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U.S. Refiners Looking Closer to Home to Buy Their Crude

The U.S. is relying the most in four decades on oil from the Americas as the shale revolution reduces imports from the Persian Gulf and Africa . Countries outside North, Central and South America supplied the smallest portion of foreign crude in August to the U.S. in government records dating back to 1973. Surging production in Canada and the U.S. has reduced the need for cargoes of light oil, with the remaining imports of heavy crude more likely to be from Mexico or Venezuela than Nigeria or Saudi Arabia. The shift is another sign of how the North American energy revolution is affecting some suppliers more than others. OPEC members, including Saudi Arabia, Venezuela and Nigeria, meet tomorrow in Vienna to decide whether to cut output in an effort to prop up prices that have fallen 31 percent since June. U.S. refiners built the capacity to use heavy crude, […]

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Give thanks for low gasoline prices

Business is brisk at the Mobil on the Run gasoline station where the price for a gallon of regular has dropped to $2.38 in Overland, Missouri on November 19, 2014. UPI/Bill Greenblatt Gasoline prices in the United States heading into Thanksgiving are the lowest in five years and should continue to drop, the Energy Department said Wednesday. The average retail price for a gallon of regular unleaded gasoline in the United States is $2.81, according to motor club AAA, which is nearly 50 cents lower than one year ago and the lowest average price heading into the Thanksgiving holiday season since 2009. The Energy Information Administration, the analytical arm of the Energy Department, said the decline in gasoline prices is largely a reflection of crude oil prices , which have shed more than 20 percent of their value since June. Gasoline prices are down more than 88 cents per […]

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E.P.A. Ozone Rules Divide Industry and Environmentalists

WASHINGTON — The Obama administration on Wednesday announced a long-delayed environmental regulation to curb emissions of ozone, a smog-causing pollutant linked to asthma, heart disease and premature death. The sweeping regulation, which are aimed at smog caused by power plants and factories across the country, particularly in the Midwest, is the latest in a series of Environmental Protection Agency controls on air pollution that wafts from smokestacks and tailpipes. Such regulations, released under the authority of the Clean Air Act , have become a hallmark of President Obama’s administration. Environmentalists and public health advocates have praised the E.P.A. rules as a powerful environmental legacy. Republicans, manufacturers and the fossil fuel industry have sharply criticized them as an example of costly government overreach. The National Association of Manufacturers has called the proposal “the most expensive regulation ever.” The proposed regulation would lower the current threshold for ozone pollution to a […]

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EPA Proposes Stricter Ozone Air Pollution Standard

Los Angeles has been ranked the worst in the nation for ozone pollution. ENLARGE Los Angeles has been ranked the worst in the nation for ozone pollution. Getty Images WASHINGTON—The Obama administration is preparing for the release of a series of energy regulations over the coming weeks in advance of a Republican-controlled Congress next year that will prompt pushback from industries and lawmakers, testing President Barack Obama’s commitment to his environmental agenda. On Wednesday, the Environmental Protection Agency proposed lower limits for ground-level ozone , or smog, in the atmosphere, setting off a nearly yearlong regulatory process for setting a new standard. Public-health and environmental groups say the limits are essential in preventing a range of respiratory diseases. Businesses say it could be the costliest regulation in U.S. history. By year’s end, the administration plans to release at least three other regulations, including another from EPA regulating coal ash, […]

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More on Bakken Production, Choke Theory

The US Petroleum Supply Monthly just came out with production data for every state and territory. US supply was up 168,000 bpd to 8,864,000 bpd in September. The biggest gainers were North Dakota, up 53,000 bpd to 1,185,000 bpd and Alaska up 79,000 to 477,000 bpd. Alaska  was way down in both July and August and are just recovering from that.  There was only one big loser, New Mexico, down 18,000 bpd. Texas was up only 9,000 barrels per day which was surprising. The Gulf of Mexico was down 3,000 bpd. The Choke theory and why I ain’t buying it. North Dakota publishes a Daily Activity Report Index  of all permits and other well activity in the Bakken as well as the rest of North Dakota. In this report is a list of all producing wells completed as well as wells released from confidential (tight hole) status. Wells usually […]

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Monster Wells: Hundreds Of Fracking Wells Using 10-25 Million Gallons of Water Each

While the oil and gas industry likes to claim that fracking is not an especially water intensive process, a new report has found that there are more than 250 wells across the country that each require anywhere from 10 to 25 million gallons of water. The American Petroleum Institute suggests that the typical fracked well uses “the equivalent of the volume of three to six Olympic sized swimming pools,” which works out to 2-4 million gallons of water. But using data reported by the industry itself and available on the FracFocus.org website, Environmental Working Group has determined that there are at least 261 wells in eight states that used an average of 12.7 million gallons of water, adding up to a total of 3.3 billion gallons, between 2010 and 2013. Fourteen wells used over 20 million gallons each in that time period (see chart below). According to EWG, some […]

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Russia Says Will Keep Oil Output Steady In 2015

