Category:

The U.S. Monthly Energy Review

The US Monthly Energy Review  is now up with all the US Oil and Gas data for November. US (estimated) Crude + Condensate production was 8,002 kb/d for November. I think that will be revised later because the Bakken had a bad month in November. Crude Oil Total The average, so far this year, has been 7,438 kb/d and if December production is as much as November then the average for 2013 will be about 7,485 kb/d. AEO 2014 estimated 2013 production at 7,756 kb/d so it would appear that they are already a bit high with their prediction. Natural gas liquids, along with natural gas is supposed to be a major player in our drive for “energy independence”, is up about 1 million barrels per day since 2006. In the chart below I have charted Net Imports along with Total Field Production, (NGLs + Crude) and Petroleum Products […]

Posted On : Published By : Tom Whipple
Category:

US propane, propylene stocks last week 31% less than year-ago level: EIA

US propane and propylene stocks are 31% under were they stood in 2012 on increasing exports, cold weather and changing infrastructure, Energy Information Administration data released Friday showed. The stocks fell 2.51 million barrels to 47.44 million barrels for the week ended December 20 (See story, 1627 GMT). Midcontinent stocks, for which Conway, Kansas, is the price marker, are down 35.9% from last year at 15.14 million barrels. Meanwhile, Gulf Coast stocks are down 31% and currently stand at 25.88 million barrels. Assessments at Mont Belvieu, Texas, the NGL hub of the US, are representative of the Gulf Coast supply and demand fundamentals. Prices at Conway have surged 74.3% over the past year while Mont Belvieu prices have climbed 44%. Conway was marked at $1.4685/gal Friday while Mont Belvieu propane was trading at $1.28/gal. Increasing export capacity has been the strongest pulling factor on […]

Posted On : Published By : Tom Whipple
Category:

Alaska to withhold gas project terms until companies reach commercial agreement

Alaska will withhold an offer of special state fiscal terms for a large North Slope gas pipeline and liquefied natural gas project until companies working on the project reach agreement on terms among themselves to proceed with the project, a spokeswoman for Governor Sean Parnell said Friday. Parnell mentioned his frustration with North Slope producers and TransCanada over the glacial pace of the project in a budget briefing two weeks ago, and his position was affirmed Friday by his spokeswoman, Sharon Leighow. BP, ConocoPhillips, ExxonMobil and TransCanada say they need an agreement with the state covering tax and royalty terms before proceeding with the project, which is estimated to cost $45 billion to $65 billion. Parnell said, however, he wants to see more progress on the project first. "I want to see commercial terms agreed on between the companies or steps toward a […]

Posted On : Published By : Tom Whipple
Category:

Analysts predict more drilling in US shale plays in 2014

With thousands of shale and other unconventional wells drilled in the US this year, could 2014 possibly get any better? Most analysts seem to think so. If more equals better, then 2014 will likely be another sizzling year for the drill bit in the US, with a cascade of funds chasing a horde of anticipated initial public offerings, expanded oil-company development programs, greater drilling efficiencies and more horizontal wells than ever, analysts and upstream experts say. "The focus will continue to be on the core resource plays," Topeka Capital Markets analyst Gabriele Sorbara said. "Dollars are going into development mode." To that end, "I think you’ll see a robust IPO market," Sorbara said, as private operators gear up to grow in established plays such as the Permian Basin in West Texas, the Eagle Ford in South Texas, the Bakken in North Dakota and Montana, […]

Posted On : Published By : Tom Whipple
Category:

California could experience 'historic' drought in 2014

California water authorities told Al Jazeera Friday that barring a series of heavy storms, California faces a drought next year that would restrict residents’ access to water and hurt agricultural production in the heartland in the long-term. "On the horizon, there is a chance we will receive some rain and snowfall in Northern California. We’re hoping the storm door will open," Bill Croyle, drought manager at the California Department of Water Resources, said. "We’re coming close to meeting some thresholds where we are in a drought. We’re looking at making recommendations after the January or February snow forecast," he said. California’s wine industry worries about the prospect of an ecological disaster. "It has a potential to be a historic drought," said David Graves, managing member of Sonoma Valley, Calif.’s Saintsbury Winery, which is associated with the trade group Napa Valley Vintners Association. For the past two years, California has […]

