Does Canada Need More Oil Sands Pipelines?

19 Sep 2017   Canada, Pipelines

The claim that building more pipelines to carry Canada’s oil sands production to ports for export will unlock significantly higher prices for bitumen is not supported by either past or current market conditions, a new study shows . According to Jeff Rubin, senior fellow at the Centre for International Governance Innovation, overseas markets pay even lower prices for bitumen than in North America, so there is no economic case for additional pipeline capacity to tidewater or expanded oil sands production. In his report , Rubin says that global agreements to reduce global carbon emissions over the next three decades will also reduce the size of future oil markets, not to mention the emerging push for electric vehicles. CIGI argues that there is no economic case for additional pipeline capacity to tidewater or expanded oil sands production. As expected, the government of the province of Alberta, Canada’s oil sands production […]

Colonial Pipeline Allows Port Arthur Refiners To Ship Fuel After Harvey

19 Sep 2017   Pipelines

Colonial Pipeline, the largest fuel system in the United States, said on Monday that Port Arthur, Texas refiners can use their own pumps as a temporary solution to get gasoline and other products into its main lines. Flow rates on Colonial’s lines, which supply more than 3 million barrels a day of fuel to the populous U.S. east coast, have been sharply reduced after Hurricane Harvey caused massive floods and damaged supply points, including at Port Arthur. The Port Arthur facility connects directly to Total and Valero’s refineries in Jefferson County, Texas. Traders said that while Colonial’s move may help resume shipments from Port Arthur, flow rates through the line overall would still likely remain low until repairs are complete. Colonial did not disclose current flow rates. Repairs at the Port Arthur injection point are expected to last through the end of the month, Colonial […]

Forget Oil, Water Is New Ticket for Pipeline Growth in Texas

19 Sep 2017   Pipelines

The torrent of dirty water coming out of almost every American oil well is the next big bet for a former fund manager for billionaire Paul Allen. Getting rid of wastewater from onshore wells has become an increasingly costly problem for oil producers as U.S. crude output surged in recent years, especially in the new shale fields from Texas to North Dakota. Drillers typically get about seven barrels of water for every one of oil, and some struggle to deal with the overflow that is mostly sent by truck to disposal sites miles away. David Capobianco, a former managing director for Allen’s Vulcan Capital, is trying to change that by building pipelines to get wastewater out. His newly formed WaterBridge Resources LLC aims to be a water-management company for oilfields. The firm is considering a public share listing within a year to 18 months, taking advantage of […]

Natgas pipeline builders hail U.S. okay of blocked New York project

16 Sep 2017   Pipelines

Energy traders and natural gas pipeline companies on Friday hailed a U.S. federal regulator’s decision to overturn New York’s denial of a water permit for building the Millennium Pipeline in the state. People in the industry expressed hope that the U.S. Federal Energy Regulatory Commission would be willing to override state decisions to block other pipelines, including Williams Cos Inc’s Constitution and National Fuel Gas Co’s Northern Access pipelines from Pennsylvania. These could also be approved if similar waivers are granted by FERC. FERC, which is in charge of U.S. energy regulation, now has three members, after two new commissioners were appointed by President Donald Trump. Environmental groups and other opponents of fracking blasted the decision, saying it violated the state’s authority. The New York Department of Environmental Conservation said it was reviewing whether to appeal FERC’s decision, “and will consider all legal options to protect public […]

Trans Mountain oil pipeline in Canada short on safeguards

16 Sep 2017   Canada, Pipelines

The parties behind the Trans Mountain oil pipeline to Canada’s western coast haven’t yet completed what they need to for the environment, a regulator found. The National Energy Board approved of Kinder Morgan ‘s plans to triple the capacity of the network to around 890,000 barrels of oil per day in November, though vetting is still under way for some aspects. The project is part of a national effort to tap into markets outside North America as nearly all of Canada’s oil exports go to the United States. The NEB said it completed a pre-construction audit and found planners haven’t yet laid out plans regarding safety and environmental protection during the build process. “This pre-construction audit is one of […]

Protesters Jailed Over Natural Gas Pipeline Protest In Virginia

16 Sep 2017   Pipelines

Nineteen protestors were arrested during a protest in Richmond, Virginia, against the construction of the Atlantic Coast and Mountain Valley natural gas pipelines. The demonstration of roughly 40 people occurred outside of the Virginia Department of Environmental Quality, which is charged with granting water quality permits to the developers of the pipeline. “This is an area where we are being rocked by extreme weather. Hurricane after hurricane and the wildfires in the west. We can’t get a break. We need to tell them to stop right now and leave it in the ground,” said Jamshid Bakhtiari of the Chesapeake Climate Action Network in Virginia told a local news station . Dominion Energy, the company developing the pipeline, responded: “I think it was very disappointing that these groups thought that the best way to support the victims of Hurricane Irma was to get arrested. Our company took a very different […]

