The nation’s seven Class I railroads spent $11.5 billion on diesel in 2012. Given that LNG costs roughly half as much as diesel, the majority of the railroads have announced plans to test LNG-fueled locomotives.
Archive for the ‘shipping’ Category
By News Desk | November 18, 2013 05:02 PM Comments (0)
Two different projects both have the same aim: take abundant US/Canadian crude oil and move it elsewhere
By John Kingston | November 8, 2013 02:58 PM Comments (0)
By Ross McCracken | October 24, 2013 09:51 AM Comments (1)
An arbitrage is a difference in value for a commodity relative to location. It is something that efficient markets close. Billions of dollars are being invested in the US to take advantage of the price difference between domestic gas and Asian LNG, just as billions were earlier invested in LNG import terminals. In this month’s featured article from Platts Energy Economist, editor in chief Ross McCracken discusses how only time will tell if it proves a good bet either for buyers or sellers.
Arbitrages are common in the oil and gas world. One of the most long-standing was the Brent-WTI arb. In the old days – Before Shale – international marker Dated Brent, then a single crude blend from the North Sea, traded at a discount to the US marker West Texas Intermediate. If the discount proved large enough to compensate for the freight cost, cargoes of Brent would be moved across the Atlantic and into the Gulf Coast.
By News Desk | September 9, 2013 12:01 AM Comments (2)
By Pradeep Rajan | July 12, 2013 10:06 AM Comments (1)
As Syrian President Bashar al-Assad’s forces battle to keep the rebels out of the territories where the opposition have some inroads, a large part of the war-torn country’s vital energy supplies are coming from Iran.
Tehran is said to be supplying a large part of the crude that is being processed at Syria’s two state-owned refineries — the 133,000 b/d Baniyas and 107,000 b/d Homs refineries — according to trading sources.
By Melanie Wold | July 10, 2013 03:28 AM Comments (2)
As the smoke clears (literally) in Lac-Megantic, Quebec, after a runaway train packed with crude oil tankers crashed July 6, the oil industry is coming to terms with a business that has perhaps grown too far too fast.
The Lac-Megantic accident is shining an unwelcome spotlight on the lack of regulatory oversight on oil by rail in both the US and Canada. The fact that the rail cars (which were being pulled by the Montreal, Maine & Atlantic Railway) that crashed and exploded were considered unfit to carry hazardous materials sharpens that focus.
By Bridget Hunsucker | June 25, 2013 12:01 AM Comments (3)
For months, a fleet of crude oil tanker vessels have waited in line to approach the congested public docks of the Port of Corpus Christi, Texas. The object of their shipping desire is one of the US’ hottest commodities: light, sweet and relatively cheap Eagle Ford Shale crude.
By Pradeep Rajan | June 11, 2013 11:55 PM Comments (0)
The last time you filled up your tank, did you wonder where the gasoline came from? How did it begin life? And where did the crude oil come from that gave us gasoline?
Now you can go digging — or drilling — for all the answers while playing a game.
Danish shipping and oil conglomerate Maersk has launched a computer game called ‘Quest for Oil’ to help unfold the unknown universe of oil exploration.
By John Kingston | June 11, 2013 11:47 PM Comments (3)
The bottom of the barrel — residual fuel, bunker fuel, asphalt and petroleum coke — take up a little more than 5% of total US consumption. But because of new rules affecting the second of that group, bunkers, it’s about to undergo an upheaval that could easily spill over into other markets.
The consensus on day one of the Platts 10th Bunker & Residual Fuel Conference in Houston is that despite significant talk about the shipping industry getting to mandated lower sulfur levels through a variety of means — LNG or desulfurizing onboard scrubbers being the most prominent alternatives — it’s almost certainly going to be marine gasoil or marine diesel that gets the shipping industry across the finish line.
By Melanie Wold | May 14, 2013 12:01 AM Comments (0)
Once the darling of hedge funds, commodities are now looking like a poisoned chalice. Last year, hedge funds such as BlueGold, which specialized in crude oil; Centaurus, in natural gas; and Fortress Commodities, across all raw materials, shut down. Several commodities fund of funds also closed last year after clients fled.
Commodities trading, it seems – and in particular oil – is not for the faint of heart. The field is littered with failed ventures and prison sentences.
International sanctions on exporting countries such as Iran can make trading crude an even more dangerous game. On May 9, the US Treasury said it was penalizing Sambouk Shipping for contravening these sanctions. Sambouk is allegedly associated with Dimitris Cambis, who, along with a network of front companies, was executing ship-to-ship transfers of Iranian oil to obscure its origin.