Russian oil companies will keep production steady in 2015, Energy Minister Alexander Novak says, after Moscow left a meeting with other major oil producers with no agreement on how to address weak oil prices. MOSCOW, Nov 26 (Reuters) – Russian oil companies will keep production steady in 2015, Energy Minister Alexander Novak said on Wednesday, after Moscow left a meeting with other major oil producers with no agreement on how to address weak oil prices. Russia, which is not an OPEC member, has watched nervously as oil prices have fallen 30 percent since June and analysts say Moscow had hoped to convince other members and non-members to support a production cut at an OPEC meeting on Thursday. After talks between Saudi Arabia, fellow OPEC member Venezuela and oil power Mexico ended without an agreement on Tuesday, Russia’s message was clear – daily average oil production of around 10.5 million […]

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Russian Finance Minister Warns Oil Prices Likely to Remain Low

Russia’s Finance Minister Anton Siluanov. The minister warned that oil prices are likely to remain… ENLARGE Russia’s Finance Minister Anton Siluanov. The minister warned that oil prices are likely to remain at their current low level in the long term and so Russia must adjust its budget to make up for lost revenue. Photo: Reuters. Reuters MOSCOW—Lower oil prices are here to stay for the long term and the country’s budget should be adjusted accordingly, Russia’s finance minister said Wednesday. “The new oil prices, between $80 and $90 a barrel, most probably will stay in the mid to long-term,” Anton Siluanov told the upper house of parliament, before it formally approved the country’s budget for the next three years. Russian budgetary expenses have been growing faster than inflation for years while oil prices remained high. The country’s budget for the next year is still based on an average oil […]

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London has faith in marine energy

Early setbacks are expected, but low-carbon technologies like wave energy are part of the future, the British government said. UPI/Shutterstock/Ethan Daniels "Tidal power has the potential to contribute significantly to Britain’s energy security and provide clean energy and predictable clean energy, as part of a diverse mix," British Energy Secretary Ed Davey said at an investment conference in London. In September, the British government launched its so-called Paris 2015 document ahead of next year’s international climate summit in France, describing how acting now on cutting greenhouse gas emissions can help deter future climate disasters. The government said the document shows how it’s giving "a decisive political signal" that the future of energy is low-carbon. Government data show renewable energy’s share in electricity generation increased 7 percent year-on-year to 19.4 percent. The use of fossil fuels in general has declined, with coal’s share falling 3.7 percent to 37.1 percent. The […]

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Oil Prices Up Slightly Before OPEC Meeting

By Cassie Werber LONDON–Crude oil was slightly up Wednesday, with all eyes focused on the outcome of the Organization of the Petroleum Exporting Countries’ meeting in Vienna this week. "The market remains volatile in the run-up to OPEC’s meeting," said Commerzbank in a note to clients. The group could decide to cut production, thereby tightening a market that has been oversupplied–resulting in falling prices–since midsummer. But it will also need to look longer-term, said David Hufton and Tamas Varga at PVM. "The problem facing OPEC is structural, not temporary. Western governments are determined to cut the growth in fossil fuel demand and they are determined to promote climate friendly alternatives which all comes in addition to the growth in conventional and unconventional oil supply. Cutting production will not solve the problem," they said in a note to clients. Brent crude for January delivery was up 50 cents at $78.81 […]

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Oil Prices Pare Losses on Report of Possible OPEC Supply Cut

By Christian Berthelsen and Nicole Friedman Oil prices pared earlier losses in midday trading Tuesday after The Wall Street Journal reported OPEC members, including Saudi Arabia, are moving toward a compromise that would effectively result in reduced output from the cartel. The report, citing a Gulf official familiar with Saudi Arabia’s position, said support is building among members of the Organization of the Petroleum Exporting Countries to more closely adhere to its production quota of 30 million barrels a day, which the group regularly exceeds. Such an agreement could remove about 300,000 barrels a day from global physical supplies compared with October’s levels, the report said. Still, such a move would fall short of an outright production cut, which analysts say is required in the amount of one million barrels a day for the supply-and-demand balances to stabilize. The agreement would also leave unclear how closer adherence to the […]

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U.S. Crude Tumbles to Four-Year Low Before OPEC Meeting

West Texas Intermediate fell to the lowest level in more than four years after nations supplying a third of the world’s oil failed to pledge output cuts before this week’s OPEC meeting. Venezuela , Saudi Arabia , Mexico and Russia said they plan to start quarterly monitoring of oil prices . Today’s talks in Vienna didn’t result in any joint commitment to reduce supplies, said Igor Sechin , who runs Russian state oil producer OAO Rosneft. “Even those four countries are not agreeing to any kind of cut, and the last thing the Saudis want is to be the ones doing all the cutting,” said Tariq Zahir, a New York-based commodity fund manager at Tyche Capital Advisors. “You have to get an above 2-million-barrel cut from OPEC to stabilize the market.” WTI for January delivery fell $1.69, or 2.2 percent, to $74.09 a barrel on the New York Mercantile […]

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Natural Gas Rebounds on Cool Forecast, Expiring Contract