Colonial to pump fuel through Port Arthur facility at reduced rates after Harvey

9 Sep 2017   Pipelines, USA

Colonial Pipeline Co, the biggest U.S. fuel system, said on Friday it expects the full restart of its crucial supply point at Port Arthur, Texas by the end of the month after Hurricane Harvey dumped heavy rains and caused flooding. In the meantime, Colonial is considering allowing shipments of fuel through the Port Arthur pumping facility at a reduced rate, starting September 15th. The Port Arthur region is home to Motiva Enterprises’ 603,000 barrel per day (bpd) Port Arthur refinery, the country’s biggest. Other refiners that operate in the area include Valero Energy Corp, which has a 335,000 bpd refinery, and Total SA, which has a 225,500 bpd plant. Gulf Coast facilities are slowly recovering from the devastating effects of Hurricane Harvey, which hammered Louisiana and Texas for several days, shutting key infrastructure in the heart of the U.S. oil and natural gas industry. Colonial’s […]

TransCanada may abandon Energy East pipe facing tougher review

8 Sep 2017   Canada, Pipelines

TransCanada Corp ( TRP.TO ) will suspend the application for its Energy East pipeline for 30 days and may abandon the project, the company said on Thursday, weeks after Canada’s National Energy Board (NEB) regulator announced a tougher review process. TransCanada will do a “careful review” of the new assessment process to gauge its effect on the costs, schedules, and viability of the pipeline to the Atlantic coast, the company said in a statement. The NEB in August expanded the scope of Energy East’s review, saying it will consider the project’s indirect greenhouse gas contributions and will provide “more visibility” to the evaluation of risks associated with accidents such as oil spills. Energy East, which would take crude from […]

To Understand Pipeline Economics, Follow the Money

8 Sep 2017   Pipelines

I have worked for electric and gas utilities in other states, so I am interested in seeing a modern energy system developed in Virginia. I prefer to find solutions where everyone wins, but Virginia is currently split between those who want to protect our land and waters and those who want the lower cost energy and jobs they think pipelines will bring. We can find ways where all interests are served, but we will have to reshape the plans that have been proposed. The promised economic benefits are what have motivated many political and business leaders to support the Atlantic Coast Pipeline (ACP). Let’s set aside the environmental issues and focus on the economics. In dealing with contentious issues, it’s often hard to find agreement on the “facts.” We can avoid disagreement by using information that the pipeline owners (Dominion Energy, Duke Energy, and Southern Company, the parent company […]

Colonial Pipeline restarts gasoline Line 1

6 Sep 2017   Pipelines

Colonial Pipeline, the largest US refined products pipeline, resumed gasoline shipments on its Line 1 from Houston and Pasadena, Texas, the company said Tuesday. That returned the full system to service after Hurricane Harvey knocked out pumping from all Texas locations. Colonial resumed pumping of diesel and jet fuel shipments on its Line 2 from Houston on Monday. Valero Energy, the largest independent US refiner, has told federal regulators the ramp-up of its Houston-area refineries after Harvey could be stalled by a snag over gasoline specifications allowed on Colonial. The refiner said it wants to move winter-grade gasoline on the pipeline, in line with the US Environmental Protection Agency’s waiver lifting summer-grade gasoline requirements in 38 states and the District of Columbia two weeks early. Colonial filed its own emergency request to the Federal Energy Regulatory Commission asking for the same action. Enterprise Products Partners has restarted “substantially all […]

Key fuel lines restart as concerns ease over supply crunch after Harvey

4 Sep 2017   Pipelines

Two key fuel pipelines were set to start up on Monday after certain segments in Texas were shut because of Hurricane Harvey, helping alleviate concerns about rising retail prices and the domestic distribution of gasoline and distillates. Colonial Pipeline Co, the biggest U.S. fuel system, said on Sunday it planned to reopen the main distillate line between Houston and Hebert, Texas, on Monday, and the gasoline line between those two points on Tuesday. The company had initially aimed to restart both its lines by Sunday. The company’s pipelines connect refineries along the U.S. Gulf Coast to markets in the Northeast, transporting more than 3 million barrels a day of gasoline, diesel and jet fuel. Explorer Pipeline said late on Sunday that its Texas-to-Oklahoma 28-inch fuel pipeline started up as expected. Its 24-inch fuel pipeline, which will run from Oklahoma into the U.S. Midwest, will restart on […]

Canada band raises new issue in Kinder Morgan pipeline challenge

31 Aug 2017   Canada, Pipelines

A crude oil storage tank at Kinder Morgan’s Trans Mountain Pipeline terminal is seen in Kamloops, British Columbia, Canada November 15, 2016. Chris Helgren CALGARY, Alberta (Reuters) – A Canadian aboriginal band seeking to stop Kinder Morgan Inc’s Trans Mountain pipeline expansion has asked a court to consider the federal government’s position for a tougher review on a rival project. The west coast Tsleil-Waututh Nation made the request in a letter to the Federal Court of Appeal seen by Reuters this week. The request came after Canada’s resource regulator announced a tougher upcoming review for TransCanada Corp’s Energy East pipeline last week, but the request cites the federal government’s May recommendation for that review. The request was part of a legal challenge that, if successful, would quash the federal approval for the C$7.4 billion ($5.9 billion) Trans Mountain project and cause lengthy delays. Kinder Morgan and the federal government, […]

