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BP Splitter Refinery Seen Skirting U.S. Oil Export Ban

The oil industry is pressuring President Barack Obama to end the 41-year-old ban on most crude exports. BP Plc (BP/) isn’t waiting for a decision. The British oil giant has signed on to take at least 80 percent of the capacity of a new $360 million mini-refinery in Houston that will process crude just enough to escape restrictions on sales outside the country. Amid a flood of new U.S. oil, the demand for simple, one-step plants capable of transforming raw crude into exportable products such as propane is feeding a construction boom along the Gulf Coast . If the new processing units continue to multiply, they could render moot the politically sensitive debate over whether to ease the restrictions in place since the Arab oil embargo of 1973. “It’s a relatively inexpensive way around the export prohibition,” said Judith Dwarkin, chief energy economist for ITG Investment Research Inc. “You […]

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Chesapeake, Encana face criminal antitrust charges in Michigan

Oil and gas giants Chesapeake Energy and Encana Corp. were charged on Wednesday with colluding to keep oil and gas lease prices artificially low in the state of Michigan, the state Attorney General Bill Schuette said. The announcement follows a lengthy investigation by Schuette’s office into whether the firms — the biggest land leasers during a speculative oil and gas leasing boom in Michigan’s Collingwood Shale region during 2010 — colluded to avoid prices from rising as they acquired land leases from landowners. Michigan began looking into the companies’ activities in 2012 after a Reuters investigation found that executives from the two firms discussed proposals to divide bidding responsibilities in the state for nine private landowners and counties in Michigan. "I will aggressively prosecute any company who conspires to break the law," Schuette said in a statement. The companies were charged with one count each of antitrust […]

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North American LNG exports make sense, Chevron says

Chevron Corp. Chairman John Watson said there are more than enough reserves in North America to expand export options for liquefied natural gas. Watson told an audience at the CERAweek energy conference in Houston, Texas, the glut of natural gas in Canada and the United States suggested the economics of full LNG exports was "very straightforward." Canada’s National Energy Board last week gave Veresen Inc. consent for a 25-year license to send up to 1.5 billion cubic feet of natural gas per day from Western Canada into the United States. From there, the company would need U.S. approval to send gas overseas. A special permit is required from the U.S. government to send LNG to countries that don’t have a free trade agreement with Washington. Watson said Tuesday from Houston the debate over free trade was "won a long time ago," energy reporting website […]

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Weather restrains U.S. private hiring, services sector growth

U.S. private employers added fewer workers than expected in February and services sector growth slowed, the latest signs that severe weather continues to be a drag on the economy. The ADP National Employment Report showed on Wednesday that private payrolls increased by 139,000 jobs last month. January’s job count was revised sharply down to 127,000 from the previously reported 175,000. Last month’s increase was below economists’ expectations for a gain of 160,000 jobs. "Bad winter weather, especially in mid-month, weighed on payrolls. Job growth is expected to improve with warmer temperatures," said Mark Zandi, chief economist at Moody’s Analytics in West Chester, Pennsylvania. Moody’s Analytics jointly develops the report with payrolls processor ADP. The report was released ahead of the government’s comprehensive employment report on Friday. With unusually cold weather blamed for the weak private sector hiring, the report raised the prospect of a third straight […]

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TransCanada submits Energy East pipeline details to NEB

CALGARY, Alberta, March 5 (UPI) — Canadian energy company TransCanada submitted its project description for its Energy East oil pipeline, the nation’s energy regulator said. TransCanada submitted its project description to the National Energy Board for the so-called Energy East oil pipeline. It involves the construction of a new 930-mile segment and converting 1,800 miles of gas line for oil service, the company said. "Work on temporary construction-related infrastructure is anticipated to begin in first quarter 2016," the company said in a letter published Tuesday by the NEB. "The scheduled in-service date for the project is in fourth quarter 2018." The Energy East pipeline is designed to carry 1.1 million barrels of oil per day from Alberta and Saskatchewan to eastern Canadian refineries. Canadian Natural Resources Minister Joe Oliver said the project would help offset the estimated 700,000 bpd imported for eastern refineries from overseas markets. TransCanada said it […]