By Timothy Puko Natural gas closed higher as a cooler afternoon weather update pushed the December contract on one last rally before it expired. The front-month contract settled up 13.1 cents, or 3.2%, at $4.282 a million British thermal units on the New York Mercantile Exchange. December futures ended a volatile month on a volatile note. The contract moved by more than 2%, up or down, in all but three of its last 21 sessions. Most trading volume has moved to the January contract. It also settled higher, up 9.9 cents, or 2.3%, at $4.403/mmBtu. The rally picked up in the afternoon as weather updates showed cooler temperatures than previous forecasts. Half of U.S. homes use natural gas for heating, and the market had spent the morning in retreat as traders expected demand to start falling from unseasonably warm weather. "The model message is while it’s warmer (outside of […]

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Pre-OPEC Producer Meeting Fails to Deliver Oil Output Cut

Nations supplying a third of the world’s oil failed to pledge output cuts after meeting in Vienna today. Russia can withstand prices even lower than they are now, the country’s biggest producer said. Officials from Venezuela, Saudi Arabia, Mexico and Russia said only that they would monitor prices. Crude futures sank to a four-year low in New York. OPEC meets in two days, with analysts split evenly over whether the group will lower output in response to the crash in prices. Crude fell into a bear market this year amid the highest U.S. production in 31 years and speculation that Saudi Arabia and other members of the Organization of Petroleum Exporting Countries won’t do enough to curb a surplus. Prices are below what nine of group’s 12 members need to balance their national budgets, data compiled by Bloomberg show. “All these countries are significantly affected by lower prices and […]

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OPEC Members Nearing Compromise on Supply Cuts

A general view of a meeting of oil ministers of the Organization of the Petroleum… ENLARGE A general view of a meeting of oil ministers of the Organization of the Petroleum Exporting countries, OPEC, at their headquarters in Vienna, Austria in June. The ministers meet again on Thursday in one of the most closely watched sessions in years. Associated Press VIENNA—OPEC members are inching toward a compromise that could lead them to cut oil supply, as the producer group prepares for one of its most closely watched meetings in years this week. Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries, is likely to side with calls for the group to adhere more closely to its self-imposed production ceiling at Thursday’s meeting of OPEC oil ministers, according to a Gulf official familiar with the Saudi position. Support for such a move, which would be […]

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Saudis signal no push for oil cut as market to ‘stabilize itself’

VIENNA (Reuters) – OPEC leader Saudi Arabia signaled on Wednesday it was unlikely to push for a major change in oil output at the producer group’s meeting this week, a day after Russia refused to cooperate in any production cut. Saudi Oil Minister Ali al-Naimi said he expected the oil market "to stabilize itself eventually" but did not comment on talks with Russia held on Tuesday, which produced no firm pledge from Moscow to help support flagging oil prices. Iranian Oil Minister Bijan Zangeneh said some OPEC members, although not Iran itself, were gearing up for a battle over market share and insisted that non-OPEC producers needed to participate in any OPEC-led output cut. "The most important thing for all of us is the unity and solidarity of OPEC, and in this situation I believe we need to have the contribution of non-OPEC producers for managing the market," Zangeneh […]

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Pipeline to Pakistan still viable, Iran says

Pipeline to Pakistan still in the cards for an Iranian government coping with sanctions targeting its energy sector. UPI/Shutterstock/Kodda "Pakistan has signed a deal to import 760 million cubic meters of natural gas per day from Iran and by the beginning of 2015, it should start receiving this amount of gas according to agreement," Oil Minister Bijan Zanganeh said. Once dubbed the Peace Pipeline, and including India as the terminal country, Iran has long held out its gas reserves as an opportunity for Eastern trading partners. Washington and its Western allies, however, have backed a rival project that would stretch from one of the world’s largest natural gas fields in Turkmenistan through Afghanistan, Pakistan and India. For Pakistan, sanctions targeting Iran’s energy sector meant it was time to reconsider the pipeline project. Government officials told Pakistani media outlets they were declaring force majeure on the pipeline , meaning it […]

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Domestic pressures in U.S., Iran threaten slow-moving nuclear talks

VIENNA/WASHINGTON (Reuters) – A seven-month extension in talks between world powers and Iran on a deal to curb its nuclear program emboldened critics in Washington and Tehran, threatening to undermine further talks. After failing to clinch an agreement that would limit Iran’s nuclear program in return for lifting stifling U.S.-led economic sanctions, the sides agreed on Monday to push back, yet again, a deadline for reaching a deal, until next July. Iran is negotiating with so-called P5+1 group of the United Nations Security Council permanent members, plus Germany, but that could be called the P5+1+2, given the role played by hard-liners in Congress and in Iran’s ruling establishment. Even before the ink dried on the extension agreement in Vienna, skeptics in Washington were demanding new sanctions to pressure Iran’s rulers. The American Israel Public Affairs Committee, long regarded as one of the most effective lobbying groups in Washington, called […]

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A Nuclear Deal for U.S. and Iran Slips Away Again

VIENNA — By the time Secretary of State John Kerry and his Iranian counterpart checked into a luxury hotel near the famous beaches of Oman earlier this month, a long-sought deal that has eluded the last two American presidents to roll back Tehran’s nuclear program seemed to be slipping out of reach. With a deadline approaching, Mr. Kerry thought the opportunity could be lost unless the Iranians finally offered a breakthrough compromise. But Mohammad Javad Zarif, the Iranian foreign minister, came with little new. Frustrated, Mr. Kerry said there was no way the United States would accept a deal that did not curb Iran ’s ability to produce enough fuel for a bomb within a year. The conversation grew heated. The two men, patricians in their own cultures and unaccustomed to shouting, found themselves in the kind of confrontation they had avoided during multiple negotiating sessions over the past […]

