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Texas oil pipeline network to expand

New pipeline infrastructure planned for Texas by midstream company Enterprise Products Partners. File Photo by UPI/Shutterstock/Kodda. HOUSTON, May 1 (UPI) — Oil customers in the U.S. market will have links to most Texas refineries and ports once a string of new pipelines come online, Enterprise Products said Friday. Midstream company Enterprise Products Partners announced it had the long-term agreements in place to support the development of a 416-mile pipeline to send crude oil and condensate, an ultra-light grade of oil found largely in U.S. shale deposits, from its terminal in Midland, Texas, to a storage facility in Sealy, west of Houston. The new pipeline would be able to carry as much as 540,000 barrels per day, largely from the Permian shale basin in Texas, and be in service by 2017 . From there, it would connect to the company’s so-called ECHO terminal and associated pipeline infrastructure, expected online by […]

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Bakken Rig Count Increases by One

Crude and Natural Gas Prices on the Rise The Bakken-Three Forks rig count increased this week to 80 rigs running across our coverage area by midday Friday. In recent Bakken news, North Dakota lawmakers cleared the way to change a 30 year old tax structure that gave some tax breaks for the oil industry have been linked to a price “trigger.”  Debate in North Dakota’s House was fierce and ended in a 66-26 vote in favor of cutting the state’s oil tax rate from 11.5 percent to 10 percent. Read more: Lower Oil Tax for North Dakota The U.S. rig count fell again this week by 27 ending, ending with 905 rigs running by midday Friday.  A total of 222 rigs were targeting natural gas (and decrease of three from the previous week) and 679 were targeting oil in the U.S. (24 less than the previous week). The remainder […]

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U.S. Tank-Car Rule to Require Electronic Train Brakes

ENLARGE U.S. transportation regulators issued tough new rules for railroads hauling crude oil and ethanol that will require trains be equipped with expensive new brake systems. Photo: Associated Press U.S. transportation regulators Friday issued tough new rules for railroads hauling crude oil and ethanol that will require trains be equipped with expensive new brake systems. The regulations also require that sturdier tank cars be built for hauling oil, ethanol and other flammable liquids and prescribes upgrades for an estimated 154,500 tank cars already carrying flammables. Trains carrying large amounts of crude oil will be restricted to 30 mile an hour speeds if they don’t have new electronic brakes installed by 2021. Other flammable liquids, including ethanol in high volumes would be speed-restricted after 2023. Trains with either a block of 20 or more cars or a total of 35 or more cars of flammable liquid will be required to […]

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Five Years After First Bailout, Greece Back on the Brink

Greece is once more on the brink of failing. Why now? What happens if it goes bankrupt? WSJ’s Jason Bellini has #TheShortAnswer. ATHENS—Five years into the biggest bailout of a debtor in history, Greece is closer to the brink than ever, with time running out to avert a bankruptcy that could destabilize not only the eurozone, but the global economy as well. When Europe and the International Monetary Fund first agreed to bail Greece out on May 2, 2010, the plan was to return Greece to growth and bond markets within three years. Instead, after half a decade and €245 billion ($274 billion) in promised loans, the two sides have reached an impasse. Although Greece has come close to financial meltdown before, the ideological divide has never been deeper. The government’s refusal to inflict on an exhausted society the further belt-tightening that creditors insist is needed has created a […]

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Chevron’s Results Beat Expectations

Employees work on a storage tank inside Chevron’s Richmond, Calif., refinery. ENLARGE Photo: David Paul Morris/Bloomberg News Chevron Corp. CVX -1.82 % said on Friday its first-quarter earnings dropped 43% amid slumping crude oil prices, though strength in its refining segment helped put the results above analysts’ estimates. Chevron, the second-biggest U.S. oil company in market value behind Exxon Mobil Corp. XOM 1.69 % , has been working to increase its oil-and-gas output. In the latest quarter, its daily oil-equivalent production rose to 2.68 million barrels from 2.59 million barrels a year earlier. On Thursday, Exxon also posted a sharp drop in profit while exceeding Wall Street expectations. Both energy companies have moved to trim spending as the collapse in oil prices wiped billions of dollars from their cash flow, and Chevron stopped buying back its shares. Chevron, which is based in San Ramon, Calif., said Friday it is […]