Canadian oil pipeline protesters launch new battle from the water

30 Aug 2017   Canada, Pipelines

On a sparsely populated island off the coast of the northwestern United States, more than a hundred environmental activists gathered last weekend to practice seaborne drills to disrupt construction on Kinder Morgan Canada Ltd’s Westridge crude oil terminal. In kayaks and sailboats they practiced forming blockades, raising banners and rescue techniques. Sunday culminated in a mass role play in which kayakers blockaded a large vessel and unfurled banners emblazoned with “Stop Kinder Morgan” while pretend law enforcement boats circled around creating noise, waves and simulating arrests. The three-day camp on Lopez Island in Washington state’s San Juan archipelago marks the opening of a new front in the campaign to stop Kinder Morgan’s Trans Mountain pipeline expansion, a C$7.4 billion ($5.90 billion) project through British Columbia that gained Canadian government approval last year. The proposed project would triple capacity on an existing pipeline and transport 890,000 […]

East Coast May Face Fuel Shortages After Storm Disrupts Major Pipeline

30 Aug 2017   Pipelines, USA

The Colonial Pipeline stretches 5,500 miles through 12 states, including the Pelham junction and tank farm in Pelham, Ala. Flooding in Texas has disrupted the flow of fuel on a major pipeline that moves gasoline, diesel and jet fuel to the East Coast. The Colonial Pipeline said its system, which runs from Texas to New Jersey, is starting to have problems stemming from Hurricane Harvey . The notice from the company adds to concern that Houston’s hard-hit energy infrastructure could result in higher fuel prices or shortages in other parts of the country. Service at the pipeline’s fuel loading and pumping stations in Houston, Pasadena and Cedar Bayou, Texas, have been interrupted. That doesn’t mean the entire pipeline network isn’t operating, but it does mean that less fuel is going into the pipeline Tuesday. The Colonial is the biggest fuel pipeline in the U.S., stretching 5,500 miles through 12 […]

Nordic investors reject Dakota pipeline operator’s allegations

30 Aug 2017   Pipelines, USA

 Nordic investors rejected on Tuesday allegations in a lawsuit by the operator of Dakota Access Pipeline (DAPL) that they divested from the project due to pressure from Greenpeace and other environmental groups. The $3.8 billion pipeline, the focus of months of protests by Native American and green groups over tribal sovereignty and the risk of water contamination, started pumping oil in May. The pipeline’s operator Energy Transfer Partners LP sued Greenpeace last week, saying the negative publicity against it, its sister company Energy Transfer Equity LP and other firms caused billions of dollars in damage. Nordic bank Nordea, Norwegian private pension fund Storebrand, Norway’s public sector pension fund KLP and Norwegian commercial bank DNB, mentioned in the lawsuit, said their decisions to divest from the […]

British Columbia Vows to Block Pipeline Expansion

11 Aug 2017   Canada, Pipelines

The government of British Columbia, Canada’s westernmost province, vowed Thursday to use every legal option to stop construction of Kinder Morgan Inc.’s planned expansion of a pipeline connecting the Alberta oil sands with the Pacific Coast. Under new, left-leaning leadership and citing risks to its environment and food supply, the province began to detail its plan to halt the energy project that Prime Minister Justin Trudeauapproved…

US Energy Agency to Take on $50 Billion Backlog as Senate Acts

9 Aug 2017   Pipelines, USA

The main U.S. energy regulator can get back to the business of approving multibillion-dollar natural gas pipelines after the Senate moved to fill two of four vacancies at the long-crippled agency. Senators on Thursday confirmed the nominations to the Federal Energy Regulatory Commission of Robert Powelson, former chairman of the Pennsylvania Public Utility Commission, and Neil Chatterjee, a senior aide to Senate Majority Leader Mitch McConnell. With their appointments, the five-seat panel regains the quorum it needs to approve liquefied natural gas export terminals, clear natural gas pipelines and issue rules governing wholesale power markets. FERC was without a quorum for six months, a stalemate that potentially slowed $50 billion of energy ventures under consideration by the agency. “We aren’t counting our chickens yet, but the approvals would certainly be a net positive for midstream industry growth, and, ultimately, for producers and consumers of natural gas,” said […]

Colonial Pipeline rations space on gasoline line as demand recovers

9 Aug 2017   Pipelines

Colonial Pipeline Co, the largest U.S. refined products system, said on Tuesday it would go back to rationing space on its main gasoline line, as demand to haul fuel recovered amid stronger prices in the country’s populous northeast. Gasoline prices in the East Coast are still firm after rallying to the strongest levels this year in July as inventories draw down from a record and a spate of refinery issues. Colonial’s main gasoline line, with a capacity of about 1.2 million barrels per day, connects the refinery-hub of the Gulf Coast to the East Coast and news of increased flows to the region sent U.S. gasoline futures tumbling to a near two-week low. Cash gasoline prices in the New York harbor region also eased, traders and brokers said. The company said it would allocate space on the pipeline segment north of Collins, Mississippi for the next five-day […]

