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TransCanada Asks U.S. Permission for New Pipeline Amid Keystone Delay

WASHINGTON— TransCanada Corp., the Canadian energy giant behind the Keystone XL pipeline, is asking the U.S. government to permit a new and different pipeline project. The Calgary, Alberta–based company filed an application with the State Department on Wednesday to receive a presidential permit that will let it construct a 200-mile pipeline across the U.S.-Canadian border, according to a company spokesman. The proposed $600-million Upland Pipeline Project, first reported by The Wall Street Journal in February , aims to transport up to 300,000 barrels a day of North Dakota crude to a connection in Saskatchewan. From there, approximately 70,000 barrels of that oil is expected to flow on TransCanada’s planned Energy East pipeline, which aims to ship up to 1.1 million barrels of oil a day nearly 3,000 miles across Canada to refineries and ports along the country’s East Coast. The rest of the capacity would feed other pipelines, although […]

Posted On : Published By : Tom Whipple
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U.S. Oil Rig Count Falls Again

The U.S. oil-rig count fell by 31 to 703 in the latest week, the lowest level since October 2010, according to Baker Hughes Inc. The number of U.S. oil drilling rigs—a proxy for activity in the oil industry—has fallen sharply since prices headed south last year. There are now 56% fewer rigs compared with a peak of 1,609 in October, and Friday’s report marks the 20th-straight week of declines. U.S. oil prices hit their 2015 highs recently on hopes production is finally showing signs of falling. U.S. crude-oil futures were recently down 1.2% at $57.11. According to Baker Hughes, gas rigs were up eight to 225 this week. Offshore rig count was 34, up one from last week and down 20 from a year earlier. For all rigs, including natural gas, the week’s drop was 22 to 932. The data report two weeks ago showed the first drop below […]

Posted On : Published By : Tom Whipple
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Canada Issues Directive Aimed at Slowing Crude-Carrying Trains

ENLARGE In this July 6, 2013, photo, smoke rises from railway cars that were carrying crude oil after derailing in downtown Lac Megantic, Quebec. The Canadian government issued an emergency directive late Thursday aimed at slowing crude-carrying trains traveling through urban areas. Photo: Associated Press Canada issued an emergency directive late Thursday aimed at slowing crude-carrying trains traveling through urban areas and requiring increased inspections and risk assessments along key routes used for transporting dangerous goods. The directive is the latest in a series of steps by the Canadian government to boost rail safety in the wake of a number of derailments of crude-carrying trains as crude-by-rail shipments rise. Trains will be required to slow to a maximum of 40 miles an hour through highly urbanized areas, Transportation Minister Lisa Raitt in a statement. She also ordered more inspections and risk assessments along major routes used for the transport […]

Posted On : Published By : Tom Whipple
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Glut of Capital and Labor Challenge Policy Makers

A coal shoot loads barges with coal outside Pittsburgh. ENLARGE Photo: Bloomberg News The global economy is awash as never before in commodities like oil, cotton and iron ore, but also with capital and labor—a glut that presents several challenges as policy makers struggle to stoke demand. “What we’re looking at is a low-growth, low-inflation, low-rate environment,” said Megan Greene, chief economist of John Hancock Asset Management, who added that the global economy could spend the next decade “working this off.” The current state of plenty is confounding on many fronts. The surfeit of commodities depresses prices and stokes concerns of deflation. Global wealth—estimated by Credit Suisse at around $263 trillion, more than double the $117 trillion in 2000—represents a vast supply of savings and capital, helping to hold down interest rates, undermining the power of monetary policy. And the surplus of workers depresses wages. Meanwhile, public indebtedness in […]

Posted On : Published By : Tom Whipple
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What the Next Two Weeks Holds in Store in the Greek Crisis Saga

People sit at the foot of Acropolis Hill in Athens, Greece. Photographer: Kostas Tsironis/Bloomberg A euro area finance ministers meeting over the disbursement of bailout funds ended in acrimony on Friday, as creditors expressed frustration with the country’s refusal to comply with the terms attached to its emergency loans. While focus now turns on a May 6 interest repayment to the International Monetary Fund and the next Eurogroup meeting on May 11 in Brussels, the country has a number of funding hurdles to clear before then and beyond. From Monday through to the end of the month, the government needs to pay pensions and salaries to civil servants and retirees. The country’s alternate finance minister, Dimitris Mardas said Wednesday there’s not enough cash in state coffers to meet these obligations, unless local authorities comply with a decree ordering them to transfer reserves to the Bank of Greece for short-term […]

Posted On : Published By : Tom Whipple
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Oil prices edge down from 2015-highs, but set for weekly gain

SINGAPORE (Reuters) – Oil prices held steady on Friday near 2015-highs reached the session before, remaining on track for weekly gains after renewed air strikes in Yemen stoked concerns on the security of Middle East oil shipments. Crude prices on both sides of the Atlantic have surged almost $10 a barrel this month amid rising tension in the Middle East, while slowing U.S. production growth and signs of stronger global demand have also provided support. Brent crude for June delivery had climbed 22 cents to $65.09 a barrel by 0706 GMT (3.06 a.m. ET), after settling up $2.12 on Thursday. The benchmark touched its highest since Dec. 10 at $65.58 on Thursday. U.S. crude for June delivery rose 8 cents to $57.82 a barrel, after settling up $1.58. The front-month contract hit a 2015-high of $58.41 on Thursday and is on course for its sixth straight weekly gain. The […]

Posted On : Published By : Tom Whipple
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U.S. Oil Prices Hit 2015 High on Supply Expectations

ENLARGE Pumping equipment in North Dakota. Traders are watching for signs that robust U.S. crude-oil production is easing. Photo: Associated Press Oil prices rose to their highest level of the year on Thursday on expectations the oversupply of crude oil may be shrinking and concerns about violence in the Middle East. Light, sweet crude for June delivery settled up $1.58, or 2.8%, to $57.74 a barrel, the highest settlement since Dec. 12, on the New York Mercantile Exchange. Brent, the global benchmark, rose $2.12, or 3.4%, to $64.85 a barrel on the ICE Futures Europe exchange, the highest level since Dec. 9. In the U.S., signs of elevated demand for gasoline fuels boosted prices, along with a reported drop in crude-oil supplies at a key storage hub. Stockpiles of gasoline in the U.S. fell more than expected last week to the lowest level of the year, the Energy Information […]

Posted On : Published By : Tom Whipple
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Oil prices edge lower on rising U.S. inventories

SINGAPORE (Reuters) – Oil prices fell slightly on Thursday as rising U.S. crude inventories due to robust shale production outweighed concerns over renewed air strikes in Yemen. Saudi-led coalition warplanes continued bombing Yemen on Wednesday despite an announcement by Riyadh a day earlier that it was ending its campaign of air strikes. While Yemen is not among the biggest producers in the Middle East, others in the region ship crude bound for Europe along the Gulf of Aden on Yemen’s southern coast and through the narrow straits of Bab el-Mandeb, between Yemen and Djibouti. Oil prices have risen as much as $10 this month due to concerns over potential supply disruption as well as signs of stronger global demand. Brent crude for June delivery was down 40 cents at $62.33 a barrel by 0724 GMT, after settling 65 cents higher. U.S. crude for June delivery was trading 30 cents […]

Posted On : Published By : Tom Whipple