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Saudis Said to Maintain Oil Output After Biggest Cut Since ’12

Saudi Arabia, the largest crude producer in OPEC, plans to keep output steady until the end of the year, a person with knowledge of the country’s oil policy said. It made the biggest cut in 20 months in August. Output through the end of the year won’t differ much from August, when the country pumped 9.597 million barrels a day, according to the person, who isn’t allowed to be identified. The nation reduced production by 408,500 barrels a day last month, the most since December 2012, according to its most-recent submission to the Organization of Petroleum Exporting Countries. Demand will rise by the end of the year because of northern hemisphere winter, the person said. Oil demand growth was the weakest since 2012 in the second quarter and industrialized nations’ stockpiles in August rose by more than twice the normal amount for the time of year, according to the […]

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In 2015, Imported Oil Will Make Up Just 21% of US Consumption

Due to the highest level of domestic crude oil production in 45 years, oil imports will make up less than a quarter of U.S. consumption next year, according to a forecast by the Energy Information Administration (EIA). In August, “total U.S. crude oil production averaged an estimated 8.6 million barrels per day,” which was “the highest monthly production since July 1986,” according to EIA’s “ Short Term Outlook ,” which was released September 9th. EIA expects domestic oil production to increase to an average 9.5 million barrels per day in 2015, which would be the highest level since before the Organization of Arab Petroleum Exporting Countries’ (OPEC) oil embargo in 1973. At that time, the federal government placed a ban on exporting U.S.-produced oil abroad. “If achieved, the 2015 forecast would be the highest annual average crude oil production since 1970,” the EIA forecast stated. As a result, U.S. […]

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API rolls out standards for oil transport by rail

American Petroleum Institute issues policies it says will help ensure safer oil transportation by rail (Photo: Daniel J. Graeber) WASHINGTON, Sept. 26 (UPI) — The American Petroleum Institute said proper classification of crude oil is essential when considering policies for safer rail transit. In May, API said a study published by the North Dakota Petroleum Council eliminates some of the speculation surrounding Bakken crude . NDPC said Bakken crude oil "poses no greater risks than other flammable liquids" authorized for rail transport, though concerns have been raised by federal regulators "Proper testing, classification and handling are important when shipping any material subject to PHMSA regulations, and crude oil is no exception," API President Jack Gerard said in a statement Thursday. API published its own set of recommendations for testing and classification of crude oil for rail shipments, which includes a unique crude oil sampling and testing program. U.S. regulators […]

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U.S. carbon emissions tick higher; Obama tells U.N.: ‘We have to do more’

The Obama administration appears to be losing ground in its efforts to cut U.S. emissions of greenhouse gases, according to new government figures that show pollution levels rising again after several years of gradual decline. Data released Friday by the Energy Department show American factories and power plants putting more carbon dioxide into the atmosphere during the first six months of 2014 compared with the same period in each of the past two years. The figures confirm a reversal first seen in 2013, when the trend of steadily falling emissions abruptly halted. The higher emissions are primarily a reflection of a rebounding economy, as American businesses burned more gas and oil to meet higher demand. But the shift also underscores the challenge confronting the Obama administration as it seeks to honor a pledge to sharply cut U.S. emissions of greenhouse gases by the end of the decade. The release […]

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Minimum efficiency standards for electric motors will soon increase

Source: U.S. Energy Information Administration Note: TEFC is a totally enclosed, fan-cooled motor. EISA is the Energy Independence and Security Act of 2007. EPAct is the Energy Policy Act of 1992. Nearly half of the electricity consumed in the manufacturing sector is used for powering motors, such as for fans, pumps, conveyors, and compressors. About two thirds of this machine-drive consumption occurs in the bulk chemicals, food, petroleum and coal products, primary metals, and paper industries. For more than three decades the efficiency of new motors has been regulated by federal law. Beginning in mid-2016, an updated standard established this year by the U.S. Department of Energy (DOE) for electric motors will once again increase the minimum efficiency of new motors. The updated electric motor standards apply the standards currently in place to a wider scope of electric motors, generating significant estimated energy savings. DOE’s analyses estimate lifetime savings […]

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Family spending on gasoline hits all-time high

Family spending on gasoline hits all-time high The average U.S. household spent more than $2,600 on gas last year for a third consecutive year — an all-time high and a 111% increase compared with the amount spend a decade earlier, an advocacy group says. The increase was due to the high price of oil, says the group, Securing America’s Future Energy, which aims to reduce America’s oil dependency, based on data from the Bureau of Labor Statistics’ Consumer Expenditure Survey. “Closely correlating with global crude oil prices, not domestic crude streams, increased U.S. gasoline spending proves a result of stubbornly high global oil prices and American consumers’ near-complete reliance on oil as a transportation fuel,” SAFE said in a statement. The cost spike has occurred despite those households’ non-gas discretionary spending increasing by only 1% each year. According to SAFE, a major contributor to that disparity is the continued […]

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Rigs Targeting Gas in U.S. Gain on Rise in Texas Drilling