Keystone XL Pipeline Fate in Balance as Nebraska Opens Hearings

9 Aug 2017   Pipelines, USA

Nebraska regulators opened a final hearing on TransCanada Corp’s proposed Keystone XL pipeline on Monday, a week-long proceeding that marks the last big hurdle for the long-delayed project after President Donald Trump approved it in March. The proposed 1,179-mile (1,897-km) pipeline linking Canada’s Alberta oil sands to U.S. refineries has been a lightning rod of controversy for nearly a decade, pitting environmentalists worried about spills and global warming against business advocates who say the project will lower fuel prices, shore up national security and bring jobs. Trump’s administration handed TransCanada a federal permit for the pipeline in March, reversing a decision by former President Barack Obama to reject the project on environmental grounds. But the line still needs a nod from regulators in Nebraska – which would be the last of three states to approve its proposed path into the heartland. A lawyer […]

Enbridge: Michigan, North Dakota pipelines working as planned

3 Aug 2017   Pipelines

The source of opposition, pipeline company Enbridge said in its second quarter report that pipelines in Michigan and North Dakota were operating as expected. Second quarter net income was $92.6 million, up 10 percent from the same period last year. For the six months ending June 30, the company reported net income of $158.1 million, down about 3.5 percent from the same period in 2016. One of the larger pipeline operators in North America, the company attributed some of the weakness to increased operating costs, completion of tests on its Line 5 system through the Great Lakes and weakness in its natural gas business, which was sold off in June. Enbridge is facing push back from residents in the northern part of Michigan’s lower peninsula worried about the integrity […]

Russian gas pipelines to go ahead despite U.S. sanctions

3 Aug 2017   Pipelines, Russia

New U.S. sanctions will make it harder for Russia to build two gas export pipelines to Europe but the projects are unlikely to be stopped. U.S. President Donald Trump has reluctantly signed into law further sanctions on Russia but some of the measures are discretionary and most White House watchers believe he will not take action against Russia’s energy infrastructure. This would allow Gazprom’s two big pipeline projects to go ahead, although at a higher price and with some delays. The Kremlin, dependent on oil and gas revenues, sees the pipelines to Germany and Turkey – Nord Stream 2 and TurkStream – as crucial to increasing its market share in Europe. It also fears that Western partners – needed to develop the deepwater, shale and Arctic gas deposits that will fill the pipelines – will be scared off by sanctions. Gazprom warned investors last month that […]

Trump’s U.S.-Steel Pipeline Plan To Backfire On Energy Projects

27 Jul 2017   Pipelines

The U.S. Department of Commerce is due to submit a plan to President Donald Trump regarding a presidential memorandum on the use of American-made steel and iron products in pipelines. One of the first memorandums that President Trump signed after taking office was ordering the Secretary of Commerce to “develop a plan under which all new pipelines, as well as retrofitted, repaired, or expanded pipelines, inside the borders of the United States, including portions of pipelines, use materials and equipment produced in the United States, to the maximum extent possible and to the extent permitted by law.” In April, President Trump ordered the Secretary of Commerce to report if “steel is being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security.” The Commerce Department is expected to release the report any day now, but over the past six […]

Dominion’s Atlantic Coast gas pipeline clears key environmental hurdle

22 Jul 2017   Pipelines

Dominion Energy’s Atlantic Coast natural gas pipeline Friday received a broadly favorable environmental impact statement from Federal Energy Regulatory Commission staff, marking a major milestone for the 600-mile, 1.5 Bcf/d line, among several high-capacity projects designed to bring gas to the Eastern Seaboard. The greenfield project (CP15-554) would move gas to points along its mainline in West Virginia, Virginia and North Carolina, and in concert with other projects aimed at the downstream market, would likely put downward pressure on Transco Zone 5 pricing, despite the demand growth expected there. FERC staff concluded that the project would have some adverse impacts on the environment but that most would be reduced to “less-than-significant levels” through a host of proposed plans, mitigation measures and steps laid out by the commission. Staff included 71 environmental conditions. FERC highlighted adverse impacts on steep slopes and adjacent water bodies, aquatic resources, forests, endangered species, as […]

Trump’s America-First Pipeline Plan Draws Ire of American Oil

22 Jul 2017   Pipelines

Donald Trump’s allies in the oil industry are warning the president that his bid to boost US steelmakers could backfire against their efforts to achieve his goal of “American energy dominance.” (Bloomberg) — Donald Trump’s allies in the oil industry are warning the president that his bid to boost U.S. steelmakers could backfire against their efforts to achieve his goal of “American energy dominance.” The intense lobbying effort comes as the Commerce Department faces a Sunday deadline to give the president a plan to require oil and gas pipelines use American-made steel, an idea Trump embraced in the initial days of his presidency. While the U.S. has imposed “Buy American” rules on government purchases for decades, it would be unprecedented to force those obligations on privately funded, commercial projects. The blueprint from Commerce Secretary Wilbur Ross will set the stage for further protests from the oil industry, the U.S. […]

Big Michigan business concerned by Enbridge oil pipeline

13 Jul 2017   Pipelines, USA

Voices from the lucrative craft brewing industry in Michigan and the state cherry industry joined the chorus expressing concern about an Enbridge oil pipeline. “We have oil that’s coming from Canada, passing through Michigan, and the great majority of it goes to Canada,” Larry Bell, owner of Bell’s Brewery, said in a statement . “As Michiganders, we take all this risk, both from a business standpoint and an environmental standpoint, for the profit of a Canadian oil company.” Bell’s comments are part of a campaign organized by the National Wildlife Federation, which coordinated with the Great Lakes Business Network to highlight the potential risks from Line 5, a pipeline system operated by Canadian energy company Enbridge. The campaign comes as […]

Has Keystone XL Become Obsolete?

