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Bakken Shale Oil Safe for Rails, Industry Group Says

Crude oil from the Bakken Shale formation doesn’t pose special risks to rail transport and shouldn’t require a separate classification regime than other hazardous liquids, North Dakota oil producers said in a study released Tuesday. The report compiled for the North Dakota Petroleum Council, a lobbying group for energy producers in the state, found that Bakken oil is comparable in volatility to gas-rich oils from other shale formations in other regions. The North Dakota oil producers’ study follows a report with similar results issued last week by a refining industry group. Both reports come amid greater regulatory scrutiny of Bakken oil shipments by rail following several fiery accidents over the last year. "There’s nothing wrong with Bakken crude," Jeff Hume, vice chairman of Bakken producer Continental Resources , said after the study was released. The North Dakota study, which tested 150 crude samples from oil wells and railroad […]

Posted On : Published By : Tom Whipple
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Chiyoda Wins $10 Billion Canada LNG Plant Order

TOKYO—Japan’s Chiyoda Corp. , in partnership with three other companies, has won a contract to design and build a $10 billion natural gas liquefaction terminal in western Canada, which is expected to supply gas to Japan and other parts of Asia. The project, in Kitimat, British Columbia, is one of a number of Canadian developments under way seeking to tap into growing demand in Asia for liquid natural gas. Japan, in particular, is expected to need large amounts of LNG as it fills a gap in its energy supplies from reduced use of nuclear power after the 2011 accident at the Fukushima Daiichi plant. But projects in British Columbia have been slowed by concerns over the potential environmental impact and questions about the costs of development. Chiyoda and another Japanese engineering concern, Corp. , have been active bidders for contracts to build LNG plants, a complex task that involves […]

Posted On : Published By : Tom Whipple
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Texas RRC Oil and Gas Data

The Texas Rail Road Comission  has has released their production numbers for March. The data is always incomplete and the most recent data is always the most incomplete. Nevertheless one can glean quite a bit from the data even though it is incomplete. The May Report has data through March, April through February and the March report has data through January. You can see from this chart how Texas upgrades their data as data comes trickling in. I looks like Texas condensate has peaked. May 2013 is the peak so far. October 2013 is creeping up but I don’t think it will overtake May. Regardless of whether May will be the ultimate peak or not there is no doubt that there has been a dramatic slowdown in Texas Condensate production. Combine the two and we get what the EIA counts as C+C. C+C has not peaked but I think the […]

Posted On : Published By : Tom Whipple
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Koch to expand Eagle Ford crude line

Koch Pipeline Co. LP , an indirect, wholly owned subsidiary of Koch Industries Inc., plans to install a 24-mile, 200,000-b/d pipeline in San Patricio County, Tex., effectively expanding the company’s South Texas crude oil pipeline system. Koch operates 540 miles of crude oil transportation lines in Texas. The 16-in. line is expected to begin service in the second quarter. “We are seeing additional opportunities with the Eagle Ford shale play and this new pipeline will help us move domestic crude to the US market more efficiently by using a combination of new and existing pipeline infrastructure,” said Bob O’Hair, Koch Pipeline executive vice-president.

Posted On : Published By : Tom Whipple
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Russia wants relief from EU roles on gas operations

Operating Germany’s Opal gas pipeline at 100 percent would address regional transit issues for Europe and Gazprom alike, Russia’s energy minister said Tuesday. "It would be rational if the European Commission granted permission for full load of Opal, in the context of improving assurance guarantees [for the supply of gas] to European consumers," Russian Energy Minister Alexander Novak said . Russian President Vladimir Putin he was optimistic the pipeline would run at full capacity after he met in Brussels with members of the European Union. The pipeline connects to the Nord Stream system through the Baltic Sea and can carry 1.2 trillion cubic feet of natural gas per year. European regulations regarding gas monopolies mean the pipeline operates at about half that capacity. Novak said it was be a "rational" decision for the European Commission to extend a waiver for the German pipeline system. "Though […]

Posted On : Published By : Tom Whipple
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British fracking plans irk advocacy group