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Iran’s Supreme Leader Dismisses Western Pressure on Nuclear Issue

TEHRAN — The day after a deadline for concluding a nuclear agreement was extended for seven months, Iran ’s supreme leader, Ayatollah Ali Khamenei , delivered his first remarks on the negotiations, saying that the West had failed to bring Iran “to its knees.” Meeting Tuesday with Muslim clerics in Tehran, the Iranian capital, Mr. Khamenei dismissed the diplomatic and economic pressure that world powers have brought to bear on his country over its nuclear ambitions. “In the nuclear issue, America and colonial European countries got together and did their best to bring the Islamic Republic to its knees, but they could not do so — and they will not be able to do so,” Mr. Khamenei’s personal website quoted him as saying. Mr. Khamenei has the final say on all important policy matters in Iran, including its nuclear program . His remarks suggested that he would continue to […]

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France Senses Momentum In Iran Nuclear Talks

French Foreign Minister Laurent Fabius, pictured with U.S. Secretary of State John Kerry (right) in… ENLARGE French Foreign Minister Laurent Fabius, pictured with U.S. Secretary of State John Kerry (right) in Vienna Sunday, is upbeat about the prospects about a deal with Iran over its nuclear program after the latest talks in the Austrian capital. Associated Press PARIS–The latest round of negotiations over Iran’s nuclear activities made progress on the delicate issue of how much enriched uranium Tehran should be allowed to produce, France’s foreign minister said Tuesday. France’s top diplomat Laurent Fabius said the U.S., France and other world powers were making some headway in persuading Tehran to roll back parts of the infrastructure that it has in place to process uranium into nuclear fuel. Western countries fear such supplies could be used to make nuclear weapons while Tehran says its nuclear program is solely for civil–not military–purposes. […]

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Iran Reaps Less Cash From Eased Sanctions Than Predicted

With world powers unable so far to win Iran ’s agreement to curb its nuclear program, members of both parties in the new Republican-led U.S. Congress will push in January for more economic sanctions on the Islamic Republic. As the nuclear negotiations continue for an additional seven months, Iran has been promised that it will continue to enjoy limited relief from the existing U.S. sanctions in exchange for continuing to curtail its nuclear efforts under an interim accord signed a year ago yesterday. That sanctions relief has been less valuable to Iran than U.S. officials anticipated, according to figures declassified by the Obama administration in response to requests from Bloomberg News. They indicate that Iran’s direct benefit in cash and non-oil exports in the first six months of this year was about $2 billion less than the administration predicted — $4.6 billion instead of as much as $7 billion, […]

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Iran Agrees to Cooperate With Russia on Oil Market, Shana Says

Iranian President Hassan Rouhani agreed to cooperate with Russia to support oil markets in a phone conversation with that country’s leader Vladimir Putin , according to Shana, the Iran oil ministry’s news service. Rouhani and Putin “agreed on necessary cooperation” to shore up crude prices during the call yesterday evening, Shana said. The report provided no details of what the two presidents agreed on or whether they would take joint action. The Organization of Petroleum Exporting Countries will meet Nov. 27 to decide how to respond to the slide in crude prices and whether to cut production. Brent crude , the European oil benchmark, dropped into a bear market last month after falling more than 20 percent from its high for the year in June. Declining prices are hurting oil exporters including Iran, OPEC’s fifth-biggest producer, and Russia, the world’s second-largest supplier, after Saudi Arabia . OPEC officials are […]

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Genel CEO Sees Merger Shakeout Among Kurdistan Oil Producers

The number of oil producers in Kurdistan will slump by three-quarters in five years with the biggest in the industry taking control in the region, according to Genel Energy Plc (GENL) Chief Executive Officer Tony Hayward. “It’s likely that we’ll end up with, perhaps, five or six of the largest companies operating, with Genel, Exxon, Chevron ending up as major operators,” Hayward said in a Nov. 21 interview during the Atlantic Council conference in Istanbul. “It’s what happens in most hydrocarbon provinces.” ExxonMobil Corp. (XOM) , Chevron Corp. (CVX) and DNO ASA (DNO) of Norway are among more than two dozen international oil companies with a combined 35 licenses in the Kurdish Regional Government area. The companies export about 350,000 barrels a day of crude, pumping it through a Turkish pipeline to the Mediterranean. Genel has spent more than $1 billion since 2012 on acquisitions in Kurdish-controlled northern Iraq […]

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IMF says Egypt’s economy starting to recover

CAIRO (AP) — An International Monetary Fund official says that Egypt’s economy has begun to recover after four years of slow activity. The statement from Chris Jarvis late Tuesday followed an IMF delegation visit to Egypt for a long-delayed assessment of the economy. He says that Egyptian authorities "have set appropriate economic objectives." The IMF says it projects Egypt’s growth to reach 3.8 percent in the fiscal year 2014/15, in line with the government’s own stated goals. Egypt’s growth rate has been hovering at around 2 percent since the country’s 2011 revolt. Finance Minister Hany Kadry Dimian has said he hopes the resumption of consultations with the IMF will help restore confidence in the economy. The government aims to attract investment by hosting a three-day international economic conference in March.