4 Jul 2017   Pipelines

Keystone XL may have become obsolete before it was even built, at least according to some sources close to TransCanada, which has gone on a hunt for clients. A Wall Street Journal analysis quotes these sources as saying Canadian producers and U.S. refiners are just not interested in the pipeline that is supposed to carry 830,000 barrels daily of Alberta heavy crude to Gulf Coast and Midwest refineries. This lack of interest seems to be driven by TransCanada’s quest for long-term commitments, with producers and refiners seemingly unwilling to make such commitments in the current price environment. Also, according to the WSJ, Canadian crude comes at a higher cost than alternative heavy crude blends, which is contributing to the lack of enthusiasm for long-term commitments. That is likely to change over the long term, however, when declining imports from Mexico and Venezuela will benefit Canadian crude. The company behind […]

Trump Approves New U.S.-Mexico Petroleum Pipeline

1 Jul 2017   Mexico, Pipelines, USA

To boost American energy exports, the administration of U.S. President Donald Trump has approved the construction of a new petroleum pipeline from the U.S. to Mexico that “ will go right under the wall, ” President Trump said on Thursday. As part of the ‘energy week’, which promotes U.S. global leadership and dominance in energy, President Trump announced six initiatives “to propel this new era of American energy dominance,” he said. The first initiative is the U.S. to start reviving and expanding its nuclear energy sector. Next, the Department of the Treasury will address barriers to the financing of highly efficient, overseas coal energy plants, President Trump said, mentioning Ukraine as one of the countries that need coal. The third initiative is the petroleum pipeline to Mexico. The fourth step to growing American relevance in global energy is U.S. Sempra Energy signing a deal to start negotiating sales of […]

Gazprom touts progress of Chinese gas pipeline

1 Jul 2017   China, Pipelines, Russia

Russian gas monopoly Gazprom chief Alexei Miller says he expects imminent development on a natural gas pipeline bound for the Chinese economy. File photo by Anatoli Zhdanov/UPI June 30 (UPI) — Russian natural gas company Gazprom expects to sign off on developments to increase its footprint in the Asian market, the company’s top executive said. “Today we’re finalizing the discussion of the exact schedule for the launch of supplies via the ‘eastern route’ in compliance with the contract,” Gazprom Chief Executive Alexei Miller was quoted by Russian news agency Tass as saying. “The plan is to sign the relevant document in nearest days.” The eastern route refers to the so-called Power of Siberia natural gas pipeline. Gazprom has a 30-year sales agreement with China National Petroleum Corp. that calls for 1.3 trillion cubic feet of natural gas per year through the pipeline. Russian President Vladimir Putin described the 2,500-mile […]

A New Problem for Keystone XL: Oil Companies Don’t Want It

30 Jun 2017   Pipelines

Keystone XL is facing a new challenge: The oil producers and refiners the pipeline was originally meant to serve aren’t interested in it anymore. Delayed for nearly a decade by protests and regulatory roadblocks, Keystone XL got the green light from President Donald Trump in March. But the pipeline’s operator, TransCanada Corp., is struggling to line up customers to ship crude from Canada to the U.S. Gulf Coast, say people familiar…

Pipeline Pinch Adds to Oil-Sands Woes as Keystone Wait Drags

Producers have little choice but to move those extra barrels by train, with costs two to three times higher than pipeline shipping. (Bloomberg) — Call it the pipeline pinch, or maybe the Keystone quagmire. While plans by Canadian companies from Suncor Energy Inc. to Canadian Natural Resources Ltd. to boost oil output are racing to fruition, the construction of three pipelines needed to move that product to market, including the infamous Keystone XL, is lagging years behind. The end result: Producers have little choice but to move those extra barrels by train, with costs two to three times higher than pipeline shipping. It’s an unwelcome added expense after oil plunged about 20 percent from this year’s peak. Futures prices have settled in below $45 a barrel, after many predicted it would rise to $60. “We’re not going to see significant new pipeline capacity until late 2019 or 2020,” said […]

Clogged oil arteries slow U.S. shale rush to record output

27 Jun 2017   Pipelines

A gallon of gasoline that allows a driver on the U.S. East Coast to travel about 25 miles has already navigated thousands of miles from an oil field to one of the world’s largest fuel markets. If its last stop is one of the region’s struggling refineries – an increasingly unlikely prospect – the crude used to produce the gas would have probably arrived by tanker from West Africa. That’s because the region’s five plants have no pipeline access to U.S. shale fields or Canada’s oil sands. Or the journey to an East Coast gas pump might start instead in North Dakota’s Bakken shale fields – which means it could take up to three months, including a stop at a Gulf Coast refinery. The […]

