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EIA: US oil production in 2015 expected to be highest since 1972

06/10/2014 Total US crude oil production in 2015 will reach its highest level since 1972, the US Energy Information Administration forecasts in its Short-Term Energy Outlook (STEO) released June 10. Production, which averaged 7.4 million b/d in 2013, is expected to average 8.4 million b/d in 2014 and 9.3 million b/d in 2015. Additionally, EIA estimates that US total crude production during May averaged nearly 8.4 million b/d—the highest monthly average production since March 1988. With the Atlantic hurricane season commencing June 1, EIA believes production will be minimally disrupted, relying on the National Oceanic and Atmospheric Administration’s prediction that the Atlantic Basin will likely experience near normal or below-normal tropical weather through Nov. 30. Mean estimates of shut-in production by EIA in the federal Gulf of Mexico during that period total 12 million bbl of crude oil and 30 bcf of natural gas. During last year’s hurricane season—the […]

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US utilities shift capital spending as distributed generation grows

Utility officials on Tuesday highlighted how low load growth and the emergence of distributed generation resources are leading them to shift capital spending toward bolstering infrastructure and away from generation investments. "You see a lot of utilities in the country moving this way, and that really defines the utility of the future in many respects," said Nick Akins, president and CEO of American Electric Power. Speaking on a panel at the Edison Electric Institute’s annual convention, Akins said that this period of 1-1.5% load growth provides a "distinct opportunity" for the industry to balance the generation portfolio while also focusing on infrastructure development to allow the connection of DG and other resources. Article continues below… Megawatt Daily Megawatt Daily provides detailed coverage of power prices in major US and Canadian electricity markets, up-to-date information about solicitations and supply deals, and information about complex state and federal power regulations. While […]

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$10 billion Oil Sands Crude Refinery Planned For Canada's Pacific Coast

A Vancouver-based company said on Tuesday it was planning to build a C$10 billion oil refinery on the north-west coast of British Columbia that could eventually process up to 1 million barrels per day of oil sands bitumen. Pacific Energy Future Corp, which was set up in January, is looking at three potential building sites in Prince Rupert, BC. The project is the second new refinery proposed for Canada’s west coast to process the large quantities of crude oil coming out of Alberta’s oil sands and export the refined products. Pacific Energy Future Corp Executive Chairman Samer Salameh said the refinery could be producing products such as gasoline and diesel in about seven years. The announcement comes a week before a federal government decision on whether to approve Enbridge Inc plans to build a 525,000 bpd pipeline from the oil sands to Kitimat, […]

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$10 billion Oil Sands Crude Refinery Planned For Canada’s Pacific Coast

A Vancouver-based company said on Tuesday it was planning to build a C$10 billion oil refinery on the north-west coast of British Columbia that could eventually process up to 1 million barrels per day of oil sands bitumen. Pacific Energy Future Corp, which was set up in January, is looking at three potential building sites in Prince Rupert, BC. The project is the second new refinery proposed for Canada’s west coast to process the large quantities of crude oil coming out of Alberta’s oil sands and export the refined products. Pacific Energy Future Corp Executive Chairman Samer Salameh said the refinery could be producing products such as gasoline and diesel in about seven years. The announcement comes a week before a federal government decision on whether to approve Enbridge Inc plans to build a 525,000 bpd pipeline from the oil sands to Kitimat, […]

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Aboriginal leaders outraged by Canadian oil pipeline

A decision by the Canadian government to approve the planned Northern Gateway oil pipeline will be an insult to the aboriginal community, a tribal leader said. Canadian company Enbridge Energy aims to build its Northern Gateway pipeline to the coast of British Columbia. The pipeline received conditional approval from the National Energy Board, the country’s independent regulator, and a final decision is expected before the end of the month. Members of the aboriginal community and some eastern provincial leaders have expressed concern about the potential environmental threats from a pipeline designed to carry the heavier grade of crude oil in Canada. Dubbed oil sands, it’s viewed by critics as more toxic than conventional oil. Stewart Phillip, the chief of the Union of British Columbia Indian Chiefs, said a decision in favor of the pipeline from the government of Prime Minister Stephen Harper would undermine the relationship […]

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Canada lowers oil expectations