Rigs targeting natural gas in the U.S. jumped this week as producers of the heating fuel increased drilling in parts of Texas . Gas rigs surged by nine to 338, erasing a drop from a week earlier, according to Baker Hughes Inc. (BHI) Those drilling for the fuel in Texas rose by five to 89, the highest since June. The U.S. oil count meanwhile fell by nine to 1,592, data posted on the company’s website show. The rebound in gas rigs threatens to come at the expense of oil drilling. U.S. crude has dropped by more than $10 a barrel over the past three months. The gas rig count has added 24 rigs since June after sliding for three straight quarters. “It’s not surprising to see a few more gas rigs because prices are better than they were a year ago,” James Williams , president of WTRG Economics in […]

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Slide in U.S. Gasoline Prices Slows Amid Refinery Woes

The slide in retail gasoline that U.S. drivers typically see this time of year hit a speed bump this week as a series of refinery breakdowns tightened supply. Gasoline on the Gulf Coast , home to more than half of U.S. refining capacity, surged 20 cents a gallon over two weeks. October-delivery futures in New York, the benchmark grade for gasoline sold across the country, settled yesterday at the highest this month. Retail prices , which tend to lag behind moves in the spot and futures markets, rose three days this week after falling every day since Sept. 5. The seasonal decline, which averaged 11 cents in September during the past five years, has slowed as refineries in eastern Canada and Texas shut units for unscheduled repairs at a time when other plants are conducting seasonal maintenance. “The significant amount of refinery maintenance going on, particularly in the Gulf […]

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Interim deal reached in Ukrainian gas row

Gas deal reached during European, Ukrainian and Russian talks. (UPI Photo/Sergey Starostenko) BERLIN, Sept. 26 (UPI) — Trilateral natural gas talks Friday in Berlin have resulted in temporary relief for Ukraine, delegates at the conference confirmed. Russian, Ukrainian and European officials met in Berlin in an effort to avert a gas crisis for the upcoming winter. Russia meets about a quarter of the gas needs for Europe, though the bulk of that volume runs through the Soviet-era transit system in Ukraine. Contractual woes in 2006 and 2009 forced Russian gas company Gazprom to cut gas supplies through Ukraine and European leaders are worried about a repeat of the crisis given ongoing acrimony between Kiev and Moscow. European Energy Commissioner Gunther Oettinger said during August talks with Russian Energy Minister Alexander Novak an interim price, repayment of unpaid bills and fulfillment of transit obligations must be part of an interim […]

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Statoil Calls Off 40,000-Bpd Canadian Oil Sand Development

OSLO/CALGARY, Sept 25 (Reuters) – Norwegian energy firm Statoil said on Thursday it will postpone development of its 40,000 barrel per day Corner oil sands project in Alberta, Canada, for at least three years and cut about 70 jobs at its Canadian unit because of rising costs and limited pipeline space. Corner would have been the second major development at Statoil’s Kai Kos Dehseh property in northern Alberta. The company said its existing thermal oil sands operation, the 20,000 bpd Leismer project, is not affected by the postponement. Statoil said it decided to delay construction of the project because inflation was pushing up the cost of labor and materials, while tightness in pipeline space to the U.S. market was pushing down the price of its oil. "Costs for labour and materials have continued to rise in recent years and are working against the economics of new projects," Staale Tungesvik, […]

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We’re the gas answer, Norway tells Europe

European Energy Commissioner Gunther Oettinger sees Norway as essential part of energy security puzzle. (CC/Jacques Grießmayer) BRUSSELS, Sept. 26 (UPI) — Norwegian Energy Minister Tord Lien said his country has the resources and infrastructure in place to serve as a steady partner in the European energy sector. Lien met in Brussels with European Energy Commissioner Gunther Oettinger during a bilateral energy conference . Lien said less than 30 percent of the natural gas available on the Norwegian continental shelf has been produced, meaning Norway can be a reliable partner for the European community for decades to come. "We have both the infrastructure and the resources to remain a stable supplier of natural gas to Europe for decades to come," he said in an address Thursday. "Our production has grown more or less uninterrupted for 20 years." Norway last year sent 92 percent of its oil exports and at least […]

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Ireland takes steps toward wave energy

Wave pioneer Pelamis put on short list for Irish energy project. UPI/Matthew Healey EDINBURGH, Scotland, Sept. 26 (UPI) — Wave energy pioneer Pelamis said Friday it was put on the short list of companies slated for a role alongside Irish utility company ESB. The Irish government aims to install its first wave energy project, the five megawatt WestWave facilities, by 2018. It’s already secured support from the European Commission. Pelamis Wave Power said it’s been selected as one of the developers set to participate in the next stage of a competitive procurement process . Last year, the Pelamis P2 wave energy system was connected to the Scottish grid for an accumulated 7,500 hours, contributing 160 MW of electricity to the nation’s grid. The system works by converting wave energy into electricity using a snake-like device deployed offshore. Each unit in the system can generate as much as 100 kilowatts […]

