The Energy Information Administration expects to report condensate production volumes early next year and movements of crude by rail by the summer, agency head Adam Sieminski said today.The agency is continuing to study new areas in need of reporting, including storage volumes on the Texas coast, he said on the sidelines of the Deloitte Oil & Gas conference in Houston, Texas.EIA expects to begin surveying production data directly, including API gravity information, leaving behind a patchwork of state-level production data on which the agency currently relies.”I think by January, I hope, we’re going to be able to start collecting data,” Sieminski said.Rapidly changing US energy development has exposed gaps in the agency’s data, relied upon by both policy makers and industry to help monitor the sector. Condensate, previously a marginal part of crude production, has received special interest as current US policy allows producers of growing volumes of the high-gravity oil to lightly distill and then export it.EIA will continue to rely on US Commerce Department data to track condensate exports, Sieminski said.The agency also plans to begin offering third-party data next year on crude volumes moved by rail. EIA will evaluate whether it will still need to develop its own surveying for a crude logistics method particularly important to the US Atlantic and west coasts.Federal regulations limit the agency’s ability to survey companies for the information without administrative approval. Third-party data is, at this point, faster, he said.But EIA would need administrative approval to modify surveys to gather more information on available storage in the Houston area on the Texas Gulf coast. Sieminski saw a need for such figures, similar to what the agency collects on the crude storage hub at Cushing, Oklahoma.
via News – Argus Media.
Houston-based pipeline giant Enterprise Products Partners LP NYSE: EPD has bought controlling ownership of a major oil storage and terminal business in a nearly $4.6 billion deal as part of a larger acquisition process.Enterprise Products will have about 66 percent of Houston-based Oiltanking Partners LP NYSE: OILT and full ownership of its general partner from Oiltanking Holding America Inc., which is a subsidiary of Germany-based oil and gas storage provider Oiltanking GmbH.The deal includes $2.21 billion in cash, $2.2 billion in newly issued EPD units and $228 million in cash for notes receivables and interest on Oiltanking notes payable and credit facility.Enterprise CEO Michael Creel said the completed deal is the first step of a two-part process for the “merger of Oiltanking Partners into Enterprise” to help expand its liquefied petroleum gas export business near Houston. Enterprise is rapidly expanding within the Houston region.Creel said Enterprise plans to acquire the remaining publicly held partner interests in Oiltanking in a roughly $1.4 billion deal, making the two-part process a $6 billion transaction.
via Enterprise Products Partners buys control of Oiltanking Partners – Houston Business Journal.
To capitalize on a flood of domestic and Canadian crude into the U.S. Gulf Coast, logistics giant Kinder Morgan Energy Partners is spending more than $1.5 billion in Houston to build the most flexible oil and fuel transport hub in the country.The company’s expanding infrastructure smorgasbord includes a bit of almost everything at the increasingly crowded Houston Ship Channel – all next door to the biggest concentration of refiners in the country.The buildout, executives say, responds to the increasingly dynamic world of physical crude trading in North America, where the variety of available crudes is growing, and is aimed at securing their central position in moving oil from the U.S. shale boom to market.Customers want multiple options to switch delivery modes on a dime and snag the best price for refinery feedstocks. They need more dock and storage space to handle surging volumes of fuel being shipped overseas.”More of them are producing more than they can consume in the United States. So they want to take it to water, either for movement up and down the coast … or to export because you see a tremendous amount of growth,” John Schlosser, president of Kinder Morgan’s terminal division, said of refiners.Schlosser, who spoke to Reuters on a tour of the company’s facilities, said the company was doubling down on its core business.”Our bread and butter is the midstream – that’s where we’re making all of our investments,” he said. “It’s like connecting the dots.”Kinder’s latest push is to add storage and pipeline connections to final domestic destinations, a huge oil-by-rail offloading operation, and a wider export platform.
via Kinder Morgan builds out Gulf Coast logistics hub in U.S. oil boom | Reuters.