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China upbeat on gasoline demand as gas guzzlers become popular

The Chinese bought nearly 49% more gasoline-guzzling sports utility vehicles, or SUVs, in the first quarter of 2015 compared with Q1 2014 — a statistic that is expected to support China’s gasoline demand growth. According to data from the China Association of Automobile Manufacturers, sales of multi-purpose vehicles, or MPVs, rose by 19.3% year on year in Q1. The trend of strong sales growth in these gasoline guzzlers more than offset the adverse impact on gasoline demand due to overall slowdown in vehicle sales growth in China. According to CAAM, total vehicle sales rose just 4% year on year in Q1 compared with 9% a year earlier. In a research note covering state-owned PetroChina published April 29, Nomura Research said the increasing popularity of SUVs in China could translate into higher-than-expected gasoline sales. "Although fuel efficiency is increasing, SUVs in general can burn 20% more fuel versus lighter sedans […]

Posted On : Published By : Tom Whipple
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U.S. private payrolls growth eases; productivity falls

WASHINGTON (Reuters) – U.S. private employers in April hired the fewest number of workers in more than a year, further diminishing hopes of a strong rebound in economic growth after the first-quarter slump. The tepid private job gains combined with other data on Wednesday showing a second straight quarterly decline in productivity make it less likely the U.S. Federal Reserve will raise interest rates in June as had been expected at the start of the year. "The data pile onto recent evidence suggesting increased odds that, by the time the June policy meeting rolls around, the hope of a great spring rebound in real growth will have faded," said Steve Blitz, chief economist at ITG Investment Research in New York. Private payrolls increased 169,000 last month, the smallest gain since January 2014, the ADP National Employment Report showed. That was well below economists’ expectations for an increase of 200,000 […]

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Oil train derailment prompts evacuation in North Dakota town

AP Photo BISMARCK, N.D. (AP) — An oil train derailed and caught fire early Wednesday in a rural area of central North Dakota, prompting the evacuation of a nearby town where about 20 people live. No injuries were reported in the accident about 7:30 a.m. near Heimdal, about 115 miles northeast of Bismarck. Ten tanker cars on the BNSF Railway train caught fire, creating thick black smoke, state Emergency Services spokeswoman Cecily Fong said. Firefighters from four area communities responded, and regional hazardous materials teams from Grand Forks and Devils Lake went to the scene, Fong said. Ten investigators from the Federal Railroad Administration were traveling to the area, said spokesman Kevin Thompson. The National Transportation Safety Board also was sending a team. The Environmental Protection Agency was sending someone to gauge any contamination to waterways in the vicinity, spokesman Rich Mylott said. The rail line through Heimdal runs […]

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Crude oil train derails in North Dakota

Small town in central North Dakota evacuated after train carrying crude oil derails. Image: Google Maps HEIMDAL, N.D., May 6 (UPI) — Federal regulators said Wednesday a North Dakota town was evacuated after several tank cars carrying crude oil derailed and caught fire. Ten responders from the Federal Railroad Administration were dispatched to Heimdal, N.D., to investigate the cause of the incident. The small town of less than 50 residents in central North Dakota was evacuated as a security precaution. "Today’s incident is yet another reminder of why we issued a significant, comprehensive rule aimed at improving the safe transport of high hazard flammable liquids," acting Federal Railroad Administrator Sarah Feinberg said in a statement. "The FRA will continue to look at all options available to us to improve safety and mitigate risks." Cecily Fong, a spokeswoman for the North Dakota State Emergency Services, said in a telephone interview […]

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Oxy output boosted by Permian shale

Occidental Petroleum boosts production forecast after showing an increase in the first quarter, largely from Texas shale deposits UPI/Gary C. Caskey HOUSTON, May 6 (UPI) — Occidental Petroleum said Wednesday first quarter production was up 13 percent year-on-year in part because of output from the Permian shale in Texas. Occidental, known by its ticker symbol Oxy, said first quarter production rose year-on-year by 72,000 barrels of oil equivalent. "The increase was led by Permian resources which delivered a 46-percent increase to 98,000 boe per day, of which oil production grew by 25,000 barrels a day," President and Chief Executive Officer Stephen Chazen said in a statement Texas is the No. 1 oil producer in the nation. The Railroad Commission of Texas, the state’s energy regulator, said preliminary data from February show crude oil production averaged 2.34 million barrels per day. That’s an increase of 5.2 percent , or 117,550 […]