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Category: Uncategorized

Ukraine to pay $3.1bn of Gazprom debt by end of 2014

Ukraine will pay Gazprom $2 billion for gas it has received from Russia by the end of October and an additional $1.1 billion by year’s end, EU Energy Commissioner Gunther Oettinger announced. The amount that Ukraine is expected to pay Russia is short of the $5.3 billion that Kiev currently owes Gazprom. Gazprom will resume gas deliveries and send at least 5 billion cubic meters (bcm) of gas to Ukraine at a price of $385 per 1,000 cubic meters after it receives the first tranche of $2 billion, the EU commissioner and Russia’s Energy Minister Alexandre Novak said. “This depends on final agreements. Our colleagues say that this is [going to be in] October,” Novak said in Berlin on Friday. However, Novak reiterated that $385 was a reduced price, “$100 discount off the current price” . This price will be valid for another six months, he added. Ukraine will […]

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Brent Crude Heads for Weekly Decline on Ample Supplies

Brent crude headed for its third weekly loss this month amid speculation that plentiful oil supplies will cushion the market against unrest in the Middle East. West Texas Intermediate was steady in New York. Futures were little changed in London and down 1.5 percent this week. The broadest Arab-U.S. military coalition since the 1991 Gulf War struck Islamic State targets in Syria, while in Iraq , fighting has largely spared the south, home to three quarters of supply from OPEC’s second-largest crude producer. Saudi Arabia will keep supplies steady the rest of the year, a person with knowledge of the kingdom’s policy said. “I don’t think the geopolitical issues are as relevant these days,” Frank Klumpp, an analyst at Landesbank Baden-Wuerttemberg, said by e-mail. “There’s not much market reaction to the fighting in Iraq as it’s considered that the oilfields in the south aren’t in danger. The most important […]

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Natural Gas Holds Losses on Larger-Than-Expected Supply Gain

By Nicole Friedman NEW YORK–Natural-gas prices stayed lower Thursday after weekly government data showed that supplies grew more than expected last week. Producers added 97 billion cubic feet of natural gas into storage in the week ended Sept. 19, the U.S. Energy Information Administration said Thursday. Analysts and traders surveyed by The Wall Street Journal had called for a 92-bcf injection. The addition was larger than any of the survey projections. Though natural-gas supplies were largely depleted by record demand for the heating fuel last winter, inventories have rebuilt unusually quickly this spring and summer. Production has been higher than expected, and mild weather has kept demand low for gas-powered electric air-conditioning. As of Sept. 19, stocks stood at 2.988 trillion cubic feet, 13% below the five-year average for the week. However, prices pared losses after the report’s release despite the larger-than-expected build. Natural gas for October delivery recently […]

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U.K. Seeks to Criminalize Manipulation of 7 Benchmarks

The U.K. government plans to criminalize the manipulation of seven more benchmarks in markets from foreign exchange to gold and oil as it tries to revive confidence in the integrity of London as a financial center. The Treasury today started a review into whether it should extend legislation regulating the London Interbank Offered Rate to cover other key rates including the WM/Reuters 4 p.m. London currency fix, the Sterling Overnight Index Average, the London gold fixing and the ISDAFix, according to a statement . The government aims to have the rules in place by the year-end — five months before the next general election. The U.K. is stiffening the penalties for manipulation after benchmarks set in London were tainted by scandal. At least 10 firms have been fined almost $6.5 billion for rigging Libor and related gauges, and regulators are probing whether traders rigged key foreign-exchange rates used by […]

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Iran President: Nuclear Deal Could Aid Extremism Fight

Iranian President Hasan Rouhani addresses the United Nations General Assembly Thursday. Adrees Latif /Reuters UNITED NATIONS—Iranian President Hasan Rouhani signaled Iran could ramp up its cooperation with the west over the threat posed by Islamic State if there is a successful conclusion to nuclear talks with six major powers. Speaking at the United Nations General Assembly in New York on Thursday, Mr. Rouhani said the fight against Islamic State should be led by regional players but said a nuclear deal would open the way for international collaboration on the threat. If the nuclear talks succeed, "an entirely different environment will emerge for cooperation at the regional and international levels," he said. That would allow "greater focus on some very important regional issues—such as combating violence and extremism in the region." Iran, which is a key ally of the Assad regime in Syria, has criticized the U.S.-led coalition against Sunni […]

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Iran ready for European gas role

UNITED NATIONS, Sept. 25 (UPI) — Iranian President Hassan Rouhani is in the United States to attend a meeting of the U.N. General Assembly. During a meeting with Austrian President Hans Fischer, the Iranian leader said gas installations in western Iran could link to Europe. "Iran can be a secure energy center for Europe," the Iranian president said. Iran has held out its natural gas reserves to a European community eager to break Russia’s grip on the regional energy sector. It touted its gas as an option to fill the now-shelved Nabucco pipeline through Turkey to Europe, though sanctions have interfered with Iran’s ambitions. Nevertheless, an Iranian president seen as a moderate when compared with his predecessor Mahmoud Ahmadinejad said Iran enjoys a "unique" position in the regional energy sector. Iran has the second largest deposits of natural gas in the world, though the sector is underdeveloped because of […]

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Nuclear Plants Across Emerging Nations Defy Japan Concern