Posted On : Published By : Tom Whipple
Category:

California could experience ‘historic’ drought in 2014

California water authorities told Al Jazeera Friday that barring a series of heavy storms, California faces a drought next year that would restrict residents’ access to water and hurt agricultural production in the heartland in the long-term. "On the horizon, there is a chance we will receive some rain and snowfall in Northern California. We’re hoping the storm door will open," Bill Croyle, drought manager at the California Department of Water Resources, said. "We’re coming close to meeting some thresholds where we are in a drought. We’re looking at making recommendations after the January or February snow forecast," he said. California’s wine industry worries about the prospect of an ecological disaster. "It has a potential to be a historic drought," said David Graves, managing member of Sonoma Valley, Calif.’s Saintsbury Winery, which is associated with the trade group Napa Valley Vintners Association. For the past two years, California has […]

Posted On : Published By : Tom Whipple
Category:

Shell Renews Option for Factory Site in Western Pennsylvania

Royal Dutch Shell PLC said on Thursday that it has renewed an option to buy the site of a proposed $2 billion ethylene plant in western Pennsylvania. Demolition of a zinc-oxide refinery on the site in Monaca, Pa., is scheduled to begin early next year at Shell’s expense, said company spokeswoman Kimberly Windon. The land in Beaver County is owned by Horsehead Holding Corp. ZINC +1.97% Horsehead Holding Corp. U.S.: Nasdaq $ 16.53 +0.32 +1.97% Dec. 27, 2013 4:00 pm […]

Posted On : Published By : Tom Whipple
Category:

Labor shortage threatens Canada's $50 billion gas-export plans

Energy companies trying to raise almost $50 billion for Canada’s first network of natural-gas export terminals will face an even more basic challenge: finding the workers to build them. Housing complexes boasting an indoor golf driving range, a two-story gymnasium and a private movie theater are among perks that companies are mulling to lure tradesmen to Canada’s remote, snow-swept West Coast and mitigate wage inflation that could blow up project budgets. Labor shortages in the country already have pushed wages for some oil and gas workers as much as 60 percent higher than their counterparts in the U.S., according to U.S. and Canadian labor data. “The lack of skilled workers is a major component for the reason why you’re often behind schedule and over budget,” said Geoff Hill, partner and oil and gas leader at financial advisers Deloitte Canada in Calgary. A dearth of labor for oil sands and […]

Posted On : Published By : Tom Whipple
Category:

Labor shortage threatens Canada’s $50 billion gas-export plans

Energy companies trying to raise almost $50 billion for Canada’s first network of natural-gas export terminals will face an even more basic challenge: finding the workers to build them. Housing complexes boasting an indoor golf driving range, a two-story gymnasium and a private movie theater are among perks that companies are mulling to lure tradesmen to Canada’s remote, snow-swept West Coast and mitigate wage inflation that could blow up project budgets. Labor shortages in the country already have pushed wages for some oil and gas workers as much as 60 percent higher than their counterparts in the U.S., according to U.S. and Canadian labor data. “The lack of skilled workers is a major component for the reason why you’re often behind schedule and over budget,” said Geoff Hill, partner and oil and gas leader at financial advisers Deloitte Canada in Calgary. A dearth of labor for oil sands and […]

Posted On : Published By : Tom Whipple
Category:

Total’s Five French Oil Refineries Resuming Work as Strikes End

All five of Total SA (FP) ’s refineries in France are resuming operations after employees at Gonfreville voted to return to work, the last to come back after a strike that began two weeks ago, the CGT union said. All facilities are resuming activity, Eric Sellini, a CGT union representative, said by phone today. The 247,000 barrel-a-day refinery at Gonfreville in northern France, Total’s largest in the country, is the third site since yesterday where staff have ended industrial action. Officials at Paris-based Total haven’t returned two phone calls and an e-mail seeking comment on the plant’s status. European diesel traded near the highest in two months this week, boosted by the strikes, which began on Dec. 13. “We estimate that France will have lost about 5.1 million barrels of distillates and 2.5 million barrels of gasoline production during those strikes,” Olivier Jakob , managing director of Petromatrix GmbH […]

Posted On : Published By : Tom Whipple