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Morocco emerging as strong oil frontier

Australian energy company Woodside Petroleum maintains commitment to exploring frontier oil and gas territory off the coast of Morocco. (UPI/Shutterstock/num_skyman) PERTH, Australia, Nov. 26 (UPI) — Australian energy company Woodside Petroleum said Wednesday it was stepping further into frontier territory with an exploration deal offshore Morocco. Woodside said it will explore a block known as the Rabat Ultra Deep Offshore area, where waters range in depth from 1 mile to more than 2.5 miles deep. The block is located adjacent to a similar deepwater license area, in which Woodside already holds a 25 percent stake. Under the terms of a 1-year commitment, Woodside said it would conduct a seismic survey of the region to get a better understanding of the reserve potential offshore Morocco. Morocco is one of the West African countries that have drawn interest from international energy companies eager to tap into unexploited reserves. Scottish energy company […]

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Pakistan looks for exit door with Iranian gas pipeline

Pakistan implies it’s looking for exit door from gas project Iran once dubbed the Peace Pipeline. UPI/Hamid Forotan ISLAMABAD, Nov. 25 (UPI) — The Pakistani government has invoked force majeure on an agreement to build a cross-border gas pipeline with Iran, a ministry official said Tuesday. A senior official inside the Pakistani Ministry of Petroleum and Natural Resources told the Pakistan Observer the government in Islamabad wanted to avoid litigation because of its decision to back away from a pipeline clouded by U.S. sanctions targeting Iran’s energy sector. "We have stepped up our efforts to get the gas deal changed and are in touch with authorities concerned in Iran and hopeful to get to result oriented talks some time in next month to resolve the issue amicably," he said. Once dubbed the Peace Pipeline, Iran aims to establish a new natural gas route eastward with its cross-border pipeline to […]

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China Committed to Cutting Coal Consumption But Needs New Technologies

BEIJING—China is committed to sharply limiting its coal consumption but needs new clean technologies before demand can peak, its top climate negotiator said Tuesday. Xie Zhenhua, the vice chairman of China’s top economic planning body, the National Development and Reform Commission, said at media briefing Tuesday that China was swiftly moving to replace coal consumption with lower-emission alternatives such as natural gas, hydropower and nuclear power. But he declined to give a date by which Chinese coal demand would level off, saying that hinged on China’s ability to overcome technological challenges related to cleaner and renewable energy sources. China aims to make coal the source of 62% of total energy consumption by 2020, down from around 66% last year. Reaching a peak in China’s coal demand “depends upon on technology,” said Mr. Xie. He cited technology issues ranging from the rollout of renewable energy sources such as wind and […]

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Why a small North Dakota town is taking on Big Rail

ENDERLIN, N.D. (Reuters) – After her shift at the TraXside Cafe in the southeast North Dakota hamlet of Enderlin, all Karla Souer wants to do is go home. Unfortunately for the 38-year-old waitress the commute, which should only last a minute or two, can take a half-an-hour. That’s because, chances are, there’s a Canadian Pacific Railway Ltd train blocking the tracks somewhere on her route. She has a lot of company. Partly thanks to North Dakota’s energy boom, twenty-eight of the railroad’s trains now traverse the city every day. Each carry hundreds of tank cars filled with oil or grain. Some idle as long as four hours, inconveniencing motorists, stranding pedestrians and posing logistical challenges for ambulances and firefighters. Desperate for a solution, Enderlin’s city councilors last month banned train breaks longer than 10 minutes. The railroad has, in turn, sued the city of nearly 900 in federal court. […]

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Oil Boom Triggering Cowboy Shortage Across Canada

There’s been a lot of attention paid to how Canada ’s oil boom has helped make gasoline cheaper. What many people may not realize is that the boom is also driving up the prices they pay for burgers and steaks. Surging energy investment in Prairie Provinces, home to most of the nation’s farms and cattle ranches, has boosted domestic crude output to a record and sent pump prices to a three-year low. That’s led to jobs on drilling rigs or pipe crews paying two-thirds more than those in livestock, luring cowboys and beef-plant workers to the oil patch. The labor shortage is squeezing a cattle industry already diminished over the past decade by mad cow disease, drought and floods. The herd in Canada, the world’s eighth-largest beef exporter, is the smallest in 21 years. Beef supplies are so tight that Costco Wholesale Corp. (COST) is importing more meat from […]

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North Dakota reviews oil train safety measures

North Dakota officials review rail safety after second derailment in less than a year. (Photo: Daniel J. Graeber) Rail operators in North Dakota have taken a good step forward on safety, though they’re likely to face further scrutiny, Gov. Jack Dalrymple said. Dalrymple met with officials from BNSF Railway to discuss rail safety in the state. The rail company, the government said, is facing pressure after two derailments near the town of Casselton in the same calendar year. Around 1 dozen empty crude oil tankers derailed Nov. 13 in Casselton from a BNSF-operated train. About 950 barrels of oil spilled when two trains operated by BNSF collided and derailed near Casselton in late December. The governor said the rail company outlined a series of ways it would ensure safety in and around Casselton following the latest derailment. "These actions are a good step forward to preventing further incidents and […]