Three years after Japan closed all of its nuclear plants in the wake of the Fukushima meltdown and Germany decided to shut its industry, developing countries are leading the biggest construction boom in more than two decades. Almost two-thirds of the 70 reactors currently under construction worldwide, the most since 1989, are located in China , India , and the rest of the Asia-Pacific region. Countries including Egypt , Bangladesh , Jordan and Vietnam are considering plans to build their first nuclear plants, according to Bloomberg New Energy Finance in London . Developed countries are building nine plants, 13 percent of the total. Power is needed as the economies of China and India grow more than twice as fast as the U.S. Electricity output from reactors amounted to 2,461 terawatt-hours last year, or 11 percent of all global power generation, according to data from the Organization for Economic Cooperation […]

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Surging Middle East Oil Refining Increases Tanker Rates

The oil-refining wave in the Middle East is filling tankers to export the region’s processed fuels and driving freight rates to the highest for the time of year since 2008. Countries from Saudi Arabia to the United Arab Emirates will process 8.8 million barrels a day of crude this year, almost 10 percent of global consumption, the highest in International Energy Agency estimates starting in 2006. Traders booked 19 percent more Persian Gulf oil products on tankers in the spot market this year than the same period in 2013, charter data compiled by Bloomberg show. The largest vessels get rates of more than $22,000 a day, the most for September in six years. Crude exporters in the region are turning more of their oil into higher-value diesel and jet fuel while cutting dependence on imports of these products. Violence concentrated in Iraq and neighboring Syria isn’t restraining cargoes from […]

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Islamic State Oil Sites Targeted in U.S.-Arab Strikes

U.S. and Arab warplanes attacked small oil refineries in eastern Syria controlled by Islamic State to undercut the extremist Sunni group’s revenue and impede its mobility, the Pentagon said. As the U.K. prepared for a parliamentary vote tomorrow to authorize joining the broadest Arab-U.S. military coalition since the 1991 Gulf War, aircraft and drones operated by the U.S., Saudi Arabia and the United Arab Emirates attacked 12 “modular” refineries Islamic State uses in its oil-smuggling operations, U.S. Central Command said in an e-mailed statement. “These small-scale refineries provided fuel to run ISIL operations, money to finance their continued attacks throughout Iraq and Syria and an economic asset to support their future operations,” the command said in statement, which used an acronym of another name used to identify the group. Islamic State may have been raising more than $2 million a day from oil sales in Iraq and Syria, paid […]

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Kurds call for action against terror oil

Kurdish government calls for military action to cut off oil smuggling. UPI/Mohammed al Jumaily ERBIL, Iraq, Sept. 25 (UPI) — The Kurdish government said Thursday it was calling on military forces to take tough action against oil smuggling from areas under terrorist control. Military air strikes on terrorists groups in Syria Wednesday targeted 12 oil refineries used by Islamic State terrorists to generate as much as $2 million per day. The Kurdish Ministry of Natural Resources said in a statement issued through its official Twitter account action must be taken to contain oil’s role in IS financing through action by the Kurdish Peshmerga and other forces. The Iraqi Ministry of Oil issued an appeal to U.N. member states to take action to prevent the export of smuggled crude oil. The ministry said it was troubled by reports that crude oil taken from territory controlled by the Sunni-led terrorist group […]

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China takes on more oil

China taking on more oil despite a slowdown on the economy, data show. UPI/Stephen Shaver HOUSTON, Sept. 25 (UPI) — Chinese demand for oil in August reached a record level despite signs of a slowdown in the economy, analysis from Platts found. Platts found Chinese apparent oil demand, a reflection of how much oil goes into domestic refineries combined with net oil product imports, averaged 9.74 million barrels per day, a 3.7 increase from August 2013 and the highest level for the year. The assessment comes despite an economic production growth rate of 6.9 percent, the slowest rate since 2008. On a month-to-month basis, Platts found Wednesday that Chinese apparent oil demand in August was 1.4 percent above July levels. Through August, demand was up 1.2 percent from last year. The International Energy Agency in its monthly market report for September trimmed oil demand growth for 2014 to 900,000 […]

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Gasoline Surges to September High Amid Refinery Outage

Gasoline futures surged to the highest level this month on concern refinery outages will reduce production, threatening higher prices at the pump. Gasoline in New York rallied following a reported outage at Irving Oil Corp.’s Saint John, New Brunswick, refinery, which exports about half of its production to the Northeast market. Futures have jumped 7.9 percent since Sept. 12. Retail gasoline climbed for a third day yesterday, according to AAA. West Texas Intermediate crude fell as U.S. stock markets tumbled. The gains in gasoline “are prompted by refinery outages and drivers probably will have to pay a little bit more,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts . “But that should be a short-term bump. The stock market is bringing down oil.” Gasoline futures gained 5.42 cents, or 2 percent, to end at $2.718 a gallon on the New York Mercantile Exchange, the […]

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Oil industry offers crude-train testing standards

