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FERC issues EA for Cove Point LNG export project

The US Federal Energy Regulatory Commission has issued its environmental assessment (EA) for the Cove Point LNG liquefaction and export project ( OGJ Online, Mar. 14, 2014 ). The project is proposed by Dominion Cove Point LNG LP (DCP). FERC concluded that “approval of the proposed project, with appropriate mitigating measures, would not constitute a major federal action significantly affecting the quality of the human environment.” It also reported that potential impacts would be reduced with the implementation of DCP’s proposed minimization and mitigation measures and the 82 additional measures recommended in the EA. The project would enable DCP to export 5.75 million tonnes/year of LNG via LNG marine carriers that would dock at the existing offshore pier, FERC said. FERC also has prepared a draft general conformity determination (GCD) to assess the potential air quality impacts associated with construction and operation of the proposed project; the GCD is […]

Posted On : Published By : Tom Whipple
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US FERC staff anticipates higher electric, gas prices this summer

A hot summer with above-normal temperatures throughout most of the US will likely mean higher electric and natural gas prices this summer, according to the US Federal Energy Regulatory Commission’s summer energy market and reliability assessment. The assessment, presented by FERC staff at the commission’s monthly meeting Thursday, projects particularly high prices for California this summer, made worse by drought and wildfires. A drought in the region has lowered reservoir water storage levels in California to 66% of the historical average and limited snowpack to 33% of its normal level during this time of year, typically the peak of snow accumulation in the state. FERC staff said this could cut hydroelectric power generation in the state in half this summer. Further, state officials are considering the need for water restrictions that could limit the amount of water available to natural gas-fired power plants, staff said. Article continues below… Gas […]

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EPA proposes tightening oil refinery standards for first time in 2 decades

Environmentalists say changes could improve health of many living near refineries, often in impoverished neighborhoods The Environmental Protection Agency on Thursday announced a proposal to tighten oil refinery emission standards for the first time in nearly two decades. Environmentalists hailed the proposed changes as a first step toward reducing rates of cancer and other diseases in “fenceline communities,” the often-impoverished neighborhoods that abut refineries. “The rules look pretty strong, but it’s a solution that’s long overdue,” said James Goodwin, senior analyst at the Center for Progressive Reform. “It was pushed back and pushed back. Every day [the changes] were delayed, more and more people are getting sick.” The proposal is part of a consent decree that resolved a lawsuit filed by attorneys with nonprofit organizations Earthjustice and the Environmental Integrity Project on behalf of Americans directly affected by oil refinery emissions in Louisiana, Texas and California. The changes would […]

Posted On : Published By : Tom Whipple
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EPA Proposes New Rules to Curb Pollution From Refining

Oil refiners will be required to further curb air pollution from storage tanks, flares and heavy-oil processing equipment under proposed rules released on Thursday by the U.S. Environmental Protection Agency. The agency’s proposals—which are now open to a 60-day public-comment period—also aim to require air tests for benzene at refineries’ fence-lines to make sure that air-quality standards are being met and neighboring communities aren’t affected by emissions. The EPA’s proposed rules issued on Thursday come on the agency’s deadline for reviewing regulations that govern refinery emissions, which it was ordered to do by a federal judge. Several environmental groups sought that ruling, arguing the agency had not fulfilled Clean Air Act requirements to review emissions standards for plants that make fuels such as gasoline and diesel. Calling the measures "common sense steps," the EPA estimated that implementing its proposals would reduce emissions of toxic gases such as benzene, toluene […]

Posted On : Published By : Tom Whipple
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Natural Gas Weekly Update

New LNG plant in North Dakota will supply oil and gas producers A new natural gas liquefaction plant is slated to come online this summer in North Dakota to reduce the flaring of gas in the Bakken Formation and provide fuel for Bakken oil and gas operations. The developer, Prairie Companies LLC subsidiary North Dakota LNG, announced earlier this month that the plant would provide an initial 10,000 gallons per day (gal/d) of liquefied natural gas (LNG), and could expand to 66,000 gal/d. Assuming a 10% processing loss, the plant would take in a maximum of 6 million cubic feet per day (MMcf/d) once expanded. In 2012, North Dakota vented and flared 218 MMcf/d of natural gas because of record-high oil production and insufficient pipeline takeaway capacity for natural gas produced as a byproduct. Hess Corporation will supply the natural gas for liquefaction at Prairie’s Tioga natural gas processing […]