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IHS: U.S. Shale Production Growth Will Slow, but Still Remain High

ND Pump Jack | Click to Enlarge The dip in oil prices isn’t making a huge impact yet on the vast majority of U.S. shale production. According to a report by research consultancy IHS Energy , most shale plays are economic and ~80% of potential drilling in 2015 would remain strong at WTI crude oil prices as low as $70 per barrel. “Since 2008 the cumulative growth in U.S. tight oil production has been 3.5 million b/d—far exceeding supply gains from the rest of the world combined—making tight oil the key driver of global supply growth,” said Jim Burkhard, Vice President, IHS. “While current lower crude oil prices do present challenges for new investment, IHS analysis shows that the vast majority of potential U.S. supply growth in 2015 remain economical at $70 for WTI.” WTI traded at ~$76 on Monday, a nearly 20% drop since September. As a result, Bakken operators, including Emerald […]

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Supreme Court to Review EPA Rule on Power Plant Emissions

The Supreme Court will review the first-ever national environmental standards requiring power plants to reduce emissions of mercury and other toxic air pollutants. WSJ’s Amy Harder reports. Photo: Getty. WASHINGTON—The U.S. Supreme Court on Tuesday agreed to review the first-ever national environmental standards requiring power plants to reduce emissions of mercury and other toxic air pollutants, saying it would decide whether the government should have considered how much the rules would cost utilities. The court’s action extends a saga that dates back more than two decades. Congress first required the Environmental Protection Agency to issue regulations in 1990, but the agency’s efforts had been stalled for years because of several factors, including lengthy court battles. The EPA rules, adopted in 2012, require coal and oil-fired power plants to cut most of their emissions of mercury, a neurotoxin the EPA says is particularly harmful for children, unborn babies and women […]

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Why Blocking Oil Pipelines Is Dangerous

Environmental activists are shown as they march through midtown protesting the proposed Keystone XL pipeline, in New York. Agence France-Presse/Getty Images ROBERT RAPIER: Crude oil and natural gas are both already transported all over the U.S. in enormous volumes. There is a 2.5 million-mile pipeline network underneath our feet that moves oil and gas all over the country. That is more than 50 times the length of the U.S. Interstate Highway System. These pipelines cross through national parks, rivers, underneath cities and above the nation’s aquifers—and there are pipelines crossing the U.S. border to the north and south. In addition to that, crude-oil volumes shipped by rail have increased rapidly in recent years. While protesters were trying to stop the 830,000 barrel-per-day (bpd) Keystone XL Pipeline that would connect the oil sands in Alberta and the Bakken oil fields in North Dakota to refineries on the U.S. Gulf Coast, […]

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Shale gas provides largest share of U.S. natural gas production in 2013

Republished November 25, 2014, 10:15 a.m. to clarify graph title. Total U.S. natural gas gross withdrawals reached a new high at 82 billion cubic feet per day (Bcf/d) in 2013, with shale gas wells becoming the largest source of total natural gas production. Natural gas gross withdrawals are a measure of full well stream production including all natural gas plant liquids and nonhydrocarbon gases after oil, lease condensate, and water have been removed. According to the Natural Gas Annual , gross withdrawals from shale gas wells increased from 5 Bcf/d in 2007 to 33 Bcf/d in 2013, representing 40% of total natural gas production, and surpassing production from nonshale natural gas wells. New technology has enabled producers to shift production to resources that are now easier to reach and have lower drilling costs. These trends have been reflected in a lower market price of natural gas. In 2007, shale […]

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Canadian protesters defy authorities over Trans Mountain pipeline

A proposed pipeline expansion that would transport  tar sands oil  through a park in British Columbia has unified Canadians from all walks of life in their opposition to the project — which they said does not respect public opinion and could endanger both land and sea. “I’ve never seen in my 30 years of being environmentally active an issue that so galvanizes so many people,” said John Bennet, executive director of Sierra Club Canada. “It’s absolutely clear that the public, not just a handful of crazies willing to get arrested, don’t want it.” The Trans Mountain pipeline expansion proposed by Houston-based oil giant Kinder Morgan would see the line’s capacity nearly tripled to 890,000 barrels per day, bringing tar sands oil from Alberta to the British Columbia coast. It would also increase tanker traffic carrying the oil through the pristine waters local residents and First Nations groups depend on […]

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EPA To Propose Limit to Ozone Air Pollution Wednesday, Sources Say

WASHINGTON—The Environmental Protection Agency is planning to announce Wednesday a sweeping federal air-pollution standard limiting ground-level ozone, or smog, in the atmosphere, according to people familiar with the plan. The proposal will likely reanimate a battle between businesses and environmental groups that has been dormant for three years. In 2011, the EPA estimated that the proposed standard—set then at the toughest level the agency had yet considered—could cost utilities and other businesses as much as $90 billion a year. Mr. Obama delayed issuing it. The EPA will seek public comment on limiting ozone pollution between 65 and 70 parts per billion of ozone in the air, the people familiar with the matter said, which is in line with what an independent scientific advisory panel had recommended earlier this year. The current level, established in 2008 by the George W. Bush administration, is set at 75 parts per billion. Environmental […]