AP Photo/Matthew Brown US Video Buy AP Photo Reprints Interactives Producers Tap Old Wells in Search of Oil Interactives/Galleries Washington Commuter Train Crash BILLINGS, Mont. (AP) — The oil industry’s lead trade group released new standards on Thursday for testing and classifying crude shipped by rail after prior shipments were misclassified, including a train that derailed in Canada and killed 47 people. As with earlier orders from the federal government, the industry standards leave it to individual companies to decide how often to test crude in order to gauge its danger. The American Petroleum Institute said the standards were crafted in cooperation with regulators and the rail industry. Shipping oil by rail has become far more common as domestic drilling booms in North Dakota, Montana, Texas, Colorado and other states. In July 2013, a crude train from North Dakota derailed and exploded in Lac-Megantic, Quebec, killing 47. The shipment […]

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Prices at the pump head below $3 in much of US

AP Photo/Rogelio V. Solis NEW YORK (AP) — The price of a gallon of gasoline may soon start with a "2" across much the country. Gasoline prices typically decline in autumn, and this year they are being pulled even lower by falling global oil prices. By the end of the year, up to 30 states could have an average gasoline price of less than $3 a gallon. The average in Springfield, Missouri, is already below $3, according to Tom Kloza, chief oil analyst at the Oil Price Information Service and GasBuddy.com. Several other cities are on the brink. "And there will be more, many more," Kloza said. Cities in high-priced states such as California and New York will not be among them, though, which will probably keep the national average above $3. At the current national average of $3.35 a gallon, gas is a dime cheaper than a year […]

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Second U.S. newspaper probes aging gas pipelines

Second U.S. newspaper in a week publishes report on aging natural gas pipeline network. UPI/John Angelillo JACKSON, Miss., Sept. 25 (UPI) — Accidental damage to aging natural gas pipelines in Mississippi are a leading cause of accidents, newspaper investigations found. The Clarion-Ledger , a Mississippi newspaper, teamed up with USA Today to examine records on the network of natural gas pipelines in Mississippi. They said state laws mandating the public notify authorities before any land excavation aren’t enforced . "So many times, people will inadvertently hit a pipeline and, rather than call the gas company, they’ll wrap it or cover it up," Mark McCarver, former director of the Mississippi Public Service Commission’s Pipeline Safety Division, said in an article published Tuesday. "That’s the No. 1 risk." The newspapers found more than 48 percent of the state’s pipelines were installed before 1970, versus a national average of 38 percent. The […]

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ND Regulators Hold Hearing About Bakken Crude Treatment

Crude Oil Rail Car | Click to Enlarge Executives at top oil and gas companies in the Bakken are fighting back against North Dakota regulators, opposing the treatment of Bakken crude before it shipped via rail, according to the Wall Street Journal (WSJ). On Tuesday, the North Dakota Industrial Commission (NDIC) heard testimony from oil executives, who claim Bakken oil is sufficiently treated at the well site. The paper first reported the NDIC would be holding hearings in August concerning further treatment of Bakken crude, which has been linked to several explosions, resulting from train derailments. Just under 70% of Bakken crude is transported out of North Dakota by rail to coastal refining markets and hubs like Cushing, OK. Read more : NDIC Considers Bakken Crude Treatment Critics believe Bakken crude is dangerous, and needs to undergo stabilization. In similar plays like the Eagle Ford Shale in South Texas, […]

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Everywhere but Northeast, fewer homes choose natural gas as heating fuel

Source: U.S. Energy Information Administration, based on Census Bureau American Community Survey Note: Geographic areas based on Census regions . LPG is liquefied petroleum gas. On a national basis, natural gas has long been the dominant choice for primary heating fuel in the residential sector. Lately, electricity has been gaining market share while natural gas, distillate fuel oil, kerosene, and liquefied petroleum gas (propane) have declined. Part of the national change in heating fuel choice can be attributed to population migrations farther west and south. But even within Census regions, electricity has been gaining market share at the expense of natural gas. The Northeast is the exception, as both natural gas and electricity have been increasing while distillate fuel oil and kerosene have declined. In the Midwest, most homes are heated by natural gas. The Midwest also has the highest percentage of homes heated by propane, although both natural […]

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Natural Gas a Bridge to Nowhere

A study published today in the journal Environmental Research Letters  found that switching from coal to natural gas would not significantly lower the greenhouse gas emissions that drive climate change . The natural gas processed at this plant isn’t the answer to reducing carbon emissions, a new study says. Photo credit: Shutterstock “That’s chiefly because the shift would delay the deployment and cost-competitiveness of renewable electricity technologies for making electricity,” concluded the three researchers from the University of California Irvine, Stanford University and Seattle-based nonprofit Net Zero. “Increased use of natural gas has been promoted as a means of decarbonizing the U.S. power sector, because of superior generator efficiency and lower CO2 emissions per unit of electricity than coal,” said the study. “We model the effect of different gas supplies on the U.S. power sector and greenhouse gas (GHG) emissions. Across a range of climate policies, we find that abundant […]

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Russia, Ukraine in talks on gas as winter looms