The Canadian Association of Petroleum Producers said 2014 estimates for oil production to 2030 are down more than 7 percent from the previous year. CAPP said oil sands are the primary source of production growth from Canadian reserves. Production from those deposits is expected to increase to 4.8 million barrels per day by 2030, down from the 5.2 million bpd estimated in its 2013 forecast. Conventional oil production, meanwhile, is expected to remain stable at 1.5 million bpd, up from the 1.4 million bpd estimate in 2013. CAPP said Monday the difference between the two forecasts reflects growing uncertainty for the timing of new oil developments and the capital necessary to exploit those reserves. Canada sends nearly all of its oil to the United States. CAPP Vice President Greg Stringham said the Canadian economy needs more options to get its oil to a more diverse market. "Global demand for […]

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Ukraine gas storage at 40 percent

Ukraine boosted its gas storage capacity by 7 percent for the week ending June 6 and storage tanks are filled to about 40 percent, data show. Gas storage data Tuesday show Ukraine has about 445 billion cubic feet of natural gas stored in underground storage tanks. That’s 7.3 percent above the stocks as of June 1 and tanks are filled to 40.7 percent, data as of June 6 show. Ukraine is working to resolve ongoing debt issues with Russian energy company Gazprom. The country hosts most of the natural gas Russia sends to European consumers and the lingering stalemate has raised questions about European energy security. European Energy Commissioner Gunther Oettinger met Monday in Brussels with his Ukrainian and Russian counterparts. No final deal on resolving the gas row was reached, though the commissioner said talks would continue through this week. Gazprom says Ukraine owes it billion of dollars […]

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Russia Extends Ukraine Gas Talks Deadline — Update

Russia gave Ukraine a further six days to reach a final agreement on natural gas prices, postponing its threat to cut off supply, Gazprom Chief Executive Alexei Miller said Wednesday, Interfax news agency reported. The move comes after talks between Gazprom, Ukraine’s state-run Naftogaz and the European Commission in Brussels failed to come up with an agreement. The deadline for a deal is now June 16. Naftogaz doesn’t want to pay for gas it has already had until Russia and Ukraine reach a "package agreement," Ukrainian energy minister Yuri Prodan said in Brussels, Interfax reported. Moscow has repeatedly threatened to cut off Ukraine’s gas supplies and switch to a prepayment system because of the country’s outstanding gas bill. Gazprom said a week ago that Ukraine owed $4.455 billion for gas–$1.454 billion for November and December, and another $3 billion for April and May. Ukraine is urging […]

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Scotland emissions down 26.4 percent from 1990

The Scottish government said Tuesday it’s reduced its greenhouse gas emissions by more than 25 percent since 1990 and is on pace to hit 42 percent by 2020. "Scotland has the world’s leading climate change targets," Scottish Minister for Environment and Climate Change Paul Wheelhouse said in a statement . "With a target of 42 percent by 2020 we are ahead of the United Kingdom at 34 percent and well ahead of the EU at 20 percent." The Scottish government aims to generate the equivalent of 100 percent of its annual electricity consumption through community- and locally-owned renewable energy resources by 2020. As of 2012, the last full year for which data are available, emissions are down 26.4 percent from 1990 levels. Scotland holds a one-question referendum on independence from the United Kingdom later this year. Its government said it could support itself in part on oil and gas […]

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Russia, Ukraine to Resume Stalled Gas-Supply Talks Today

Russia and Ukraine will resume talks with the European Union on a gas-supply deal today after failing to reach agreement in discussions earlier this week. Negotiations between Russian Energy Minister Alexander Novak and his Ukrainian counterpart, Yuri Prodan, along with EU Energy Commissioner Guenther Oettinger , will restart at 9:30 a.m. in Brussels and will follow bilateral meetings, the European Commission said late yesterday. The talks were postponed from last night because the Russian delegation was scheduled to arrive very late in Brussels, the EU executive said. Novak and OAO Gazprom Chief Executive Officer Alexey Miller met in Moscow with Russian President Vladimir Putin before they departed for the Belgian capital, said an official who declined to be named as the gathering was private. Gazprom declined to comment when contacted by Bloomberg. The EU, dependent on Russian gas piped through Ukraine for about 15 percent of its supplies, is […]

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