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Exxon stresses diversity in future growth agenda

Exxon Mobil Corp. Chairman Rex Tillerson said a diverse portfolio is a central part of his company’s production agenda for 2014. Tillerson said the company plans to start production from 10 separate projects this year, adding approximately 300,000 net barrels of oil equivalent per day to its portfolio. Exxon singled out a liquefied natural gas project in Papua New Guinea, gas developments in Russia, projects in the Gulf of Mexico and oil sands operations in Canada as among the major programs scheduled for this year. "These projects exemplify our focus on maintaining a diversified portfolio and highlight our ability to grow profitable volumes," he said in a statement Wednesday. Combined, projects on the books for Exxon should add 1 million net oil equivalent barrels per day to its portfolio by 2017, he said. Tillerson said the company has a "disciplined" approach to spending, […]

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Keystone XL’s Factions in Late Rush to Coax U.S. Over Pipeline

Proponents and critics of Keystone XL are unleashing a final flurry of pleas to persuade the government on the pipeline, which has become a flash point in a debate over energy development versus climate protection. The public has until the end of today to be part of the official review of whether Keystone is in the national interest. After that Secretary of State John Kerry will weigh in and President Barack Obama will decide whether to approve or scrap the long-delayed $5.4 billion plan by TransCanada Corp. to bring fuel from Alberta ’s oil sands to Gulf Coast refineries. Most of the more than 15,000 comments submitted through yesterday reiterate arguments made during five years of review. Proponents said Keystone would create jobs and boost U.S. energy security. Foes said the project would worsen climate change by promoting development of Alberta’s oil sands. “lets get-r-done NOW,” urged one commentator, […]

Posted On : Published By : Tom Whipple
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Musings: Fewer December Bakken Wells Point Out Shale Challenge

Data published by the North Dakota Industrial Commission’s Department of Mineral Resources (DMR) showed a 48,305 barrel-a-day decline in the state’s production for the month of December. The report attributed the production decline primarily to the severe winter weather that hit the state at the end of last year. According to the DMR, the state experienced low temperatures of 21 to 31 degrees below zero, four major snow storms and five major wind storms in December. Oil production for November had climbed by 31,278 barrels a day to 911,292 barrels a day, for a 3.6% increase over October’s level. The production drop in December was 5.3%. The production decline, which was clearly impacted by weather, may also be demonstrating that there is a fundamental slowing in output and activity underway, which is not a good omen for the future for […]

Posted On : Published By : Tom Whipple
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US rail congestion forcing utilities to idle units due to dwindling coal stocks

Washington (Platts)–6Mar2014/404 pm EST/2104 GMT Increased congestion across the US rail network due to several weeks of extreme winter cold has forced some utilities to pull coal-fired units out of service in order to preserve dwindling stockpiles, according to testimony Thursday at the Rail Energy Transportation Advisory Committee meeting at the US Surface Transportation Board. Jeff Wallace, vice president of fuel services for Atlanta-based Southern Company, told STB commissioners and energy and railroad executives the cold weather has increased the company’s coal burn "significantly" and that a number of utilities are "very concerned about our ability to get [coal] supplies." Wallace estimated coal burn this winter will be more than 15 million st above industry projections due to the cold weather. Article continues below… Request a free trial of: Coal Trader Platts Coal Trader provides:The latest prices for key benchmark coals Daily pricing for tons and allowances for SO2 […]

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Ethanol shippers avoiding Chicago bottleneck to supply low-stocked East Coast

US railroads are rerouting ethanol shipments to avoid bottlenecks in Chicago, particularly for delivery to the East Coast, where supplies are running low, rail company officials said Thursday. David Garin, BNSF’s vice president of industrial products, said Chicago — already congested as the US’ busiest freight rail hub — has been severely impacted by winter weather, leading to delays on routes using interchanges there for all commodities. Though BNSF does not serve East Coast markets, Garin was speaking at a meeting of the US Surface Transportation Board’s Rail Energy Transportation Advisory Committee as a representative of the rail industry. "Chicago is a big challenge for us," Garin said. "We’ve looked at longer routing. It may not seem to make sense to [ship ethanol on rail] through Arkansas to the East Coast, but right now where we’re trying to avoid interchanges in Chicago." Ethanol inventories […]

