East Coast refiners, including Phillips 66 and Monroe Energy, are looking to take in higher volumes of oil shipped via tanker from Texas to Philadelphia as the incentive to transport Bakken crude by rail slowly disappears with the opening of the Dakota Access and other pipelines. Buying domestic oil from the US Gulf would give refiners access to a variety of grades, including Eagle Ford, Permian and even Bakken crude, although they'll likely continue to rely on foreign crude for most of their supply.
The US Chamber of Commerce's Institute for 21st Century Energy in a report underscored the need for more natural gas pipelines in the Northeast US and slammed environmentalists for challenging new projects. "As a result, residents in the Northeast are paying the highest electricity rates in the continental US, with no relief in sight if infrastructure is not built," Institute for 21st Century Energy President and CEO Karen Harbert said.
Corpus Christi, Texas, is emerging as an oil export hub and alternative to overcrowded Houston as surging oil production in the Permian Basin and Eagle Ford is prompting more investments in pipelines running to the city, according to a Morningstar report. Two new pipelines have been proposed from the Permian to Corpus Christi, potentially adding 1 million barrels of daily capacity by the end of 2019.
Kinder Morgan's Canadian unit has filed a prospectus for an initial public offering of restricted voting shares, with proceeds to be used to fund its $5.45 billion Trans Mountain expansion project, but the company is also considering a joint venture. The expansion would boost the capacity of Kinder Morgan's existing system to 890,000 barrels of crude per day -- nearly three times the current capacity.
There were 10% fewer pipeline accidents reported last year compared with 2015 in a sign that the industry is placing greater emphasis on safety, according to a joint report from the American Petroleum Institute and Association of Oil Pipe Lines. In the report, the two trade associations also laid out a three-year strategic plan to improve safety and emergency response that involves building and implementing new performance measures.
Senior US District Judge John Steele for the Middle District of Florida on Monday cleared the way for Burnett Oil to engage in oil exploration activities in the Big Cypress National Preserve after rejecting claims by six environmental groups that Burnett's plans would harm the natural habitat. "The court has found that [the National Park Service] took a 'hard look' at the cumulative impacts and mitigation measures and was reasonable in finding no significant impacts from the survey," Steele wrote.
American Petroleum Institute Senior Director of Regulatory and Scientific Affairs Howard Feldman listed rules that the organization would like the Environmental Protection Agency to reassess. The list includes revisiting emission limits on oil and natural gas operations under the New Source Performance Standards, reconsidering the 2015 ozone National Ambient Air Quality Standards and reducing quotas under the Renewable Fuel Standard without removing the RFS' point of obligation.
President Donald Trump will likely issue a number of new executive orders this week, including one that would open more offshore areas to oil and natural gas development and a second directive calling for the review of national monument designations under the Antiquities Act of 1906. Former President Barack Obama used the Antiquities Act more than any other president to protect land and water from oil and gas drilling, mining, pipelines, commercial development and timber harvesting.
New data from Norway's eastern and northern areas of the Barents Sea show estimated oil and natural gas reserves are twice as large as previously thought, the Norwegian Petroleum Directorate says. The number of exploration wells in the Barents Sea likely will increase to a record 15, and at least three new developments are in the works.
OMV Norway found success in using a collaborative approach on a horizontal appraisal well in the Barents Sea. The company worked with oilfield services provider Schlumberger early in the planning process and used specialized well-testing techniques, resulting in an efficient, cost-effective well completion.
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