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Texas oil boom starts taking hits from cheap gas

Falling oil prices are causing some drilling companies to cut back on operations in Texas . Baker Hughes Inc. recently reported shutting down four of its rigs in the Permian Basin of Texas and New Mexico.  Oil rig counts have also dropped in North Dakota’s Bakken shale formation. From this year’s peak, oil prices have dropped 29 percent and are causing a slowdown in oil drilling operations.  Since 2010, gasoline at the pump has reached an all-time low of under $3 per gallon, and crude oil is trading below $80 per barrel. According to Mike W. Thomas of the San Antonio Business Journal, “West Texas Intermediate crude for January delivery settled at $76.51 a barrel recently on the New York Mercantile Exchange.” Pulitzer Prize-winning oil historian and vice chairman of IHS Inc. Daniel Yergin said that oil prices in the lower $70s over a period of six months would […]

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The Real Cost of Fracking: How America’s Shale Gas Boom Is Threatening Our Families, Pets, and Food

Resilience Published on Resilience (http://www.resilience.org) The first researchers to systematically document ill health in livestock, pets, and people living near fracking drill sites were Michelle Bamberger and Robert Oswald. Bamberger, a veterinarian, and Oswald, a professor of molecular medicine at Cornell University, used a case study approach–looking at individual households–to search for possible effects (Bamberger and Oswald 2012). Many fracking chemicals are known carcinogens, endocrine disruptors or other classes of toxins (Colborn et al. 2011). Bamberger and Oswald’s studies, carried out during the ongoing fracking boom, uncovered serious adverse effects including respiratory, reproductive, and growth-related problems in animals and a spectrum of symptoms in humans that they termed “shale gas syndrome”. Ultimately, their research led them to consider fracking’s broader implications for farming and the food system (Bamberger and Oswald 2012 and 2014). Their new book, The Real Cost of Fracking: How America’s Shale Gas Boom Is Threatening Our […]

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German businesses suffer fallout as Ukraine sanctions take hold

Vladimir Putin and Angela Merkel Alexander Schuke Potsdam Orgelbau has supplied pipe organs to cathedrals and concert halls for almost 200 years, surviving a wave of upheavals including war and nationalisation under the communist regime of the former East Germany. But the economic fallout from the conflict in eastern Ukraine has forced the family-owned company to seek insolvency protection. More On this topic IN EU Economy Its problems arose after Ukrainian and Russian customers failed to pay for two instruments that took months to build, leaving the company some €400,000 out of pocket. “A small company like ours cannot withstand that kind of shortfall,” says Matthias Schuke, chief executive. “We’ve never known something like this. We know Russia as a very reliable partner.” Germany’s close business links with Russia , in part a legacy of its cold war Ostpolitik , were once a source of growth and profits. But […]

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France suspends delivery of Mistral warship to Russia

France has been under pressure to cancel its contract with Russia for Mistral war ships French President François Hollande has suspended the delivery of the first of two Mistral helicopter carriers to Russia “until further notice”, in a toughening of his stance over the controversial arms sale. Mr Hollande, who has been under pressure from western allies to scrap the €1.2bn contract amid escalating tensions with Russia over Ukraine , did not go so far as to cancel the contract, but made its suspension indefinite. “The President of the Republic considers that the situation in the east of Ukraine still does not permit the delivery of the first BPC (helicopter carrying and command vessel),” a statement from Mr Hollande’s office said. More On this story On this topic IN Europe “He has therefore decided that it is appropriate to suspend, until further notice, examination of the request for the […]

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Rosneft Chief Says Russia Can’t Immediately Cut Oil Production

By James Marson MOSCOW–Russia can’t immediately cut oil production, the head of Russia’s state oil company said Tuesday after a meeting with senior officials from other major oil producers. Igor Sechin said Rosneft, the world’s largest listed oil company by output, could postpone some capital-intensive projects, which would have some impact on oil supply. But he said Russia, unlike members of the Organization of the Petroleum Exporting Countries, couldn’t cut production immediately. "The current price level isn’t critical for us," he said in a company statement. Mr. Sechin’s comments come ahead of an OPEC meeting on Thursday where officials will discuss oil policy amid recently falling oil prices. Mr. Sechin, a close ally of President Vladimir Putin, met with senior officials from Saudi Arabia, Venezuela and Mexico on Tuesday. Write to James Marson at [email protected] Access Investor Kit for Rosneft Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=RU000A0J2Q06

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South Stream still on Russian table

Russian energy company Gazprom sees South Stream gas pipeline as the answer to European energy security woes. UPI/Shutterstock/Igor Golovniov ATHENS, Greece, Nov. 25 (UPI) — The planned South Stream natural gas pipeline from Russia is a key element to energy security in Europe, Russia’s deputy foreign minister said. Members of the European Parliament in September passed a resolution calling on member states to cancel planned energy sector agreements with Russia, including the South Stream gas pipeline. Russia is facing pressure from Western powers frustrated with the Kremlin’s policies on lingering crises in Ukraine, a former Soviet republic that hosts most of the Russian gas deliveries for the European market. South Stream is touted by Russia as a way to add diversity to a gas transit network dependent on trilateral ties between Brussels, Kiev and Moscow. "Most of our partners understand that the South Stream is their guarantee of gas […]