AP Photo/Darko Vojinovic BERLIN (AP) — Russia and Ukraine are holding talks to solve their long-running gas dispute as pressure mounts for a solution to head off a winter supply crisis in Ukraine and beyond. Friday’s meeting in Berlin between the Russian and Ukrainian energy ministers, brokered by EU energy commissioner Guenther Oettinger, comes more than three months after Moscow cut off gas supplies to Kiev. The dispute, part of a wider conflict over Ukraine’s relations with Russia and the West, involves the price of Russian gas supplies and Kiev’s historic gas debts. A sense of urgency is beginning to mount. Much of the Russian gas supplied to EU countries passes through pipelines that cross Ukraine. "European and Ukrainian energy and gas supplies are very closely connected with each other," German Chancellor Angela Merkel said this week. "Winter is nearing, so time is pressing." Russia shut off supplies to […]

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Hungary halts flow of gas to Ukraine

General view of the gas station near the border between Ukraine and Poland in the settlement of Drozdovychi, 120 km (75 miles) west of ukrainian city of Lviv. Hungary has stopped supplying gas to Ukraine through a “reverse flow” pipeline just days after the head of Russia’s Gazprom monopoly visited Budapest, Ukraine’s gas utility said. Naftogaz, the Ukrainian distributor, said Hungary had stopped transporting gas at 19.00 Ukrainian time on Thursday, notifying Kiev that it was halting supply “for technical reasons” until further notice. It came after Alexei Miller, Gazprom chief executive, on Monday met Hungary’s premier Viktor Orbán, Naftogaz said. The stoppage put further pressure on Ukraine and the EU ahead of trilateral talks with Russia in Berlin on Friday over restoring gas supplies to Ukraine after Gazprom suspended them because of a dispute over pricing and payment arrears. Hungary, together with Slovakia and Poland, have been helping […]

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Oil Marginally Lower But Nymex Crude Retains Overnight Gains

By Eric Yep Crude-oil futures were slightly lower in Asian trading hours Thursday on bearish market sentiment as geopolitical tensions appeared to ease. On the New York Mercantile Exchange, light, sweet crude futures for delivery in November traded at $92.66 a barrel at 0450 GMT, down $0.14 in the Globex electronic session. November Brent crude on London’s ICE Futures exchange fell $0.21 to $96.74 a barrel. Brent crude prices continued to trade in a narrow range after the U.S. and its allies stepped up airstrikes in Syria, this time targeting mobile oil refineries controlled by Islamic State. Oil prices had surged in June when Islamic State militants made rapid progress in Iraq, but "this has stalled or more likely is on the cusp of being put into reverse with help from U.S. air strikes," Ed Morse, head of commodities at Citi Research said in a quarterly report. He said […]

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WTI Trades Near 1-Week High as U.S. Supplies Drop; Brent Steady

West Texas Intermediate traded near the highest price in almost a week as crude inventories shrank in the U.S., the world’s biggest oil consumer. Brent was steady in London. Futures were little changed in New York after rising 1.4 percent yesterday. Crude supplies dropped by 4.27 million barrels to 358 million last week, Energy Information Administration data showed. A gain of 750,000 barrels was forecast in a Bloomberg News survey. U.S. and Arab warplanes struck small refineries in eastern Syria controlled by Islamic State extremists, according to the Pentagon. “Declining crude stockpiles in the U.S. are what’s supporting oil prices today,” Hong Sung Ki, an analyst at Samsung Futures Inc. in Seoul, said by phone. “I don’t see other factors that would drive crude prices down even further.” WTI for November delivery was at $92.82 a barrel in electronic trading on the New York Mercantile Exchange, up 2 cents, […]

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Natural Gas Rises But Holds in Range Ahead of Inventory Data

By Nicole Friedman NEW YORK–Natural-gas prices gained Wednesday but held below $4 a million British thermal units ahead of weekly government storage data, which is expected to show another large stockpile gain. Natural gas for October delivery settled up 9.5 cents, or 2.5%, at $3.911/mmBtu on the New York Mercantile Exchange. Moderate weather has kept natural-gas prices within a range between $3.75 and $4/mmBtu for most of the summer. Natural-gas demand is highly dependent on weather, as hot weather prompts demand for gas-powered electricity to run air-conditioners and cold weather leads to use of natural gas as a heating fuel. The weather is expected to stay mild in the next two weeks. "Nothing has changed in the weather data to lead to a surge in prices," said NatGasWeather.com in a note. "With only a couple days left to trade the October contract, some position squaring could have aided the […]

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Analysts See 92-Billion-Cubic-Feet Rise in U.S. Natural Gas Inventories

By Nicole Friedman Analysts and traders expect government data scheduled for release Thursday to show natural gas inventories rose by more-than-typical levels for this time of year. The U.S. Energy Information Administration is expected to report that 92 billion cubic feet of gas were added to storage during the week ended Sept. 19, according to the average forecast of 18 analysts and traders surveyed by The Wall Street Journal. The EIA is scheduled to release its storage data for the week on Thursday at 10:30 a.m. EDT. For the Sept. 19 week, the median estimate is for a rise of 92 bcf. Estimates range from an increase of 81 bcf to a rise of 96 bcf. The estimate for Sept. 19 is above last year’s 82-bcf build in storage for the same week, and more than the 79-bcf five-year average build for that week. If the storage estimate is […]

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Ample Supply Shields Oil as U.S. Jets Strike Militants

