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U.S. Gasoline Output Surged to Record in April, API Says

U.S. gasoline production climbed to an all-time high in April as fuel exports surged, the American Petroleum Institute said in a monthly report. Production of gasoline jumped 9.2 percent from a year earlier to a record 9.79 million barrels a day last month, the industry-funded group said today. Output of distillate fuel, a category that includes diesel and heating oil, rose 12 percent to 4.95 million, a record for the month. “Demand is up for both gasoline and distillate, and refiners are meeting it,” John Felmy, chief economist at the API in Washington , said by phone. Gasoline consumption jumped 2.7 percent to 9 million barrels a day. Demand for distillates increased 8.8 percent to 4.21 million, the most for April since 2007. Total deliveries of petroleum products, a measure of demand, advanced 2.3 percent to 19 million barrels a day. Refineries processed 16.1 million barrels a day, a […]

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U.S. Slashes Estimate of Technically Recoverable Crude From Monterey Shale by 96%

The U.S. government slashed its estimate of how much crude oil could be extracted from California’s Monterey Shale, confirming widespread industry suspicion that developing the massive resource would be difficult. The Energy Information Administration said there are 600 million barrels of technically recoverable oil, down 96% from its of 13.7 billion barrels. Officials said that while they still believed that there is an enormous oil deposit in the shale, which is beneath a 1,750-square-mile portion of central and southern California, the crude can’t be tapped with existing technology and at existing prices. "The rocks are still there," EIA Administrator Adam Sieminski said Wednesday. "The technology’s not there yet." The agency, the statistical arm of the Energy Department, said it lowered its estimate based on new geologic information and the lack of production growth. The oil industry nevertheless will likely continue trying to develop new techniques and technology to tap […]

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API: US petroleum demand hits 4-year high in April

Total US petroleum deliveries, a measure of demand, increased 2.3% from April 2013 to average 19 million b/d this April, the highest April deliveries in 4 years, the American Petroleum Institute said in its monthly statistical report. “April brought strong year-over-year growth in both the production and refining sectors,” said John Felmy, API chief economist. “The oil and natural gas industry continues to provide a solid base for growth in the larger economy.” At nearly 8.3 million b/d, US crude oil production increased 12.6% from April 2013 to the highest level for the month since 1988. According to the latest reports from Baker Hughes Inc., the number of oil and gas rigs in the US in April was 1,835, up 32 units from March and was up 80 units from April 2013. This was the highest count since September 2012. Total imports in April averaged 10.1 million b/d, 0.6% […]

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US rail regulators see 'pockets of concern' with misclassifying of Bakken crude

US rail regulators are finding that most shippers are properly classifying Bakken crude cargoes in accordance with hazardous materials rules, the head of the Federal Railroad Administration said. Still, "there are pockets of concern," FRA Administrator Joseph Szabo said in an interview set to air Sunday on "Platts Energy Week," and the agency intends to continue its "Bakken Blitz" surprise inspection campaign to ensure crude-by-rail shipments are delivered safely. "Obviously, any time you’re doing audits or inspections, you’re going to find things," Szabo said. "This is just part of our comprehensive approach to making sure that we’re talking about the safe delivery of this product." The FRA and the Pipelines and Hazardous Materials Safety Administration launched the "Bakken Blitz" last summer, making unannounced inspections on crude shipments to ascertain whether highly volatile shale oil is properly labeled on rail manifests and other required documents. The agencies have said shippers […]

Posted On : Published By : Tom Whipple
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US rail regulators see ‘pockets of concern’ with misclassifying of Bakken crude

US rail regulators are finding that most shippers are properly classifying Bakken crude cargoes in accordance with hazardous materials rules, the head of the Federal Railroad Administration said. Still, "there are pockets of concern," FRA Administrator Joseph Szabo said in an interview set to air Sunday on "Platts Energy Week," and the agency intends to continue its "Bakken Blitz" surprise inspection campaign to ensure crude-by-rail shipments are delivered safely. "Obviously, any time you’re doing audits or inspections, you’re going to find things," Szabo said. "This is just part of our comprehensive approach to making sure that we’re talking about the safe delivery of this product." The FRA and the Pipelines and Hazardous Materials Safety Administration launched the "Bakken Blitz" last summer, making unannounced inspections on crude shipments to ascertain whether highly volatile shale oil is properly labeled on rail manifests and other required documents. The agencies have said shippers […]

