RBN’s Daily Energy Blog and Insights sharpen your energy IQ through fundamentals-based analysis that makes sense of North America’s energy market dynamics.
The BOSTCO Terminal started operations this week on the Houston Ship Channel. By early next year (2014) the terminal will have 6 MMBbl of storage capacity. This $500 Million investment by two midstream companies is designed to meet the expanding needs of fuel oil blenders at the Gulf Coast.
For decades natural gas flows have moved to the huge Northeast demand region from the Gulf, Canada, Rockies and Midcontinent. Now those flows are being reversed by the Marcellus and Utica plays that will soon be producing more gas than the Northeast can use.
The West Coast crude-by-rail terminal build out has been slower to develop than elsewhere in the US. But there are still over 1 MMb/d of unload capacity built or in the planning stages to come online by the end of 2014.
The pig, or “Pipeline Integrity Gauge,” is a sophisticated device that is critical to the safety and integrity of pipelines. The oil and gas pipeline transportation industry can’t live without them. They help ensure the safe and efficient passage of crude oil, NGLs, petroleum products
Chemicals, gas-to-liquids (GTL), steel and other industries that consume large volumes of natural gas either directly or as a fuel, expecting the new era of low and stable gas prices to continue are planning tens of billions of dollars in new or expanded facilities in the U.S.
The US Gulf Coast is perceived by midstream operators to offer a growing opportunity for the export of fuel oil left over from refinery processing. The US does not produce as much residual fuel oil as European refiners and the largest market is in Asia.
Reversing the direction of flow on the eastern third of the Rockies Express (REX) pipeline would have a profound effect on natural gas markets throughout the industrial Midwest and the Midsouth.
Earlier this month, US Midstream logistics firm Targa pulled out of a crude by rail marine dock project at the Port of Tacoma, WA. The plan was to rail crude from the Bakken to barges and tankers for shipment to refineries in Washington State and California.
The NATGAS Appalachia weekly report provides the data and insights to monitor the northeast natural gas market’s twists and turns and identify the risks and opportunities along the way, including tracking supply-demand trends, outbound capacity and their impact on takeaway pipeline utilization, and regional prices.
The internal rates of return (IRR) for our model of a typical Haynesville dry gas shale well is in the low teens at today’s gas prices. That is a low return compared to the liquids rich plays that producers are concentrating on these days.
The promise of vast quantities of shale gas at low and stable prices is sparking a U.S. industrial revival no one could have envisioned only a few years ago.