13 Of 28 EU Nations Support Intervention In Nord Stream 2 Deal

27 Jun 2017   Pipelines, Russia

The European Union should negotiate the terms of the North Stream 2 pipeline, which would double the existing pipeline’s capacity to bring Russian gas to Europe, according to 13 of 28 nations in the continental bloc, a new Reuters report said. “We had 13 delegations intervening, with all of them being supportive of the Commission’s approach,” Commission Vice President Maros Sefcovic told Reuters by phone. “I am definitely optimistic about getting the mandate, but I know this is just the beginning of the debate.” Germany, which would be the direct recipient of the new energy supplies, strongly supports the pipeline expansion, but some of Berlin’s allies spoke against the project, citing the leverage it would add to President Vladimir Putin’s geopolitics, especially regarding Ukraine. Berlin believes the European Commission does not need to play a part in negotiations with Russia, because the project is only a commercial enterprise. Italy, […]

Demand to ship gasoline on top U.S. pipeline at six-year low

23 Jun 2017   Pipelines

The operator of the biggest U.S. fuel pipeline system said on Thursday demand to transport gasoline to the country’s populous northeast is the weakest in six years, the latest symptom of a global oil market grappling with oversupply. Summer is typically when gasoline demand peaks in the world’s biggest oil consuming country as motorists hit the road for vacation, and keeping their gas tanks full strains the capacity of U.S. refiners and pipelines. This year, so much fuel is stored in tanks in the Northeast that Colonial Pipeline Co [COLPI.UL] said in a notice to customers that demand from refiners and fuel traders to bring gasoline through its pipeline to the region from refining hubs in the South was the worst in six years. For the first time since 2011, demand for the pipeline was below capacity for a five-day period starting early next week, Colonial said on Thursday. […]

North American Pipeline Capacity Crisis Looms Large

14 Jun 2017   Canada, Pipelines

Canada’s problem with its oil pipeline capacity is becoming increasingly serious as opposition to new pipelines is growing in intensity. The situation will only worsen in the coming months as production continues to grow. Despite opposition, Canada’s PM Justin Trudeau last year approved Kinder Morgan’s Trans-Mountain expansion project, which will see the twin pipe transport almost 900,000 barrels of crude daily to Canada’s Pacific coast. U.S. President Donald Trump also approved a crucial new pipeline project that was shelved by his predecessor: the 830,000-bpd Keystone XL that has been the target of vocal environmentalist and Native American opposition for years. Together, the two pipelines would relieve the pressure on the existing pipeline network—but there is just one problem: the expanded Trans-Mountain will take two years to become operational. For Keystone XL, there is no deadline yet. In the meantime, Canadian exporters are resorting to increased shipments by rail to […]

Pennsylvania pipeline fight could upend international oil flows

3 Jun 2017   Pipelines

Refiners from the Midwest United States are fighting for access to a vital Pennsylvania pipeline – a move that could cripple their East Coast competitors and redraw the map for international flows of crude and fuel into coveted coastal markets. The regulatory dispute centers on a proposal by pipeline operator Buckeye Partners’ to that state’s Public Utilities Commission. The plan would reverse the flow of fuels on a section of Buckeye’s 350-mile Laurel Pipeline, which currently flows from the East Coast to Pittsburgh. Because pipelines only flow in one direction, the change would effectively block five East Coast refineries from serving Pittsburgh – with Midwest refiners picking up their market share. The commission will decide on whether to allow Buckeye to reverse the flow from Pittsburgh, […]

Dakota Access pipeline now operational, developer says

1 Jun 2017   Pipelines

The Dakota Access pipeline, which sparked a protest movement in the northern Great Plpipeline, now transporting crude oil. File Photo by Kevin Dietsch/UPI June 1 (UPI) — Oil is now flowing through the controversial Dakota Access pipeline , carrying crude from Canada and North Dakota south to Illinois, its developer said Thursday. The pipeline , which sparked a months-long protest by Native Americans and environmental groups, is 1,172 miles long. It carries oil pumped out of the Bakken oil formation in Canada and parts of the northern U.S. plains south to a major pipeline hub, where it can be sent to Gulf Coast refineries. The Sioux nation first protested the pipeline during the Obama administration, arguing it ran close to the Standing Rock Sioux reservation and over land they consider historically sacred. Calling themselves the water keepers, protesters noted the potential danger to the Missouri River and its […]

Will New Pipelines Be Enough To Handle The Permian Boom?

10 May 2017   Pipelines, Shale Oil

As production in the Permian Basin continues to increase, the accompanying infrastructure has struggled to keep up. Expansions to pipeline capacity are needed to handle the heavier flow, as more investment is pumped into the Permian and new production comes on line. That’s got a host of Texas-based Permian players excited, as new pipeline projects are launched, existing lines are expanded and new acquisitions bring fresh capital into midstream ventures. According to the EIA , the rise in Permian output is expected to add 420,000 bpd by the end of 2017. Permian production in April 2017 was measured at 2.3 million bpd according to the Drilling Productivity Report , an increase of 300,000 bpd from last year. But existing pipelines can’t quite handle the load, and this has thrown spot prices off-kilter. WTI Midland, a local hub for the Permian, boasts a significant discount compared to WTI Cushing, though […]