Plentiful oil supplies are pinning oil prices near a two-year low as the U.S. extends its campaign against Islamic State militants into Syria. Brent crude , which has traded below $100 a barrel for more than two weeks, touched $95.60 a barrel yesterday, the lowest since July 2012, after the broadest Arab-U.S. military coalition since the 1991 Gulf War struck Islamic State targets in Syria. U.S. aircraft began bombing the group six weeks earlier in Iraq, OPEC’s second-largest producer and holder of the world’s fifth-biggest reserves. “The impact for oil prices from the U.S. airstrike is effectively zero,” Giovanni Staunovo, an analyst at UBS AG in Zurich, said yesterday by e-mail. “The market focus has shifted from supply risks to oil glut fears to weak oil demand from China, Europe and Japan .” An increase in global crude supply that prompted the Organization of Petroleum Exporting Countries to consider […]

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Islamic State Oil Sites Targeted in U.S.-Arab Strikes

U.S. and Arab warplanes attacked small oil refineries in eastern Syria controlled by Islamic State to undercut the extremist Sunni group’s revenue and impede its mobility, the Pentagon said. As the U.K. prepared for a parliamentary vote tomorrow to authorize joining the broadest Arab-U.S. military coalition since the 1991 Gulf War, aircraft and drones operated by the U.S., Saudi Arabia and the United Arab Emirates attacked 12 “modular” refineries Islamic State uses in its oil-smuggling operations, U.S. Central Command said in an e-mailed statement. “These small-scale refineries provided fuel to run ISIL operations, money to finance their continued attacks throughout Iraq and Syria and an economic asset to support their future operations,” the command said in statement, which used an acronym of another name used to identify the group. Islamic State may have been raising more than $2 million a day from oil sales in Iraq and Syria, paid […]

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U.S., Allies Target Islamic State Oil Assets

The latest user generated content from the ground in Syria following Tuesday’s airstrikes against Islamic State. WSJ’s Mark Kelly reports. The U.S. and Arab allies launched a second major wave of airstrikes in Syria targeting mobile oil refineries controlled by Islamic State, the Pentagon said. Inside Syria, local residents reported that the radical fighters were taking measures to evade attacks such as moving into civilian areas in towns and cities in eastern Syria. The warplanes hit 12 modular oil refineries located in remote areas of eastern Syria, the Defense Department said. U.S. officials said the latest airstrikes on Wednesday aimed at cutting off a key source of income for Islamic State forces, which smuggle oil from captured Syrian infrastructure and sell it on the black market. U.S. officials said the money from the oil has allowed Islamic State militants to finance their operations in Iraq and Syria. Refugees wait […]

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Saudi Arabia using more crude oil than ever

WASHINGTON, Sept. 24 (UPI) — Saudi Arabia aims to use more renewable energy, but for now it burns more crude oil directly than any other nation in the Middle East, a Wednesday report found. By 2023, Saudi Arabia plans to have 120 gigawatts of solar and nuclear power available, more than twice what’s installed currently. Saudi Arabia has few alternative options for power generation , with no domestic coal reserves and a natural gas sector stymied by a lack of foreign investments. As a result, it’s one of only a few nations in the world that utilizes crude oil directly for power generation . A report for the U.S. Energy Information Administration, a branch of the Energy Department, found Saudi Arabia burned 900,000 barrels of oil per day in July, the highest ever recorded for that month. "Saudi Arabia used an average of 700,000 bpd of crude oil for […]

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Saudi Arabia uses largest amount of crude oil for power generation since 2010

Saudi Arabia is one of a handful of countries that burn crude oil directly for power generation, according to the Joint Organizations Data Initiative (JODI). During the summer, Saudi Arabia typically experiences an increase in electricity consumption as domestic demand for air conditioning rises. Saudi Arabia burned 0.9 million barrels per day (bbl/d) of crude oil in July, the highest ever recorded in JODI data for the month of July and the highest overall since August 2010. Saudi Arabia used an average of 0.7 million bbl/d of crude oil for power generation during the summers from 2009 to 2013. During that same period, Iraq and Kuwait, the next two largest users of crude oil for power generation in the Middle East, each averaged roughly 0.08 million bbl/d of crude burn. Generally, countries are more likely to consume natural gas or coal to meet higher summer electricity demands. But Saudi […]

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Blackouts Present Biggest Risk to South Africa’s Economy

South Africa has an electric bill coming due that’s threatening everything from its swimming pools to its sovereign debt. Consumers are asked almost daily to switch off their water heaters, pool pumps and anything else that will save power during peak periods. Industrial customers are also asked to conserve energy, even if it means reducing production. And when that’s not enough, Eskom Holdings SOC Ltd. orders managed blackouts. The state-owned utility can’t provide reliable electricity to run Africa’s second-largest economy. It has a long-term plan to expand generating capacity by more than 40 percent, while facing a 225 billion-rand ($20 billion) funding shortfall through 2018. The company has faced supply shortages for years and has said it may be another five years before it can guarantee the lights will always be on. “Eskom is in dire straits,” said Anne Fruhauf, southern Africa analyst at New York-based risk adviser Teneo […]

