fended off an unsolicited takeover bid, and will continue to defend against follow up attempts to buy out the company. Bloomberg reported the news, and thus far the bidder has not been identified. The company’s shares jumped on the news, up more than 10% during midday trading Monday. Apache is worth about $18 billion, so if a takeover were to occur, it would be the largest for an independent oil and gas company this year.

Study: Dispersants Failed to Help Oil Degrade in BP Spill

WASHINGTON — The chemical sprayed on the 2010 BP oil spill may not have helped crucial petroleum-munching microbes get rid of the slick, a new study suggested. And that leads to more questions about where much of the Deepwater Horizon oil spill went. If the new results are true, up to half the oil can't be accounted for, said the author of a new study on the spill in the Gulf of Mexico.

Analysis: Polarized Politics Dictated Obama Keystone Call

WASHINGTON (AP) — President Barack Obama's decision to block the Keystone XL oil pipeline has exposed an endlessly polarized Washington, and likely hardened its divides. Obama is now being praised to the skies by environmentalists and most Democrats, and denounced in apocalyptic terms by Republicans and the business community. And although environmental issues once produced bipartisan agreement in Congress, consensus on action to increase energy production or deal with climate change looks farther away than ever.

Latin America Forced to Face Growing Supply-Demand Gap

Latin America’s prominence on the world gas stage has increased over the last several years. Although it is well-endowed with natural gas resources, the region has struggled to find its footing as both a natural gas producer and consumer. Consequently, Latin America’s potential as a natural gas import province is the topic of increasingly animated debate.

North Dakota Losing Appeal Among Drillers, Refiners

The performance of <em>Blood & Oil,</em> a soap opera based on the North Dakota oil boom, is not going well. The show saw its episodes trimmed by ABC amid tepid viewer interest. But the real life Bakken is also suffering from a lack of interest, a development that doesn’t bode well for the oil-producing region. The Bakken had been a key part of the U.S. shale boom over the past half-decade. But production peaked at 1.22 MMbpd in December 2014. Since then production has bounced around, with month-to-month fluctuations, but is slightly down from that high point reached almost a year ago.

1,000 Barrels of Crude Spill from Pipeline in Rural Oklahoma

BILLINGS, Okla. (AP) — A Tulsa-based pipeline company says about 1,000 barrels of crude oil has spilled from a pipeline in rural Oklahoma. Bruce Heine, a spokesman for Magellan Midstream Partners, said in an email Friday the oil was released about 6 p.m. Thursday from a Magellan pipeline that stretches from Enid to Ponca City. He said the spill occurred in a rural area near Billings and no injuries occurred.

ROSEN Rolls Out Mobile Pipeline Diagnostics Units

ROSEN rolled out its much-anticipated R3 Service – which stands for responsive, rapid and reliable – before a large gathering of inquisitive industry executives and operators Oct. 28 in Houston. At the center of the new service is a fleet of high-end mobile diagnostics units capable of carrying all the diagnostic equipment necessary to sites throughout the United States.

Killing Keystone XL, Obama Says Pipeline Not in US Interests

WASHINGTON (AP) — President Barack Obama rejected an application to build the Keystone XL pipeline Friday after 7 years of federal review, declaring the proposed project wouldn't serve U.S. national interests and would have undercut America's global leadership on climate change.

Working Natural Gas in Storage Matches Record Level

Working natural gas in storage reached 3,929 Bcf as of Oct. 30, according to EIA's latest <em>Weekly Natural Gas Storage Report. </em>This level matches the previous weekly record of 3,929 Bcf set Nov. 2, 2012. Although October marks the traditional end of the injection season, inventory increases commonly continue into the first weeks of November. Largely depending on the weather, inventories could surpass 4 trillion cubic feet in the coming weeks.

Laney Finds Pushing Pipe Has Its Advantages

Laney Directional Drilling, which last year used Direct Pipe technology to make an underground pipeline crossing through wetlands in the Northeast feasible, explained the process to attendees at a symposium on Oct. 14 in Houston. Direct Pipe is a single-pass process that uses a steerable tunnel-boring “pipe thruster” to push pipe into place, while at the same time filling the void as it progresses. The process, according to Laney, is highly advantageous when crossing levees and environmentally sensitive areas.

State Dept. Rejects TransCanada Request for Keystone Delay

WASHINGTON (AP) — The Obama administration said Wednesday it is continuing a review of the proposed Keystone XL oil pipeline, despite a request by the project's developer to suspend the review. If granted, a delay could have put off a decision on the high-profile project until the next president takes office in 2017. President Barack Obama has yet to say whether he would approve or reject the pipeline, but the Democrats running for president have all said they oppose it while Republican candidates support it.

AP Exclusive: CA Governor Had State Workers Research Oil on His Family's Ranch

SAN FRANCISCO (AP) — Gov. Jerry Brown last year directed state oil and gas regulators to research, map and report back on any mining and oil drilling potential and history at the Brown family's private land in Northern California.

Combating Noise in Gas Pipeline Transmission

Pipelines have been established for many years as the simplest and most economical way to transport high quantities of natural gas over long distances, moving gas from new shale fields and other production sources to LNG stations, local utilities, industrial plants and natural gas–fired electric power plants. Natural gas pipelines only consume an average of 2-3% of the gas’s potential energy to overcome frictional losses along the route, making them more cost-effective than the use of road or rail transport.

World News: Subsea Gas Compression Facility Begins Operation

Statoil has begun production of the world’s first subsea gas compression facility at the Åsgard field in the Norwegian Sea. The facility features two MAN Diesel & Turbo HOFIM compressor units which were supplied to Statoil’s contractor Aker Solutions. It consists of modules for two identical sets of compressors, pumps, scrubbers and coolers fitted together in a 1,800-metric ton steel frame.

Michels, Precision Pipeline Awarded Contracts for Dakota Access Pipeline

Dakota Access Pipeline, LLC has awarded Michels Pipeline Construction, a Division of Michels Corporation, and Precision Pipeline, LLC construction contracts for multiple segments along the 1,134-mile Dakota Access Pipeline. Once completed, the project will transport light sweet crude oil from the Bakken and Three Forks production areas in North Dakota to Patoka, IL where shippers will be able to access multiple markets, including Midwest, East Coast and Gulf Coast regions.

Keystone Backers Look to Obama's Successor to Make the Call

WASHINGTON (AP) — The company pleading for permission to build the Keystone XL pipeline looked beyond President Barack Obama on Tuesday in apparent hopes a future Republican president would green-light the project. But the administration signaled it was in no mood to hand off the decision to the winner of the 2016 election.

Why Carbon Capture, Storage not Taken Off Yet

For all of the talk about green energy one fact still remains clear: fossil fuels are going to continue to be used in enormous quantities for decades to come. From China and India to the United States and Canada, the world is flooded with growing markets looking for new sources of fossil fuels and developed markets coming up with new ways to extract those fossil fuels. India, for instance, is on track to double its use of coal as a main source of energy over the next 20 years.