Pipeline Companies Push Back Against Trump’s ‘Buy American’ Rule

2 May 2017   Pipelines

Companies, trade groups submitted comments to Commerce Dept. Pipeline operators argue policy would increase costs A directive requiring U.S. pipeline companies to use American steel and iron in their projects is testing President Donald Trump’s ability to keep his promises to two industries on opposing sides of the issue. In comments to the U.S. Department of Commerce, which is crafting the so-called “Buy American” plan, pipeline companies and their trade groups argued the change would increase costs and disrupt operations. Steel companies, meanwhile, embraced the policy as an opportunity to take advantage of the country’s surging oil and gas production. And Trump has vowed to support both. The debate goes to how the president will be able to reconcile the conflicting edges of his America-first platform. During his campaign, Trump promised to break energy loose from the leash of regulation and protect steel from the bite of unfair competition. […]

Next battleground: An aging Great Lakes pipeline stirs new protest

1 May 2017   Pipelines

The growing protest movement against U.S. oil and gas pipelines has so far focused on stopping or delaying new construction, with some high-profile successes. Now, in Michigan, a broad coalition of opponents is entering a new frontier: Pushing to rip out and reroute an existing pipeline – Enbridge Inc.’s aging Line 5, which crosses the Straits of Mackinac. They fear the pipeline will leak into the Great Lakes, which contain about a fifth of the world’s fresh water and sustain the state’s second- and third-largest industries, agriculture and tourism. Those concerns – which are shared by two likely candidates for governor – also have far-reaching implications for energy firms […]

Pressure building ahead of Keystone XL review

22 Apr 2017   Pipelines

Protests are coordinated around the Nebraska review of the planned Keystone XL oil pipeline, days before the developer’s annual meeting, organizers said. Bold Nebraska called on opponents of the project to hold grassroots events ahead of the May 3 public meeting for the Nebraska Public Service Commission. “To gear up for the upcoming public hearings and meetings, we’re launching a nationwide #NoKXL house party campaign,” the advocacy group said in a statement . Bold Nebraska said the Nebraska panel has scheduled other hearings in early August, “but the PSC has declined so far to tell us on which day(s) or what time this public comment period will take place during the week.” Bold Nebraska opposition to Keystone XL helped persuade […]

Canada pipeline development facing headwinds

20 Apr 2017   Canada, Pipelines

Delays in implementation and concerns about North American trade policies create uncertainty for the western Canadian pipeline development, analysis found. A survey from IHS Markit of the pending or proposed pipeline networks in Canada, including Keystone XL , found the review process takes more than five years on average per project. Those time delays, along with U.S. President Donald Trump ‘s pledge to reconfigure regional trade policies, leaves parts of the Canadian energy market in limbo, the report found. “Lessons from the timing of Keystone XL and concerns over a possible resurgence of U.S. protectionism have highlighted the importance of market diversification,” it said. Canada is the No. 1 oil exporter to the United States and remains relatively landlocked […]

US pipeline developers push back on Trump’s call for domestic steel

20 Apr 2017   Pipelines

US oil and gas pipeline developers, including the company behind the newly finished Dakota Access Pipeline, are pushing back on President Donald Trump’s call for future pipelines to be built with domestic steel. Energy Transfer Partners — a major owner of the Dakota Access pipeline that will next month carry Bakken crude from North Dakota to Illinois — said such a requirement would have a “significant adverse impact.” “The impacts of such a restriction are expected to severely delay project schedules, drive up costs, decrease availability and lower quality,” ETP said in comments filed to the Commerce Department earlier this month. Days after his inauguration, Trump signed an executive memorandum calling on the Commerce Department to develop a plan “under which all new pipelines, as well as retrofitted, repaired, or expanded pipelines” use US-sourced materials “to the maximum extent possible and to the extent permitted by law.” The caveats […]

Last stand: Nebraska farmers could derail Keystone XL pipeline

20 Apr 2017   Pipelines

When President Donald Trump handed TransCanada Pipeline Co. a permit for its Keystone XL pipeline last month, he said the company could now build the long-delayed and divisive project “with efficiency and with speed.” But Trump and the firm will have to get through Nebraska farmer Art Tanderup first, along with about 90 other landowners in the path of the pipeline. They are mostly farmers and ranchers, making a last stand against the pipeline – the fate of which now rests with an obscure state regulatory board, the Nebraska Public Service Commission. The group is fine-tuning an economic argument it hopes will resonate better in this politically conservative state than the […]

East Coast refiner shuns Bakken delivery as Dakota Access Pipeline starts

19 Apr 2017   Pipelines

Philadelphia Energy Solutions Inc, the largest refiner on the U.S. East Coast, will not be taking any rail deliveries of North Dakota’s Bakken crude oil in June, a source familiar with delivery schedules said on Tuesday – a sign that the impending start of the Dakota Access Pipeline is upending trade flows. At its peak, PES would have routinely taken about 3 miles’ worth of trains filled with Bakken oil each day. But after the $3.8 billion Dakota Access Pipeline begins interstate crude oil delivery on May 14, it will be more lucrative for producers to transport oil to refineries in the U.S. Gulf Coast. The long-delayed pipeline will provide a boost for Bakken prices and unofficially end the crude-by-rail boom that revived U.S. East Coast refining operations several […]