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Asian LNG Buyers Bet on Growing Supply, Evolving Markets

ByEric Yep A liquefied natural gas tanker is berthed at Tokyo Electric Power Co.’s Futtsu gas-fired thermal power plant. Bloomberg News Asian natural-gas consumers are betting that a new wave of gas supply and a rapidly evolving marketplace will help reduce prices in the next two to three years, executives said at a gas conference in Singapore. Liquefied natural gas is priced higher in Asia due to the additional cost of converting the gas into a liquid and transporting it on ships. Gas producers have also enjoyed strong prices as the fuel was in short supply after the Fukushima nuclear disaster shut Japan’s nuclear reactors and regional demand surged. “Asian buyers currently pay a premium for LNG; in 2012, this premium amounted to almost $130 billion,” said Seah Moon Ming, chief executive of Singapore’s Pavilion Energy. Pavilion Energy is a portfolio company of state-investment firm Temasek Holdings Pte. Ltd. […]

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Emissions From India Will Increase, Official Says

In a blow to American hopes of reaching an international deal to fight global warming, India’s new environment minister said Wednesday that his country would not offer a plan to cut its greenhouse gas emissions ahead of a climate summit next year in Paris. The minister, Prakash Javadekar, said in an interview that his government’s first priority was to alleviate poverty and improve the nation’s economy, which he said would necessarily involve an increase in emissions through new coal-powered electricity and transportation. He placed responsibility for what scientists call a coming climate crisis on the United States, the world’s largest historic greenhouse gas polluter, and dismissed the idea that India would make cuts to carbon emissions. “What cuts?” Mr. Javadekar said. “That’s for more developed countries. The moral principle of historic responsibility cannot be washed away.” Mr. Javadekar was referring to an argument frequently made by developing economies — […]

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China-Russia pipeline deal to shape global LNG prices: Tokyo Gas official

Yuzhno-Sakhalinsk (Platts)–24Sep2014/1143 pm EDT/343 GMT The deal between Russia and China for importing some 38 billion cubic meters/year of natural gas through a pipeline connecting the two countries represents a key development not only for the two parties involved, but also for the role it will have in shaping the global price of LNG, according to Shigeru Muraki, vice chairman of the board at Japan’s Tokyo Gas. Speaking at the Adam Smith Sakhalin Oil and Gas 2014 conference in the Russian Far East late Wednesday, September 24, Muraki said that the many LNG export projects coming on stream in the next years in countries such as Australia, Russia and the US will not only have to compete between each other for demand, but also against the price set by pipeline imports deals such as the one between Russia and China, which has an estimated price of around $12/MMBtu. Russia […]

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BP Told It Can’t Claw Back Oil-Spill Damage Overpayments

BP Plc (BP/) was barred by a U.S. judge from recovering hundreds of millions of dollars it claims to have overpaid some victims for economic losses from the 2010 Gulf of Mexico oil spill . BP had sought to claw back millions of dollars after the court revised the method for calculating the damages. U.S. District Judge Carl Barbier in New Orleans rejected that bid, quoting from language of a release people had to sign to receive payment under the settlement. BP told claimants, “If you sign this release, that’s it, it’s over for you. It doesn’t matter if the law changes or not, or if the interpretation of the settlement terms changes for better or worse,” Barbier said. “I don’t know how you get around it.” The company’s attempt to recover the money was “classic hair-splitting,” Barbier ruled. “The only conclusion is that this language bars BP from […]

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Report: New shale methods could yield huge results

HOUSTON, Sept. 24 (UPI) — A Wednesday report for energy consultant group Wood Mackenzie finds emerging shale technology could add at least 1 million barrels per day to U.S. output. Primary recovery from oil deposits in the United States relates to natural pressure in the reservoir. Secondary recovery involves water or gas injection into the well to increase production. Enhanced oil recovery techniques include further stimulation from steam, gas or chemical injections into the well. Wood Mackenzie finds enhanced oil recovery is still in its infancy in U.S. shale plays like Bakken, Eagle Ford and Permian. The consultant group finds the emerging shale technology could result in a 100 percent increase in recovery rates and add between 1.5 million and 3 million barrels per day in oil production by 2030. Some of the early efforts at enhanced oil recovery have been problematic. Regulators in Canada placed restrictions on steam […]

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Hess issues paperwork for IPO

NEW YORK, Sept. 24 (UPI) — U.S. energy company Hess Corp. said Wednesday it filed the paperwork for an initial public offering it said could help advance its Bakken crude oil ambitions. Hess Corp. said its subsidiary, Hess Midstream Partners, filed a statement with the Securities and Exchange Commission related to its proposed initial public offering . "The offering is expected to occur in the first quarter of 2015," the company said in a statement. Hess said it intends to use the master limited partnership as the primary vehicle to support its Bakken production growth . The company in January said it plans to spend $2.85 billion of the $5.8 billion budgeted this year for exploration and production on exploiting shale reserves, mostly in North Dakota. Oil production from the Bakken and Three Forks area of North Dakota topped the 1 million barrel per day mark for the first […]

Posted On : Published By : Tom Whipple