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Oil Futures Rangebound, Brent Trades Near $80/bbl Mark

By Eric Yep Crude-oil futures moved in a narrow price range in Asian trade Tuesday even as market chatter intensifies ahead of an OPEC meeting on Thursday. On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at $75.80 a barrel at 0512 GMT, up $0.02 in the Globex electronic session. January Brent crude on London’s ICE Futures exchange fell $0.04 to $79.64 a barrel. With talks over Iran’s nuclear program getting extended to June next year markets have shifted focus back to the Nov. 27 meeting of the Organization of the Petroleum Exporting Countries in Vienna. The outline of a possible agreement is becoming a bit clearer with smaller oil producers like Iran, Iraq and Libya likely to be excluded from any production cuts, Citi Futures analyst Tim Evans said. He said a bullish scenario of production cuts would push oil prices back […]

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Oil Falls for First Time in Three Days in Run-Up to OPEC

Brent and West Texas Intermediate declined for the first time in three days as investors weighed the odds of a production cut from OPEC this week. Hedge funds have turned less bullish on oil in the absence of any clear signal from the Organization of Petroleum Exporting Countries that it will act to bolster prices. The 20 analysts surveyed last week by Bloomberg were divided, with half predicting a cut and the rest no action. Saudi Arabia ’s Oil Minister Ali Al-Naimi said today it’s not the first time the oil market has been over-supplied. “Whether they are going to cut is up in the air,” said Paul Crovo, a Philadelphia-based oil analyst at PNC Capital Advisors. “I won’t make big bets either way. There is a lot of expectation that OPEC does need to cut. That’s the perception, and it’s going to drive the market.” Brent for January […]

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Oil Prices Slip as Big OPEC Cut Looks Unlikely

A worker adjusts a valve of an oil pipe at Taq Taq oil field in… ENLARGE A worker adjusts a valve of an oil pipe at Taq Taq oil field in Arbil in Iraq’s Kurdistan region. Reuters Oil prices wavered Monday before settling lower on expectations that the coming meeting of the Organization of the Petroleum Exporting Countries would fail to stem a monthslong plunge in oil prices. Light, sweet oil for January delivery fell 73 cents, or 1%, to $75.78 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 68 cents, or 0.9%, to $79.68 a barrel on ICE Futures Europe. Prices rose earlier in the session on news that negotiations between Iran and six world powers to curb Iran’s nuclear program are to be extended past Monday’s deadline. Sanctions on Iranian oil exports, which are keeping hundreds of thousands of barrels of oil […]

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Oil prices slump after Iranian nuclear row continues

Crude oil prices react to word nuclear negotiators unable to reach comprehensive agreement with Iran. UPI/Maryam Rahmanian Negotiators in Vienna were unable to reach a comprehensive agreement aimed at resolving the impasse over Iran’s nuclear research program. British Foreign Secretary Philip Hammond said progress had been made , though it was "not possible to get an agreement by the [original] deadline." Brent crude oil prices moved above the $80 mark in recent trading days, though word of an extension to June for negotiations with Iran pushed the global benchmark price down by about 50 cents to $79.90 for the January contract. Iran secured modest relief from sanctions one year ago during multilateral talks. Under the terms of an agreement, Iran can export about 1 million barrels of oil per day if it maintains its commitment to curb nuclear activity. It’s unclear how sanctions will be enforced following Monday’s agreement […]

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Crude futures settle lower despite Iranian talks extension

Home | News & Analysis | Latest News Headlines | Crude futures settle lower despite Iranian talks extension New York (Platts)–24Nov2014/404 pm EST/2104 GMT Crude futures settled lower Monday after gains fueled by the extension of nuclear talks between Western powers and Iran were pared toward the close of the trading session. The ICE January Brent futures contract settled 68 cents lower at $79.68/b. Prompt NYMEX crude futures settled 73 cents lower at $75.78/b. ICE January Brent traded as high as $80.85/b before settling just three cents above its intraday low. NYMEX January crude swung as high as $77.02/b. NYMEX refined products also finished the day in negative territory. December ULSD futures settled down 90 points at $2.3955/gal, while December RBOB futures closed 2.31 cents lower at $2.0334/gal. The foreign ministers of Iran and the five permanent members of the UN Security Council plus Germany were meeting in Vienna […]

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OPEC Said to Consider Sparing Three Nations From Oil Cuts

OPEC is considering sparing three nations from participating in potential oil-production cuts, two people with knowledge of the proposal said. Saudi Arabia ’s oil minister said he doesn’t anticipate a difficult meeting when the group meets on Nov. 27 to decide its response to slumping crude. Iraq, Iran and Libya wouldn’t have to reduce supplies should the Organization of Petroleum Exporting Countries agree to cut output at its gathering in Vienna, according to the people, who asked not to be identified in line with their national policies. Ali Al-Naimi , Saudi Arabia’s oil minister, told reporters in the Austrian capital today that it’s not the first time the oil market has been oversupplied. Crude prices plunged into a bear market this year amid the highest U.S. oil production in more than three decades and speculation that Saudi Arabia wouldn’t cut output in response to a surplus. Oil-market analysts are […]

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