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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 […]

Posted On : Published By : Tom Whipple
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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 […]

Posted On : Published By : Tom Whipple
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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 […]

Posted On : Published By : Tom Whipple
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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 […]

Posted On : Published By : Tom Whipple
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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 […]

Posted On : Published By : Tom Whipple
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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 […]

Posted On : Published By : Tom Whipple