Posted On : Published By : Tom Whipple
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EC cites US shale gas boom as chief culprit of EU refining margin losses

The European Commission has identified the ongoing shale gas boom in the US as one of the primary reasons for profit margin losses in the EU refining industry in recent years, it said in preliminary conclusions presented at a refining forum in Brussels on Thursday. "The biggest effect [on refining profitability] comes from the relative deterioration of energy costs in Europe with respect to other regions," said Robert Marschinski of the EC’s Joint Research Center and one of the authors of the ongoing study. From 2008-2012, the EU has seen its average net cash margins drop from within the top third globally to the bottom third compared with 2000-2008. Article continues below… European Gas Daily is a flagship Platts publication that delivers crucial competitive intelligence across the entire European gas marketplace. It keeps you ahead of critical price changes and their effects on the industry — to help you […]

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North Carolina Senate Outlaws Disclosure Of Fracking Fluid Secrets

The North Carolina Senate on Thursday voted to make it a crime to disclose the chemicals used in hydraulic fracturing, or fracking, even as big U.S. oil companies elsewhere consider releasing more information about the fluids to address public concerns about the environment. The legislation, proposed by three Republican state senators and passed by a vote of 35-12, aims to protect trade secrets about fluids used to extract oil or gas from wells using fracking, which blasts sand, water and chemicals deep beneath the earth’s surface. Environmentalists concerned about groundwater contamination and health risks want more information made public. Under the "Energy Modernization Act," a state geologist would be the custodian of confidential information about fracking fluids. The information can be given to healthcare providers, the public safety department or the fire chief in case of an emergency. The bill, which now goes to the […]

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Horizontal Drilling Is On the Rise in Permian As Producers Chase Tight Oil

For the past several years, the Permian Basin remained an area where vertical drilling was still the principle method of extraction, even as horizontal drilling and hydraulic fracturing become ubiquitous in the Eagle Ford Shale, the Bakken, and other shale plays in the United States. However, horizontal drilling is on the rise in the Permian Basin, as well, according to new data by the Energy Information Administration (EIA). Horizontal drilling began to increase in the Permian Basin early in 2013, the EIA said. By the end of 2013, oil extraction in the Permian accounted for half of the total increase in horizontal drilling in the United States. The rise in horizontal drilling in the Permian has seen that method of extraction overtake vertical drilling for some of the primary producers there. Apache Corp., perhaps the most active player in the Permian Basis, told Rigzone that as of early spring, […]

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As Elections Loom, Fighting Turns Deadly in Ukraine

Four days before a watershed presidential election in Ukraine, a new round of deadly fighting flared in the east of the country on Thursday. At least 13 government soldiers were reported killed in an abrupt escalation of violence as pro-Russian separatists struck back against government efforts to subdue them. The clashes could represent a risk for the interim authorities in Kiev, the capital, who have claimed to be getting the upper hand against the rebels, encouraged by rifts among separatist groups occupying public buildings in numerous cities in the southeast. In a posting on Facebook, Ukraine’s acting prime minister, Arseniy P. Yatsenyuk, accused Russia of escalating the conflict in eastern Ukraine and of trying to disrupt Sunday’s election. He called for an emergency meeting of the United Nations Security Council and said he would provide “evidence” to support his claim. News reports quoted acting President Oleksandr […]

Posted On : Published By : Tom Whipple
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Billions of shale barrels under Home Counties

The government is expected to announce on Friday that the Weald Basin in southern England contains billions of barrels of shale oil, delivering a potentially huge boost to an embryonic industry in the UK. The announcement will set the scene for a stand-off between Britain’s small band of domestic shale explorers and the well-heeled residents of one of the Tories’ traditional heartlands . The government will unveil the results of a study by the British Geological Survey, the latest in its reports on unconventional oil and gas potential. It will focus on the Weald, an area spanning Sussex, Hampshire, Kent and Surrey. Last year, the BGS published a study of the Bowland Shale in northern England, which, it said, contained about 1,300tn cubic feet of gas. Even if only a tenth of that is extracted, it would be the equivalent of 40 years’ gas supply for the UK. The […]

Posted On : Published By : Tom Whipple