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Exxon Says Russian Projects Remain on Track

Exxon Mobil Corp. has more at stake in Russia than any other U.S. energy company but is confident its projects will remain on track despite recent tensions between the West and the Kremlin. "There has been no impact on any of our plans or activities at this point, nor would I expect there to be any, barring governments taking steps that are beyond our control," Chief Executive Rex Tillerson said Wednesday at the company’s annual meeting with analysts in New York. "We don’t see any new challenges out of the current situation." After years of investments, Exxon is supposed to start pumping oil and gas this year from a major field off Russia’s eastern coast and drill the company’s first well in Russia’s Arctic seas, which could hold billions of barrels of oil. Though Exxon said those endeavors will proceed on schedule, the company is putting plans on hold […]

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EU leaders meet in Brussels to address Ukraine crisis

Pro-European protests in Ukraine ©EPA Ukraine’s economic situation has been described as ‘catastrophic’ EU leaders on Thursday will lead the west’s diplomatic efforts to counter Russia’s takeover of Crimea after a day of multiple setbacks when the Kremlin refused to engage with the new Ukrainian government and the allies were at loggerheads over how tough to be with Moscow. The emergency summit in Brussels comes as the US issued a detailed 10-point rebuttal of Russia’s “false narrative” about Ukraine. In addressing Russian claims that it has no troops in Ukraine, that its actions are legitimate and the Ukrainian government is illegitimate, the state department said: “The world has not seen such startling Russian fiction since Dostoyevsky.” David Cameron, UK prime minister, said on arriving at the summit that there were three points to address: Russia and Ukraine must open talks, the EU must show strong support for the Ukrainian […]

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Scottish independence: Shell chief wants Scotland to remain in UK

Shell has waded into the debate over Scottish independence , saying it needed political stability in the UK to back up its investment decisions. Ben van Beurden, chief executive, said at the company’s annual reception in London on Wednesday night that it was important Scotland remain in the UK and that the UK remain in the EU. According to the BBC, Mr van Beurden said: “We’re used to operating in uncertain political and economic environments. But, given a choice, we want to know as accurately as possible what investment conditions will look like 10 or 20 years from now. That’s the chief reason we’re in favour of the UK maintaining its long-established place at the heart of the European Union: it provides greater investment stability and certainty. “It’s for similar […]

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IHS CERAWeek: Shale gas gives US competitive advantages

The US holds ample reserves of natural gas to help supply rising world gas demand, particularly for gas-fired electric power generation in Asia, speakers told the IHS CERAWeek energy conference during the Mar. 5 opening gas keynote speech and the global gas plenary. “It’s clear that no country has found greater opportunity in recent years than the United States,” said Joe Kaeser, Siemans AG president and chief executive officer. “The US will most likely become the world’s largest oil and gas producer this year. That’s affordability, availability, and sustainability all in one.” An abundance of shale gas has reshaped advantages that the US can offer the global economy, he said. “I believe we are witnessing, and participating in, the reindustrialization of the United States,” Kaeser said during the opening keynote speech. “And I think it’s fair to say that the development of horizontal drilling may have been the biggest […]

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ExxonMobil outlines 2014 production plans

ExxonMobil Corp. said it expects to start production at 10 major projects this year, adding 300,000 net boe/d of net capacity. The increased activity will come at a lower cost than last year, as the company’s capital spending will decline to $39.8 billion from a peak of $42.5 billion in 2013. Excluding potential acquisitions, capital expenditures are expected to average less than $37 billion/year during 2015-17. ExxonMobil in 2013 replaced more than 100% of production while adding proved oil and gas reserves totaling 1.6 billion boe, including a 153% replacement ratio for crude oil and other liquids. At yearend, proved reserves totaled 25.2 billion boe, comprised of 53% liquids and 47% natural gas. Major projects in 2014 involve the largest offshore oil and gas platform in Russia, heavy oil expansion in Canada, activity in deepwater Gulf of Mexico, and LNG in Papua New Guinea ( OGJ Online, Mar. 13, […]

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