Posts Tagged ‘pipelines’

The Keystone XL saga: missed chances, shifting sands — Fuel for Thought

If Bill O’Reilly, author of such books as “Killing Lincoln” and “Killing Kennedy” were to turn his attention to pipelines, his next book might be entitled “Killing Keystone.”

It would be a tale full of twists and turns, conspiracy theories, missed opportunities, miscalculations and bad timing surrounding TransCanada’s proposed Keystone XL pipeline. It would not, however, be a book about whether the now-notorious project would have been good simply on its merits.

Read the rest of this entry »

The Oil Big Five: Already looking at changes for 2016 and beyond

We’re speeding toward the end of 2015, which means that our monthly oil feature, The Oil Big Five, is increasingly focused on topics that could shape the global oil industry into 2016 and beyond.

Read the rest of this entry »

More money, more problems: Oil prices, M&A activity and competition

As the US oil market plunges toward the end of 2015 — and the end of the incredibly profitable hedges many large producers held throughout the year — investment capital is assembling on the sidelines, ready to pick off those who can’t make sub-$60/b work without those hedges.

And it’s not just the producers. Though many midstream companies will pointedly say that they have volumes fixed to term contracts and therefore aren’t exposed to fluctuations in price or production, most have at least some spot volume on their pipelines. And if a business is distressed, several analysts have said there’s plenty of capital waiting to snatch up those companies.

Read the rest of this entry »

Why US natural gas prices hit multi-year lows this week

On Oct. 29, 2015, the NYMEX November natural gas futures contract settled at $2.033/MMBtu.

For comparison, the November contract closed at $3.649/MMBtu in 2014, $1.61 higher or 79 percent higher than Oct. 29. The last time the prompt-month contract closed lower than Oct. 29 was April 24, 2012 at $1.975/MMBtu.

Read the rest of this entry »

US Atlantic Coast crucial stronghold for rail and crude

Pipelines are chasing crude-by-rail shipments out of most US markets, but the Bakken-to-Atlantic-Coast route has managed to keep a hold on its market share, making the spread between domestic and international crudes more important than ever to profitability on the rails.

Rail used to have a key advantage in the midstream market; namely, it was already there. When the US started producing massive quantities of crude oil from shale wells about six years ago, the volumes quickly overwhelmed the market’s ability to move it around with traditional infrastructure. Huge amounts of crude oil were piling up in the Bakken, hundreds or even thousands of miles from the major coastal refining regions, and no one had the space to move it.

Read the rest of this entry »

Russia’s oil industry woes also from within: Petrodollars

Russia’s oil and natural gas industry is feeling the impact of low prices and financial and technological sanctions, but disagreements within the country’s own energy sector are also proving a hurdle to development, as Rosemary Griffin details in this week’s Oilgram News column, Petrodollars.

Read the rest of this entry »

Prospect of new pipeline capacity in Louisiana rattles rail, barge operators

Louisiana could be the site of the next wave of pipeline expansions, which might be a boon for refiners there, but other midstream players could find themselves on the outside looking in, depending on the origin of the crude on the lines.

Read the rest of this entry »

Oil pipeline threats add to pressure on Azerbaijan

Oil-rich Azerbaijan is being rattled by disruption and attacks on pipelines, highlighting its tough geopolitical position and adding to worries about falling oil prices.

Having been courted by previous US governments, international interest in Azerbaijan and fellow Caspian producer Kazakhstan has waned in recent years, not least because of the increase in US shale oil production. Azerbaijan’s oil production is, in any case, thought to have peaked.

But with 848,000 b/d of output last year, Azeri production still matters.

Read the rest of this entry »

Watching the dominoes fall for US steel

The domino theory in global politics — pertaining to the spread of communism, kids — is a thing of the past, but it is getting new life in the global steel arena — not the communism part, the domino part.

The most recent example in steel is a “double domino.”

Read the rest of this entry »

US crude-by-barge industry faces rough waters in oil markets: Petrodollars

While pipelines and rail are often the transportation modes that spring to mind for moving oil in the US, there’s also a market for inland barges. In this week’s Oilgram News column, Petrodollars, Joshua Mann assesses how the market to move oil has shifted under pressure from crude prices.

Read the rest of this entry »