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Canadian Regulators Say Oil in Train Accident Was as Volatile as Gasoline

Canadian regulators said the crude oil on a train that derailed in a Quebec town last July and killed 47 people was as volatile as gasoline, highlighting the potential danger of crude shipments by rail. The report by Canada’s Transportation Safety Board marked the first time that government officials have reported comprehensive test results from the train’s oil, which was traveling from North Dakota’s Bakken Shale formation to a refinery in New Brunswick. The safety board said the oil had a flash point, the temperature at which a fire can ignite, "similar to that of unleaded gasoline." The results confirmed a Wall Street Journal analysis published last month that showed Bakken oil contains more combustible gases than oil from elsewhere. The samples in the Quebec incident were taken from cars that didn’t explode at the accident site and another train carrying oil of the same origin. Canadian regulators previously […]

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Moody’s: Ukraine line shutdown could cost Europe 56 bcm of gas

In the event of a complete stoppage in Russian natural gas transit via Ukraine, Europe will experience a gas deficit of as much as 56 billion cu m (bcm) during 2014, said Moody’s Investors Service in a recent Global Credit Research report. Such a shortfall would predominantly affect Italy, Turkey, France, the Czech Republic, Slovakia, and Austria. Warmer weather conditions, however, seasonal reductions in demand, and relatively high current gas stockpiles would to an extent mitigate the negative effects, Moody’s said. Ukraine also officially confirmed earlier this week that it would deliver gas to Europe under its 11-year transit agreement with Gazprom signed in 2009. The evolving situation in Ukraine adds uncertainty to the reliability of Gazprom’s natural gas exports via Ukraine’s 143 bcm/year Soviet-era pipeline network, which connects Gazprom’s gas transportation system with the European gas network in Poland, Slovakia, Hungary, Romania, and Moldova, said Moody’s. Prolonged turmoil […]

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IEA sees no energy disruptions through Ukraine

PARIS, March 6 (UPI) — The International Energy Agency said it is keeping close watch over natural gas transits through Ukraine to Europe, but hasn’t observed a physical disruption. Russian Prime Minister Dmitry Medvedev this week warned Ukraine may face consequences because of its outstanding debt obligations to Russian energy company Gazprom. Europe gets about a quarter of its natural gas from Russia, though the majority of that runs through the Soviet-era pipeline network in Ukraine. Gazprom in 2009 cut natural gas supplies through Ukraine because of debt issues, though IEA said in a briefing Wednesday there has been "no physical disruption in supplies of crude oil or natural gas transiting Ukraine to Europe." The European community in response to the 2009 debt row started looking to diversify its energy market. IEA said gas transit through Ukraine to Europe increased 4.3 percent from 2012 to 2.9 trillion cubic feet, […]

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API says LNG answer to European energy woes

WASHINGTON, March 6 (UPI) — Ukraine and Eastern European allies could benefit for the U.S. shale gas revolution, but bureaucracy is in the way, the American Petroleum Institute said. API Upstream Director Erik Milito said exporting more liquefied natural gas from the United States could help allies in Europe who are dependent on Russia for their natural gas supplies. An "energy revolution" in the United States means the country is now one of the world’s leading natural gas producers. More exports in the form of liquefied natural gas could add a layer of security to the European energy market, he said. "Unfortunately, the slow pace of federal approval for U.S. LNG export facilities has stalled the construction of infrastructure, weakening our competitive position," he said in a statement Wednesday. The majority of Russian natural gas sent to European markets passes through the Soviet-era transit network in Ukraine. Russian energy […]

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Centrica warns of uncertain British gas future

The British economy needs to outline plans to enhance energy security as it starts to rely more on imports to meet gas demands, the head of Centrica said. Sam Laidlaw, chief executive officer at Centrica, told the audience at the CERAWeek energy conference in Houston natural gas production from the British waters of the North Sea has declined substantially during the last three years. "By 2020 we will be reliant on imports to meet 70 percent of the country’s gas needs," he said in his Wednesday address. "So when it comes to security of supply, there is a pressing need for solutions." Centrica in November signed a 4 1/2 year contract to purchase as much as 3 million tons of liquefied natural gas a year from Qatar. British Energy Minister Michael Fallon said "reliable suppliers like Qatar are vital for our future energy security." […]

Posted On : Published By : Tom Whipple