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Chesapeake Energy Swings to Loss on Write-Down

ENLARGE A worker walks past equipment at a Chesapeake Energy hydraulic fracturing operation near Carrizo Springs, Texas. Photo: John Davenport/San Antonio Express-News/Zuma Press Chesapeake Energy Corp. CHK -7.82 % swung to a heavy loss in the first quarter as the U.S. shale driller took a $3.6 billion write-down on some properties amid tumbling oil and natural gas prices. Excluding the impairment and other special charges, profit came in above expectations. Earlier this year, Chesapeake announced plans to reduce its rig operations to their lowest level since 2004 amid falling crude-oil and natural gas prices. It said it would reduce capital expenditures by 37% and drop the number of rigs drilling for new oil and gas finds by about 38%. Chesapeake has struggled to recover from years of aggressive spending as the land-grab approach the company pioneered for oil and gas drilling meant it spent more than its wells generated […]

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What the Future of Oil Drilling Will Look Like

Much development in the Bakken Shale has been chaotic. Liberty is aiming for a more methodical approach. Photo: Karen Bleier/AFP/Getty Images TIOGA, N.D.—The future of the U.S. oil industry may well be taking shape north of this town on 15 square miles of windswept prairie above the Bakken Shale. It’s about as far from the industry’s wildcatting heritage as is thinkable. “Our idea was to build the world’s greatest oil factory,” says Chris Wright, the chief executive of Liberty Resources LLC. And if the U.S. oil industry is going to overcome several significant challenges, it may have to follow the lead of this small Denver-based company. The U.S. oil industry boomed when crude oil prices were high, but has entered a world where low oil prices may be the norm for a while. Saudi Arabia says it won’t cut production to reduce supply, leaving U.S. companies vulnerable. After years […]

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Schumer bill would phase out older rail tank cars within 2 years

WASHINGTON, DC, May 6 US Sen. Charles E. Schumer (D-NY) said he would introduce legislation requiring US railroads to replace tank cars carrying crude oil and other hazardous substances more quickly than new US Department of Transportation rules require. His announcement came 2 days after US and Canadian railway transportation regulators jointly announced the regulations ( OGJ Online, May 1, 2015 ). The regulations are a step in the right direction, but do not go far enough, Schumer said during a May 4 appearance in Menands, NY. Specifically, he said DOT’s new rules DOT-111 tank cars and their Canadian CPC-1232 tank cars to remain in service through 2023. His measure would require them to be gone within 2 years, he noted. “Allowing these outdated oil cars to continue rolling through our communities for another 8 years is a reckless gamble that we can’t afford to make,” Schumer said. Railroads […]

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California approves first statewide seawater desalination rules

SACRAMENTO, Calif. (Reuters) – California regulators on Wednesday adopted the first statewide rules for the permitting of seawater desalination projects that are expected to proliferate as drought-stricken communities increasingly turn to the ocean to supplement their drinking supplies. The action, which sets uniform standards for minimizing harm to marine life, was welcomed by developers of the state’s two largest desalination projects as bringing much-needed certainty and clarity to the regulatory approval process. "It reaffirms that the Pacific Ocean is part of the drinking water resources for the state of California," Poseidon Water executive Scott Maloni told Reuters after the rule was enacted on a voice vote in Sacramento by the State Water Resources Control Board. The measure leaves the permitting process in the hands of the state’s regional water boards while establishing a single framework for them to follow in evaluating applications to build seawater treatment plants, expand existing […]

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Gas prices or economy, experts disagree on what drives U.S. demand

NEW YORK (Reuters) – Americans hit the road in record numbers this winter, reigniting a long debate that may determine whether global oil markets hold steady or tumble anew. But many economists and academics are split on whether prices matter when it comes to gasoline demand. On the face of it, the answer seems obvious. The over 40 percent slide in nationwide gas prices last year to nearly $2 a gallon led to more frequent and longer drives, fuelling a 5 percent jump in gas use in December and January, the fastest such growth in 11 years, according to U.S. government data. Yet many energy economists have long argued that it is economic activity and employment, not prices, that hold the greatest sway over how much gas Americans burn each day. "More jobs means more commuters,” says Phillip Verleger, president of consultancy PKVerleger and energy economist. However, some academics […]

Posted On : Published By : Tom Whipple