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U.S. Oil Rig Count Falls for 21st Straight Week

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 58% fewer rigs compared with a peak of 1,609 in October, and Friday’s report marks the 21st straight week of declines, boosting expectations U.S. crude-oil production is near a peak. Ahead of the release, energy-advisory firm Ritterbusch & Associates speculated a drop of fewer than 15 to 20 rigs could push oil prices lower, while a drop of more than 30 to 35 might have the opposite effect. U.S. oil prices hit 2015 highs recently on hopes production is finally showing signs of falling. U.S. crude-oil futures were recently down 1.9% at $58.50. According to Baker Hughes, gas rigs were down three to 222 this week. Offshore rig count was 34, unchanged from last week and down 20 from a year earlier. For all […]

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U.S. Oil Rig Count Falls for 21st Straight Week

By Angela Chen The U.S. oil-rig count fell by 24 to 679 in the latest week, the lowest level since September 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 58% fewer rigs compared with a peak of 1,609 in October, and Friday’s report marks the 21st straight week of declines, boosting expectations U.S. crude-oil production is near a peak. Ahead of the release, energy-advisory firm Ritterbusch & Associates speculated a drop of fewer than 15 to 20 rigs could push oil prices lower, while a drop of more than 30 to 35 might have the opposite effect. U.S. oil prices hit 2015 highs recently on hopes production is finally showing signs of falling. U.S. crude-oil futures were recently down 1.9% at $58.50. According to Baker Hughes, […]

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Canada Not Aligned With U.S. on New Oil Train Brake Requirement

May 1, 2015 1:53 p.m. ET By Paul Vieira OTTAWA–Canada refrained on Friday from immediately matching a new U.S. brake-system rule for trains carrying dangerous goods, saying more discussion with the domestic rail industry was required. The rule, which would require trains be equipped with an expensive electronic brake system by 2021, was unveiled in a joint announcement in Washington by Canadian Transport Minister Lisa Raitt and her U.S. counterpart, Secretary of Transportation Anthony Foxx. Ms. Raitt said she has asked government officials to work with Canadian industry "to determine a Canadian solution" that harmonizes with a final U.S. braking rule. The new rule, part of a set of regulations aimed at harmonizing tankcar standards for both countries, would require trains with 70 or more tankcars loaded with a flammable liquid to operate with an electronically controlled pneumatic braking system. This feature is costly, but is said to provide […]

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Alaska residents are paid a unique yearly dividend from state’s permanent fund

graph of Alaska permanent fund value and dividend, as explained in the article text The Alaska Permanent Fund, established using revenues paid to the state by oil and natural gas producers, provides Alaska residents with an annual cash dividend, which is unique among natural resource permanent funds in the United States . In 2014, the annual dividend was $1,884 per resident, more than double the 2013 dividend and the highest since 2008. All Alaska residents receive an annual cash dividend from the permanent fund. The fund was established by voters in 1976, as the extent of Alaska’s oil and natural gas resources began to emerge, and retains at least 25% of the royalties that oil and natural gas producers pay to produce on leased state lands. Those royalties have provided $800 million or more to the fund annually in recent years. The permanent fund is now worth more than […]

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BHI: US rig count loses 27 units, down 1,015 units since Dec. 5

HOUSTON, May 1 OGJ Staff Writer The US drilling rig count fell 27 units—all on land—to 905 rigs working during the week ended May 1, according to data from Baker Hughes Inc. The count has now plunged 1,015 units over 21 weeks since the week ended Dec. 5 ( OGJ Online, Dec. 5, 2014 ). The total of 905 is the lowest since June 19, 2009, and 949 fewer units compared with this week a year ago. The rig count’s nadir during the 2008-09 downturn was 876 units on June 12, 2009. During the week, oil rigs fell 24 units to 679, down 848 year-over-year and 930 since a recent peak of 1,609 on Oct. 10. Gas rigs fell 3 units to 222. Rigs considered unclassified were unchanged at 4. Land rigs now total 868, down 918 year-over-year. Rigs engaged in horizontal drilling dropped another 21 units to 699. […]

Posted On : Published By : Tom Whipple