A British energy sector move toward shale natural gas is a move in the wrong direction and the public is taking notice, a British advocacy group said. British Friends of the Earth said it was frustrated by a decision by shale gas explorer Cuadrilla Resources to consider a hydraulic fracturing campaign in Lancashire. Cuadrilla said Monday it was listening closely to the public’s reaction to the potential drilling operations in Lancashire. Chief Executive Francis Egan said the engagement with the local community has been "extensive." Friends of the Earth campaigner Helen Rimmer said in response, however, the public was concerned about the risks of the fledgling shale effort in the country. "The public is rightly concerned that fracking causes more problems than it solves," she said . Cuadrilla Resources in March said it believes there are 200 trillion cubic feet of shale natural gas in […]

Posted On : Published By : Tom Whipple
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Ukraine Rejects Russian Demand to Prepay for June Gas Imports

Ukraine rejects Russia demand to prepay for June natural gas imports, Ukraine Prime Minister Arseniy Yatsenyuk said, blaming Russia for the failure of the gas talks. In his letter to the European Commission and the leaders of the European Countries, which was published on the government website Tuesday, Mr. Yatsenyuk said Ukraine hasn’t declined to pay off its debt for Russian gas, but would only be willing to do so if Russian gas monopoly OAO Gazprom (GAZP.RS) retains the old price. The prime minister said the three-party talks between Russia, Ukraine and the European Union were unsuccessful because of Moscow’s unwillingness to compromise. "As there is no readiness from the Russian side for the dispute resolution, the pre-payment issue can’t be part of our talks," Mr. Yatsenyuk said. Kiev and Moscow have been locked in an increasingly bitter gas feud since the ouster of Ukraine’s President […]

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Russia: forces near Ukraine en route to home bases

Russia’s military units in the regions near Ukraine on Wednesday began moving to railway stations and airfields en route to their home bases, the defense ministry said. Military units in the Belgorod, Bryansk and Rostov regions started marching back and are expected to arrive at their home bases before June 1, the defense ministry said in a statement carried by Russian news agencies. Yet NATO, which estimates that Russia has 40,000 troops along the border with Ukraine, repeated Wednesday it could not yet see any signs of a Russian pullout. President Vladimir Putin ordered the withdrawal Monday in what could be an attempt to ease tensions with the West over Ukraine and avoid further sanctions. Russian television on Wednesday broadcast footage of columns of tanks and howitzers towed by heavy trucks. It wasn’t immediately clear where the footage was taken. The ministry said its units will […]

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U.S. Sees No Sign of Russian Troop Pullback From Border

The U.S. said there was as yet no evidence that Russian forces in regions bordering Ukraine have started a withdrawal announced by President two days ago. “We have not seen any withdrawal activity as of 2:45 this afternoon, and we’re watching as best we can constantly,” Pentagon spokesman Rear Admiral John Kirby told reporters at a briefing yesterday. “We’ve seen them say this before, we’re going to withdraw, we’re going to move.” Kirby’s comments echo assessments by the Ukrainian government and NATO. Russian state television said yesterday soldiers in three regions had started to return to their bases following Putin’s order. After annexing Crimea in March, Russia has been accused by the government in Kiev and its U.S. and EU allies of fomenting unrest in the mostly Russian-speaking east of Ukraine. Even so, Putin’s welcoming of a dialogue between the Kiev authorities and the regions and the announcement of […]

Posted On : Published By : Tom Whipple
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Peak Whiskey: supplies are running low

Bourbon lovers, you’d better stock up. A day of reckoning is quickly approaching, warns Buffalo Trace, one of the oldest distilleries in the country. A whiskey shortage may soon be upon us. While bourbon producers have seen this problem coming for more than a year, its impacts are just now beginning to hit the market and will likely only worsen. Here’s Buffalo Trace with more on the problem: Despite the increase in distillation over the past few years, bourbon demand still outpaces supply. The overall bourbon category is experiencing 5% growth, but premium brands are up nearly 20% from last year. Bourbon must be matured in new oak barrels and Buffalo Trace ages many of its barrels for eight to ten years, and some over two decades. That’s a long time to wait for a bottle of bourbon. Not to mention, with the amount of bourbon lost to evaporation over time, barrels are half empty after ten years. […]

Posted On : Published By : Tom Whipple