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Weekly Natural Gas Storage Report

Historical Comparisons Stocks billion cubic feet (Bcf) Year ago (05/09/13) 5-Year average (2009-2013) Region 05/09/14 05/02/14 net change implied flow (Bcf) % change (Bcf) % change East -43.1 -50.3 West -38.3 -34.2 Producing -38.9 866 -44.1     Salt 126 113 226 -44.2 179 -29.6     Nonsalt 358 342 567 -36.9 687 -47.9 Reclassifications from base gas to working gas resulted in increased working gas stocks of approximately 8 Bcf in the East region for the week ending May 9, 2014. The implied flow for the week is an increase of 97 Bcf to working gas stocks. (See Notes and Definitions for more information on "implied flow.") Working gas in storage was 1,160 Bcf as of Friday, May 9, 2014, according to EIA estimates. This represents a net increase of 105 Bcf from the previous week. Stocks were 790 Bcf less than last year at this time and 959 Bcf […]

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Permian Basin drives first-quarter growth in oil-directed horizontal drilling rigs

Source: U.S. Energy Information Administration, based on Baker-Hughes data The Permian Basin, a long time oil- and natural gas-producing region in West Texas and southeastern New Mexico, has seen a significant increase in horizontal oil-directed drilling activity over the past five months. This trend began at the start of 2013, and accelerated from the week ending on December 27, 2013, to the week ending on May 9, 2014. During this time, the number of horizontal, oil-directed rigs in the Permian Basin rose by 63 rigs, 50% of the total increase in the United States. This growth was heavily concentrated in counties in the Permian Basin containing formations with high production potential. Horizontal oil-directed drilling rigs are primarily used to drill wells that produce oil from tight, low-permeability formations. The change in the number of oil-directed horizontal rigs in the Permian Basin does not necessarily mean that it will have […]

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ND oil production up, but not 1 million barrels yet

North Dakota oil production hit another all-time high in March at 977,051 barrels per day after three months of tough winter weather slowed the state’s oil activity. “We are back to setting records, just barely,” Department of Mineral Resources Director Lynn Helms said Tuesday. The preliminary oil production figure for March is a 2.6 percent increase over February’s production. Winter weather continued to affect oil production in March, with a few days where temperatures were well below zero, several days with winds too high for some crews to operate and a snowstorm on the final day of the month, he said. Helms predicts North Dakota oil production will “squeak by” the 1 million barrel per day milestone when April production figures are released next month. Natural gas flaring fell from 36 percent to 33 percent in March, largely because the expanded Hess Corp. gas plant in […]

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Putin's China Visit Highlights Shifting Power Balance

When Russian President Vladimir Putin touches down in China for a closely watched two-day state visit May 20, he will encounter an unbalanced relationship that has grown in Beijing’s favor, tilted by shifts in global energy supplies and Moscow’s increasing friction with the West. Beijing’s leverage is being tested in negotiations to pipe Siberian gas to China that have dragged on for a decade, but that both sides have said they want to conclude in time for an agreement to be signed during Mr. Putin’s visit next week. A Chinese foreign ministry official said Thursday that pricing remains a sticking point. Gazprom , Russia’s natural-gas company, described the talks as being "in the final stage" after a meeting between its chief executive and a senior Chinese energy official. Mr. Putin has already leaned to Beijing in one respect. While he and Chinese President Xi Jinping meet in Shanghai, more […]

Posted On : Published By : Tom Whipple
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Putin’s China Visit Highlights Shifting Power Balance

When Russian President Vladimir Putin touches down in China for a closely watched two-day state visit May 20, he will encounter an unbalanced relationship that has grown in Beijing’s favor, tilted by shifts in global energy supplies and Moscow’s increasing friction with the West. Beijing’s leverage is being tested in negotiations to pipe Siberian gas to China that have dragged on for a decade, but that both sides have said they want to conclude in time for an agreement to be signed during Mr. Putin’s visit next week. A Chinese foreign ministry official said Thursday that pricing remains a sticking point. Gazprom , Russia’s natural-gas company, described the talks as being "in the final stage" after a meeting between its chief executive and a senior Chinese energy official. Mr. Putin has already leaned to Beijing in one respect. While he and Chinese President Xi Jinping meet in Shanghai, more […]

Posted On : Published By : Tom Whipple