Blackstone to Buy Permian Basin Pipelines for $2 Billion

18 Apr 2017   Pipelines

EagleClaw Midstream to retain current management and name Deal is latest in a parade of transactions in prolific basin Blackstone Group LP agreed to acquire pipeline company EagleClaw Midstream Ventures LLC for about $2 billion in cash, the latest deal in the prolific Permian Basin of West Texas. The transaction, which includes more than 375 miles (603 kilometers) of natural gas pipes, is expected to close by the end of July. EagleClaw will retain its name and operate as a Blackstone portfolio company, with the leadership team remaining intact, according to a statement Monday. EagleClaw’s financial sponsor is a partnership between EnCap Investments LP and Flatrock Energy Advisors LLC, called Encap Flatrock Midstream. Blackstone joins a parade of pipeline buyers in the Permian Basin amid a drilling rebound spurred by higher oil prices. While most producers are targeting oil, it often comes mixed with substantial natural gas. The total […]

Dakota Access Pipeline to start interstate service May 14

14 Apr 2017   Pipelines, USA

The controversial Dakota Access Pipeline will begin interstate crude oil delivery on May 14, according to a filing with the U.S. Federal Energy Regulatory Commission. Energy Transfer Partners LP on Thursday filed what is known as a tariff, which lays out details about the line and the oil to be delivered. The 1,172-mile (1,885-km) Dakota Access line runs from western North Dakota to Patoka, Illinois. The $3.8 billion project became a focus of international attention, drawing protesters from around the world, after a Native American tribe sued to block completion of the final link of the pipeline through a remote part of North Dakota. The Standing Rock Sioux tribe said the pipeline […]

New U.S. pipelines to drive natural gas boom as exports surge

13 Apr 2017   Pipelines

U.S. energy firms are scrambling to finish a slew of pipelines that will unleash rich reserves of shale gas in Pennsylvania, West Virginia and Ohio as the nation prepares to become one of the world’s top natural gas exporters. The pipelines are expected to boost output from shale fields in the three states by giving producers access to new domestic and international markets. Those states could supply about a third of all U.S. natural gas once the pipeline expansion is complete, up from about 25 percent now, according to projections from the U.S. Energy Information Administration (EIA). The network will bring cheaper fuel supplies for power generation and industry being built in the eastern half of Canada and the United States, especially along the U.S. Gulf Coast. It would also transport the huge volumes needed to feed facilities that chill the gas to liquid so it can be shipped […]

New U.S. pipelines to drive natural gas boom as exports surge

13 Apr 2017   Pipelines, Shale Gas

U.S. energy firms are scrambling to finish a slew of pipelines that will unleash rich reserves of shale gas in Pennsylvania, West Virginia and Ohio as the nation prepares to become one of the world’s top natural gas exporters. The pipelines are expected to boost output from shale fields in the three states by giving producers access to new domestic and international markets. Those states could supply about a third of all U.S. natural gas once the pipeline expansion is complete, up from about 25 percent now, according to projections from the U.S. Energy Information Administration (EIA). The network will bring cheaper fuel supplies for power generation and industry being built in the eastern half of Canada and the United States, especially along the U.S. Gulf Coast. It would also transport the huge volumes needed to feed facilities that chill the gas to liquid so it can be shipped […]

Permian Pipeline Bottleneck Forces Steep Discounts

Oil production in the Permian Basin is rising so quickly that drillers may find themselves without enough pipeline capacity to move their product. Shale drillers large and small are rushing to West Texas, where drilling is profitable even at today’s prices. Other shale basins have lost capital and drilling rigs as industry activity becomes increasingly concentrated in the Permian. Even as shale production contracted in most of the country, the Permian continued to grow over the past several years through the worst of the downturn. Oil production in the Eagle Ford, for example, hit a peak in March 2015 at 1.7 million barrels per day (mb/d), but has since fallen sharply to just 1.1 mb/d today. But Permian production has spiked over the same timeframe, rising by nearly 0.5 mb/d to nearly 2.3 mb/d. (Click to enlarge) Production increases have continued despite the plunging rig count since 2014. Companies […]

Exclusive: NAmerico unveils natural gas pipeline plan to relieve Permian glut

NAmerico Partners LP is proposing a multibillion-dollar pipeline to ferry natural gas from fast-growing fields in West Texas to the Gulf Coast, the company said on Monday, angling to match plans by rivals such as Kinder Morgan Inc ( KMI.N ). The pipeline, one of at least three being considered to ease a looming gas glut in the Permian producing region, would link to existing lines, including those that export gas to Mexico and to a Cheniere Energy Inc ( LNG.A ) liquefied natural gas export facility under construction. The pipeline would be the first major project by NAmerico Partners, founded two years ago in Houston. The company is backed by private equity fund Cresta Energy LP, whose management includes former executives from Regency Energy Partners LP, a large energy infrastructure company that was bought by Energy Transfer Partners ( ETP.N ) in 2015. NAmerico Managing Partner Jeff Welch […]