Any decision to extend OPEC production cuts past June would have to include the continued participation by the non-OPEC members of the November accord, OPEC Secretary General Mohammad Barkindo said on Tuesday.The group held talks in recent days with shale oil producers and hedge fund executives, he said during a media conference at the CERAWeek energy conference in Houston. This is the first time OPEC held bilateral meetings with shale producers and investment funds, Barkindo said.”I think we have broken the ice between ourselves and the industry, particularly the tight oil producers and the hedge funds who have become major players in the oil market,” he said in remarks on the sidelines of the energy conference.OPEC plans to hold an event to consider the impact of oil futures on physical crude markets, he said, without providing details.
Source: Oil output cuts past June must include non-OPEC members: OPEC Secretary General | Reuters
Several large natural gas interstate pipeline projects have come online in recent years to support the shifting geography of domestic natural gas production. The Marcellus and Utica shale plays in the Northeast, where production has grown and resources are abundant, are major drivers for pipeline development. In 2016, the Federal Energy Regulatory Commission (FERC) certificated 17.6 billion cubic feet per day (Bcf/d) of new natural gas pipeline capacity. So far in 2017, FERC certificated more than 7 Bcf/d of new pipeline capacity before losing its quorum following the departure of one commissioner in February, which left just two sitting commissioners and three vacant seats.FERC oversees the interstate transmission of natural gas, which includes the regulation of interstate transportation rates and services for natural gas pipelines, natural gas pipeline construction, and related pipeline environmental matters. Pipeline certification involves reviewing applications for the construction and operation of natural gas pipelines and ensuring that applicants comply with safety standards.Receiving a certificate is just one step in the process of building and operating a new pipeline; pipelines receiving certification in 2017 will not necessarily come online in 2017.The seven projects certificated during the first few weeks of 2017 include more than 1,500 miles of natural gas pipeline construction and expansions, involving combined additions of more than 7 Bcf/d of capacity. The pipeline projects are concentrated in the eastern half of the United States to improve access to markets for growing eastern natural gas production, and they have projected 2017 and 2018 in-service dates.
Source: FERC certificates several new natural gas pipelines in 2017 – Today in Energy – U.S. Energy Information Administration (EIA)
A San Antonio-based company has entered into a joint venture to build a 730-mile pipeline that will link the oil fields of the Permian Basin to refineries and marine terminals at Port Corpus Christi.
Source: San Antonio-based TexStar Midstream Logistics to build EPIC Pipeline linking Permian Basin to Corpus Christi – San Antonio Business Journal
Posted in CERAWeek, Corpus Christi, Permian, Pipeline, Port of Corpus Christi
Tagged CERAWeek, Corpus Christi, IHS CERAWeek, Permian, Pipeline, Port of Corpus Christi, TexStar Midstream
IHS CERAWeek is an annual energy industry conference in Houston that tends to draw huge crowds from all over the world — this year’s conference is expected to pull nearly 3,000 attendees from more than 60 countries. Denver-based IHS Inc. (NYSE: IHS) will host the 36th anniversary of CERAWeek March 6-10 at the Hilton Americas Hotel downtown.
Source: IHS CERAWeek to be held March 6-10 in downtown Houston, speakers include Exxon’s new CEO Darren Woods – Houston Business Journal
From the moment it began, you could tell something was missing from Exxon Mobil Corp.’s first strategy presentation under its new CEO: Texan Rex Tillerson’s usual jab at New York City, where the event is held.His successor at the helm, Darren Woods, kept many other things the same. There was the usual emphasis on superior performance and the benefits of integration and a relatively humdrum Q&A session.For all the continuity, though, Woods signaled some big shifts in where this supertanker is going.First, although capital expenditure is set to increase this year, Exxon appears to have partly embraced the idea that big budget projections are taboo with investors these days, aiming to hold spending at around $25 billion a year through 2020. That’s up from 2016’s $19.3 billion — which was very low — but still notably below the $30 billion-plus levels of 2011 to 2014, which eroded Exxon’s return on capital and dimmed its reputation for discipline.
Source: Exxon Will Remake Shale Or Shale Will Remake Exxon – Bloomberg Gadfly
The first of several new petrochemical plants coming online this year became operational this week when Houston-based Occidental Petroleum opened its new facility near Corpus Christi.The $1.5 billion ethylene plant in Ingleside is a joint venture between Occidental’s OxyChem subsidiary and Mexico-based Mexichem. The facility, called an ethylene cracker, takes ethane from natural gas production and converts it into ethylene, which is the primary building block for most plastics.The project is the smallest and first of several Texas Gulf Coast ethylene crackers being completed this year. Others are under construction in the Houston area by Exxon Mobil, Chevron Phillips Chemical and Dow Chemical.The plant will churn out 1.2 billion pounds of ethylene a year that Occidental will turn into vinyl chloride mononers, which Mexichem will then convert into polyvinyl chloride to make PVC piping.
Source: Occidental’s massive petrochemical plant comes online in Texas | Fuel Fix
The decline in Bakken oil production that started in January 2015 is probably not reversible. New well performance has deteriorated, gas-oil ratios have increased and water cuts are rising. Much of the reservoir energy from gas expansion is depleted and decline rates should accelerate. More drilling may increase daily output for awhile but won’t resolve the underlying problem of poorer well performance and declining per-well reserves.
Source: Beware The Bakken | Zero Hedge
BP is stepping on the gas in Mexico.On March 9, the British oil major plans to open its first filling station in Mexico City.The company — which won two deep-water exploration blocks last December in a tender in which it partnered with Statoil of Norway and Total of France — says it will grow its petrol station network organically, but a spokesman had no more details ahead of the official launch, writes Jude Webber in Mexico City.Mexico’s energy sector was closed to competition for nearly eight decades, with state-owned Pemex the only player in hydrocarbon exploration and production, as well as filling stations. The company’s green, white and red eagle logo is a fixture on filling stations nationwide.
Source: BP plans to open its first filling station in Mexico City next week
Comerica Bank’s Texas Economic Activity Index improved by 0.2 percentage points in December to a level of 91.8. December’s index reading is 19 points, or 26 percent, above the index cyclical low of 72.8. The index averaged 91.4 points for all of 2016, six and one-tenth points below the average for full-year 2015. November’s index reading was 91.6.“The Comerica Bank Texas Economic Activity Index increased for the fourth consecutive month in December. This is the longest expansion streak for the Texas Index since mid-2014. Improving oil prices, more active oil fields and a stronger U.S. economy are the keys to better performance for the Texas economy this year. With oil prices firm through February we expect the Texas Index to continue to climb through early 2017. Even through the December increase in the Texas Index was small, most index components were positive for the month, including nonfarm employment, state exports, unemployment insurance claims (inverted), housing starts, drilling rig count, home prices and state sales tax. Only hotel occupancy declined for the month,” said Robert Dye, Chief Economist at Comerica Bank. “North Texas continues to grow strongly. As the year progresses, we expect oil-producing areas to turn the corner and join in.”
Source: Comerica Bank’s Texas Index Advances | Comerica Economic Insights